Healthcare Facility Management Market Size, Share & Industry Analysis, By Service (Hard Services {Plumbing, Air Conditioning, and HVAC Services, Fire Protection Services, & Others}, Construction Services {Building Construction, Building Repair and Maintenance, Testing, and Inspection, Clinical & Critical Space Fit-Outs, & Others}, Energy Services {Energy Management, Energy Efficiency & Retrofit Projects, & Others}), By Setting (Hospitals & Health Systems, Ambulatory / Outpatient Facilities, & Others), & By Location (On-site, & Off-site) and Regional Forecast, 2026-2034

The global healthcare facility management market size was valued at USD 8.90 billion in 2025. The market is projected to grow from USD 9.66 billion in 2026 to USD 19.30 billion by 2034, exhibiting a CAGR of 9.04% during the forecast period. North America dominated the global healthcare facility management market with a market share of 42.92% in 2025.

The global healthcare facility management market is experiencing steady and substantial growth, driven by the rising demand for efficient operation and maintenance of healthcare institutions, including hospitals, clinics, and nursing homes. This sector focuses on ensuring compliance with healthcare regulations, managing medical equipment, and maintaining safety standards to enhance patient care and outcomes.

Furthermore, the development of healthcare infrastructure, technological advancements, and growing strategic activities will drive funding for efficient healthcare, thereby boosting the global healthcare facility management market growth.

• For instance, in May 2025, ABM secured a USD 10.8 million contract with Ireland’s Health Service Executive to provide cleaning services at the major hospitals and new facilities. The company ensured that it offered high hygiene standards in critical areas, such as operating theatres and ICUs.

Furthermore, many key industry players, such as CBRE Group, Inc., ISS A/S, operating in the market, are focusing on offering advanced facility management solutions and services by strengthening their market position through strategic initiatives.

HEALTHCARE FACILITY MANAGEMENT MARKET TRENDS

Shift toward Preventive or Predictive Maintenance is a Key Market Trend

The unexpected equipment failures, resulting in costly downtime and compromised patient safety due to the current reactive maintenance approach, have shifted the focus toward predictive measures. This shift is contributing to the market trends.

The shifting toward preventive or predictive maintenance offers significant advantages, such as early detection of potential issues through real-time monitoring and data analytics. Thus, many settings are focused on adopting predictive maintenance to enhance overall operational efficiency and minimize disruptions, thereby improving the quality of patient care in healthcare facilities.

• For instance, in November 2024, Johnson Controls announced a substantial expansion of AI features within its OpenBlue Enterprise Manager suite, a key component of the OpenBlue digital ecosystem. The new updates introduce the first customer-facing generative AI applications, more autonomous building control systems, and a greatly improved user experience.

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MARKET DYNAMICS

MARKET DRIVERS

Rising Healthcare Infrastructure Base to Drive the Market Growth

The expanding healthcare infrastructure, including the development of new hospitals, diagnostic labs, and ambulatory centers, is a significant driver of the healthcare facilities management market. As these facilities grow, there is an increased demand for outsourced services to ensure smooth operations. Additionally, the focus on maintaining high standards of hygiene and safety in healthcare settings further amplifies the demand for professional services, making this a key driver of growth in the evolving healthcare sector.

• For instance, in April 2025, ServiceChannel introduced a new online ecosystem that offers multi-site customers and service providers access to a dynamic network of facilities management tools, services, and solution providers.

MARKET RESTRAINTS

Data and Integration Gaps to Limit Market Growth

One of the prominent restraining factors in the market is the data and integration gaps, as many healthcare organizations face challenges in consolidating disparate data sources, leading to fragmented information that hinders efficient decision-making.

Additionally, inconsistent data standards and a lack of interoperability between systems create barriers for seamless data sharing across departments. These gaps limit the ability to optimize operations, reduce costs, and improve patient safety. Furthermore, data security concerns and regulatory compliance issues can restrict the adoption and market growth.

• For instance, in October 2024, the NHS England ERIC 2023/24 Data Quality report states that estates and facilities data were gathered through an online Estates Facilities Management (EFM) system, then validated with additional quality checks. It also notes that six NHS trusts failed to submit complete, signed-off ERIC data by the deadline.

MARKET OPPORTUNITIES

Integration of AI Technology to Transform Hospital Operations is a Lucrative Growth Opportunity in the Market

The integration of AI technology presents a significant growth opportunity in the healthcare facility management market. AI-driven solutions in hospital facilities enhance operational efficiency by streamlining administrative tasks, optimizing resource allocation, and improving patient flow management. Additionally, AI can assist in predictive maintenance of hospital equipment, reducing downtime and operational costs, while also improving patient outcomes and enhancing hospital safety standards.

