Australia Co-Working Space Market by Business Type (Conventional Co-working, Professional Co-working, and Others), by Business Model (Sub-Lease Model, Revenue Sharing Model, and Owner-Operator Model), and by End User (Independent Professionals, Startup Teams, and Small and Medium Sized Enterprises) –Opportunity Analysis and Industry Forecast, 2024–2030
Industry: Construction & Manufacturing | Publish Date: 26-Apr-2024 | No of Pages: 169 | No. of Tables: 132 | No. of Figures: 57 | Format: PDF | Report Code : N/A
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Market Definition
Australia Co-Working Space Market size was valued at USD 195.8 million in 2023, and is predicted to reach USD 867.5 million by 2030, at a CAGR of 23.6% from 2024 to 2030. Co-working space represents a dynamic and adaptable solution to the evolving needs of businesses. These shared work environments offer flexibility in lease terms and space requirements, appealing particularly to startups and small enterprises seeking to avoid the upfront costs associated with traditional offices. The communal atmosphere encourages networking and collaboration among professionals from diverse fields, fostering innovation and creativity.
Equipped with modern amenities and strategically located, co-working spaces provide cost-effective, scalable, and accessible alternatives for companies seeking a central presence without the constraints of long-term leases. The industry has experienced significant growth as businesses recognize the benefits of this model, embracing the collaborative opportunities and resource-sharing inherent in co-working spaces.
Cost-effectiveness and Flexibility Propel Australian Coworking Market
The Australian coworking space market is primarily driven by its cost-effectiveness and flexibility, offering a more affordable alternative to traditional office leases. Unlike conventional setups, coworking spaces eliminate the need for long-term contracts and upfront costs, making them particularly advantageous for startups, freelancers, and small businesses. The Australian government occupancy report indicates a rise in net tenancy expenditure from USD1,449.9 million in 2021 to USD 1,544.2 million in 2022, including traditional office leases. This affordability, coupled with flexible options that allow businesses to scale their workspace needs as required, addresses the dynamic nature of modern enterprises, where requirements may evolve rapidly.
Rise of Hybrid Work Models Spurs Coworking Space Growth in Australia
The proliferation of hybrid work models significantly contributes to the expansion of coworking spaces in Australia. These models, which blend remote and in-office work, have become increasingly prevalent across the country. A study conducted by the Australian government in 2022 revealed a substantial increase in hybrid working environments, with 70 percent of surveyed entities attributing this trend to factors such as flexible work arrangements, activity-based working, or shift work. This indicates a growing preference for remote and flexible work setups among organizations in Australia, further fueling the demand for coworking spaces. The ability of coworking spaces to cater to the diverse needs of hybrid work environments by providing adaptable, collaborative, and cost-effective workspace solutions positions them as integral components of Australia's evolving work landscape.
Increasing Concerns Related to Cybersecurity Obstruct the Market Growth
The cybersecurity threat poses a significant barrier to the widespread adoption of coworking spaces, especially for businesses tasked with handling sensitive data. These collaborative work environments, which depend on shared technological infrastructure, are vulnerable to potential security breaches that could lead to unauthorized access and data leaks. This concern is particularly pertinent for firms responsible for safeguarding client confidentiality and proprietary information. The communal nature of coworking spaces exacerbates risks related to network security, physical access, and device vulnerabilities, raising apprehensions among businesses about safeguarding sensitive information.
The Incorporation of Augmented Reality (AR) and Virtual Reality (VR) Creates Future Opportunities for the Market
The introduction of Augmented Reality (AR) and Virtual Reality (VR) into coworking is positioned to foster numerous opportunities for the growth of the coworking space market. These immersive technologies are expected to redefine the experience of remote collaboration, enabling individuals to actively participate in virtual meetings, collaborative projects, and training sessions with a heightened sense of physical presence. By transcending geographical barriers and enriching the interactive aspect of remote work, AR and VR are predicted to increase the attractiveness of coworking spaces equipped with these technologies.
For instance, in May 2023, Sightful, a company based in Tel Aviv, unveiled Spacetop, the world's premier Augmented Reality (AR) laptop, securing USD 61 million in funding from investors such as Aleph and Corner Ventures. Spacetop seamlessly integrates reality with AR, delivering an advanced personal computing experience that surpasses the limitations of traditional laptops, thus revolutionizing the landscape of coworking and remote collaboration. This integration is poised to attract a broader audience seeking innovative and technologically advanced solutions, thereby making a significant contribution to the expansion and progression of the coworking space market.
Competitive Landscape
The Australia co-working space market comprises of various companies including Regus Group Companies, TechSpace Inc, Knotel Inc, SimplyWork, Talent Garden S P A, Premier Workspaces, KR Space, Convene, Servcorp Limited, WeWork Management LLC, The Office Group Ltd., Industrious LLC, Ucommune (Beijing) Venture Capital Co., Ltd., LiquidSpace Inc., Awfis Space Solutions Pvt Ltd., Impact Hub GmbH, Newmark Group, Inc., Soho China Ltd., Serendipity Labs, India Accelerator, and others.
The Australia Co-Working Space Market Key Segments
By Business Type
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Conventional Co-working
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Professional Co-working
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Others
By Business Model
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Sub-Lease Model
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Revenue Sharing Model
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Owner-Operator Model
By End User
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Independent Professionals
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Startup Teams
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Small and Medium Sized Enterprises
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 195.8 Million |
|
Revenue Forecast in 2030 |
USD 867.5 Million |
|
Growth Rate |
CAGR of 23.6% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Million (USD) |
|
Growth Factors |
|
|
Companies Profiled |
20 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
KEY PLAYERS
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Regus Group Companies
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TechSpace Inc
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Knotel Inc
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SimplyWork
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Talent Garden S P A
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Premier Workspaces
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KR Space
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Convene
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Servcorp Limited
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WeWork Management LLC
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The Office Group Ltd.
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Industrious LLC
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Ucommune (Beijing) Venture Capital Co., Ltd.
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LiquidSpace Inc.
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Awfis Space Solutions Pvt Ltd.
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Impact Hub GmbH
-
Newmark Group, Inc.
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Soho China Ltd.
-
Serendipity Labs
-
India Accelerator
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