APAC Co-Working Office Spaces Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
APAC Co-Working Office Spaces Market Analysis
The Asia-Pacific co-working office space market valued at USD 44 billion in the current year and is expected to register a CAGR of more than 6%.
- In the Asia-Pacific region, the COVID-19 pandemic sped up the growth of co-working spaces because traditional workspaces were having trouble during the crisis. Many enterprises have moved toward co-working spaces due to their affordable prices and flexibility in working space. The co-working spaces also ensure a safe working environment.
- The sector is driven by freelancers, small and medium-sized businesses (SMEs), and new businesses that are starting up. Large companies have also started using co-working spaces because they offer great facilities at prices that aren't too high. Also, the sector is growing quickly because there are more start-ups that are getting a lot of investment. Increasing numbers of digital nomads in countries like Indonesia and Thailand are also boosting the co-working space sector.
- Nearly one-third of all co-working spaces in the world are in the Asia-Pacific region, which has shown a lot of interest in flexible office spaces. In 2021, Asia-Pacific led the co-working space market compared with other regions. Melbourne, Singapore, Hong Kong, and Mumbai are some of the major cities experiencing growth in flexible and co-working office centers.
APAC Co-Working Office Spaces Market Trends
This section covers the major market trends shaping the APAC Co-Working Office Spaces Market according to our research experts:
Demand for Co-working Spaces from Start-ups is supporting the significant Market Growth
Co-working office spaces have been significantly growing over the years. The Asia-Pacific region is experiencing increasing demand for co-working spaces compared to other regions. Major flexible and co-working spaces doubled, and floor space increased by 150% between 2019 and 2021.
According to the Co-Working Index by CircleLoop, most co-working office spaces are available in some of the major cities, like Hong Kong, New Delhi, Tokyo, Mumbai, and Melbourne. More than 774 co-working spaces were available in these cities in 2021. The governments are ardently boosting a start-up ecosystem, leading to the rising demand for co-working spaces.
Hong Kong will be the main place where co-working spaces are built in 2021.More than 166 spaces are available in the city. Cities like Busan, Kuala Lumpur, and Hangzhou also provide affordable hot desk facilities.
Since 2015, the number of coworking spaces in Singapore has increased. Flexible workspaces make up around 4.2% of all office space on the island, despite the lack of (and frequently high cost of) commercial space. This pattern has also been seen in much of Southeast Asia.
Consulting and Research thinks that by 2030, shared office space will make up 15% of all office space, up from 10% now. Many cities in Southeast Asia, like Kuala Lumpur and Jakarta, are also known for having a large number of cheap coworking spaces.
China and Japan Witnessing Significant Growth in the Sector
In China and Japan, the number of co-working spaces is growing quickly. This is due to the rise of start-ups and the need for employees and companies to have more freedom.Co-working spaces are a cost-effective alternative to traditional offices. Most mainland Chinese landlords are likely to enter Hong Kong's flexible working space, which is traditionally dominated by local and international investors, as it offers a low-risk entry point to the broader office market.
However, most freelancers, start-ups, and small and medium-sized enterprises (SMEs) are adopting co-working spaces in Japan. These spaces provide top features and facilities such as fast internet services, 24/7 access to office space, meeting rooms, and furnished and unfurnished spaces. In December 2021, the highest number of co-working spaces in Japan was recorded in the 23 wards of Tokyo, at 560, followed by Osaka City with 132 office spaces.
More than 20% of the companies that rented co-working spaces in China in 2021 were in the computer network industry. This is because co-working spaces are popular with young, growing businesses.Most of the spaces are occupied by the internet, digital services, and media industries since entry barriers are very low for such industries.
Over the years, co-working office spaces have expanded dramatically. With their abundance of co-working spaces, Beijing and Guangzhou took the lead in the industry in 2021. The majority of enterprises switched to co-working and shared offices; however, Beijing remained a significant location in the nation. Wuhan, the second-largest co-working market in China with shared offices, came in second after Beijing and attracted a diverse spectrum of tenants, including major corporations, governmental bodies, and start-ups. The majority of independent contractors, new businesses, and SMEs are utilizing co-working facilities.
APAC Co-Working Office Spaces Industry Overview
The Asia-Pacific co-working office space market is fragmented, with the presence of global and local players. Many new players are entering the market to meet the rapid demand for casual office environments. The companies in the market are involved in several growth and expansion strategies, such as partnerships, mergers, and acquisitions, to gain a competitive advantage. Some of the key players in the market include JustCo, WeWork Management LLC, Spaces, and Hive Worldwide Ltd.
