"Catapult Your Business to Fore, Gain Competitive Advantage "

Facility Management Market Size, Share, Trends & Covid-19 Impact Analysis, By Service Type (Hard Services, Soft Services, and Other Services), By Industry Vertical (Healthcare, Government, Education, Military & Defense, Real Estate, and Others), and Regional Forecast, 2023-2030

Last Updated: May 13, 2024 | Format: PDF | Report ID: FBI101658

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global facility management market size was valued at USD 1,260.0 billion in 2022. The market is projected to grow from USD 1,291.6 billion in 2023 to USD 2,031.4 billion by 2030, exhibiting a CAGR of 6.7% during the forecast period.


Facility management is described by the International Facility Management Association (IFMA) as integrating a physical workplace with an organization's people and work, which includes tasks such as equipment maintenance, space planning, and portfolio forecasting. Emergency preparation & business continuity, environmental sustainability, human aspects, communication, project management, quality, real estate & property management, leadership & strategy, and others are all part of these services. On the other hand, the study focuses mostly on the technology side of management services, which includes software and services that help improve the efficiency and effectiveness of facility management.


Due to the initial increase in urbanization and industrialization, this sector, which is defined as providing maintenance assistance, user management, and project management, has risen substantially over the last two decades.


The demand for such solutions and services has risen steadily and is likely to expand considerably over the next few years. The increased demand is due to government expenditures in transportation, energy, construction, and others. Furthermore, its service providers engage in contracts with building management to deliver their services. Workforce, equipment and other services are all part of contract management.


COVID-19 IMPACT


Increase in Usage of Facility Management Services by Governments to Boost Market during Pandemic


The COVID-19 pandemic has resulted in economic turmoil, owing to subsequent lockdowns. It has also impacted the industry; however, facilities managers have fought back since the pandemic began to investigate new options for remote work or socially distant workplaces. Contrary to this, the increasing awareness of cleanliness, management, maintenance, and security is expected to drive the market in the future. Furthermore, governments in the worst-affected countries, such as Spain, Italy, the U.S., China, and the U.K., are investing in these services to make the containment zones COVID-19 free. Moreover, service providers are focused on offering end-to-end facility management services to businesses and government sectors, allowing them to work efficiently in restricted areas.


Hence, the contribution of these service providers during the pandemic will boost the government-initiated schemes for combating the virus across the world.


LATEST TRENDS


Request a Free sample to learn more about this report.


Growing Demand for Cloud-based Facilities Management Systems to Fuel Market


Presently, cloud-based solutions provide a safe and secure way to host facilities management software. They also assist companies in reducing expenses by improving security and cooperation across teams and subsidiaries spread across numerous regions. In addition, the secure hosting of sensitive data, better security and scalability, and rapid disaster recovery are all advantages of cloud-based facilities management solutions.


Additionally, backups are saved on a public or private cloud hosting platform, allowing businesses to quickly retrieve vital server data. Secure logins allow data to be accessed anywhere with a reliable internet connection. Attributed to cloud-based facilities management systems, customer satisfaction is improved, and repair and maintenance expenses are reduced. Hence, as a ramification of these advantages, the adoption & integration of cloud-based solutions is fueling the facility management market growth globally.


DRIVING FACTORS


Upsurge in Infrastructural Investments to Boost Market


Government bodies across countries heavily invest in the construction and infrastructural sector. Infrastructural growth is heavily dependent on three components, renovation of existing buildings, new building construction, and civil engineering.


However, the industry is well-placed to take advantage of infrastructural investments in the global scenario. The market propensity for renovating existing buildings represents the majority of services related to this industry, performances, and market growth. For this, governmental bodies across emerging countries are contracting with multiple private contractors, including service providers and several international players to keep the infrastructure clean and green, including smart building construction.


Moreover, the development of smart buildings is accelerated by rising real estate investment. A network that connects lighting, sensors, windows, doors, HVAC systems, and CCTV cameras in smart buildings in this industry has become an essential preventative maintenance activity due to the development of these smart buildings. There has been an increase in the market need for these kinds of management services due to multiple buildings requiring cleaning and maintenance services in developed & developing countries.


For instance, Saudi Arabia's government plans to raise USD 36 billion for transportation projects over the next 11 years. Railways, airports, ports, and roadways are the primary targets of this project. The government and a number of private enterprises are both contributing to this initiative. Saudi Arabia plans to invest USD 425 billion in infrastructure and industrial initiatives over the next 10 years, according to the Ministry of Energy. Saudi Crown Prince Mohammed bin Salman's Vision 2030 initiative will benefit from this private sector investment.


Therefore, the growth of the infrastructure sector in several countries is expected to drive the market. Moreover, service providers across the world have ample opportunities for seeking contracts from private sectors, and this further increases the market share globally.


RESTRAINING FACTORS


Limited Use of Technology & Inadequate Optimization Practices to Hinder Market Growth


Several large facilities management service providers with a heavy initial investment in facility services hardly face challenges regarding limited utilization of technology; this is due to the contracts taken for a long period.


