New Delhi, Jan 29 (IANS) The co-working segment may witness consolidation along with the entry of new players in the market, according to a report by 360 Realtors.
The report also said that the co-working ecosystem will continue to grow and evolve in the tier-I cities backed by demand from both big as well as small enterprises.
"It will witness more consolidation in the market space, alongside the entrance of new players," said the report by the real estate consultancy firm, showing the recent example of OYO''s acqusition of the co-working space provider Innov8.
It observed that Delhi-NCR, Bengaluru and Mumbai would continue to be most favoured destinations for co-working spaces in the country and added that the segment will also witness steady growth in smaller cities such as Indore, Kochi, Ahmadabad, Surat, Nagpur.
As per the report, millennials would play a major role in the growth of the co-working spaces in India.
"It is estimated that over 40 per cent of the Indian workforce comprises of the millennial. These millennials often want a more engaging workplace which can foster better networking and inspiration," it said.
In the same way, the large number of startups in the country will also help the growth of co-working spaces.
"Co-working space providers will also focus on better customer engagement, hospitality and value-added services," it said.
Regarding the global scenario, the report said that there are around 35,000 flexible work spaces around the world and they are currently valued at around $26 billion. Until 2022, the market will grow at around 13 per cent annually.
"In 2018 alone, 2,200 new offices were built globally, out of which around 1,000 were opened in the USA. As per ''Co-working Resources'', in London every 5 days, a new co-working space opens. Likewise, in New York, space is opened in every 7.5 days. Other major cities around the globe, where the co-working industry is thriving at an unprecedented pace include Los Angeles, Singapore, Manchester, Barcelona, Lisbon, Bangalore, Paris, etc. and not to forget, Ho Chi Minh, Jakarta, Gurgaon, Mumbai and Kula Lumpur."
Globally, 14 per cent of employees of larger enterprises are using co-working spaces. It is estimated that in future, 40 per cent of the demand for shared office work stations will emanate from larger enterprises, it added.