Coworking space model has grown strongly and become a global trend, especially in large and dynamic cities like Ho Chi Minh City. Not only providing flexible and creative working space, coworking space It is also a place to connect individuals and businesses, promoting collaboration and innovation. With impressive growth in both quantity and scale, the statistics on coworking spaces not only reflect the change in the way people work but also show the potential for development of this market in the future. Let's explore the impressive numbers that are reshaping the working picture of the modern world.
Overview of Coworking space model
Since the first coworking spaces opened in 2005, the demand for these popular environments has been on the rise. And for good reason. This innovative trend is creating more cohesive teams than ever before, effectively revolutionizing the way the world does business.
Essentially, they offer flexibility and low investment costs that meet the needs of small and medium-sized businesses of all sizes, allowing for a collaborative, cost-effective workspace overall. And with that, small and medium-sized businesses can take advantage of flexible arrangements that still provide the personalized space they need to operate efficiently (or even thrive).
But beyond the group setting, coworking spaces also provide a way for businesses and entrepreneurs to network and build healthy connections with like-minded professionals. And that also means bridging the gap between one industry and another.
Globally, they have also proven incredibly popular on a wider scale. In Australia, that success has come from huge adoption rates, with spaces popping up in some of the most sought-after locations.
This massive growth is not slowing down, with market research and data suggesting that coworking spaces will only grow further in the near future. By the end of 2019 alone, there were around 22,400 of these hotspots open for business globally.
So with all this activity going on, what’s causing this significant shift in the business world? What’s driving this wave of reinvention of how we choose to work? Here are the reasons why coworking spaces are not only here to stay, but may one day overtake traditional offices altogether.
Global demand is growing
- The past five years have seen a significant increase in coworking spaces in markets around the world, with global demand increasing by 50%. This equates to more than 32,000 coworking centres worldwide, an increase of 15% per year since 2013.
- In dollar terms, the industry has grown to a whopping $37.1 million AUD, a figure that is only likely to grow as adoption continues to spread.
- This growth is expected to continue at at least 13% annually in markets outside the US.
- In the US alone, more than 60% of all employed offices have flexible workspaces.
- By 2030, it is predicted that 30% of total office space in the United States will be co-working or flexible workspace.
- The rise of coworking spaces was also notable in Asian markets, with Singapore (45%), Shanghai (16%), Hong Kong (10%) and Tokyo (8%) all seeing high adoption rates in 2018.
Coworking offices will account for 1/3 of all offices by 2030
- Research from commercial real estate services firm JLL is predicting a revolution in shared or flexible workspaces, with a major shift of workers into these environments. The shift comes as attention continues to shift away from traditional offices, and by the end of next year, the trend is expected to be truly widespread across Australia.
- While this model has been popular with freelancers and startups, more and more small and medium-sized businesses are taking advantage of this opportunity.
- Global research shows that in 2018 alone, the number of businesses adopting coworking spaces increased by 21% globally.
- JLL's latest research shows that 30% of the total active workforce is likely to use coworking spaces by 2030.
- These ecosystems have flourished in areas across the Asia-Pacific region, with Bangalore boasting an occupancy rate of 15%.
- Globally, this trend is also growing exponentially. In fact, adoption of these spaces is expected to continue at a rate of at least 13% per year. Outside the United States, this growth increased by 36% in 2018 alone, leaving a lot to be desired.
Growth set to expand beyond capital cities
- Currently, coworking spaces are mainly located in capital cities in most global markets.
- However, many destinations have opened in secondary cities.
- For example, across EMEA (Europe, the Middle East and Africa), the growth rate of secondary cities increased by 15% in 2018, while the US experienced a 20% boom in the same period.
Not only young people use coworking space
- There is often a misconception that coworking spaces are the domain of Millennials, but even older generations are embracing the concept.
- The Sydney Morning Herald recently published a case study of Maybe Capital founder Peter Mayne, who at 70 runs his latest $1.5 million business exclusively from a shared space.
- Statista data shows that the number of workers over 60 moving into co-working spaces globally increased from 10,000 in 2016 to more than 40,000 in 2017. In 2018 and 2019, this number exploded significantly.
Conclude:
The coworking space model is not just a passing trend but has become an indispensable part of the modern working ecosystem. The impressive statistics we have learned not only prove the strong attraction of coworking space but also confirm the change in thinking and working methods of the new generation.
With the rapid growth and flexibility that this model brings, coworking space promises to continue to shape and develop in the coming years, bringing many benefits to both individuals and businesses. In order not to miss the opportunity, consider and explore coworking space as an optimal solution for your working needs today.
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