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The facilities management market size is forecast to increase by USD 826.91 billion at a CAGR of 9.61% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. One of the primary factors is the increasing demand for cost-effective solutions, leading to the adoption of cloud-based facilities management systems. The advent of the Internet of Things (IoT) in facilities management is another major trend, enabling data-driven decisions and improved performance. Budgetary constraints continue to be a significant issue, necessitating the need for efficient task management, cleaning services, and extended asset lifespan. The evolution of AI in facilities management is transforming the industry, with the deployment of AI-powered facilities solutions becoming increasingly common. Integration of these technologies is essential for smart FM solutions to optimize square footage and enhance overall performance.
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The facilities management market is witnessing significant investments from organizations to enhance the efficiency of their operations and achieve strategic organizational goals. An efficient facility is essential for productivity and cost-effectiveness, making facilities management a critical aspect of business sustainability. The importance of healthcare facilities management in this market landscape is also increasing. Solution providers are focusing on innovation and improvement to meet evolving client needs, offering advanced technologies and sustainable practices to optimize operational excellence. Brand image, employee satisfaction, and retention are key considerations for organizations in the facilities management industry. Outsourcing facility management to specialized firms can help organizations reduce costs and improve performance, allowing them to focus on their core business.
Moreover, the facilities management services encompass both hard services, such as maintenance and repairs, and soft services, including contract cleaning services and security. Investing in facilities management solutions is a strategic asset for organizations, enabling them to refine and optimize their operations, enhance customer satisfaction, and maintain control over their performance. CBRE and other leading players in the market are focusing on delivering integrated solutions to meet the evolving needs of facility managers. The industry's growth is driven by the increasing recognition of the benefits of facilities management and the continuous pursuit of operational improvement.
The FM market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The soft services segment is estimated to witness significant growth during the forecast period. The market is driven by specialized firms investing in strategic assets to achieve organizational goals through the refining and optimizing of operational excellence. Soft services, a significant segment of this market, account for a substantial share due to their cost-effectiveness and the minimal technical expertise required. companies such as OCS Group International Ltd. and Serco Group Plc capitalize on this by offering services like housekeeping, transportation, catering, and security. Soft services contribute to enhancing customer satisfaction by creating a pleasant and comfortable environment through cleanliness, transportation, mobile food services, and security measures. Innovation and improvement are key focuses for meeting client needs, with advanced technologies being employed to streamline processes and promote sustainable practices.
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The soft services segment was valued at USD 660.99 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 37% to the growth of the global facilities management market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The FM market in North America is experiencing significant growth due to the increasing recognition of the value that specialized firms bring to organizational goals. By outsourcing facility management services, companies can focus on their strategic assets and core competencies, while benefiting from the expertise of professionals in optimizing and maintaining their physical assets. Advanced technologies, such as IoT, sensors, and data analytics, are transforming facilities management through innovations like smart building solutions and predictive maintenance. These technologies streamline processes, improve operational excellence, and enhance customer satisfaction. The evolving work environment, with trends towards flexible workspaces, remote work, and agile office environments, necessitates adaptive facilities management strategies. Overall, the market in North America is poised for continuous improvement, driven by the need to meet client needs and maintain a competitive edge.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for cloud-based facilities management solutions is the key driver of the FM market. The market is witnessing substantial investments from organizations in search of efficient operations and productivity enhancements. Cloud computing solutions have emerged as a popular trend in this industry, with numerous solution providers offering cost-effective and sustainable options. These solutions enable organizations to host their facilities management software securely, fostering collaboration among teams and subsidiaries in various locations. By reducing the need for on-premises infrastructure, companies can significantly lower their operational costs.
Additionally, cloud-based facilities management solutions provide enhanced security features, scalability, and quick disaster recovery capabilities. As the facilities management industry continues to grow, these solutions are expected to play a crucial role in enhancing brand image, employee satisfaction, and retention, making outsourcing facility management an attractive proposition for many businesses.
