During the projected period, the facility management services market is expected to increase at a CAGR of 5.4%. Based on the facility management industry overview, the net worth of the market is estimated to be around USD 46,858.5 million in 2023. Further, FMI predicts the overall valuation to reach nearly USD 79,285.6 million by the end of this forecast period.
The adoption of facility management services is likely to be driven by increased demand for facility management systems linked with intelligent software. The overall functionality and value of a building or institution are raised by these services, which provide solutions for maintenance support.
Many public institutions are also becoming more conscious of the need to manage their assets and properties ultimately accelerating market potential. Moreover, such entities provide property owners with higher returns than real estate investments through management solutions and value-added services.
Even though facilities management is a vital element of operations, businesses are ignorant of the new options available. This has made it difficult for businesses to give their facilities management department comparable weight without jeopardizing their main business operations.
| Attributes | Details |
|---|---|
| Facility Management Services Market CAGR (2023 to 2033) | 5.4% |
| Facility Management Services Market Size (2022) | USD 45,457.8 million |
| Facility Management Services Market Value (2023) | USD 46,858.5 million |
| Facility Management Services Market Share (2033) | USD 79,285.6 million |
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According to the reports by FMI, the net worth of total facility management services adopted globally in the year 2018 was USD 38,010 million. Then during the following years, the overall market advanced moderately before experiencing a surge during 2020 and 2021. Higher adoption of facility management services during the pandemic period resulted in an increasing CAGR from 2018 to 2022.
Since the epidemic began to investigate new options for remote work or socially distant workplaces, facilities managers have fought back. However, facility management services emerged as critical in dealing with COVID-19 and ensuring a safe working environment. Janitorial schedules, daily cleaning techniques, spot sterilization, and workplace-specific sanitization requirements began evaluated by facility management.
The recorded average annual growth for facility management services during the historical period from 2018 to 2022 was 4.6%. Consequently, the net valuation of the global market by the end of the year 2022 concluded at USD 45,457.8 million.
What are the Key Contributors to the Facility Management Services Market?
Cloud-based solutions provide a safe and secure way to host facilities management software. They assist firms in lowering operational expenses by enhancing security and communication across teams. Similarly, spreads subsidiaries across numerous locations.
Secure hosting of sensitive data, better security and scalability, and rapid disaster recovery are advantages of cloud-based facilities management solutions. The backups are saved on a public or private cloud hosting platform. Allowing businesses to retrieve vital server data quickly. Secure logins allow data to be accessed anywhere with a reliable internet connection.
Thanks to cloud-based facilities management systems, customer satisfaction is improved, and repair and maintenance expenses are reduced. Consequently, the adoption of cloud-based solutions for integrating facility management services has increased.
What are the Factors Limiting the Growth of the Facilities Management Market Trends?
Organizations aren't fully aware of the advantages of facility management services. The issue stems from a lack of knowledge and the adoption of the required technology. In addition, the issue that occurs particularly in operations with many buildings is a lack of consistency. When problems arise, immediate action is essential to ensure access and security.
Many companies are still utilizing cloud computing technologies and are yet to implement an IoT ecosystem. Furthermore, their move from traditional workplace layouts to contemporary ones is still in its early stages.
What are the Recent Trends Captured from Facilities Management Industry Statistics?
Facility management outsourcing is becoming increasingly popular with the growing complexity of workspaces. Organizations are rethinking their business models to increase value development. They do examine the proper balance of insourcing and outsourcing. Based on capability, cost, and coverage before outsourcing facility management to third parties.
In numerous locations, including Europe, and North America, outsourcing has played a key role in expanding the facility management consulting services market. The rise in demand for high-quality working experiences and lower operational expenses are driving the market's key trends and opportunities.
Among the different types of services, management services for different facilities constitute the leading segment in the present day. Huge expenditures are saved, in turn necessitating the usage of maintenance services to extend the lifespan of any business.
Hard services of facility management business are picking up recently, and are expected to experience remarkable growth through 2033. On the other hand, the soft services segment is expected to remain limited during this period in terms of revenue generation.
| Category | Services |
|---|---|
| Top Segment | Management Services |
| Market Revenue Share | 26% |
| Category | Application |
|---|---|
| Top Segment | Industrial Sector |
| Market Revenue Share | 24% |
Based on application, the industrial sector forms the dominant segment for facility management, operation, and maintenance service providers. The demand for facility management services is expanding as a result of rising industrialization and urbanization in emerging economies.
A profound increase in the application of facility management services in the commercial sector. Commercial applications like security, plumbing, gardening, electrical fixes, and cleaning are among the top sectors.
Principal Consultant
| Regional Facility Management Services Markets | Global Market Share |
|---|---|
| USA | 11.1% |
| Germany | 12.6% |
| Japan | 8.8% |
| Australia | 4.6% |
Owing to the economically and technologically advanced countries such as Canada and the USA. North American companies hold a competitive advantage over their competitors. Also, the adoption of new and emerging technologies and the strong financial position of the market players could instrument further progress here.