Additionally, collaboration between hospitals and key players to integrate AI in hospital systems is expected to boost the market growth during the forecast period.

• For instance, in October 2025, GE HealthCare collaborated with two prominent U.S. health systems, The Queen’s Health Systems in Honolulu, HI, and Duke Health in Durham, NC, to support the development of GE HealthCare’s new AI-powered hospital operations software. The new software solution aimed to utilize AI and predictive analytics to recommend actions and help care teams improve the quality of care, patient flow, and maximize resources.

MARKET CHALLENGES

Labor Shortages and Rising Wage Costs to Challenge the Market Growth

Labor shortages are increasingly impacting the facility management sector. As the demand for experienced staff rises, companies face increasing wage costs to attract and retain qualified workers. These higher wages increase the operational costs and, potentially, challenge market growth.

Segmentation Analysis

By Service

Rising Number of Contracts for Hard Services in Hospitals to Propel the Segment’s Growth

Based on the service, the market is categorized into hard services, construction services, energy services, and other services.

The hard services segment is expected to account for the largest share of the Healthcare facility management market. The hard services segment held a 38.8% market share. The dominant share of the segment is driven by increasing demand for hardware in hospitals for asset-intensive, 24/7 operations, where instrument compliance depends on continuous maintenance, thus boosting the demand for hard services in the market.

Additionally, the growing number of contracts for hard services in hospitals is expected to boost the segment’s growth.

• For instance, in December 2025, Tutor Perini Corporation secured the initial phase of a guaranteed maximum price contract, valued at approximately USD 29 million for electrical services related to the new Harris Health hospital located on the Lyndon B. Johnson Hospital campus in Houston, Texas.

The construction services segment is expected to grow at a CAGR of 7.60% over the forecast period. 

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By Setting

Increasing Collaborative Activities to Improve Hospitals & Health Systems Services Boosted Segment Growth

Based on setting, the market is segmented into hospitals & health systems, ambulatory/outpatient facilities, diagnostic & laboratory facilities, long-term care facilities, and others.

In 2025, the hospitals & health systems segment dominated the global market. The hospitals & health systems segment dominated the market, accounting for a 57.9% market share. The dominant share of the segment is driven by the adoption of facilities such as HVAC for ORs/ICUs, electrical and backup power, medical gas support systems, building automation, fire safety, water hygiene, and others. Thus, these facilities boost the demand for facility management services and propel the segment’s growth in the market. Additionally, collaborative activities are increasing to enhance facility management in hospitals, thereby bolstering the segment’s growth.

• For instance, in May 2025, Sakra World Hospital appointed Tandem Healthcare to design and construct its second hospital in North Bengaluru.

The ambulatory/outpatient facilities segment is projected to grow at a CAGR of 11.93% over the forecast period. 

By Location

Increasing Strategic Activities to Improve On-site Facility Management Services to Lead the Segment’s Growth

Based on location, the market is segmented into on-site and off-site.

The on-site segment is anticipated to witness a dominant market share over the forecast period. The segment held a 63.7% market share. The dominant share of the segment is due to its ability to provide personalized and immediate services directly at the healthcare facility. Also, this approach ensures better coordination, quicker response times, and tailored solutions to meet the specific needs of the healthcare environment.

Also, increasing strategic activities to improve on-site facility management and contribute to the segment’s growth.

• For instance, in June 2025, Concentra Group, an occupational health services provider, acquired Pivot Onsite Innovations from Athletico Physical Therapy. This strategic move expanded Concentra’s on-site health services to approximately 350 clinics across more than 40 states.

The off-site segment is projected to grow at a CAGR of 10.76% over the forecast period. 

Healthcare Facility Management Market Regional Outlook

Regionally, the market is categorized into Europe, North America, Asia Pacific, Latin America, and the Middle East & Africa.

North America

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North America held the dominant share in 2024, valued at USD 3.53 billion, and maintained its leading position in 2025, with a value of USD 3.82 billion. The market in North America is expected to grow due to the presence of advanced healthcare infrastructure and increasing demand for a safe and sustainable healthcare setting, leading to better patient outcomes.

U.S Healthcare Facility Management Market

Based on North America’s strong contribution and the U.S. dominance within the region, the U.S. market can be analytically approximated at around USD 3.84 billion in 2025, accounting for roughly 43.2% of global healthcare facility management sales.

