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Facility Management Services Market Research Report—Global Forecast till 2030

Facility Management Services Market: Information by Type (Hard Services {Smart Facility Management Solutions, and Non-Smart Facility Management Solutions}, and Soft Services), By Services (Hard services {Electrical, Civil, Mechanical, HVAC, and others}, and Soft Services {Cleaning, Laundry, Landscaping, Catering, Security and Others}), By Application (Education, Commercial, Residential, Industrial, Government & Public, Healthcare and Others), and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America)—Forecast

ID: MRFR/ICT/4496-CR | December 2022 | Region: Global | 100 Pages         

Facility Management Services Market

Facility Management Services Market is Predicted to Reach USD 1,323.62 Billion by 2021 Registering a CAGR of 6.7%

Segmentation

By Services Project Management Inventory Management Maintenance Management
By Deployment Cloud Deployment On-Premise Deployment
By Organization Size Small and Medium Enterprise Large Enterprise
By Industry Verticals BFSI Retail IT and Telecom Healthcare Government Energy and utilities

Key Players

  • International Business Machines Corp. (U.S.)
  • Oracle Corporation (U.S.)
  • SAP AC (Germany)
  • MCS Solutions Pvt. Ltd. (India)
  • ARCHIBUS Inc. (U.S.)
  • Trimble Inc. (U.S.)
  • CA Technologies (U.S.)
  • Accruent (U.S.)
  • Planon Ltd. (Netherlands)
  • Systems Group
  • LLC. (U.S.)

Drivers

  • Provide a safe and secure way to host facilities management software
  • Secure hosting of sensitive data
  • Better security and scalability
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Facility Management Services Market Overview:


The global Facility Management Services market is estimated to register a CAGR of over 6.7% during the forecast time period.


Facility Management (FM) is a business function that incorporates several other functions that ensure the smooth functionality, comfort, safety, and efficiency of the built environment while integrating place, people, technology, and process. Facility management services are a collection of maintenance services adopted by organizations as well as residential complexes for similar purposes.


The facility management services market is driven by the rapidly growing tourism and hospitality sectors, the necessity to comply with environmental and regulatory norms and rising demand for value-added services. The market growth, however, is hampered by the slow adoption of outsourced facilities management services and integration of facility management with legacy ERP systems. However, the growing investments in the construction sector, supportive government initiatives for the development of smart cities and business hubs, and inclination towards virtual workplaces and demand for personalized services are likely to favor the market expansion during the forecast period.


COVID-19 Impact vs  Opportunities for Global Facility Management Services Market:


The outbreak of novel coronavirus has largely impacted the economies across the globe. The facility management service providers reported a slump in demand for managed services. This was mainly due to the declined sales revenue of on-premises/traditional facility management services due to the shutdown of various small and large industries amid lockdown and other movement restrictions. Furthermore, the effects of lockdown measures across different regions have been difficult, especially for different end users of facility management services. These mainly include leisure (sports stadiums and gyms), and retail and hospitality sectors such as cafes, pubs, and restaurants. Moreover, the reduction of international travel has also affected the facility services end users. Hence, the pandemic has negatively impacted the facility management services market and is expected to impact further during the pandemic. However, The growing investment in the construction sector is anticipated to boost the facility management services market.


Facility Management Services Market Dynamics:


Drivers:


The facility management services focus on compliance through core business knowledge and aim at automating the fallible and difficult manual procedures. These services understand the nature of the businesses and the regulations governed by the company. For instance, International Traffic in Arms Regulations (ITAR) forbids non-US citizens from entering facilities that require national security interests. The facility management services support compliance by ensuring proper control and procedures to protect privacy. Hence, the necessity to comply with environmental and regulatory norms is expected to drive the facility management services market at a high rate during the forecast period.


Opportunities:


In the backdrop of a global economy that is showing signs of a moderate recession, the construction sector continues to grow at a moderate pace. The worldwide construction sector's long-term future is particularly promising, with the industry predicted to grow faster than global GDP over the next decade. Population expansion in emerging countries, infrastructure upgrades in developed countries, the tendency toward increased residential construction, and planned investments in renewables and telecommunications are all factors impacting the growth.


Restraint:


Multiple factors influence the industry verticals including education institutes, commercial, residential, industrial, government & public, healthcare, and others to outsource the facility management services function. The sectors include logistics, information technology, manufacturing, and supply chain management. The factors influencing these sectors are cost/financials, innovation, strategy, revenue, time, quality, social, and others. However, there are several risks associated with outsourcing of facility management services. Organizations face risks in the pursuit of effective and more facility management services. These risks have the potential to hamper or even negate the possibilities of gaining value for money.


Value Chain Analysis


The value/supply chain of the facility management services industry comprises four significant stakeholders, namely, the supplier, the facility management service provider, and the end-use industry.


Facility Management Services Market Segment Overview


The global Facility Management Services market has been segmented on the basis of type. Services, application, and region.


The global Facility Management Services market, based on type, has been segmented into Hard Service and Soft Service. The Hard Service Segment has been further bifurcated into Smart Facility, Management Solutions, and Non-Smart Facility Management Solutions. The soft service segment accounted for the largest market share in 2021 and is expected to remain the same during the forecast period.


By Service Type, the market has been segmented into Hard Services and Soft Services. The Hard Service Segment has been further divided into Electrical, Civil, Mechanical, HVAC, and Others. Furthermore, the Soft Service segment has been divided into Cleaning, laundry, Landscaping, Catering, Security and Others.