Most of the time, large enterprises utilize innovative technologies, including Building Information Modeling (BIM) to provide hard and soft services, which allow them to provide better and enhanced services.


On the other hand, small & medium-sized companies in various countries are inadequately implementing the inputs at the initial stage, which is at the designing stage. This results in sustainability-related problems in building facilities, especially during the post-occupancy stage, due to the small & medium-sized companies possessing a lack of Operation & Maintenance (O&M) practices.


Additionally, service providers across developed and developing economies, such as the U.S., the U.K., Germany, and China, face three major difficulties in implementing technological advancements. The three major difficulties are:



  • Lack of knowledge about how to utilize technology in their practice

  • Lack of guidance about data requirements and delivery

  • Interoperability (technical issues)


Additionally, the rapid growth in the infrastructure sector is demanding more workforce, which is affecting the domestic market across the country. Furthermore, businesses are not fully aware of the advantages of facilities management. The issue stems from a lack of knowledge and adoption of the required technology. Many companies are still implementing cloud computing technologies and have yet to implement an IoT ecosystem.


Hence, these are the primary factors that are hindering the growth of the market. However, to resolve such issues, the workforce and controlling costs will play a vital role.


SEGMENTATION


By Service Type Analysis


Hard Services Segment to Hold Major Market Share Aided by Development in Infrastructure Sector


By service type, the market is categorized into hard services, soft services, and other services.


The hard services segment is likely to hold a major market share due to the continued subsequent growth of the infrastructure industry globally. In addition, cleaning, plumbing and drainage, building fabric maintenance, and other hard services are included in this industry. These services are connected to the building's physical structure. Furthermore, the hard services segment is further being driven by the rapid rise of the building & construction sector as a result of increased urbanization throughout the world.


Furthermore, soft services, the fastest-growing sub-segment within the service type category, is expected to grow considerably throughout the forecast period. Additionally, increased investments in waste management, energy management, wastewater management, and other green energy management industries have contributed to this rise.


By Industry Vertical Analysis


To know how our report can help streamline your business, Speak to Analyst


Real Estate Segment to Dominate Market during Forecast Period


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


The real estate segment is anticipated to be driven throughout the world over the forecast period. It is attributed to the continued expansion of the construction & development industry in various countries. In addition, the real estate segment is expected to rise considerably in terms of market share, followed by the others segment, which mostly includes businesses such as IT & telecommunications and BFSI.


Furthermore, the healthcare segment is anticipated to grow significantly during the forecast period, owing to the increase in adoption of facility management services as precautionary measures in various countries.


Moreover, the government segment is expected to witness progressive market growth in the market. This is owing to the government’s focus on investing in its infrastructural sector. Multiple types of services in the educational sector include technical maintenance, space management, integrated services management, and many more. Healthcare and education sectors have the highest demand for these services that can help end-users to enhance and focus on their primary businesses.


REGIONAL INSIGHTS


Asia Pacific Facility Management Market Size, 2022 (USD billion)

To get more information on the regional analysis of this market, Request a Free sample


The report's scope comprises five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.


Asia Pacific is anticipated to have the leading facility management market share due to the existence of various organized and unorganized companies in India and China. Furthermore, established firms are concentrating on forming partnerships with local players to provide their services to end-users and increase their geographic footprint. In addition, the country's market is being influenced by the growing adoption of novel technologies such as the Internet of Things (IoT) evolutions and business strategies.


Rising Hospitality Industry & Increasing Smart City Initiatives in India to Accelerate Market


Furthermore, the facility management industry in India is expected to show major growth during the forecast period. It is attributed to the increase in government methods to develop smart cities in the APAC region. In addition, the number of large public facilities, such as airports, malls, universities, hospitals, and seaports, is growing along with the development of smart cities, which has surged the demand for these services. The rapidly expanding building sector in India as well as China is expected to help businesses in these countries.


The North America market is predicted to rise steadily due to the implementation of new technologies such as the Internet of Things, artificial intelligence, robot adoption, and others. Moreover, due to subsequent lockdowns in key states throughout the U.S. and Canada as a result of COVID-19, there has been a downfall in the market from 2020 to 2021. However, the market is expected to increase considerably throughout the forecast period as a result of the acceptance of government-sponsored programs. This is due to the growing understanding of the importance of keeping the environment clean to avoid the spread of coronavirus.


Europe is expected to increase considerably in the next few years. It is due to the adoption of preventive measures by governments in various nations in the region. Service companies will be able to enhance their staff, productivity, and sales by taking these preventative measures.


To know how our report can help streamline your business, Speak to Analyst


Moreover, the Middle East & Africa and South America are likely to witness considerable growth as governments in the Middle East & Africa are increasing their investments in the tourism industry, which is the key factor driving the region's market growth. Furthermore, the expanding economic, business, and residential sectors are all important drivers influencing the market growth in South America.


