The global smart hospitality and coworking spaces market is set to record a market value of USD 7.92 million in 2023, pushing the market size to USD 77.38 million in 2033. A CAGR of 25.6% indicates positive market growth over the forecast period.
In recent years, the lines between smart hospitality and coworking spaces have blurred as hotels and resorts have started incorporating coworking spaces into their facilities. This allows guests to work and collaborate in a comfortable and convenient environment while also taking advantage of the amenities and services offered by the hotel.
This growth is driven by the increasing popularity of remote work and the need for more flexible office solutions. Smart hospitality and coworking spaces are particularly popular among start-ups, freelancers, and small businesses looking for affordable and flexible office solutions.
Smart home players and commercial building technology suppliers are increasingly united by changing consumer expectations, operational efficiency, and a rapidly changing travel market as they seek to support new experiences and working environments.
The ability to personalize guest experiences and offer superior comfort and convenience by automating routine tasks and providing access to various services and amenities through connected devices and digital platforms. The following factors drive smart hospitality and coworking spaces.
The convergence of smart hospitality and coworking spaces creates new opportunities for growth and innovation. For example, some hotels now incorporate coworking spaces into their facilities, allowing guests to work and collaborate comfortably and conveniently. This trend is expected to continue as hotels and coworking space providers seek to attract new customers and differentiate themselves from competitors.
| Attributes | Details |
|---|---|
| Smart Hospitality and Coworking Spaces Market Value (2023) | USD 7.92 million |
| Smart Hospitality and Coworking Spaces Market Expected Value (2033) | USD 77.38 million |
| Smart Hospitality and Coworking Spaces Market Projected CAGR (2023 to 2033) | 25.6% |
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| Historical CAGR | 22.4% |
|---|---|
| Historical Market Value (2022) | USD 6.31 million |
| Forecast CAGR | 25.6% |
ales in the global smart hospitality and coworking spaces market are forecast to increase at a 25.6% CAGR compared to the 22.4% CAGR registered between 2018 to 2022.
There is a significant potential for smart-enabled capabilities like smart locks for access control, smart thermostats for energy management, and sensors for maintenance responsibilities.
Rising Penetration of Advanced Technology
Technology has played a significant role in the growth of smart hospitality and coworking spaces. Smart hospitality solutions such as automated check-in, room temperature control, and smart lighting are gaining popularity among customers due to their convenience.
Similarly, coworking spaces that are equipped with advanced technology, such as high-speed internet, video conferencing, and collaboration tools are preferred by entrepreneurs, freelancers, and startups. The increasing use of IoT devices, AI, and cloud computing are also contributing to the growth of these industries.
Changing Work Culture
The traditional 9-to-5 work culture is slowly becoming obsolete. Today, employees prefer flexible working hours, remote work, and a better work-life balance. This change in work culture has led to the growth of coworking spaces, as they provide an alternative to traditional offices. Smart hospitality solutions are also adapting to this trend by offering a more personalized experience to guests, which can be customized to suit their needs.
Growth of the Gig Economy
The gig economy, which includes freelancers, contract workers, and self-employed individuals, is growing rapidly. These workers often require temporary workspaces to carry out their work, and coworking spaces provide the perfect solution.
Smart hospitality solutions are also catering to this market, as they offer a range of services that are tailored to the needs of these individuals, such as flexible check-in and check-out times, and personalized services.
Increased Travel and Tourism
The growth of the travel and tourism industry is driving the growth of smart hospitality. Tourists and travelers are increasingly looking for accommodation that offers a unique and personalized experience.
Smart hospitality solutions such as keyless entry, personalized recommendations, and smart room controls are providing guests with the experience they are looking for. Similarly, coworking spaces that offer flexible and convenient workspaces are becoming increasingly popular among travelers who need to work while on the move.
Training, Maintenance, and Deployment Costs are High
In spite of the fact that they can be installed in a physical location or online, Property Management Systems (PMS), Guest Experience Management Systems, etc., are sophisticated and advanced hospitality systems that are expensive to implement. The hospitality industry is still recovering from pandemic-related financial losses of enormous proportions, making it hard for hotels to install smart hospitality solutions.
