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, 2020-2027

The global facility management market size was USD 1.24 trillion in 2019 and is projected to reach USD 1.62 trillion by 2027, exhibiting a CAGR of 4.0 % during the forecast period.

The facility management industry, defined as the means of providing maintenance support, user management, and project management has grown dramatically over the past two decades, owing to the continuous growth in urbanization and industrialization.

The demand for facility management solutions and management services has risen in the past few years and is expected to grow significantly over the forecast period. The rising demand is attributable to the increasing investment by governments in industries such as transport, energy, construction, and others. Moreover, the facilities management service providers offer their services by contracting with the building management. The contract includes the workforce, equipment and other services.

Increasing Adoption of Facility Management Services by the Governments Post Covid-19 Pandemic

The Covid-19 pandemic has resulted in an economic turmoil owing to subsequent lockdown, it also impacted this industry. Contrary to this, increasing awareness of cleanliness, maintenance, and security is expected to drive this market in the coming future. Furthermore, governments of a few of the worst affected countries such as Spain, Italy, U.S., China and U.K., are investing on facilities management services, to keep the containment zone Covid-free. Moreover, the service facilities management service providers are focused on offering end-to-end facilities management services to businesses and government sectors, allowing them to work efficiently in the restricted and key areas. Hence, the contribution of facilities management service providers during the pandemic will boost the government initiated schemes for combating the virus, across the world.

LATEST TRENDS

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Initiatives of Investing in the Tourism Industry by the Governments of Several Countries

Currently, governments in developed and developing countries are constantly working on their economic diversifications by investing in their tourism as well as other diverse industry verticals. Over the past few years, governments across several countries 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 in the coming years. These investments in the tourism sector are helping build new infrastructure which will require new facilities management contracts.  

DRIVING FACTORS

Growth in the Infrastructure Sector is Boosting the Facility Management Services Market

The governments across several countries are focused on investing in the infrastructure sector. These governments have started invested heavily in the construction of railways, ports, airports and many other sectors. For this, there have been numerous collaborations with multiple private contractors, including these type of 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 has 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 the 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.

Therefore, the growth of the infrastructure sector in several countries is driving this market, simultaneously. Moreover, the service providers across the world have ample growth opportunities for seeking contracts from private sectors.

RESTRAINING FACTOR

Lack of Stable Contracts, Limited Use of Technology, and Lack of Capabilities and Resources are Hampering the Market

Many large enterprises with huge investment amounts usually do not face such challenges, as these companies take contracts for a long period. Moreover, large enterprises mostly integrate 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 facility management, across the country. Therefore, these are the primary factors that are impacting the growth of the facility management industry. However, to resolve such issues, workforce and controlling costs will play a vital role.

SEGMENTATION

By Service Type Analysis

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 services market is segmented into hard services, soft services, and others. Among these, the hard services sub-segment is expected to witness a higher growth rate, owing to the rapid increase in the infrastructure sectors, across the globe.

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

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

Our market research report is categorized to cover healthcare, government, education, military & defense, and real estate sectors amongst others.

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

REGIONAL INSIGHTS

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Geographically, our market research report covers North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa markets and further deep dives to cover key countries within each region

In 2019, the Asia Pacific held the largest market share, owing to the presence of multiple organized and unorganized players in countries such as India and China. Moreover, established key players are focused on partnering with local market players to offer their services to end users and also to expand their geographical presence.

Furthermore, the market in North America is expected to grow gradually with the adoption of new technologies, such as IoT, AI, adoption of robots, and many more. However, owing to the impact of Covid-19, the market value will decline in 2020-2021 due to the immediate lockdowns in major states of U.S. and Canada. Although, with the adoption of government initiated schemes, the market is projected to grow significantly during the forecast period. This is owed to increasing awareness of the cleanliness of the surroundings to combat the novel coronavirus.

Additionally, this market in Europe is anticipated to grow moderately in the coming years. This growth is attributed to the adoption of precautionary measures by the governments of several countries in the region. These precautionary measures will allow these services providers to increase the workforce, productivity and sales.

Besides, this market in the Middle East and Africa, and Latin America is expected to grow significantly. Furthermore, increasing investments in the tourism sector by the governments in the Middle East and Africa is the primary reason that is driving the growth of the market in the region. Moreover, increasing economy, demography, commercial and real estate sectors and natural resources are the major factors that are impacting the growth of this market in Latin America

KEY INDUSTRY PLAYERS

Strategy of Collaborating with Regional and Local Players is Helping Prominent Players to Increase their Regional Presence

The service providers such as Sodexo, CBRE Group, Inc., ISS A/S, and Johnson Controls International plc. held the largest market share in terms of revenue in 2019. Such large enterprises are focused on grabbing new contracts in developing countries to make their presence stronger. Also, these facility management companies are adopting new and innovative technologies to provide better and enhanced services to their clients.

LIST OF KEY COMPANIES PROFILED:

• Sodexo (France)


• CBRE Group, Inc. (United States)


• ISS A/S (Denmark)


• Compass Group (United Kingdom)


• Aramark (United States)


• Jones Lang LaSalle Incorporated (United States)


• Cushman & Wakefield plc. (United States)


• Tenon Group (India)


• Johnson Controls International plc. (Ireland)


• Dussmann Group (Germany)

KEY INDUSTRY DEVELOPMENTS:

• 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 space management 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.

REPORT COVERAGE

The global facility management market report provides an in-depth analysis of the market dynamics and competitive landscape. It provides facility management market trends and various key insights including recent industry developments in the market, such as mergers & acquisitions, macro and microeconomic factors, SWOT analysis, and company profiles.

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