Industry: ICT & Media | Publish Date: 20-Aug-2024 | No of Pages: 169 | No. of Tables: 132 | No. of Figures: 57 | Format: PDF | Report Code : IC2046
Middle East Co-Working Space Market size is valued at USD 274.6 million in 2023, and is predicted to reach USD 1053.1 million by 2030, at a CAGR of 21.1% 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.
As Saudi Arabia's economy undergoes diversification and modernization, there's a discernible shift in workplace preferences. With a growing number of individuals opting for flexible work arrangements and pursuing independent projects, the demand for coworking spaces is on the rise. This trend is driven by the need for convenient and cost-effective workspaces that cater to the evolving needs of professionals in the region. Moreover, the expansion of international operators like IWG, as seen in their recent openings in the UAE, further fuels this growth. The availability of amenities such as private offices, meeting rooms, and creative workspaces adds to the appeal of coworking spaces, making them attractive options for individuals seeking modern workspace solutions.
The rise of the gig economy is contributing significantly to the increasing demand for coworking spaces in the Middle East. This trend is exemplified by IWG's strategic plans to launch 19 new coworking spaces across Egypt, Oman, and the UAE. By partnering with building owners, IWG aims to consolidate its presence in key markets, stimulating further growth in the coworking space market. The expansion of international operators like IWG not only responds to the rising demand for hybrid work solutions but also signifies a broader trend of consolidation and expansion within the coworking industry. These developments underline coworking spaces' growing popularity and relevance as flexible workspace solutions in the dynamic business landscape of the Middle East.
The cybersecurity threat poses a significant challenge to the widespread acceptance of coworking spaces, especially for enterprises handling sensitive data. These collaborative work settings, 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 amplifies risks associated with network security, physical access, and device susceptibilities, raising alarm among businesses regarding the protection of sensitive information.
The advent of Augmented Reality (AR) and Virtual Reality (VR) in coworking is expected to generate abundant opportunities for the growth of the coworking space market. These immersive technologies are projected to redefine the experience of remote collaboration, enabling individuals to actively participate in virtual meetings, collaborative projects, and training sessions with a tangible sense of physical presence. By eliminating geographical barriers and enriching the interactive aspect of remote work, AR and VR are set to make coworking spaces equipped with these technologies highly desirable.
For instance, in May 2023, Sightful, a company based in Tel Aviv, unveiled Spacetop, the world's inaugural Augmented Reality (AR) laptop, securing USD 61 million in funding from investors like Aleph and Corner Ventures. Spacetop, which merges reality with AR, offers an advanced personal computing experience, transcending the physical limitations of conventional laptops and revolutionizing the landscape of coworking and remote collaboration. This integration is poised to attract a broader audience seeking innovative and technologically sophisticated solutions, thus significantly contributing to the expansion and progression of the coworking space market.
The Middle East 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.
Conventional Co-working
Professional Co-working
Others
Sub-Lease Model
Revenue Sharing Model
Owner-Operator Model
Independent Professionals
Startup Teams
Small and Medium Sized Enterprises
REPORT SCOPE AND SEGMENTATION:
Parameters |
Details |
Market Size in 2023 |
USD 274.6 Million |
Revenue Forecast in 2030 |
USD 1053.1 Million |
Growth Rate |
CAGR of 21.1% 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. |
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