Coworking Market: Global Size and Growth Forecast

This article was written by our expert who is surveying the industry and constantly updating the business plan for a coworking space.

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The Dojo Business Team

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We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the coworking market.

What is the current global market size of coworking in 2025 (revenue and number of spaces)?

The coworking industry is generating about $25–$25.4 billion in 2025 across 42,000+ spaces worldwide.

This level implies a revenue per space band commonly between $450k and $800k depending on city mix, enterprise share, and desk density. The US counts about 7,800 locations, while Europe and APAC together account for the majority of the rest, reflecting a highly fragmented landscape.

At the real-estate level, coworking now exceeds 2% of the global office footprint and continues to gain share as hybrid work matures and long leases roll off. The practical takeaway for a new coworking space is to align capacity with realistic local demand and price tiers validated by mystery-shopping nearby competitors.

You’ll find detailed market insights in our coworking space business plan, updated every quarter.

Use this scale baseline to set your first-year ramp and breakeven enrollment.

How fast did the market grow over the past five years versus traditional office?

Coworking grew at roughly 15% CAGR from 2020 to 2025, beating traditional office at ~5%.

Revenues more than doubled from the pandemic trough as demand for flexibility and shorter commitments surged. The sector rose from under $9B in 2021 to roughly $22B in 2024 and ~$25B in 2025, while conventional office net absorption and development lagged.

For a new coworking space, this five-year divergence confirms a structural preference for flex terms and shared amenities. Benchmark your lease negotiations and CAPEX against this growth reality rather than legacy office metrics.

We cover this exact topic in the coworking space business plan.

Plan for expansion options in your LOI to capture upside without over-committing.

What CAGR is projected for the next 5–10 years?

Forward CAGR is widely projected at ~14–16% through the next decade.

Several industry trackers imply a market that could 2–3x by the early/mid-2030s, with APAC and the Middle East showing the steepest curves. Structural drivers—hybrid work normalization, enterprise programs, and landlord partnerships—support the compounding profile.

Founders should model a base case in the low-teens and a bull case in the mid-teens, stress-testing pricing, occupancy, and unit economics with sensitivity bands. Align your pre-sales and enterprise pipeline to the growth slope of your city.

Get expert guidance and actionable steps inside our coworking space business plan.

Use conservative lease assumptions even in bullish markets.

Which regions and countries are growing the fastest—and why?

APAC and the Middle East lead growth, followed by select European hubs and the US Sun Belt.

China, India, Japan, and Southeast Asia benefit from dense startup ecosystems, tech hiring, and supportive local policies; GCC markets (UAE, Saudi Arabia) add demand from diversification initiatives and new business formation. Europe’s UK, Germany, and France scale on hybrid work normalization and strong urban hubs; North America remains the largest single market by revenue.

Local factors—founder density, venture activity, visa regimes, and CBD transit—explain much of the variance in sales velocity and achievable ARPU. Prioritize micro-location near transit and talent clusters in your city to tap the fastest tenant flows.

This is one of the strategies explained in our coworking space business plan.

Map startups, corporates, and universities within a 15-minute reach of your site.

What share of total office space is coworking now, and what’s next?

Coworking accounts for a little over 2% of global office inventory in 2025 and is still climbing.

The share rose roughly 30 bps year-over-year as occupiers trimmed long leases and shifted to flex. Expect continued mix-shift as landlords re-tenant older stock with flex layers and as enterprises incorporate flexible capacity into portfolio strategy.

For a single location, this means rising inbound interest for shorter terms and project teams—plan offer ladders (hot desk, dedicated desk, private offices, suites) to capture diverse demand. Prepare to renegotiate expansion clauses early when utilization trends above plan.

It’s a key part of what we outline in the coworking space business plan.

Track local office vacancy because rising vacancy can lower your effective rent.

Who are the largest operators and how concentrated is the market?

The top tier includes IWG (Regus/Spaces), WeWork, Industrious, and regional leaders; the market remains fragmented.

IWG operates thousands of locations across 100+ countries; WeWork and Industrious maintain large urban footprints; strong regionals include Mindspace, Impact Hub, and many independents. Despite big brands, thousands of local operators control meaningful share, especially outside tier-1 global cities.

For a new coworking space, this fragmentation is an advantage—niche positioning, service quality, and landlord partnerships can beat scale alone. Compete with speed, hospitality standards, and tailored memberships rather than price alone.

This is one of the many elements we break down in the coworking space business plan.

Use partnerships (events, universities, accelerators) to amplify local reach.

What are the main demand drivers in 2025?

