Facility Management Services Market Analysis

Facility Management Services Market Overview:

Facility management services market Size was valued at USD 310 Billion in 2022. Facility management services market is expected to reach USD 670 billion by 2032, growing at a CAGR of 8.9% during the forecast period 2024 - 2032. Facility Management (FM) is a business function that integrates place, people, technology, and process to guarantee the physical environment's seamless functionality, comfort, safety, and efficiency. A group of upkeep services known as "facility management services" are used by businesses and housing developments for related goals. The quickly expanding tourist and hospitality industries, the need to adhere to environmental and regulatory standards, and the increased demand for value-added services all contribute to the market growth for facility management services.

The decision to outsource the facility management services function is influenced by a number of elements that affect the industry verticals including educational institutions, commercial, residential, industrial, government & public, healthcare, and others.

The industries covered include supply chain management, manufacturing, information technology, and logistics. Cost/financial, innovation, strategy, income, time, quality, social, and other considerations all have an impact on these sectors.

The goal of the facility management services is to automate the laborious and prone to error manual activities while focusing on compliance through core business expertise. These services are aware of the nature of the businesses and the rules that the company is subject to. International Traffic in Arms Regulations (ITAR), for instance, prohibits non-US residents from entering facilities that are necessary for national security. The facilities management services encourage compliance by guaranteeing appropriate oversight and protocols for data security. As a result, the facility management services market is anticipated to grow rapidly during the forecast period as a result of the need to adhere to environmental and regulatory standards.

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)


• ASMACS Group. (India)


• CBRE (US)


• SIS Group Limited (India)


• Knight Frank (UK)


• Sodexo (France)


• Compass Group PLC (UK)


• EMCOR group. Inc (US)


• GDI integrated facility service (Canada)


• ISS Facility Service Inc. (Denmark)


• Cushman & Wakefield (US)


• Jones Lang LaSalle IP, Inc. (US)


• OCS Group Limited (UK)


• Quess Corp Ltd. (India)


• Apollo Facility Management Service (India)

Recent Developments

July 2022

A multi-year agreement for the provision of catering, cleaning, and security services at N Brown Group's location in Manchester's Northern Quarter as well as distribution centers in Oldham and Glossop has been reached by facilities management provider 14forty, a division of Compass Group UK & Ireland. In addition, 14forty has hired about 100 employees and combined activities from three different companies under a single contract.

June 2022

Imdaad, a group of businesses with headquarters in Dubai that provides integrated, sustainable facilities management services that increase the operational effectiveness of physical assets, has formally established a new joint venture with LMD, a well-known Egyptian real estate company, to offer a full selection of high-quality facility management solutions throughout all of Egypt.

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 2021 would be the historical period, 2021 shall be the base year, and 2022 to 2032 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