The report focuses on the coworking spaces market which is experiencing strong growth. The report gives a guide to the coworking spaces market which will be shaping and changing our lives over the next ten years and beyond, including the market’s response to the challenge of the global pandemic.
The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.
The market is expected to reach $13.03 billion in 2025 at a CAGR of 12%.
The coworking spaces market consists of coworking space rental revenues earned by entities (organizations, sole traders and partnerships) that provide coworking workspaces on rent or lease.
Unlike traditional office rental, the cost of renting coworking workspaces usually covers the use of related services/equipment such as office chairs and desks Internet/Wi-Fi connection, hardware, software, and others. The industry includes businesses that offer non-residential structures with amenities and facilities on a flexible rental basis.
The coworking spaces market is majorly determined by the increase in the number of start-ups globally. According to thegeniuswork.com publication in October 2019, the global start-up economy was worth $ 3 trillion in 2019, with a rise of 20% from 2017 and 2018.
The growth is backed by the expansion of internet space, exposure to the knowledge of entrepreneurship outside the boundaries of the country, and improved literacy rates.
Besides, advanced manufacturing and robotics, agriculture technology and new food, blockchain, and artificial intelligence, big data, and analytics were the fastest growing start-up sub-sectors globally.
Therefore, the rise in the number of startups across various industries globally increased the demand for coworking spaces, driving the market during the forecast period.
The coworking spaces market covered in this report is segmented by business type into open/ conventional coworking spaces, corporate/ professional coworking spaces, others, and by end-use into finance, legal services, marketing, technology, real estate, consulting services, others.
The increase in the number of people working from home or remotely owing to the COVID-19 lockdown limits the growth of the market. For instance, in March 2020, many companies working from home owing to the COVID-19 pandemic, operators of coworking spaces have seen an almost 50% decline in footfalls.
Furthermore, according to Business 2 Community publication in April 2020, the number of people working remotely has grown by 44% in the last five years, with 7 million people (3.4% of the population) were working remotely in the USA before the arrival of COVID-19.
Nevertheless, the number of people working remotely is tremendously increased owing to the coronavirus outbreak over the last few months. Consequently, declining the revenues generated by the coworking spaces market during 2020.
The development of sustainable coworking spaces is a major trend shaping the coworking spaces market.
Coworking spaces are implementing eco-friendly measures in the workplace to attract entrepreneurs concerned with environmental issues such as global warming.
Sustainable practices adopted by the coworking space providers offer substantial benefits and are economically feasible. For instance, CoCoon in Hong Kong has a floor made of natural bamboo and uses non-toxic paints and LED lights.
In addition to this, drought-resistant plants are part of the interior and exterior. Another such example is Green Spaces in Denver uses about 160 solar panels on the roofs of its offices. These allow significant cost savings at Green Spaces. Thus, sustainable coworking space is a key trend in the coworking spaces market.
In January 2019, a Los Angeles-based workspace provider Cross Campus, announced the acquisition of San Diego’s coworking space provider DeskHub, for an undisclosed amount.
This acquisition helps the company to increase its footprints in San Diego and Scottsdale, AZ, providing an opportunity to broaden its services in the region. DeskHub is committed to creating a premier network for coworking workspaces across the USA.
In 2020, Nairobi Garage, also joined forces with METTA in the spirit of collaboration, sustainability, and upgrading services and facilities to create the country’s largest innovation community, offering flexible access to all workspaces and networks, as well as a new digital event series.
METTĀ is a club for the entrepreneurial community to connect, share knowledge and bring ideas to life. With 370 members in Nairobi and over 15,000 members in its digital community, METTĀ offers a range of events, workshops, and corporate innovation programs.