Market Definition: Coworking space is a shared place that can accommodate employees of more than one company or set of independent individuals. It provides shared infrastructure to multiple people or groups at a much cheaper cost compared to traditional offices.
New York, June 09, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Co-working Space Market By Business Type, By Business Model, By Enduser (Independent Professionals, Startup Teams, And Large Scale Corporations – Global Opportunity Analysis And Industry Forecast, 2022 – 2030” – https://www.reportlinker.com/p06272289/?utm_source=GNW
Coworking spaces enhance the feeling of community, creativity, fun, flexibility, accessibility, and sustainability. Also, it offers a variety of amenities like meeting rooms, private offices, hot desk space, private cabin space and shared workstations in an open-plan. In addition, they work on a flexible pay-as-you-go membership model which enables users to save a lot of additional costs by allowing the pay for what they use. Moreover, coworking typically operates on a monthly club membership or subscription fee, which includes access to many additional facilities like cafeteria and others. With the rising cost of rents in tier 1 and tier 2 cities, many SMEs and entrepreneurs are choosing coworking spaces to gain access to better facilities at a cheaper cost.
Market Dynamics and Trends:
Increasing number of startups is driving the growth of coworking space market as they are opting for coworking spaces owing to increasing rent of private office spaces. For instance, according to a survey in 2020, nearly 1.4 million startups were founded in the third-quarter quarter of 2020, a 49% increase over the second quarter of 2020 and a 67% increase over the previous third-quarter startup high set in 2018. Coworking spaces are not only helping to reduce the cost of rent but also additional utilities such as desk, high-speed Wi-Fi connection, coffee, meeting rooms, recreation zones and many others. Also, coworking spaces help startups in acquiring new talents from number of freelancers working together with them on a day to day basis, which in turn reduces the cost of recruitments. Thus, fueling the growth of the market. Moreover, increasing investments in niche coworking spaces such as women only spaces, LGBTQ+ spaces, and other social groups are expected to provide lucrative opportunity as they are becoming popular to accommodate the growing diversity in SMEs such as on-premise childcare and other.
However, the low awareness regarding coworking spaces is hampering the growth of the market. This is attributed to huge misconception among many SMEs and startups from various industry vertical that coworking spaces is only for IT sector as they mainly work from their devices. According to a poll, just 20% of office workers attend a coworking space once a month, leaving a big portion of the population (80%) without general awareness regarding such spaces. In addition, coworking means sharing workspace with strangers, which in turn creates problem for many workers to adapt to unknown people and environment of the spaces.
Market Segmentations and Scope:
The coworking space market is segmented on the basis of business type, business model, end user and geography. On the basis of business type, the market is divided into conventional coworking, professional coworking, and others. On the basis of business model, the market is categorized into sub-lease model, revenue sharing model, and owner-operator model. On the basis of end user, it is segmented into independent professionals, startup teams, and small to medium sized enterprises (SMEs). Geographic breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.
North America has the highest number coworking spaces in terms of size, with an average of 9,799 sq.ft. per space. This huge demand for coworking space is fueled by growing adoption of flexible work practices, service offices and remote teams.
On the other hand, Asia-Pacific has two of the highest populated countries in the world such as China and India. These two are also emerging markets. Increase in awareness related to the significant advantages of coworking space among the population is creating opportunity for this region to become one of the major coworking space markets.
The coworking space market comprises of various market players such as Regus Group Companies, TechSpace Inc, Knotel Inc, SimplyWork, District Cowork, Premier Workspaces, and Kr Space. Other players operating in this market include Convene, Servcorp Limited, and Novrl Coworking. These market players are adopting various joint venture strategies and planning expansion of their businesses across various regions to maintain their dominance in the coworking space market.
Key Market Segments:
– Coworking Space Market, By Business Type
– Open/Conventional Coworking Spaces
– Corporate/Professional Coworking Spaces
– Coworking Space Market, By Business Model
– Sub-lease Model
– Revenue Sharing Model
– Owner-Operator Model
– Coworking Space Market, By End User
– Independent Professionals
– Startup Teams
– Small to Medium Sized Enterprises (SMEs)
– Large Scale Corporations
– Coworking Space Market, By Geography
– North America
– Rest of Europe
– South Korea
– Rest of Asia-Pacific
– Rest of World
– South Africa
– Remaining Countries
Read the full report: https://www.reportlinker.com/p06272289/?utm_source=GNW
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