Asia Pacific Co-working Office Spaces Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

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%.

Key Highlights

• 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.

Asia Pacific Co-working Office Spaces Market Trends

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.

Asia Pacific 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.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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