Tourism stands as a formidable economic force in nations like France, Spain, and the US, acting as a significant revenue generator and cultural wealth contributor. It serves as a crucial engine for economic development and growth, particularly benefiting from the globalized landscape. The World Tourism Organization (WTO) notes a notable increase, ranging from 50 to 60 percent, in individuals recurrently traveling to different countries, prompting increased investments in developing the tourism sector in numerous nations. However, the global economy, growing at a 3% rate according to the World Bank, has faced challenges impacting the hospitality and tourism sectors worldwide. The severe repercussions of COVID-19 led to a 93% decline in international tourist activities in June 2020, marking 2020 as one of the worst years for these sectors.
In response, countries implemented various strategies and campaigns to showcase the appeal of their tourist destinations, aiming to revive these sectors and contribute to an overall increase in per capita income. The substantial growth in tourism and hospitality has played a pivotal role in propelling the facility management services market forward at a rapid rate during the study period. As these sectors recover and adapt to new norms, the demand for facility management services continues to rise, supporting the diverse needs of businesses in the tourism and hospitality industry. Facility management services play a pivotal role in the day-to-day operations of organizations, ensuring the delivery of services offered by businesses. In the highly regulated landscape of various industries, encompassing safety training, data protection, and onsite management, facility management services become indispensable. The primary goal of these services is to document and establish compliance, aiding businesses in achieving their defined objectives.
These services contribute to the formulation of strategic plans that align with both long-term and short-term goals, focusing on aspects like profit generation and cost reduction. The emphasis on compliance is rooted in core business knowledge, and facility management services strive to automate error-prone and complex manual procedures. Recognizing the unique nature of businesses and the regulations governing them, these services, for example, navigate International Traffic in Arms Regulations (ITAR) restrictions that prohibit non-US citizens from entering facilities with national security interests. By ensuring proper control and procedures to protect privacy, facility management services become instrumental in supporting compliance. The imperative to comply with environmental and regulatory norms is anticipated to be a driving force propelling the facility management services market at a high rate during the forecast period. As businesses increasingly prioritize adherence to these norms, the demand for facility management services is set to surge.
Report Attribute/Metric | Details |
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Market Opportunities | Growing investment in the construction sector |
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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
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