Sharing Accommodation Market Size, Share & Industry Analysis, By Type (Business to Consumer (B2C), Business to Business (B2B), and Peer to Peer (P2P)), By Application (Gen Z, Millennials, and Others), and Regional Forecast till 2032

The global sharing accommodation market is anticipated to grow significantly with rising housing prices and a growing demand for affordable homes across various countries. Students, young professionals, and tourists typically seek economical, comfortable, and flexible housing, which further increases the demand for shared accommodations.

The COVID-19 pandemic impeded the expansion of the market due to government-imposed lockdowns and travel restrictions. However, following COVID-19, the market has witnessed an increase in the demand for shared accommodation, notably among students and young professionals which is driving the market growth.

Sharing Accommodation Market Driver

Co-Living Spaces and Social Media Influence to Drive Market Growth

The rising popularity of co-living spaces is a major factor driving market growth. Individuals living in urban areas prefer co-living due to their hectic lifestyles and the ease of shared utilities. Furthermore, in recent years, awareness regarding the benefits of co-living spaces and the popularity of activities in co-living spaces has been boosted due to social media platforms. In addition, an increase in the demand for low-cost and comfortable living spaces supports market expansion.

Sharing Accommodation Market Restraint

Safety and Security Issues to Hamper Market Growth

Safety and security problems have a considerable impact on the expansion of the shared accommodation market. The possibility of theft and personal safety risks when staying in a stranger's home declines demand. Hosts are also concerned about property damage and fraud. Moreover, numerous incidents involving breaches of privacy or safety result in fewer reservations. As a result, the safety risk remains a challenge for both hosts and visitors, impeding industry growth.

Sharing Accommodation Market Opportunity

Mounting Tourism and Enhanced Connectivity to Offer New Growth Opportunities

Increased tourism provides growth opportunities to market players as it fuels the demand for sharing accommodations. As more individuals travel for leisure, business, or cultural experiences, the requirement for reasonably priced lodging increases. Sharing platforms appeal to modern tourists looking for engaging local experiences. Moreover, rising disposable incomes, easy availability of affordable travel options, and improved connectivity boost travel and service demand.

Segmentation

Key Insights

The report covers the following key insights

• Overview of the Parent/Related Market
• Supply Chain Analysis
• Industry SWOT Analysis
• Porter's Five Forces Analysis
• Recent Technological Advancements 

Analysis by Type

Based on type, the market is segmented into business to consumer (B2C), business to business (B2B), and peer to peer (P2P).

The business to consumer (B2C) segment dominates the global market as it directly connects hotel providers with end-users. This factor makes sharing accommodation popular among travelers demanding quick booking options. Multiple platforms, such as Airbnb and Booking.com, provide the service worldwide.

The peer to peer (P2P) segment is expected to rise considerably over the coming years due to rising interest in personal experiences and cost-effectiveness.

Analysis by Application

Based on application, the sharing accommodation market is categorized into Gen Z, millennials, and others.

The millennials segment dominated the market in 2023 owing to their interest in unique experiences, awareness of digital platforms, and focus on low-cost solutions. Millennials are also more inclined toward personalized and shared lodgings than traditional hotels.

The Gen Z segment is likely to expand at the highest CAGR over the analysis period as they emphasize more on social experiences and spend more on travel and accommodation services.

Regional Analysis

To gain extensive insights into the market, Download for Customization

Based on region, the market is divided into North America, Europe, Asia Pacific, South America, and the Middle East and Africa.

According to international tourism data, tourist arrivals are projected to reach 1445 million in 2024, with receipts climbing to 1335.9 billion surpassing pre-pandemic levels.

North America dominates the global market owing to the presence of key players such as Airbnb and Vrbo. High urbanization and digital use further drive regional growth. Strong tourism paired with increasing income levels increase service demand in the region.

Europe holds the second-largest market share, driven by its popularity as a tourist destination and the availability of low-cost travel options. Furthermore, the demand for unique and affordable accommodation spaces drives the sharing accommodation industry across the region.

Key Market Players

• Airbnb (U.S.)
• Vrbo (Expedia Group) (U.S.)
• Booking.com (Netherlands)
• HomeAway (U.S.)
• Tujia (China)
• 9flats (Germany)
• FlipKey (TripAdvisor) (U.S.)
• Roomorama (Singapore)
• OneFineStay (Accor) (U.K.)
• Misterb&b (France)

Key Industry Developments

• In October 2024, Airbnb, a U.S. vacation rental company, announced that its San Francisco office lease at 888 Brannan Street would be extended through 2037. This agreement includes over 250,000 square feet, including additional first-floor spaces.
• In October 2024, Booking.com, an online travel agency, announced the second phase of its sustainability initiative. The project focuses on the growing demand among tourists for sustainable housing alternatives. Furthermore, the initiative educates partners on cost-effective certification possibilities.