Based on the FMI market estimates, European countries together are calculated to have a share of 22% in the global market. The European Union consists of developed countries with well-established infrastructure creating a favorable market for facility management services.
Germany is the leading country for the adoption of facility management services followed by the United Kingdom. Other nations, such as France, Spain, and Italy are also advancing fast to close the gap in the facility management services business.
| Regional Facility Management Services Markets | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 10.7% |
| China | 15% |
| India | 21% |
Countries in the Asia Pacific region are some lucrative economies for facility maintenance companies looking for vendors globally. Established facility management consultancy services market players in China and Japan are now competing at a global level.
With the emergence of numerous organized and unorganized businesses in China and India, these two countries are experiencing very lucrative growth nowadays. Again, India is far ahead of China in terms of advancement of the overall market owing to its rapidly expanding IT sector.
The recent industry survey reports find the global facility management services market is fiercely competitive. The key strategies adopted by players include investing in new technology for the development of software and solution.
Facility management services market players also resort to an inorganic growth strategy with acquisition and merger. For instance, Trimble was bought by MRI Software Company in April 2021. Manhattan Real Estate and Workplace Solutions were acquired by MRI Software from Trimble.
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The growing installation costs of in-house facilities management teams are driving the rise in outsourcing demand. Demand for cloud-based facilities management systems is surging to boost market potential.
Companies should focus on consumer value, by continuously innovating and expanding their core offerings to provide better customer service. Moreover, the challenging task of administering a vast array of services is poised to create new opportunities for the market players.
Recent Developments by the Facility Management Service Providers
Oracle teamed with Propre Japan Inc. in May 2020. Oracle Japan plans to assist Propre Japan Inc. in developing Propre's real estate big data platform. In addition to this, it is now available in 17 countries across the world. Oracle's client base grew impressively as a result of this agreement.
Koch Industries, Inc. announced in April 2020 that it has finalized the purchase of the remaining share of Infor from Golden Gate Capital. Koch is a leading client of Infor in addition to being one of its prominent investors since 2017. The buy-up enabled the integration of Infor solutions throughout its companies. The areas include enterprise resource planning, human resources, supply chain, asset management, and finance.
Fortive purchased ServiceChannel in July 2021. ServiceChannel is a prominent provider of multi-site software as a service (SaaS). Along with Accruent and Gordian, it increased Fortive's portfolio of Facility and Asset Lifecycle workflow solutions.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, BENELUX, China, Japan, South Korea, India, ASEAN, Australia, New Zealand, GCC Countries, Türkiye, Northern Africa, and South Africa. |
| Key Segments Covered | Type, Service, Application, and Region |
| Key Companies Profiled | Arthur McKay & Co Ltd.; BVG India Ltd.; CBRE Group, Inc.; EMCOR Group, Inc.; ISS World Services A/S; Knight Facilities Management; Quess Corp Ltd.; Sodexo, Inc.; Spotless Group Holdings Limited; Tenon Group |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The facility management services market in 2023 is valued at USD 46,858.5 million.
The global facility management services market size is anticipated to surpass USD 79,285.6 million by 2033.
The facility management services market is projected to accelerate at a CAGR of 5.4% between 2023 and 2033.
The United States exhibits significant lucrativeness for facility management services due to its large commercial sector.
India facility management services market is projected to witness a 21% CAGR through 2033 due to increasing corporate investments.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 5.1. Outsourced 5.2. In-house 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Service 6.1. Hard Service 6.1.1. Electrical 6.1.2. Civil 6.1.3. Mechanical 6.1.4. Specialized Hard Services 6.1.5. Others Hard Services 6.2. Soft Service 6.2.1. Cleaning 6.2.2. Laundry 6.2.3. Landscaping 6.2.4. Security 6.2.5. Others Soft Services 6.3. Management Service 6.3.1. Contract Management 6.3.2. Energy & Utilities 6.3.3. Maintenance Planning & Control 6.3.4. Others Management Services 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Government & Public Sector 7.2. Industrial 7.3. Commercial 7.4. Education 7.5. Transportation 7.6. Healthcare 7.7. Others 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. South Asia 8.5. East Asia 8.6. Oceania 8.7. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Arthur McKay & Co Ltd. 18.2. BVG India Ltd. 18.3. CBRE Group, Inc. 18.4. EMCOR Group, Inc. 18.5. ISS World Services A/S 18.6. Knight Facilities Management 18.7. Quess Corp Ltd. 18.8. Sodexo, Inc. 18.9. Spotless Group Holdings Limited 18.10. Tenon Group 19. Assumptions & Acronyms Used 20. Research Methodology
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Facility Management Services Market
