The growth in the industry will be driven by expansion in tier 2, tier 3 and regions outside CBDs. In countries such as India, China, Japan and South Korea where the flexible workspace operators have already expanded in the tier 1 cities, operators will now expand their presence in other regions in the country.
Sydney, Hanoi, Ho Chi Minh City, Pune and Hyderabad are the upcoming markets for flexible workspaces in APAC.
The business strategies of flexible workspace operators in different countries are changing. In few countries operators are shifting their focus from rental to non-rental revenue streams. Joint venture model is gaining traction over the traditional lease model.
Expansion in Tier 2 and Tier 3 Cities: In China Flexible Workspace operators are expanding in tier 2 cities such as Wuhan, Chengdu, Nanjing, Hangzhou, Suzhou and others. Tier 2 cities are also developing their own co-working spaces such as Hi-Coffee from Chengdu and More+ from Wuhan. In India companies are focusing on expanding in cities such as Indore, Bhubaneswar, Calcutta, Chandigarh, Kochi, Lucknow and others. For instance, Incuspaze has centres in Indore, Kochi, Lucknow and Trivandrum.
Upcoming Cities: The supply of flexible workspaces in Sydney, Hanoi, Ho Chi Minh City, Pune and Hyderabad are expected to grow at a CAGR of 18.7%, 18.0%, 17.6%, 16.5% and 16.2% during the period 2019-2025F. In 2019, penetration rate of flexible workspaces in these five cities is below the average penetration rate of 3.1% in APAC which is an indicator of future scope in these markets.
Rental to Non-Rental Revenue Streams: In countries like China, Philippines, Vietnam and Australia the flexible workspace operators are changing their focus from rental to non-rental revenue streams such as business concierge services, accounting and bookkeeping, HR and payroll management, start-up mentorship, marketing and co-branding and others in order to bring business profitability and sustainability. In countries such as Singapore, India, Japan and South Korea the members are unable to trust these services and therefore this strategy is currently not working in these countries.
Changing Landlord-Operator Relationship: The business model in the industry is changing from the traditional lease model to joint venture model and management model. Landlords are willing to form a revenue sharing partnership with flexible workspace operators to cater to the flexible workspace needs of their existing tenants and to also attract individuals from the growing gig economy. In countries such as Singapore, that is facing a situation of tight office space vacancy, landlords have an upper hand and they are not looking to form joint venture relationships with the operators.
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 is growing owing to emergence of increasing funding, increasing demand from enterprises, growing market consolidation, movement to tier 2 and tier 3 cities, increase in focus on non-rental revenue streams and Change in IFRS Standards. The market is expected to register a positive CAGR of 14.2% and 16.0% in terms of supply and demand respectively during the forecast period 2019-2025F.
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
Key Topics Covered in the Report:-
Supply-Demand Analysis and Supply-Demand Gap Analysis, 2016-2019
Value Chain Analysis
Revenue Streams
Organizational Structure of Flexible Workspaces
Marketing Strategies
Supply-Demand Analysis and Supply-Demand Gap Analysis, 2019-2025F
Competitive Landscape in APAC Flexible Workspace Market
Emerging Business Model
Country Snap Shots (Demand-Supply Analysis and Detailed Competitive Scenario including Heat Map
Analysis, Market Share Analysis and Cross Comparison Analysis)
Success Case Study
Analyst Recommendation
For More Information, refer to below link:-
APAC Flexible Workspace Market
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
