In the coworking space market, companies that rent coworking spaces make money through the rents they charge. Coworking space rental fees typically include the use of additional services and equipment, such as seating and desks, Internet/Wi-Fi, hardware and software. Unlike regular office rentals. Rental companies that offer amenities and facilities in non-residential space are part of the sector.
Open/conventional coworking spaces, corporate/professional coworking spaces and others are the most common forms of coworking space activities. This is a corporate or professional coworking space that caters to these tenants. It will be cheaper than a high-end space, with a quiet, personal and professional atmosphere, softer lighting and lower energy consumption than other types of rooms. Businesses, freelancers and others use it in a variety of fields, including finance, legal, marketing, technology and real estate.
The global coworking space market size is expected to grow from $13.60 billion in 2021 to $16.17 billion by 2022, at a compound annual growth rate (CAGR) of 18.9%. Due to the influence of COVID-19 on business operations, the coworking industry has seen an increase in demand from organizations as they resume operations and adapt to the new normal while managing operational issues. By 2026, the coworking space industry is expected to reach a value of $30.36 billion.
The growing number of startups across the globe is fueling the growth of the coworking space market. Increasing access to entrepreneurial information from outside and rising literacy rates are all contributing factors. In addition, advanced manufacturing and robotics, agricultural technology and new foods, blockchain and artificial intelligence, and big data and analytics have been the fastest growing startup subsectors globally. Coworking spaces have been in high demand due to the increase in startups in various sectors, which is expected to drive the industry in the coming years.
Since the closure of COVID-19, there has been an increase in the number of people working from home or remotely, which is limiting the market expansion. Due to the COVID-19 pandemic, coworking space operators have reported a nearly 50% decline in attendance as of March 2020. Since the current COVID outbreak, the number of people working from home has skyrocketed. As a result, coworking space revenues are expected to drop by 10% in 2020.