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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 growth rate of the market depends on several factors, such as the increasing demand for cloud-based facilities management solutions, the increasing demand for smart facilities, and the increase in sustainable cleaning products in facility management. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
The surge in the North American market is driven by the transition towards adaptable workspaces, remote work, and agile office setups, impacting facilities management. ABM Industries Inc provides an array of facilities management services, including electrical testing, GMP cleaning, seasonal floral programs, mobile HVAC services, HVAC retrofits, and 24/7 facility operation services. Atlas Facilities Management Ltd specializes in facilities management, offering services such as cleaning, operation, maintenance, integrated facilities solutions, and engineering services tailored for offices and colleges.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
A significant rise in the digitization of buildings and facilities has fuelled the demand for integrating intelligent solutions and intelligent software such as space management software and building information modeling (BIM). In addition, through the use of open, shareable asset information, the integration of BIM with facilities management software helps organizations to reduce costs, expedite the handoff from construction to building operation, and enhance long-term carbon performance.
Moreover, the rising demand for energy-efficient infrastructure is another major factor that is expected to drive the growth of smart facilities management and services. For instance, residential buildings are expensive to operate and contribute significantly to energy and sustainability challenges. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
The increasing use of drones in facilities management and warehouse management is expected to gain prominence in the coming years. In addition, as drones do not require any pilot on board, they can be used effectively for aerial inspection as well as to track and record inventory in warehouses. For example, drones play a significant role in performing rooftop aerial inspections across large retail buildings to detect roof leaks before they damage the interior of a retail store or distribution center.
Moreover, their low weight and flight times make them ideal as quick-response vehicles. For example, facilities managers dealing with disaster scenarios can rely on drones to provide critical information in real-time. In addition, various features offered by drones, such as producing and using 3-dimensional (3D) maps and thermal imaging, and various functions, such as damage evaluation, security and surveillance applications, video recording, and data collection abilities, make drones ideal for asset management in facilities. Hence, such factors are driving the market growth during the forecast period.
Small organizations, particularly in growing economies, face huge budget shortages and often rely on funds provided by investors and venture capitalists. In addition, these budgetary constraints refrain them from opting for facilities management services from well-established and trustworthy companies, thereby resulting in the procurement of low-quality services.
Therefore, it will affect the organization's overall facilities management capabilities. Moreover, these low-quality facilities management services often result in high maintenance and operation costs, thereby affecting the company's profitability. Furthermore, the steady rise in costs associated with training and retaining skilled personnel within the organization further impedes the growth of the market. Hence, such factors are hindering the market growth during the forecast period.
The soft services segment is estimated to witness significant growth during the forecast period. Soft services, including cleaning, landscaping, and reception services, contribute to a pleasant and comfortable environment for occupants. Therefore, it leads to increased satisfaction among employees, visitors, and tenants. In addition, soft services include security and safety measures, such as access control and emergency response planning.
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The soft services segment was the largest segment and was valued at USD 660.69 billion in 2018. Moreover, these services contribute to the overall safety and security of occupants and assets within the facility. In addition, soft services, such as waste management and energy conservation programs, contribute to environmental sustainability. Furthermore, this is increasingly important as organizations and facilities strive to adopt eco-friendly practices. For instance, soft facility services from Sodexo improve the consumer experience, the efficiency and efficacy of the assets, performance, employee and customer satisfaction, and profitability. Therefore, soft services go beyond the physical infrastructure and contribute significantly to the overall well-being, satisfaction, and efficiency of a facility. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on the end-user, the market has been segmented into commercial, government, and residential. The commercial segment will account for the largest share of this segment. The commercial segment is one of the major contributors to the global market, with the increasing demand for facilities coordination arising from the business services sector, information technology (IT) sector, industrial and manufacturing sector, real estate sector, and healthcare sector. In addition, the rise in the number of multinational corporations (MNCs) and small and medium businesses (SMBs) has increased the demand for commercial office spaces in both developed and developing countries, which, in turn, is expected to drive the demand. Furthermore, office buildings are expected to occupy the majority share of the segment owing to the rising demand for a safe, secure, and convenient workplace. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 37% to the growth by 2027. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Several organizations in North America are recognizing the benefits of outsourcing facility management services. In addition, outsourcing allows companies to focus on their core competencies while leveraging the expertise of facilities professionals for the efficient operation of their physical assets. Moreover, the adoption of advanced technologies, such as IoT (Internet of Things), sensors, and data analytics, is transforming facilities coordination. In addition, smart building solutions and predictive maintenance technologies enhance operational efficiency, reduce costs, and improve overall facility performance. Furthermore, the shift towards flexible workspaces, remote work, and agile office environments has an impact on facilities coordination. Hence, such factors are driving the market growth in North America during the forecasting 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.
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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
CBRE Group Inc., 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
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2018 to 2028.
The industry plays a pivotal role in the commercial real estate sector, providing essential services to optimize workplace efficiency. FM providers contribute to strategic facility planning, offering expertise in space optimization, workplace design consulting, and sustainability initiatives. They focus on energy management programs, creating a safe and comfortable work environment that enhances employee experience, productivity, and engagement.
With a keen eye on talent retention, FM incorporates ergonomic design principles, technology integration, and amenities, complemented by wellness programs. Covering diverse sectors like healthcare, education, and industrial environments, FM providers bring specialized skills to ensure optimal facility operations, adhering to current standards while offering affordable solutions to meet the evolving needs of clients. The industry continually innovates, emphasizing study and research for continuous improvement.
Facilities Management 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, 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 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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