The advent of IoT in facilities management is the upcoming trend in the facilities management market. The market has witnessed significant investments from organizations in recent years due to the growing importance of efficient facility operations and productivity. The integration of Internet of Things (IoT) and Industry 4.0 has revolutionized the industry, leading to cost-effective and sustainable solutions. IoT networks consist of various devices such as sensors, thermostats, and actuators, which are interconnected over the Internet to collect and evaluate data. This data is utilized to optimize energy usage and reduce operational costs, thereby enhancing productivity. Furthermore, predictive maintenance, a technology that uses real-time data collection and equipment condition monitoring, is gaining popularity in facilities management.
Moreover, it helps prevent equipment failure, thereby improving overall efficiency and employee satisfaction, which is crucial for brand image and retention. Outsourcing facility management is also on the rise as organizations seek to focus on their core competencies. Overall, the market is poised for the growth, with solution providers continuously innovating to meet the evolving needs of the industry.
The rise in budgetary constraints is a key challenge affecting facilities management market growth. The market investments play a crucial role in the growth and efficiency of organizations, particularly for small businesses in developing economies that often face budget constraints. However, the reliance on investors and venture capitalists for funds can hinder their ability to procure high-quality facilities management services from reputable providers. The resulting subpar services can lead to increased operational costs, negatively impacting productivity and profitability. Moreover, escalating labor costs, particularly in regions like North America, pose another significant challenge to market expansion during the forecast period.
Sustainability and cost effectiveness are becoming increasingly important considerations for organizations seeking facilities management solutions. Solution providers that prioritize these factors and offer brand image enhancement, employee satisfaction, and retention through outsourcing facilities management are likely to gain a competitive edge.
The facilities management market forecasting 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 facilities management market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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.
Coor Service Management Holding AB: The company offers facilities management services such as realizing the potential in every dimension package, which offers reliable and efficient operations, enhance workplace experience, technical services, smart FM solutions, asset optimization, and sustainability solutions.
The facilities management market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The FM market is witnessing significant growth due to the increasing investments made by organizations in maintaining efficient facilities to achieve operational excellence and enhance productivity. Facilities have become strategic assets for businesses, with a focus on cost-effectiveness, sustainability, and innovation. The industry growth is driven by the need for solution providers to offer advanced technologies, such as digital building operations, transparent energy control systems, hazard management, and AI-enabled solutions, to streamline processes and implement sustainable practices. Facilities management is essential for organizations to ensure superior efficiency, employee satisfaction, and retention. Outsourcing facility management to specialized firms is becoming increasingly popular due to the benefits of cost savings, improved operational efficiency, and the ability to focus on core business activities.
Moreover, the evolution of AI and the deployment of AI-powered facilities are transforming the industry, with predictive analytics and automation enabling data-driven decisions and optimization measures. The adoption rates of advanced facility management solutions are on the rise, with businesses seeking to enhance their overall client experience and improve performance. Leading players in the market offer a range of services, including soft services, hard services, and management services, for buildings and infrastructure. HVAC systems, electrical installations, plumbing, structural repairs, and compliance with regulations are some of the key issues that facility managers need to address to ensure quick response to emergencies and preventive maintenance.
Further, the integration of AI-enabled solutions, such as AI-powered facilities and smart FM solutions, is revolutionizing the industry, with the repository of data providing valuable insights for continuous improvement and optimization. The use of cutting-edge technologies, such as AI, predictive analytics, and automation, is enabling facility managers to optimize operations, enhance efficiency, and reduce costs. In conclusion, the market is undergoing a transformative shift, with a focus on optimization measures, technical facility management, and sustainable practices. The adoption of advanced technologies and AI-enabled solutions is driving growth and development in the industry, with businesses seeking to improve overall client experience, reduce costs, and ensure regulatory compliance.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.61% |
Market growth 2024-2028 |
USD 826.91 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.97 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, India, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABM Industries Inc., Atlas Facilities Management Ltd., CBRE Group Inc., Coor Service Management Holding AB, Cushman and Wakefield Plc, International Business Machines Corp., ISS AS, Johnson Controls International Plc, Jones Lang LaSalle Inc., Mitie Group Plc, OCS Group International Ltd., Quess Corp. Ltd., Securitas AG, Serco Group Plc, ServiceMax Facility Management Pvt. Ltd., SIS Ltd., SMS Integrated Facility Services Pvt. Ltd., The Brinks Co., Aramark, and Sodexo SA |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our facilities management market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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