APAC Flexible Workspace Industry growing with Increasing Real Estate Cost, Accelerating Average Centre Size, Changing Workforce and Changing Business Cycles: Ken Research

in #manufacturing5 years ago

“India and China dominate the supply of flexible workspaces in APAC with a combined contribution of more than 60% in 2019”.

Increasing Real Estate Cost: Economic development has lead to increase in real estate cost in APAC. Real estate cost is the second largest expenditure for companies after employee pay. Various large enterprises are continually looking to convert this CAPEX to OPEX by shifting to flexible workspaces which enable them to avoid the cost of long term leases and also helps them in facing the growing number of business uncertainties. Hong Kong, Tokyo, Sydney, Melbourne, Beijing, Singapore, Shanghai and Seoul are few of the expensive cities in APAC.

Accelerating Average Centre Size: In countries such as China, India, Japan, Australia, Singapore and Philippines the average co-working centre size has drastically increased. In India, Smartworks has leased 0.5 million sq ft to create a flexible workspace which will be operational by 2021. In Tokyo, average space per co-working centre has been increasing with a CAGR of 49.2% during 2016-2018 and in Singapore it is increasing with a CAGR of 20.8% during the period 2015-2019.

Changing Workforce: Technological up-gradation has lead to the development in gig economy and has given traction to the concept of teleworking. The upcoming millennial workforce value work-life balance and therefore they demand flexible working hour and flexible working location. The number of start-ups and entrepreneurs has drastically increased in APAC. The number of unicorn start-ups in China has increased from 56 in 2017 to 206 in 2019. In India, the number of start-ups has increased from 33,000 in 2014 to 55,000 in 2019. In Japan, the number of freelancers has increased from 9.1 million in 2015 to 11.7 million in 2019.

Introduction of Nomadic and Niche Co-Working: Flexible workspace operators are looking to introduce flexible workspaces at unconventional locations such as malls, restaurants, cafes, metros, hotels and others. For instance, Regus has multiple locations in malls such as in U B City, Bangalore. In order to target different groups of the working population flexible workspace operators are developing co-working spaces for a particular target audience such as women, musicians, painters and working parents. Niche co-working is gaining traction particularly in countries such as Australia, Japan, Philippines and Vietnam.

The report titled “APAC Flexible Workspace Market Outlook to 2025- By Type (Hybrid Spaces, Serviced Spaces and Co-Working Spaces), By Country (China, India, Japan, Philippines, Australia, Vietnam, Singapore and South Korea) and By End Users (Enterprises, MSME’s/Start-Ups and Entrepreneurs/Freelancers)” by Ken Research suggested that the flexible workspace industry in APAC has drastically grown and supply and demand has been growing with a CAGR of 32.5% and 40.2% respectively during the period 2016-2019. The industry has been evolving ever since its inception, with major trends in the industry being growing number of local players, changing amenity mix or amenitisation, increasing market consolidation, development of premium design workspaces at premium locations and increasing landlord participation.

Key Segments Covered:-

By Type of Flexible Workspace

Serviced Spaces

Hybrid Spaces

Co-Working Spaces

By Country

India

Bangalore

Delhi NCR

Mumbai

Pune

Hyderabad

China

Shanghai

Beijing

Shenzhen

Hong Kong

Chengdu

Guangzhou

Australia

Melbourne

Sydney

Japan

Tokyo

Singapore

South Korea

Seoul

Philippines

Metro Manila

Vietnam

Ho Chi Minh City

Hanoi

By End Users

Enterprises

MSME’s/Start Ups

Entrepreneurs/Freelancers

Key Target Audience:-

Flexible Workspace Operators

Office Brokers/Aggregators

Commercial Real Estate Companies

Venture Capitalist and PE Firms

Real Estate Consultant

Office Furniture Providers

ICT Providers

Time Period Captured in the Report:-

Historical Period – 2016-2019

Forecast Period – 2019-2025

Companies Covered in the Report:-

APAC Flexible Workspace Market

IWG

WeWork

The Executive Centre

Compass Office

JustCo

Servcorp

Local Players in India Flexible Workspace Market

Awfis Space Solutions

IndiQube

Smartworks

91Springboard

Innov8

Vatika Business Centre & Co-working Spaces

InstaOffice

Local Players in China Flexible Workspace Market

Ucommune

MyDreamPlus

Distrii

Kr Space

SOHO 3Q

People Squared

Atlas Workplace

Servoffice

Local Players in Japan Flexible Workspace Market

ZXY

WorkStyling

Cross Office

Business Airport

LIFORK

Mitsubishi Estate (BRANDS: Finolab, The Premium Floor, Inspired.lab, Global Business Hub, EGG JAPAN)

Expert Office

SENQ

Local Players in Australia Flexible Workspace Market

Victory Offices

WOTSO Workspace

Workspace365

Corporate House

Asia Pacific Serviced Offices

Hub

Space & Co.

Christie Spaces

Local Players in Singapore Flexible Workspace Market

The Work Project

The Great Room

Found8

ClubCo

Local Players in Philippines Flexible Workspace Market

KMC Co-working Space

Clock In

Common Ground

vOffice

Project T Solutions

A-Space

Local Players in Vietnam Flexible Workspace Market

Toong

Up Co-Working

G Office

Cogo Co-working

Dreamplex

eSmart

CirCo

Local Players in South Korea Flexible Workspace Market

FASTFIVE

SPARKPLUS

BIZSQUARE & MoA

GARAGE

Heyground

For More Information, refer to below link:-
https://www.kenresearch.com/manufacturing-and-construction/real-estate/apac-flexible-workspace-market-outlook-to-2025/321675-97.html

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
[email protected]
+91-9015378249