APAC Co-Working Office Spaces Market Leaders
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WeWork Management LLC
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Spaces
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JustCo
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Servcorp
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Hive Worldwide Ltd
*Disclaimer: Major Players sorted in no particular order
APAC Co-Working Office Spaces Market News
- January 2023: Colony Coworking Space has invested in one of the biggest coworking operators in Malaysia, 5X Capital. Colony Coworking Space has a total space of 170,000 square feet in Kuala Lumpur and now runs 12 sites there under both its eponymous brand and its mass-market brand Jerry. Revenue for the group increased by 74% in 2022, while EBITDA reached an all-time high by growing by 265% annually. By funding 5X Capital, it hopes to take advantage of Malaysia's expanding flexible workspace market.
- November 2022: FlexiGroup asserts that by merging 3 flexi office operators, it has become the largest operator of coworking spaces in the Asia Pacific (APAC) area. The FlexiGroup now has 45 coworking spaces spread throughout 12 cities and nine countries in the region-Singapore, Hong Kong, Malaysia, Australia, Thailand, Taiwan, Vietnam, Japan, and the Philippines-after combining The Hive, The Cluster, and Common Ground.
APAC Co-Working Office Spaces Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Current Market Scenario
- 4.2 Technological Trends
- 4.3 Industry Value Chain Analysis
- 4.4 Government Regulations and Initiatives
- 4.5 Insights on Co-working Start-ups in Asia-Pacific
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4.6 Market Dynamics
- 4.6.1 Market Drivers
- 4.6.2 Market Restraints
- 4.6.3 Market Opportunities
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4.7 Industry Attractiveness- Porter's Five Forces Analysis
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers/Consumers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitute Products
- 4.7.5 Intensity of Competitive Rivalry
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Flexible Managed Office
- 5.1.2 Serviced Office
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5.2 By Application
- 5.2.1 Information Technology (IT and ITES)
- 5.2.2 Legal Services
- 5.2.3 BFSI (Banking, Financial Services, and Insurance)
- 5.2.4 Consulting
- 5.2.5 Other Services
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5.3 By End-User
- 5.3.1 Personal User
- 5.3.2 Small Scale Company
- 5.3.3 Large Scale Company
- 5.3.4 Other End-Users
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5.4 By Geography
- 5.4.1 China
- 5.4.2 India
- 5.4.3 Japan
- 5.4.4 South Korea
- 5.4.5 Australia
- 5.4.6 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (Market Concentration Analysis and Major Player)
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6.2 Company Profiles
- 6.2.1 the Hive Worldwide Ltd.
- 6.2.2 WeWork Management LLC
- 6.2.3 Spaces
- 6.2.4 JustCo
- 6.2.5 Servcorp
- 6.2.6 Compass Offices
- 6.2.7 The Work Project Management Pte Ltd.
- 6.2.8 GARAGE SOCIETY
- 6.2.9 THE GREAT ROOM
- 6.2.10 IWG
- 6.2.11 WOTSO Limited
- 6.2.12 The Executive Centre*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
** Subject To AvailablityAPAC Co-Working Office Spaces Industry Segmentation
Co-working is an arrangement in which people from different companies share an office space. This saves money and makes it easier for everyone to use the same equipment.The report gives a full analysis of the Asia-Pacific co-working office space market, including a market overview, market size estimates for key segments, new trends by segment, and market dynamics.The report also offers the impact of COVID-19 on the market.
The Asia-Pacific co-working office space market is segmented by type (flexible managed office and serviced office), by application (information technology (IT and ITES), legal services, BFSI (banking, financial services, and insurance), consulting, and other services), by end-user (personal user, small scale company, large scale company, and other end users), and by geography (China, India, Japan, South Korea, Australia, and Rest of Asia-Pacific). The report offers the Asia-Pacific Co-Working Office Spaces Market size and forecasts in dollars (USD billion) for all the above segments.
| By Type | Flexible Managed Office |
| Serviced Office | |
| By Application | Information Technology (IT and ITES) |
| Legal Services | |
| BFSI (Banking, Financial Services, and Insurance) | |
| Consulting | |
| Other Services | |
| By End-User | Personal User |
| Small Scale Company | |
| Large Scale Company | |
| Other End-Users | |
| By Geography | China |
| India | |
| Japan | |
| South Korea | |
| Australia | |
| Rest of Asia-Pacific |
APAC Co-Working Office Spaces Market Research FAQs
What is the current Asia Pacific Co-Working Office Spaces Market size?
The Asia Pacific Co-Working Office Spaces Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in Asia Pacific Co-Working Office Spaces Market?
WeWork Management LLC, Spaces, JustCo, Servcorp and Hive Worldwide Ltd are the major companies operating in the Asia Pacific Co-Working Office Spaces Market.
What years does this Asia Pacific Co-Working Office Spaces Market cover?
The report covers the Asia Pacific Co-Working Office Spaces Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia Pacific Co-Working Office Spaces Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Co-Working Office Spaces Industry Report
Statistics for the 2024 APAC Co-Working Office Spaces market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Co-Working Office Spaces analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
