Enjoy complimentary customisation on priority with our Enterprise License!
The North America Facility Management Services Market size is estimated to increase by USD 114.36 billion, growing at a CAGR of 7.69% between 2022 and 2027. Several factors contribute to the market's growth, such as the expansion of infrastructure development, increasing outsourcing trends in building management, and a heightened demand for safety and security measures. However, the market faces challenges like market saturation, scarcity of skilled labor, and the necessity for regulatory adherence.
To learn more about this report, Request Free Sample
This market report extensively covers market segmentation by end-user (commercial buildings, government buildings, and residential buildings), and service (soft services and hard services). It also includes an in-depth analysis of drivers, trends, and challenges.
The commercial buildings segment will contribute a major share of the market. The segment includes office, hospitality, retail, and healthcare buildings. The commercial building segment showed a gradual increase in market share with USD 131.06 billion in 2017 and continued to grow by 2021. Due to the growing demand for a convenient, secure, and safe workplace, office buildings make up the majority of the commercial buildings segment among end-user sub-segments. As there are many office buildings in North America, especially in the US, these services have increased in the region. During the forecast period, we anticipate that a number of corporate offices, business parks, and other office buildings will be constructed in the North American region, increasing the demand for effectively managed facilities.
Get a Customised Report as per your requirements for FREE!
Soft services like security, waste management, and horticulture are typically outsourced to specialized vendors in addition to engineering and technical support. Malls, amusement parks, and shopping centers all fall under the retail category and are well known for drawing large crowds. As a result, in these buildings, the need for specialized vendor services grows. During the forecast period, these elements are anticipated to fuel the market for these services in North America.
The market in North America is dominated by the soft services sector. This is major because soft services are less expensive than hard services. Soft services require a low level of technical knowledge, which enables new vendors to offer them because economies of scale are possible. Cleaning services to keep a facility hygienic, transportation services like fleet management and delivery of goods, catering services, and security services are examples of soft services.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Facility Management Services Market in North America Customer Landscape
In North America, the market is experiencing significant growth driven by several key factors and emerging trends. Firstly, the expansion of commercial construction projects across the region is fueling the demand for these services, particularly in managing HVAC systems, MEP services, and energy management solutions. This growth is further propelled by the increasing adoption of digitalization and Internet of Things (IoT) technologies, which enable enhanced automation and efficiency in facility management processes.
Moreover, the rising complexity of building systems and infrastructure necessitates a skilled workforce proficient in managing these systems effectively. Facility management companies are leveraging advanced automation research and technology platforms provided by industry leaders like Autodesk, IOFFICE, and SpaceIQ to optimize space utilization, streamline operations, and improve overall facility performance.
In sectors such as healthcare, IT & Telecom, and hospitality, there is a growing emphasis on these services to ensure compliance with stringent regulations, especially in areas like HVAC maintenance, fire safety system maintenance, and drainage management. Additionally, the increasing focus on sustainability and energy efficiency drives the demand for services related to energy management and UPS system installation and maintenance.
Overall, the market in North America is witnessing a transformative shift towards digitalization, automation, and efficiency-driven solutions, driven by the evolving needs of various sectors and the imperative for effective facility management practices.
The rise in the demand for safety and security is a significant driver fueling the growth of the market in North America. Facility management services play a crucial role in managing and maintaining buildings, facilities, and infrastructure to ensure the safety and security of occupants and users. With the increasing security threats faced by businesses and organizations in North America, there's a growing emphasis on implementing robust security measures. As a result, businesses are turning to these services to provide comprehensive security solutions, including access control, surveillance, and security system management.
Moreover, these services encompass the upkeep and maintenance of essential elements such as HVAC systems, building infrastructure, and other critical components necessary for the secure and efficient operation of facilities. This comprehensive approach to security and facility maintenance positions facility management services as indispensable for businesses and organizations seeking to safeguard their premises and occupants. Consequently, these factors are expected to drive substantial growth in the North America facility management services market during the forecast period.
Rising demand for eco-friendly cleaning products is an emerging trend in the market. Consumers and businesses are becoming more aware of the negative effects of conventional cleaning products on the environment and public health. The demand for cleaning products made from natural, non-toxic, and biodegradable ingredients has therefore increased. Numerous facility management companies in North America are adapting to this trend by providing eco-friendly cleaning supplies and services. Additionally, they are putting into practice eco-friendly cleaning techniques that emphasize on minimizing the use of dangerous chemicals, saving energy, and reducing waste.
For facility management companies, using eco-friendly cleaning products can have a number of advantages. They can use it to draw in and keep clients who care about the environment and favor environmentally friendly business practices. They could lessen their impact on the environment and raise their corporate social responsibility (CSR) standing as a result. They can also avoid fines and penalties by following environmental regulations with the aid of this. Such factors are expected to drive the growth of the regional market during the forecast period.
The lack of skilled labor is a major challenge impeding the market. Maintenance and repair of building systems, cleaning and sanitation, security, and other related services are all part of these services. These jobs call for specialized training, expertise, and knowledge. Since there aren't enough skilled workers in the facility management sector, this shortage is likely to persist in the future. Some of the causes of the shortage of skilled labor include an aging workforce, the low number of young people entering the sector, and competition for talent from other sectors.
The North American market for facility management services is affected in several ways by this labor shortage. First, since businesses must raise wages to recruit and retain skilled workers, it may result in higher labor costs. Second, because businesses have trouble finding workers with the necessary skills at the appropriate time, it can cause delays in finishing construction projects. As a result, businesses might be forced to hire less qualified workers to fill the labor shortage, which could result in a decline in the quality of services offered. These factors, therefore, may impede market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aramark - The key offerings of the company include facility management solutions such as food services, hospitality, and educational facilities.
BGIS Global Integrated Solutions - The key offerings of the company include facility management services such as healthcare facilities, data centers, courthouses, detention centers, and public performance spaces.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market in North America report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market in North America is experiencing significant growth driven by various factors, including the increasing demand for mechanical, electrical, and plumbing (MEP) services and the rising need for cybersecurity measures. Facility Managers play a crucial role in overseeing the efficient operation of buildings and infrastructure, ensuring compliance with building codes and green building certifications. Companies like ATCO Frontec and Yellowstone Landscape are prominent players in this market, offering a range of services such as lift and escalator maintenance, decoration, and refurbishment. With the integration of Cloud technology and IoT sensors, facility management solutions are becoming more advanced, providing real-time monitoring and smart controls for HVAC systems and building management systems (BMS). This market caters to diverse sectors, including government, manufacturing, and commercial offices, driving its growth across North America.
North America Facility Management Services Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.69% |
Market growth 2023-2027 |
USD 114.36 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.29 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aramark, BGIS Global Integrated Solutions, Colliers International Property Consultants Inc., Compass Group Plc, Downer EDI Ltd., EMCOR Group Inc., Emeric Facility Services, GDI Integrated Facility Services, Global Facility Management and Construction Inc., ISS AS, Knight FM, Mace Group, Quess Corp. Ltd., SMI Facility Services, Sodexo SA, BVG India Ltd., CBRE Group Inc., Cushman and Wakefield Plc, Jones Lang LaSalle Inc., and Tenon Facility Management Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.