Global Co-working Space Market and Outlook to 2027 –COVID-19 Impact Assessment

Global Co-working Space Market and Outlook to 2027 –COVID-19 Impact Assessment

Executive Summary

The Global Coworking space market is expected to grow at double digit CAGR of more than 15% during 2022-27. The coworking space market has witnessed significant growth before the outbreak of the virus, which hampered the operations globally, but COVID-19 is seen as another enhancing factor for the coworking market. Organizations have realized cost savings if the workforce operates from a remote location, and this presents an opportunity for coworking spaces to provide fixed or flexible space to people working from a remote area. During the period 2016-2019, the coworking industry experienced strong double-digit growth, with a rise in the number of members joining coworking spaces year on year. The trend of start-ups is a major contributing factor.

The year 2021 was nearly identical to the previous year 2020, with the third wave resulting in additional restrictions in many countries. Many countries' co-working spaces were operational after the first wave, but with very little foot traffic, which impacted their financials. Almost all co-working companies paused their expansion plans last year. With vaccination campaigns underway around the world and economies beginning to open up for business, the coworking industry was anticipated to reclaim its position. Meanwhile, new strains of the virus forced people and businesses to work from home until the second quarter of the year.

Adoption of IT Technology in Coworking Space Market: Video technology, which is available through apps like Zoom, Microsoft Teams, and Google Meet, has been one of the most commonly used in recent years, particularly during the epidemic. Enhanced meeting capabilities and seamless conferencing have become critical for efficient operation in the 'new normal' of the corporate and other commercial sectors. The global coworking space market has quickly and openly adopted such innovations, resulting in a significant cultural shift through improved office technology.

Covid-19 Impact: The coworking space market faced severe cost crunches when the first wave struck numerous countries around the world in 2020. There are three key cost-incurring aspects in global coworking space market: Employee expenditures, lease/rent, and infrastructure maintenance costs as a result of the second wave's impact and inability to manage expenses, a few coworking centres closed by the end of 2020, although many large/international players managed to function with reduced costs and available cash.

Driving Forces

Easy Accessibility and Convenience: Coworking spaces are often situated in population and/or urban areas with access to public transportation or convenient parking, as these spaces serve a critical mass. For instance, Lennar, a major homebuilder, rents spaces near its Chicago and Minneapolis downtown construction projects to ensure convenience for meetings.

Current Working Trend and Styles: Coworking spaces are the epitome of the sharing economy. About 30% of knowledge workers are untethered from the corporate workplace, which allows them to work in more than one place. Coworking spaces provide remote workers a workspace. Within this space, there is typically a multitude of spaces with different arrangements such as open tables, soft seating, cafes, and enclosed quiet spaces.

Revenue-Sharing Models: During the initial stages of the global coworking space market, property owners used to agree to a simple business model and charged a fixed-term rent. However, lately, many coworking spaces are preferring to opt for revenue-sharing models with landlords. In such a model, landlords gain a specified share of the business revenue generated by these spaces, which has strained many such relationships. Despite the rapid expansion of coworking space market, the high churn rate of startups at these spaces reveals a widening demand-supply gap. This will consequently lead to lower returns for property owners as coworking spaces have to deal with vacant seats, and this affects the renegotiation terms during contract renewal.

Scope of the Study

The synopsis is based on the report Global Co-Working Space Market- COVID-19 Impact and Outlook to 2027 published by Makreo Research and Consulting. The report delves deeply into various parameters such as global coworking space market size, segmentation, value chain analysis, and industry cause and effect analysis. Coworking Space Global Market Report includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.

The Coworking Space Market Report helps reader to gain information on following areas:

What is the global coworking space market size?

What is the value and volume outlook for the global coworking space market in the past, present, and future?

The coworking space industry analysis is a detailed study to assess market shifts with the help of macro economic and micro economic factors.

Report helps to assess Coworking Space market growth during pre-covid and post covid scenario.

Coworking Space Global Market identify factors that plays key role market performance

Coworking Space Global Market Report helps to identify industry opportunities

Identification of key companies that can influence this market on a global and regional scale are covered in the Coworking Space Market Report.

In the Coworking Space Market Report to understand the market's competitive outlook, key players are profiled and their strategies are analysed.

Coworking Space market forecast report is beneficial for the investors and emerging players to review the industry.