Major players in the coworking spaces market are Wework, Regus Corporation (IWG Plc), Mix Pace, Knotel, Inc., Simply Work, District Cowork, Premier Workspaces, Krspace, Convene, and Servcorp Limited.
The Global Coworking Spaces Market is expected decline from USD 9.27 billion in 2019 and to USD 8.24 billion in 2020 at a compound annual growth rate (CAGR) of -12.9%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and reach USD 11.52 billion in 2023 at CAGR of 11.8%.
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.
Europe was the largest region in
the coworking spaces market in 2019.
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.
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 COVID-19 lockdown limits the
growth of the market. For instance, in March 2020, many companies working from
home owing to 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.
In January 2019, a Los Angeles
based workspace provider Cross Campus, announced the acquisition of San Diego's
coworking space provider Desk Hub, 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. Desk Hub is
committed to creating a premier network for coworking workspaces across the
USA.
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 startup
economy was worth USD 3 trillion in 2019, with a rise of 20% from 2017 and
2018. Moreover, according to ENTRACKER magazine published in February 2019, the
number of startups in India increased from 7,000 in 2008 to 50,000 in 2018,
recording a growth of 7.14 times in a decade. 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 startup 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.
For More Information, Click on the Link Below:-
Global
Coworking Spaces Market
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing &
Communications
No comments:
Post a Comment