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Facility Management Market Size, Share & 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, 2022-2029

Region : Global | Format: PDF | Report ID: FBI101658

 

KEY MARKET INSIGHTS

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The global facility management market size was valued at USD 1,239.99 billion in 2021. The market is projected to grow from USD 1,260.36 billion in 2022 to USD 1,856.44 billion by 2029, exhibiting a CAGR of 5.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -0.5% in 2020 as compared to 2019.


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 contract with building management to deliver their services. Workforce, equipment, and other services are all part of the 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. Even the well-managed organizations were shaken off by the COVID-19 outbreak, which turned normalcy on its head. 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 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-free. Moreover, the 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


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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, the 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 are fueling the key market growth globally.


DRIVING FACTORS


Upsurge in Infrastructural Investments to Boost Market


Government bodies across countries heavily invest in the construction and infrastructural sector. The 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 the 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, i.e., 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 (135 billion riyals) 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 (1.6 trillion riyals) 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 facility management 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 facilities services hardly face challenges regarding limited utilization of technology; this is due to the contracts taken for a long time 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 lack of operation & maintenance (O&M) practices.


Additionally, the 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 (i.e., technical issues)


Additionally, the rapid growth in the infrastructure sector is demanding more workforce, which is affecting the domestic market across the country. Furthermore, the 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 category 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


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


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


Moreover, the government sector 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, such as technical maintenance, space management, integrated services management, and many more. Healthcare and education sectors have the highest demand for these services that can offer such services effectively and can help end-users to enhance and focus on their primary businesses.


REGIONAL INSIGHTS


Asia Pacific Facility Management Market Size, 2021 (USD billion)

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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 market presence 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 the businesses in the country.


The North American 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 the COVID-19, there has been a downfall in the market during 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 a growing understanding of the importance of keeping the environment clean in order to repel the coronavirus.


Likewise, 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.


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Moreover, the Middle East & Africa and South America are likely to see 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's growth in South America.


KEY INDUSTRY PLAYERS


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


To strengthen their presence in developing nations, such multinational corporations are focusing on securing new contracts. 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.)

  • Aramark (U.S.)

  • Jones Lang LaSalle Incorporated (U.S.)

  • Cushman & Wakefield plc. (U.S.)

  • Tenon Group (India)

  • Johnson Controls International plc. (Ireland)

  • Dussmann Group (Germany)

  • Serco Group PLC (U.K.)

  • Mitie Group Plc (U.K.)

  • G4S Plc (U.K.)

  • Veolia Environment (France)


KEY INDUSTRY DEVELOPMENTS:



  • 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.

  • 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.


REPORT COVERAGE


An Infographic Representation of Facility Management Market

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The global market 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 facility management 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



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



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 (Service Type, Industry Vertical, Region)

    • U.S. (By Industry Vertical)

    • Canada (By Industry Vertical)



  • Europe (Service Type, Industry Vertical, Region)

    • U.K. (By Industry Vertical)

    • Germany (By Industry Vertical)

    • France (By Industry Vertical)

    • Rest of Europe (By Industry Vertical)



  • Asia Pacific (Service Type, Industry Vertical, Region)

    • Japan (By Industry Vertical)

    • China (By Industry Vertical)

    • India (By Industry Vertical)

    • Southeast Asia (By Industry Vertical)

    • Rest of Asia Pacific (By Industry Vertical)



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

    • South Africa (By Industry Vertical)

    • GCC (By Industry Vertical)

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



  • Latin America (Service Type, Industry Vertical, Region)

    • Brazil (By Industry Vertical)

    • Mexico (By Industry Vertical)

    • Rest of Latin America (By Industry Vertical)





Frequently Asked Questions

Fortune Business Insights says that the value of the global market was USD 1,239.99 billion in 2021.

The market is projected to reach USD 1,856.44 billion by 2029.

The market is projected to grow at a CAGR of 5.7%, exhibiting moderate growth during the forecast period (2022-2029).

Asia Pacific is projected to hold the largest market share, 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.

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.

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