Part
01
of one
Part
01
What is the total market size in $$ of the coworking space in the UK and Europe?
Hello! Thanks for your inquiry on the size by revenue of the coworking space industry in the UK and Europe.
The short version is that the size by revenue of the European coworking space market, including the UK, is US$1,016 million (US$1.02 billion) per year. Excluding the UK, the size of the European coworking space market is US$838.7 million (US$0.84 billion) per year. The size of the UK coworking space market is estimated at US$177.9 million (US$0.18 billion) per year.
METHODOLOGY
After an extensive search, I did not find updated figures on the coworker space market, by revenue, in the UK and Europe. Thus, in order to answer your inquiry, I started with the figures provided in my previous Wonder response to your request on the global size in revenue of the coworking space industry. Then, I derived the Europe coworker space market based on the number of members, projected to 2016. Finally, applying a relation by the population and economy share, I derived the UK market.
NUMBER OF COWORKING MEMBERS WORLDWIDE
As mentioned in my previous Wonder response on this topic, in 2016 there were 976,000 global coworking members, worldwide. This figure is confirmed by another source, which says more than one million people will work in coworking spaces in 2017. The initial results of the 2017 Global Coworking Survey also provide similar estimates.
SHARE OF EUROPE IN THE WORLDWIDE MEMBERSHIP OF COWORKING SPACES
Now, I did not find specific member figures for Europe and UK for 2016. However, the Global Coworking Survey report of 2014 does include the number of members worldwide and for Europe (including UK), from 2010 to 2014. The number of members of coworking spaces, with the European share, has evolved as follows:
2010:
Worldwide: 21,000
Europe: 6,400
Share of Europe: 30.5%
2011:
Worldwide: 43,000
Europe: 14,500
Share of Europe: 33.7%
2012:
Worldwide: 81,000
Europe: 28,900
Share of Europe: 35.7%
2013:
Worldwide: 151,000
Europe: 57,000
Share of Europe: 37.8%
2014:
Worldwide: 295,000
Europe: 102,000
Share of Europe: 34.6%
Therefore, the share of Europe (including UK) in the global number of members of coworking spaces is around 35%.
MEMBERS OF COWORKING SPACES IN EUROPE, INCLUDING UK
Applying this share to the above presented worldwide number of members in 2016, which is 976,000, we get that in 2016 the number of members of coworking spaces in Europe, including the UK, was 341,600.
MEMBERS OF COWORKING SPACES IN THE UK
There are reports on the coworking space in the UK, derived form the Global Coworking Survey. Unfortunately, the reports are based on the survey and do not include figures on membership or market size.
In order to derive the number of members of coworking spaces in the UK, I first found out the shares of UK in the population and the economy of Europe. I excluded Eastern Europe because, as a very new trend, it is reasonable to assume that the bulk of coworking space membership is located in the more developed countries, with higher real estate costs.
The population of Europe, excluding Eastern Europe, in 2017 is estimated at 447.4 million. The population of the UK is 65.5 million. Thus, the UK represents 14.6% of the population of Europe, excluding Eastern Europe. On the other hand, the European Union economy (GDP) is worth US$16,312 Trillion. The gross domestic product (GDP) of the UK is US$2,858 trillion. Thus, the economy of the UK is 17.5% of the European Union GDP.
Let us use the latter percentage, the 17.5% share of the UK in the European economy, as a good proxy of the share of membership in coworking spaces. Thus, from the estimated 341,600 members in Europe, the members of coworking spaces in the UK are estimated at 59,780. Europe without the UK has then 281,820 members.
AVERAGE REVENUE PER COWORKING MEMBER
According to the Global Coworking Survey of 2014, the revenue per member of coworking spaces in Europe was around EUR$230 per month, equivalent to US$248 at the current exchange rate. The revenue per year is then about US$2,976 per member. Let us assume that this revenue is similar across the European countries, including the UK, and that it has not substantially changed in the last two years.
REVENUE FROM COWORKING SPACES IN EUROPE
Multiplying the number of members in Europe, 341,600, by the annual revenue per member, US$2,976, we get that the size of the European coworking space market, including UK, is US$1,016 million (US$1.02 billion) per year. Excluding the UK, the size of the European coworking space market is US$838.7 million (US$0.84 billion) per year.
REVENUE FROM COWORKING SPACES IN THE UK
Multiplying the number of members in the UK, 59,780, by the annual revenue per member, US$2,976, we get that the size of the UK coworking space market is US$177.9 million (US$0.18 billion) per year.
CONCLUSION
The size by revenue of the European coworking space market, including the UK, is US$1,016 million (US$1.02 billion) per year. Excluding the UK, the size of the European coworking space market is US$838.7 million (US$0.84 billion) per year. The size of the UK coworking space market is estimated at US$177.9 million (US$0.18 billion) per year.
Thanks for using Wonder! Please let us know if we can help with anything else!