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Facility Management Market Size, Share & Industry Analysis, By Service Type (Hard Services, Soft Services, and Others Services), By Industry (Healthcare, Government, Education, Military & Defense, Real Estate and Others) and Regional Forecast, 2019-2026

Region : Global | Published Date: Dec, 2019 | Report ID: FBI101658| Status : Published

 

KEY INDUSTRY INSIGHTS

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The global facility management market size valued at USD 1.19 Trillion in 2018 is projected to reach USD 1.74 Trillion by 2026, exhibiting a CAGR of 4.9% during the forecast period.


The market is rapidly increasing its infrastructure sector across the globe. The facilities management industry has grown dramatically over the past 20 years, owing to the continuous growth in urbanization and industrialization. Facility management is defined as the means of providing maintenance support, user management and project management to increase the value of a building or infrastructure. The global facilities management services market is categorized into hard, soft and other services. Among these, hard services are correlated to the actual fabric and building systems. These types of services are considered to be traditional facility management services.


As per the facility management market trends, the hard services typically include the services of decoration and refurbishment, life & escalator, fire safety maintenance, air conditioning maintenance, plumbing and drainage, machinery and plant maintenance services and many more. In addition to that, cleaning, security, recycling, ground maintenance, handyman services, waste disposal, pest control are the services that primarily fall under soft services. Furthermore, other services include services such as benchmarking, business risk assessment, pace planning, utility management, archiving, travel booking, postal services and many more.


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The demand for facility management services is increasing from the past few years and is expected to grow significantly over the forecast period. Growth is attributable to the increasing investment by governments in industries such as transport, energy, construction, and others. These services can be done by two methods, namely in-house services and outsourced services.


The facility management service providers offer their services by getting into contracts with the building management. The contract includes the workforce, equipment and other services. The growth of facility management in North America is moderate as compared with the Asia Pacific and Middle East and Africa regions. 


MARKET DRIVERS


“Growth in the Infrastructure Sector, Boosting the Facilities Management Services Market”


The governments of several countries are focused on investing in their infrastructure sector. Governments have started invested heavily in the construction of railways, ports, airports and many other sectors. For this, governments are signing contracts with multiple private contractors, including facility management service providers, to keep the infrastructure clean green. Moreover, governments are signing contracts with several international players to complete and link their infrastructure internally and across the borders as well as.


For instance, for over the next 11 years, the government of Saudi Arabia have raised USD 36 Billion (~135 Billion Riyals) for transportation infrastructure. This initiative is mainly focused on railways, airports, ports and roads. This investment is funded by the government and several private companies. According to Ministry of Energy, Saudi Arabia, the country has planned to invest USD 425 Billion (~1.6 Trillion Riyals) over the next ten years in its infrastructure and industrial programs. This private sector investment is dedicated to the Saudi Crown Prince Mohammed bin Salman’s Vision 2030 program. Moreover, such investments are taken into consideration by the government for the National Industrial Development and Logistics Program, which will help in creating private-sector jobs in the country.


Therefore, increasing growth of the infrastructure sector in several countries is driving the facility management market, simultaneously. Moreover, the facilities management service providers across the world have numerous amount of opportunities for seeking contracts from private sectors.


“Government’s Initiatives of Investing in the Tourism Industry.”


Currently, governments of developed and developing countries are working continuously on their economic diversifications by investing in their tourism industry. Over the past few years, several governments have invested heavily in diversifying their non-economic sectors. Moreover, by 2030, governments have taken the initiative to unlock their tourism sector and this can be done by implementing multiple significant changes. For instance, in the Kingdom of Saudi Arabia, the government has started issuing tourist visas for the first time in 2019, which is the most important change that has taken place.


Therefore, such investments from the governments and private sectors will drive the facilities management market in the country, over the coming years. These investments in the tourism sector are allowing to build new infrastructure which will require new facilities management contracts.  


MARKET CHALLENGES


“Factors Such as Lack of Stable Contracts, Limited Use of Technology and Lack of Capabilities and Resources are Hampering the Market in the Kingdom.”


Many large facilities management enterprises with huge investment amount usually do not face such challenges, as these companies take contracts for a long period. Moreover, large enterprises most of the time utilize innovative technologies to provide hard and soft services, which allows such companies to provide better and enhanced services. On the other hand, small and medium-sized companies face such challenges frequently, owing to the lack of financial resources and funding in the country.


Additionally, the rapid growth in the infrastructure sector is demanding more workforce, which is affecting the domestic facilities management, across the country. Therefore, these are the primary factors that are impacting the growth of the market. However, to resolve such issues, workforce and controlling costs will play a vital role.



SEGMENTATION


By Service Type Analysis


“The Hard Services Sub-Segment is Anticipated to Hold the Largest Market Share in Terms of Revenue”


The service type sub-segment in the facility management market is segmented into hard services, soft services, and others. Among these, the hard services sub-segment is expected to rise at a higher growth rate, owing to the rapid increase in the infrastructure sectors, across the globe.