KEY INDUSTRY PLAYERS


Partnership with Local & Regional Players to Aid Key Players in Growing their Existence


To strengthen their presence in developing nations, multinational corporations focus on mergers and acquisitions. In addition, these businesses are implementing innovative technology to deliver better and more comprehensive property management services to their customers. For example, in October 2019, CBRE Group Inc. announced 'Plans Pro,' an enterprise Software-as-a-Service (SaaS) 3D visualization tool utilized to make faster decisions on new and current custom design standards that offer a wider variety of integrated services, including facility management, project management, and transaction management.


LIST OF KEY COMPANIES PROFILED:



  • Sodexo (France)

  • CBRE Group, Inc. (U.S.)

  • ISS A/S (Denmark)

  • Compass Group (U.K.)

  • Tenon Group (India)

  • Johnson Controls International plc. (Ireland)

  • Dussmann Group (Germany)

  • Serco Group PLC (U.K.)

  • OCS Group International Limited (U.K.)

  • Dussmann Gulf LLC (U.A.E.)

  • G4S Plc (U.K.)

  • EFS Facilities Services Group (U.A.E.)

  • Veolia Environment (France)


KEY INDUSTRY DEVELOPMENTS:



  • January 2022: Aramark, a global company engaged in uniforms & food and facilities management, announced a strategic partnership with Patient Engagement Advisors (PEA), an advanced technology platform that associates transition specialists with patients.

  • November 2021 - CBRE Group, Inc. and Turner & Townsend Holdings Limited completed their acquisition. CBRE bought a 60% ownership stake in the company and entered into a strategic collaboration with Turner & Townsend. Turner & Townsend serves customers in 46 countries with program management, cost consulting, project management, and advisory consulting services. Real estate, infrastructure, and natural resources are the three business segments.

  • September 2021: Disrupt-X partnered with Imdaad to introduce IoT technology to enhance FM services in the UAE using Intel’s leading-edge technology and edge to cloud offerings.

  • July 2021: Farnek introduced HITEK solution 4.0, estimating that it could save up to 17% in manpower costs by transferring traditional FM operational management to HITEK’s smart management.

  • June 2020 - Sodexo partnered with Bureau Veritas to introduce a hygiene verification label for Sodexo service that gives quality assurance to consumers. This partnership covers on-site facility management services and catering services. The label was introduced in the U.K., France, the U.S., Canada, and then gradually rolled out in other countries across the globe.


REPORT COVERAGE


An Infographic Representation of Facility Management Market

To get information on various segments, share your queries with us



The research report provides a detailed analysis of the types and industry verticals. It provides information about leading companies and their business overview, types, and leading applications. Besides, it offers insights into the competitive landscape, SWOT analysis, and current market trends and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors contributing to the market's growth in recent years.


Report Scope & Segmentation




















































  ATTRIBUTE



  DETAILS



Study Period



2019-2030



Base Year



2022



Estimated Year



2023



Forecast Period



2023-2030



Historical Period



2019-2021



Growth Rate



CAGR of 6.7% from 2023 to 2030



Unit



Value (USD Billion)



Segmentation



By Service Type, Industry Vertical, and Region



Segmentation



By Service Type



  • Hard Services

  • Soft Services

  • Other Services



By Industry Vertical



  • Healthcare

  • Government

  • Education

  • Military & Defense

  • Real Estate

  • Others (IT & Telecommunication, BFSI)



By Region



  • North America (By Service Type, By Industry Vertical, By Country)



  • U.S. (By Industry Vertical)

  • Canada (By Industry Vertical)

  • Mexico (By Industry Vertical)



  • Europe (By Service Type, By Industry Vertical, By Country)



  • U.K. (By Industry Vertical)

  • Germany (By Industry Vertical)

  • France (By Industry Vertical)

  • Rest of Europe (By Industry Vertical)



  • Asia Pacific (By Service Type, By Industry Vertical, By Country)



  • China (By Industry Vertical)

  • India (By Industry Vertical)

  • Southeast Asia (By Industry Vertical)

  • Japan (By Industry Vertical)

  • Rest of Asia Pacific (By Industry Vertical)



  • Middle East & Africa (By Service Type, By Industry Vertical, By Country)



  • South Africa (By Industry Vertical)

  • GCC (By Industry Vertical)

  • Rest of the Middle East & Africa (By Industry Vertical)



  • South America (By Service Type, By Industry Vertical, By Country)



  • Brazil (By Industry Vertical)

  • Rest of South America (By Industry Vertical)






Frequently Asked Questions

Fortune Business Insights says that the value of the global market was USD 1,260.0 billion in 2022.

The market is projected to reach USD 2,031.4 billion by 2030.

The market is projected to grow at a CAGR of 6.7%, exhibiting moderate growth during the forecast period (2023-2030).

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

The hard services segment is anticipated to lead the market during the forecast period.

Robust growth in the infrastructure sector and emerging investments in various sectors across the world are the key market drivers.

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

The major players in the market constitute 50% - 55% of the market, which is majorly owed to their brand name and presence in multiple regions.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2030
  • 2022
  • 2019-2021
  • 120

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X