Facility Management Market Outlook (2022-2032)
The worldwide facility management market has reached a valuation of US$ 447 billion in 2022 and is predicted to increase to US$ 875.3 billion by the end of 2032, expanding at a CAGR of 6.3%.
In 2021, companies with distributed operations spent around 12% of their overall indirect spending on facility management.
Report Attributes
|
Details
|
|
Facility Management Market Size (2021A)
|
US$ 447 Billion
|
|
Estimated Market Value (2022E)
|
US$ 475.2 Billion
|
|
Forecasted Market Value (2032F)
|
US$ 875.3 Billion
|
|
Global Market Growth Rate (2022-2032)
|
6.3% CAGR
|
|
North America Market Share (2021)
|
~31%
|
|
East Asia Market Growth Rate (2022-2032)
|
~7.1% CAGR
|
|
United States Market Growth Rate (2022-2032)
|
~5.8% CAGR
|
|
Market Share of Top 10 Companies
|
Higher Single Digit
|
|
Key Companies Profiled
|
- Apleona GmbH
- Arthur McKay & Co Ltd.
- BVG India Ltd.
- CBRE Group, Inc.
- Colliers
- Compass Group
- Cushman & Wakefield plc
- eFACiLiTY
- EMCOR Group, Inc.
- Facilio
- Facilities Management eXpress
- InnoMaint
- International Business Machines (IBM)Corporation
- ISS World Services A/S
- Knight Facilities Management
- MRI Software LLC
- Planon
- Quess Corp Ltd.
- QuickFMS
- Sodexo, Inc.
- Spacewell International
- Spotless Group Holdings Limited
- Tenon Group
|
Factors Impacting Facility Management Industry in 2022 and Beyond
The facility management industry is changing at a very fast pace. It has undergone a sea of change in the last 10 years. The pandemic also fueled the demand for facility management services. Apart from specialized facility management companies, many real estate developers have started offering in-house facility management services.
Currently, the facility management industry is mostly served by in-house facilities. But the trend is changing and companies have no shortage of options at their disposal to choose from different available specialized facility management companies.
- Short Term (2022-2025): There is no denying that COVID-19 played a very important role in accelerating the demand for facility management services. It is expected that the trend will continue to drive the facility management market to newer heights.
- Medium Term (2025-2028): Urbanization of cities and continued development in the overall infrastructure sector will keep the momentum high for the facility management market.
- Long Term (2028-2032): Integration of technology in service offerings by facility management companies will create ample opportunities. Integrated facility management is the future and is continuously increasing its share in the overall facility management space.
From 2017 to 2021, the global facility management market exhibited a CAGR of 5.8%, as per detailed analysis by Fact.MR, a market research and competitive intelligence provider. Looking forward, the market is projected to surge ahead at a 6.3% CAGR between 2022 and 2032.
Market share analysis of facility management based on end-use industry and region. Under the end-use industry segment, BFSI dominates with a 22.0% market share in 2022.
Why is Demand for Facility Management Services Rising Steadily?
“Integrated Value & Related Services”
Facility management companies are exploring new opportunities with the integration of different services bundled into one upgraded product/service. These integrated services can include different offerings ranging from real estate to facility management to energy management. This can also include production maintenance as well as employee-related services.
An integrated approach provides consistency in services and also helps the end-users in a reduction in overall cost, fewer people for maintenance, and also improve overall operation process. It is a win-win situation for both, service providers as well as for end users.
“Shift towards Smart Workplace - Key Market Driver”
Advancements in technology are continuous and this is enabling facility management companies to provide a connected workspace that is both energy-efficient and comfortable. Smart buildings with sensors, lights, windows, heating, ventilation, air conditioning (HVAC) units, and CCTVs integrated into a network are becoming increasingly common.
The growth in technology is not only helping in increasing customers’ comfort but also allows companies to take deeper dives into collected data. New technology-enabled systems can use the data about the workplace to make actionable, data-driven decisions.
Technological advancements do not end here. The market for robotics has been growing exponentially in recent times. Robots are being used for greeting visitors, security patrols, and taking over automated services. This enhancement allows companies to save on labor costs and reduce workforce risk.
“Maintenance of Aging Equipment & Facilities”
The facility management industry is a very equipment-intensive industry. For facility management companies, it is very important to efficiently manage the equipment and take precautionary measures at regular intervals. Over a period of time, machines and equipment tend to show signs of wear and tear. As a facility management company, you cannot afford to compromise on the operation.