• Hybrid/remote work normalization and portfolio flexibility needs.
• Startup and freelancer growth in tech, media, and professional services.
• Enterprise programs for satellite teams, overflow projects, and market entry.
• Cost avoidance vs. long leases, plus fit-out time savings.
• Amenities and community services that raise productivity and retention.

Which risks could slow growth?

• High CBD rents and rising operating costs compressing margins.
• Demand volatility from economic cycles and funding slowdowns.
• Policy swings on remote/hybrid work reducing flex demand in some cities.
• Regulatory and compliance needs (privacy, safety, accessibility) adding cost.
• Customer acquisition costs rising as competition intensifies.

What are average occupancy and profitability levels?

Global occupancy averages ~68%, with tier-1 cities often 70–90%; about 46% of spaces report profitability.

Mature sites (4+ years) show the best performance, with stabilized EBITDA margins in the 20–30% range for top operators and 5–10% for smaller or newer spaces. UK and parts of Europe report some of the highest occupancy bands, while rural markets are more variable.

For founders, the biggest occupancy drivers are location, private-office mix, and enterprise contracts that anchor demand. Track lead-to-tour and tour-to-close conversion weekly and build a wait-list before opening to accelerate stabilization.

We cover this exact topic in the coworking space business plan.

Price private offices to hit target revenue density (e.g., $ per rentable m²).

How much VC/PE money is flowing into coworking now vs. earlier periods?

Capital inflows remain active, with an emphasis on sustainable unit economics and tech-enabled models.

In 2025, US-tracked rounds approximate ~$5B across coworking, flex office enablement, and related proptech, a level that is solid but more disciplined than pre-2020 cycles. Funds favor revenue-share models, enterprise-led networks, and software that reduces operating costs (access control, billing, analytics).

For a single coworking space, local angels and landlord TI/revenue-share agreements are often the fastest path to finance. Prepare a data-driven deck with pre-commit letters and a 24-month cashflow to shorten diligence.

Get expert guidance and actionable steps inside our coworking space business plan.

Track cohort retention and NPS to defend valuation.

What new business models and service innovations are shaping growth?

Hybrid office solutions, revenue-share with landlords, and niche vertical spaces are setting the pace.

Bundles that mix day passes, credits, and private suites let enterprises right-size spend; revenue-share agreements reduce fixed lease risk and speed rollouts. Niche concepts (wellness-focused, creator-led, women-only, green-certified) differentiate in saturated submarkets.

Technology (smart access, AI support, usage analytics) improves staffing ratios and customer experience while sustainability upgrades (HVAC, materials) win RFP points. Pilot these models with limited scope, measure, then scale.

This is one of the strategies explained in our coworking space business plan.

Negotiate operator-friendly capex sharing when you deliver building activations.

How are enterprise clients changing the market—and what share of demand do they represent?

Enterprises now account for roughly 25–40% of demand in major markets, up from <10% pre-2020.

Large companies use coworking for project teams, market entry, and overflow, demanding service-level agreements, security standards, and multi-city access. This cohort tends to sign longer terms and larger suites, raising revenue stability and improving bankability.

Founders should create enterprise-grade SKUs (IT, privacy, 24/7, meeting credits) and a formal sales motion (RFP responses, procurement onboarding). Build case studies and standardize MSA terms to shorten cycles.

It’s a key part of what we outline in the coworking space business plan.

Use multi-location partnerships to serve distributed teams without extra leases.

Regional growth snapshot (table)

Growth is broad-based but strongest in APAC and GCC, with Europe and North America scaling on hybrid adoption.

Use the following breakdown to prioritize city selection and anchor-tenant outreach.

Market structure and top operators (table)

The market combines a few global brands with a long tail of regionals and independents.

This structure lets focused operators win via location, hospitality, and enterprise services.

Key operating benchmarks (table)

These benchmarks help you calibrate targets for your first 24 months.

Adjust by city tier, building class, and enterprise mix.

Pricing power and demand drivers (list)

• Shorter commitment premiums justify higher $/m² vs. long leases.
• Private offices and meeting packages carry the best margins.
• Community programming increases lifetime value and reduces churn.
• Tech stack (access, booking, billing) cuts labor costs per member.
• ESG features (energy, materials) win enterprise RFP points.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Archie — Coworking Statistics 2025
2. Coherent Market Insights — Coworking Spaces Market
3. Grand View Research — Coworking Spaces
4. Mordor Intelligence — Global Office Space Market
5. Optix — UK Coworking Market
6. OfficeRnD — EMEA & UKI Flex Industry
7. Optix — Coworking Profitability
8. Cognitive Market Research — Coworking Market
9. Deskmag — 2025 Global Coworking Trends
10. CoworkingCafe — National Coworking Report