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Additionally, the rapid growth of the building & construction industry, owing to the increasing urbanization across the globe is the primary factor that is driving the hard services sub-segment.


By Industry Analysis


“Real Estate Sub-Segment is Expected to Dominate the Market During the Forecast Period”


By industry segment, the market is divided into healthcare, government, education, military & defense, real estate and others.


Continuous growth in the construction industry across the globe is the primary factor that is driving the real estate sub-segment, over the forecast period. In terms of the market share, the real estate sub-segment is anticipated to grow significantly followed by others, which primarily includes industries such as (IT & telecommunication, BFSI and many others.


REGIONAL ANALYSIS


The market is segmented into North America, Europe, Asia Pacific, Latin America and the Middle East and Africa. Whereas, all regions are further bifurcated into countries.


The Asia Pacific market size was estimated USD 458.55 Billion in 2018 and is projected to grow as a dominating region in the increasing global facilities management market during the forecast period. In the region, the market is fragmented, owing to the huge presence of organized and un-organized players that offers facilities management services to the end-users. Furthermore, North America is expected to grow moderately, owing to the well-established key players and saturation of the infrastructure sector across the region. Also, the U.S. is expected to hold the largest market share in the coming future.


Asia Pacific Facilities Management Market Size, 2018 (USD Billion)

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Additionally, the facility management market in Europe is anticipated to grow gradually. This growth is attributed to the various factors, such as increasing urbanization, industrialization and many more.


Besides that, the market values in the Middle East and Africa and Latin America is expected to significant growth. Furthermore, increasing investments by the governments and private sectors in the Middle East and Africa is the primary reason that is driving the growth of the market in the region.


INDUSTRY KEY PLAYERS


“Market Players like Sodexo, CBRE Group, Inc. and ISS A/S Holds the Major Share in the Facilities Management Market”


Facility management providers such as Sodexo, CBRE Group, Inc., ISS A/S, and Johnson Controls International plc. holds the largest market share in terms of revenue in 2018. Such large enterprises are focused on grabbing new contracts in developing countries to make their presence stronger. Also, these companies are adopting new and innovative technologies to provide better and enhanced facilities management services to their clients.


List of Key Companies Profiled:



  • Sodexo

  • CBRE Group, Inc.

  • ISS A/S

  • Compass Group

  • Aramark

  • Jones Lang LaSalle Incorporated

  • Cushman & Wakefield plc.

  • Tenon Group

  • Johnson Controls International plc.

  • AMEC Facilities


REPORT COVERAGE


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The report provides an elaborative analysis of the global facility management market dynamics and competitive landscape. Various key insights presented in the report are the recent industry developments in the global facilities management market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape and company profiles.


Report Scope & Segmentation








































 ATTRIBUTE



 DETAILS



Study Period



  2015-2026



Base Year



  2018



Forecast Period



  2019-2026



Historical Period



   2015-2017



Unit



  Value (USD Billion)



Segmentation



By Service Type



  • Hard Services

  • Soft Services

  • Other Services



By Industry



  • Healthcare

  • Government

  • Education

  • Military & Defense

  • Real Estate

  • Others (IT & Telecommunication, BFSI, etc.)



By Region



  • North America (U.S. and Canada)

  • Europe (U.K., Germany, France, and the Rest of Europe)

  • Asia Pacific (Japan, China, India, Southeast Asia, and the Rest of Asia Pacific)

  • Middle East & Africa (South Africa, GCC and the Rest of the Middle East & Africa)

  • Latin America (Brazil, Mexico, and the Rest of Latin America)



 


INDUSTRY DEVELOPMENT:



  • October 2019 – CBRE will provide its services to Novartis International AG, which is a pharmaceutical company based in Basel, Switzerland. This will help Novartis in the transformation of its real estate portfolio, which will help its employee workplace experience.

  • August 2019 - ISS has entered into a five-year Vested partnership with the major professional services firm in Nordics. Moreover, this contract will come into effect from 1st October 2019 in the Nordics region.


Frequently Asked Questions

Fortune Business Insights says that the value of the global facilities management market was USD 1.19 Trillion in 2018

The market is projected to reach USD 1.74 Trillion by 2026.

The market will grow at a rate of 4.9% CAGR, globally. The growing construction industry across the developed and developing countries is expected to drive the market growth in the forecast period

The Asia Pacific is projected to hold the largest market share in the facilities management market, followed by Europe and North America. This growth is attributed due to the presence of developing countries in the region, such as India and China.

Hard services sub-segment of service type segment is anticipated to be the leading segment in the facilities management market during the forecast period.

Robust growth in the infrastructure sector and the emerging investments in various sectors across the world are the factors that are driving the market.

Sodexo, CBRE Group, Inc., ISS A/S, and Johnson Controls International plc. are the top players in the facilities management market.

The Asia Pacific is anticipated to hold the largest market share, owing to the presence of registered and unregistered players in countries, such as China and India.

Demand for high-performance facilities management products and services that are both cost-effective is the current trend for the global facilities management market.

Facilities Management Market Size, Share and Global Industry Trend Forecast till 2026
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