Europe

Europe is projected to record a growth rate of 8.73% in the coming years, the second-highest among all regions, and reach a valuation of USD 2.27 billion by 2025. The region’s growth in the market is driven by robust healthcare infrastructure, as well as increasing opportunities for investment by governments and other market participants.

U.K Healthcare Facility Management Market

The U.K. Healthcare Facility Management market in 2025 is estimated to be around USD 0.44 billion, representing approximately 4.9% of global healthcare facility management revenues.

Germany Healthcare Facility Management Market 

Germany’s Healthcare Facility Management market is projected to reach approximately USD 0.52 million in 2025, equivalent to around 5.9% of global Healthcare Facility Management sales.

Asia Pacific

Asia Pacific is estimated to reach USD 1.90 billion in 2025 and secure the position of the third-largest region in the market. In the region, India and China are both estimated to reach USD 0.24 billion and USD 0.67 billion, respectively, in 2025.

Japan Healthcare Facility Management Market

The Japan healthcare facility management market in 2025 is estimated at around USD 0.31 billion, accounting for roughly 7.5% of global healthcare facility management revenues.

China Healthcare Facility Management Market

China’s Healthcare Facility Management market is projected to be one of the largest worldwide, with 2025 revenues estimated at around USD 0.67 billion, representing roughly 7.5% of global Healthcare Facility Management sales.

India Healthcare Facility Management Market

The India Healthcare Facility Management market in 2025 is estimated at around USD 0.24 billion, accounting for roughly 2.7% of global Healthcare Facility Management revenues.

Latin America and the Middle East & Africa

The Latin America and Middle East & Africa regions are expected to witness moderate growth in this market space during the forecast period. The Latin America market is set to reach a valuation of USD 0.45 billion in 2025. The increasing focus on digitalization in the region, along with the adoption of advanced e-prescriptions, AI, and telemedicine, is expected to boost the region’s growth.

GCC Healthcare Facility Management Market

In the Middle East & Africa, the GCC is set to reach a value of USD 0.20 billion in 2025.

COMPETITIVE LANDSCAPE

Key Industry Players

Emphasis on Key Players to Offer Adequate Facility Management Services for Healthcare Systems

The global healthcare facility management market has a semi-consolidated structure, with several established players offering broad service portfolios and maintaining a strong presence across key geographies. CBRE Group, Inc. holds a prominent position due to its large-scale global workplace solutions (GWS) platform and dedicated healthcare facilities management capabilities, which focus on safety, compliance processes, and technology-led delivery.

• For instance, in November 2025, CBRE Group, Inc. secured a contract with East London NHS Foundation Trust (ELFT) to deliver hard facilities management services across more than 130 sites.

Other notable players, such as Sodexo, Aramark Corporation, and Compass Group PLC, are strengthening their market position through strategic initiatives aimed at expanding their services to enhance healthcare settings and improve patient outcomes.

LIST OF KEY HEALTHCARE FACILITY MANAGEMENT COMPANIES PROFILED

• CBRE Group, Inc. (U.S.)
• ISS A/S (Denmark)
• Sodexo (France)
• Aramark Corporation (U.S.)
• Compass Group PLC (K.)
• Jones Lang LaSalle Incorporated – JLL (U.S.)
• ABM Industries Incorporated (U.S.)
• Mitie Group plc (U.K.)
• Siemens AG (Germany)
• Honeywell International Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS

• November 2025- SodexoMagic announced a new partnership with Huston-Tillotson University to offer best-in-class food services and facilities management (FM) solutions.
• November 2025 - SodexoMagic partnered with UnityPoint Health, a respected healthcare system in the Midwest, to offer FM services with advanced technology and a personalized approach, improving patient satisfaction and outcomes.
• October 2025 - Aramark and the University of Pennsylvania Health System (UPHS) announced a new multi-year agreement to provide patient and retail food, environmental services, patient transportation, and an integrated call center for the nearly 4,000-bed, seven-hospital system.
• April 2025: ISS extended healthcare contract with West Middlesex University Hospital to provide a full range of soft facility management services, which include healthcare cleaning, patient and staff & visitor catering, linen and laundry, pest control, window cleaning, switchboard, and logistics.
• June 2024 - JLL announced that its digital end-to-end facilities management (FM) application, JLL Serve (Serve), will incorporate AI-powered technology from Sclera, a technology solutions enterprise.

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