Europe Co-Working Space Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

The Europe co-working space market size reached around USD 3.89 Billion in 2024. The market is projected to grow at a CAGR of 5.20% between 2025 and 2034 to reach nearly USD 6.46 Billion by 2034.

Europe Co-Working Space Market Growth

In 2019, individuals in the European Union who engaged in remote work, whether on a regular or occasional basis, constituted 14.4% of the total employed population. Additionally, the percentage of remote workers increased significantly from 5.5% in 2019 to 13.5% in 2021. A considerable number of remote employees lack designated office areas within their homes and face various distractions. This prompts them to seek co-working spaces that provide a professional atmosphere equipped with essential amenities such as high-speed internet, meeting rooms, and ergonomic furniture. Co-working spaces offer flexibility, enabling remote workers to determine their working hours and locations, with membership options available for both short-term and long-term commitments that can also be customised to meet their individual requirements, consequently driving up the Europe co-working space market share.

The rapid pace of urbanisation is prompting an increasing number of individuals to relocate to urban centres, resulting in heightened population density, augmenting the co-working space market in Europe. This trend is driving a significant demand for adaptable office solutions in central city locations, as both businesses and remote workers seek modern, accessible workspaces in proximity to their residences or major transportation hubs. Currently, around 72% of the population in the EU 28 resides in cities and urban regions. Projections indicate that the level of urbanisation in Europe will rise to approximately 83.7% by the year 2050. Furthermore, built-up areas are anticipated to expand by over 3% from 2015 to 2030, ultimately comprising 7% of the EU's total territory by 2030.

Key Trends and Developments

Expansion of startups and SMEs, shift towards remote and hybrid work culture, and rapid urbanisation and infrastructure development are leading to the Europe co-working space market growth.

Aug 2024

The House of Music and Entertainment (H.O.M.E), a collaborative workspace designed for independent music creators, was officially launched in London.

June 2024

WeWork, the foremost global provider of flexible workspaces, successfully concluded its lease negotiations as a component of its strategic restructuring efforts in the United Kingdom and Ireland.

March 2024

As per Europe co-working space market analysis, the prominent private equity firm Blackstone decided to divest from the UK-based coworking company The Office Group Fora in a substantial transaction valued at EUR 1.75 billion.

Rising Startups and SMEs

The rise of startups and small to medium-sized enterprises (SMEs), especially within the technology and creative sectors, is driving the need for cost-effective and adaptable office environments that facilitate networking and collaboration.

Shift Towards Remote and Hybrid Work Culture

The COVID-19 pandemic hastened the transition to remote and hybrid work arrangements, leading organisations to implement flexible working options. Co-working spaces present employees with alternative environments for work that are equipped with basic workplace facilities.

Urbanisation and Infrastructure Development

One of the notable Europe co-working space market trends is rapid urbanisation and infrastructural development. With the ongoing expansion of urban centres across Europe, co-working spaces are becoming a viable solution to address the increasing demand for contemporary, well-equipped work environments in cities, simultaneously accommodating the preferences of professionals seeking to work nearer to their residences.

Rising Demand for Sustainable Workspaces

The emphasis on sustainability is increasing, leading to a rise in the popularity of co-working spaces that provide green certifications, energy-efficient structures, and environmentally friendly amenities. These features are appealing to both businesses and individuals who are in search of workplaces that prioritise ecological responsibility.

Growth of Freelancer and Gig Economy

The rising prevalence of freelancers, independent contractors, and gig workers throughout Europe is driving the demand for flexible work environments, thereby increasing the need for co-working spaces, leading to the Europe co-working space market expansion.

Europe Co-Working Space Market Trends

As awareness of environmental issues grows, there is a notable rise in the popularity of co-working spaces that not only offer flexible working arrangements but also prioritise sustainable practices. These spaces often boast green certifications, which serve as a testament to their commitment to environmentally responsible operations.

As per the Europe co-working space market analysis, energy-efficient structures are a key component of these co-working environments. They are designed to minimise energy consumption through advanced technologies such as smart lighting systems, high-efficiency HVAC systems, and superior insulation materials. This not only reduces the carbon footprint of the buildings but also lowers utility costs, making them more attractive to businesses looking to optimise their operational expenses.

Europe Co-Working Space Industry Segmentation

The report titled “Europe co-working space Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type:

• Corporate /Professional
• Open/ Conventional
• Others

Market Breakup by Business Model:

• Sub-lease Model
• Revenue Sharing Model
• Owner-Operator Model

Market Breakup by End User:

• SMEs
• Large Size Enterprises
• Freelancers
• Others

Market Breakup by Country:

• Germany
• United Kingdom
• France
• Italy
• Others

Europe Co-working Space Market Share

Based on the end use, the market is segmented into SMEs, large size enterprises, and freelancers, among others. SMEs are projected to grow at a CAGR of 5.7% during the forecast period of 2025-2034.Co-working spaces encourage teamwork, networking, and creativity by providing SMEs with adaptable, reasonably priced office solutions. These shared workspaces offer basic amenities like internet, office space, and conference rooms, which help small firms cut expenses and expand in a formal setting.

Leading Companies in Europe Co-working Space Market

Major players are focusing on the integration of technology and sustainability in the co-working spaces to gain a competitive edge in the market and to improve Europe co-working space market outlook.

Wylab

Founded in 2016 and headquartered in Chiavari, Italy, Wylab serves as an incubator dedicated to sports technology startups, offering mentorship, networking, and funding resources. It supports entrepreneurs in creating innovative solutions for the sports sector, promoting growth and collaboration within the startup community.

Isola Catania Impresa Sociale S.r.l

Headquartered in Catania, Italy and founded in 2019, Isola Catania operates as a social enterprise that provides co-working environments and assistance to entrepreneurs, and social innovators. Its mission is to rejuvenate urban regions by promoting collaboration and innovation among startups and cultural initiatives in Catania, leading to Europe co-working space market development.

Mesh Community AS

The company is headquartered in Oslo, Norway and was established in 2012. Mesh Community offers co-working facilities and assistance for startups and freelancers, fostering a dynamic environment for innovation.

The Office Group

The Office Group is headquartered in London, United Kingdom and was founded in 2003. It provides flexible office spaces designed for businesses of all sizes. They offer modern workspaces with a focus on design and functionality, catering to the growing demand for dynamic, collaborative office environments.

Other key players in the market are International Workplace Group plc, WeWork Companies LLC, Talent Garden S.p.A., ScaleHub Offices, Mindspace Ltd., and LESPACE SASU, among others.