On the basis of Application, the market has been bifurcated into Education Institutes, Commercial, Residential, Industrial, Government and Public, Healthcare, and Others.


Facility Management Services Market Regional Analysis


The global Facility Management Services market has been studied across Asia-Pacific, North America, Europe, the Middle East & Africa, and South America.


Asia-Pacific accounted for the largest market share of 37.92% in 2021. The region is a major hub for industrial manufacturing and, in recent years, has become a global focal point for significant investments and business expansions. The rapidly growing construction spending, infrastructure development, increasing emphasis on the safety and security of the facility, and stringent government regulations regarding facility management are a few of the factors that are expected to drive the market growth.


South America is the fastest-growing regional market globally as the region witnesses the presence of countries such as Brazil, Peru, Chile, and Argentina, which are witnessing growth in the industrial, commercial, and residential real estate sectors resulting in the rising adoption of facility management services. Moreover, the prominent facility management service providers of the US are expanding their presence in the South American region to capture the untapped market.


Facility Management Services Market Competitive Landscape


The global Facility Management Services Industry is projected to witness healthy growth during the forecast period, due to rapidly growing tourism and hospitality sectors and rising demand for value-added services.


Key players operating in the global Facility Management Services Market include Aramark Corporation (US), Sodexo (France), ASMACS Group. (India), CBRE (US), SIS Group Limited (India), Knight Frank (UK), Compass Group PLC (UK), Cushman & Wakefield (US), EMCOR group. Inc (US), GDI integrated facility service (Canada), ISS Facility Service Inc. (Denmark), Jones Lang LaSalle IP, Inc. (US), OCS Group Limited (UK), Quess Corp Ltd. (India), and Apollo Facility Management Service (India).


Recent Developments


Aramark launched Aramark healthcare which is a combination of values and services. The aim of this service is to provide an extension to the overall medical service and will eventually help the hospital to perform better and more efficiently. On January 2022


Aramark acquired UK-based Wilson Vale, an independent food service company. The acquisition is said to expand Aramark's presence in northern Europe and provide service to small premium business clients and independent schools. On December 2021


Sodexo.in announced that it will acquire Accent food services. The acquisition will help expand its services which will include self-service pantries and smart vending. On January 2022


Cushman & Wakefield invested USD 150 million in WeWork, a flexible co-working space provider company. The partnership aims to provide world-class facilities to its customer. Cushman & Wakefield will handle the facility and asset management in operation. On December 2021


JLL announced it has acquired Sacramento-based Hank, a virtual engineering platform powered by artificial intelligence (AI) that autonomously optimizes the management systems of commercial buildings to deliver increased comfort, air quality and energy savings. On January 2022


Report Overview


As per MRFR, the global Facility Management Services market has been growing significantly over the past few years. The global Facility Management Services market has been segmented on the basis of services, applications, and region.Based on region, the global Facility Management Services market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.


Objective of the Study



  • To provide a comprehensive analysis of the Facility Management Services market and its sub-segments, thereby providing a detailed structure of the industry

  • To provide detailed insights into factors driving and restraining the growth of the global Facility Management Services market

  • To estimate the size of the global Facility Management Services market where 2018 to 2020 would be the historical period, 2021 shall be the base year, and 2022 to 2030 will be the forecast period for the study

  • To analyze the global Facility Management Services market in five main regions, namely, North America, Europe, Asia-Pacific, the Middle East & Africa, and South America

  • To provide country-wise market value analysis for various segments of the Facility Management Services market

  • To provide strategic profiling of key companies present across the globe and comprehensively analyze their competitiveness/competitive landscape in this market

  • To provide a value chain for the Facility Management Services market


Scope of the Report


The scope of the global Facility Management Services market study includes the market size analysis and a detailed analysis of the vendor’s products and strategies. The global Facility Management Services market has been segmented on the basis of type. Services, application, and region.


Intended Audience



  • Facility Management Services Administrators

  • Facility Management Services providers

  • Software integrators

  • IT enterprises

  • Technology investors

  • Regulatory industries

  • Government bodies



Report Scope:

Report Attribute/Metric Details
  Market Size    2021: USD 1,323.62 Billion
  CAGR   6.7% CAGR
  Base Year    2021
  Forecast Period    2022-2030
  Historical Data    2018 to 2020
  Forecast Units    Value (USD Million)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered    type, services, application, and region.
  Geographies Covered    North America, Europe, Asia-Pacific, Middle East & Africa, and South America
  Key Vendors    Aramark Corporation (US), Sodexo (France), ASMACS Group. (India), CBRE (US)
  Key Market Opportunities   • Growing investment in the construction sector
  Key Market Drivers   • Rapid growing tourism and hospitality sectors • Necessity to comply with environmental and regulatory norms • Rising demand for value-added services


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Frequently Asked Questions (FAQ) :

The Soft Services segment is expected to drive the market during the forecast period.

The global Facility Management Services market has been growing rapidly over the past few decades and is expected to grow at a CAGR of 6.7% during the forecast period.

Aramark Corporation (US), Sodexo (France), ASMACS Group. (India), CBRE (US) are expected to be the major competition in the Facility Management Services market during the projected period.

The Asia-Pacific region is expected to be the largest market for Facility Management Services market during the forecast period.