Many of the hotels that use smart hospitality technologies found that maintaining them was also very expensive. The cost of deployment is primarily influenced by the complexity and advancement of the system.
Short-term rentals represent the biggest potential for the smart hotel room market, especially for existing players in the smart home market. Over the forecast period, the smart hotel rooms market will see significant adoption and growth.
By 2033, short-term rental may command more than 11.8 million smart device shipments, up 22% on 2023 levels. In comparison to other sectors, coworking has outpaced them in shipment growth by 33.8% CAGR over the forecast period.
This is a significant but different opportunity. Since this market relies on smart devices from the start, penetration is high. Growth may result from total market growth without retrofitting, and the increased need and simplicity of short-term rental deployment.
Smart hospitality and coworking spaces are expected to have the largest revenue share in Europe by 2023. A major domestic cloud provider, an openness to new technologies, and a relatively robust internet infrastructure have all contributed to the growth of the smart hospitality industry.
Europe is experiencing a rise in demand for Internet of Things (IoT) products. Leading European IoT adoption includes Germany, France, Italy, the United Kingdom, Spain, and the Netherlands.
The smart hospitality and coworking spaces market in the United States has been growing rapidly in recent years, driven by a number of factors including changing work patterns, technological advances, and a growing interest in experiences over material possessions.
Coworking spaces, which are shared workspaces where people from different companies can work alongside each other, have become increasingly popular in the United States. According to a report by Coworking Resources, there were over 5,000 coworking spaces in the United States in 2020, up from just 14 in 2007. The market size for coworking spaces in the United States is expected to grow at a CAGR of 29.9% from 2023 to 2033.
The India smart hospitality and coworking spaces market is a rapidly growing industry that combines two sectors: hospitality and coworking. The market is driven by the increasing number of startups and small and medium enterprises (SMEs) in the country and the growing demand for flexible office spaces.
The smart hospitality segment of the market is focused on providing an innovative and technologically advanced experience for guests. This includes features such as mobile check-in and check-out, smart room controls, and personalized services based on guest preferences. Some notable players in this segment include OYO, Treebo, and FabHotels.
On the other hand, the coworking segment of the market is focused on providing shared office spaces for individuals and businesses. This includes amenities such as high-speed internet, meeting rooms, and flexible leasing options. Some of the leading players in this segment include WeWork, Regus, and Awfis.
The startup ecosystem in this market is vibrant and growing, with many startup companies entering the space with distinct business models and value propositions. In the Smart Hospitality segment, startups focus on providing innovative solutions that enhance the guest experience through technology.
For example, startups such as SuitePad and Handy provide tablets and mobile devices for guests that allow them to access hotel services, information, and entertainment at their fingertips. Another startup, Mezi, uses AI-powered chatbots to provide personalized travel recommendations to hotel guests.
In the coworking segment, startups provide flexible and cost-effective office solutions for entrepreneurs, freelancers, and small businesses. For example, startups such as Hubble and Deskbookers provide online platforms that allow users to search and book coworking spaces and meeting rooms on demand. Another startup, Breather, provides flexible office spaces booked by the hour. This allows users to work in a professional environment without committing to a long-term lease.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; The Middle East and Africa; East Asia |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Chile, Peru, Germany, United Kingdom, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Türkiye |
| Key Segments Covered | Space Type, Business Type, Product Type, Organizational Size, Industry Vertical, Region |
| Key Companies Profiled | Marriott International; Hilton Worldwide; AccorHotels; OYO; Treebo; FabHotels; SuitePad; Handy; Mezi; WeWork; Regus; Awfis; Hubble; Deskbookers; Breather; Spaces; Industrious; Knotel |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The growth potential of the baby diaper market is 5.5% through 2033.
High cost of adoption is likely to limit market growth.
North America is likely to capture a CAGR of 5.3% in 2023
The market in China may capture a CAGR of 5% by 2033.
The United States may witness significant growth in the market.
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Smart Hospitality and Coworking Spaces Market
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