Therefore, facility management companies need to have a proper maintenance management system that keeps tracking the operational data daily and enables the management in keeping a track of repair times. Maintenance and repair of the equipment is a costly affair from a company’s point of view. As such, it becomes important for facility management companies to preserve a separate budget for emergency repair and replacement.
Country-wise Insights
Improved Economic Scenario Will Create Huge Demand for Facility Management in the U.S.
With the rebound of the U.S. economy, businesses are opening and employees are coming back to the offices. The manufacturing industry is also witnessing increased business activity with rising demand from end consumers. Post-COVID, corporates are taking precautionary action to maintain their business premises more than ever before. Companies are shifting towards having outsourced facility management to manage their factories/offices.
Companies are attracting their employees to come back to the offices by providing improved working conditions. The U.S. government is also taking the initiative to increase business activities by providing long-term economic packages and mega investments in infrastructure.
The U.S. facility management market stands at a valuation of US$ 127.5 billion in 2022.
India to Be Promising Market for Facility Management Companies
The Indian facility management market is highly fragmented, but the trend is swiftly changing and the organized sector is slowly gaining market traction. Facility management companies are gaining popularity amid rapid urban development.
The Indian economy is one of the fastest-growing economies in the world. With the growing economy and increased spending power, there will be exponential demand for facility management services from commercial as well as residential spaces.
The Indian facility management market is expected to expand rapidly at a CAGR of 7.2% over the next ten years.
Category-wise Insights
Property Maintenance Work to Bring in High Revenue Streams
Properties of any kind, be it an office space, a retail space, a residential one, or a restaurant, require maintenance to keep them running successfully with the utmost safety. Property maintenance is an integral part of facility management which ensures that the resources are being utilized fully and it can also prevent equipment failures.
With the increasing number of co-working spaces, it has become essential for real estate companies to outsource facility management services to offer the best experience to their clients. To increase their market share, facility management companies have identified the exponential opportunity in property maintenance, and are coming up with traditional property maintenance services bundled with technology.
- Continuous Intelligent Monitoring (CIM), a Sydney-based software company, secured US$ 10 million in series A funding led by Five V Capital.
BFSI Sector to Be Prime Focus of Facility Management Service Providers
Increasing complexities in the BFSI sector make it interesting and one of the largest revenue drivers for facility management companies. Those days are gone when the main concerns of the BFSI sector, especially the banking sector, were related to physical security. Nowadays, the banking industry has become fully digital and is considering data protection and cyber security as its top priorities.
The multifaceted services from banks such as branch banking, broking services, ATM services, and locker facilities have attracted more services from facility management companies than ever before. As facility management companies are coming up with smart technology-enabled services, it is expected that the banking sector will continue to be a key target customer for them.
Competitive Landscape
Prominent facility management service companies are Apleona GmbH, Arthur McKay & Co Ltd., BVG India Ltd., CBRE Group, Inc., Colliers Compass Group, Cushman & Wakefield plc, eFACiLiTY, EMCOR Group, Inc., Facilio, Facilities Management eXpress, InnoMaint, International Business Machines (IBM) Corporation, ISS World Services A/S, Knight Facilities Management, MRI Software LLC, Planon, Quess Corp Ltd., QuickFMS, Sodexo, Inc. Spacewell International, Spotless Group Holdings Limited, and Tenon Group.
The global facility management market is highly competitive owing to many domestic and regional players. Several marketing strategies are adopted by key players such as mergers and acquisitions, expansions, collaborations, and partnerships.
- In May 2022, Sila Solutions Private Ltd., a real estate platform, acquired Forbes Facility Services from Shapoorji Pallonji Group for US$ 5 million.
- In July 2022, Clayton, Dubilier & Rice entered into an agreement to acquire the Facilities Services business of OCS Group, and made a binding and irrevocable offer to acquire Atalian, a facility management company.
- In September 2022, Aldar Properties PJSC acquired Spark Security Services, a leading UAE-based manned guarding security services provider for US$ 34 million. This acquisition will help Aldar scale up its property and integrated facilities management platform.
Fact.MR has provided detailed information about the providers of facility management services positioned across regions, revenue growth, and service offering expansion, in the recently published report.
