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The UK Facility Management Market size is forecast to increase by USD 19.6 billion and is estimated to grow at a CAGR of 4.6% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Firstly, the increasing adoption of cloud-based facilities management solutions is fueling market expansion. This technology enables remote access to building data and real-time monitoring, enhancing efficiency and reducing costs. Secondly, the demand for smart facilities is on the rise, with the integration of Internet of Things (IoT) technologies enabling automated and data-driven building management. Lastly, outsourcing building management services is becoming increasingly popular, allowing businesses to focus on their core competencies while expert facilities management companies handle the complexities of building maintenance and operation.
Market Forecast 2024-2028
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The market is a significant and growing industry, focused on the effective and efficient management of physical assets and buildings. Key organizations in this sector include the British Energy Industry Services (BEIS), Building Owners and Managers Association (BOMA), Sodexo, Apleona, RICS, and others. The market is driven by the increasing importance of energy efficiency, sustainability, and energy conservation in building operations. With the advent of Internet of Things (IoT) and Artificial Intelligence (AI), FM is being transformed through the use of Building Information Modelling (BIM), Data Analytics, and IoT-based facility management systems. Gross Value Added (GVA) in the FM industry is expected to grow significantly in the coming years, with both in-house and outsourced FM solutions gaining popularity. Hard FM services, such as maintenance and repairs, and Soft FM services, such as cleaning and security, are both in demand. Notable companies in the FM market include Apogee Corporation, JLL, Infraspeak, and the Apogee Corporation. These organizations provide a range of services, from energy management and sustainability consulting to comprehensive FM solutions. The use of technology, such as AI and IoT, is becoming increasingly important in FM, enabling organizations to optimize their operations and reduce costs. In conclusion, the market is a dynamic and evolving industry, driven by the need for energy efficiency, sustainability, and cost savings. The use of technology, such as IoT and AI, is transforming the way buildings are managed, and organizations are increasingly turning to FM providers for comprehensive solutions.
The increasing demand for technologically advanced solutions in the market has resulted in a growth in the number of cloud computing solutions. They can be used to integrate facilities management services as a dependable option for hosting facilities management software. They also ensure security, and collaboration across teams and subsidiaries over various locations, which helps in cost-cutting for organizations. They provide various benefits for the secure hosting of crucial data including enhanced security, the ability to scale, and faster disaster recovery.
Additionally, the ease, low repair and maintenance costs, and cost-effectiveness of cloud computing to obtain vital data from backups on a private cloud host platform from anywhere with a stable Internet connection makes it highly beneficial. They also aid in streamlining work as well as automatic updating of systems. Hence, the rising trend to shift towards cloud-based solutions due to primarily its cost-effectiveness is expected to propel the growth of the market during the forecast period.
One of the key trends observed in market is a rising demand for eco-friendly cleaning products. This is due to the greater consumer and corporate awareness of the harmful environmental and human effects of traditional cleaning products which is resulting in a greater demand for natural, non-toxic, and biodegradable ingredients-based cleaning products. Hence in UK, several facility management companies recognize this and are providing eco-friendly cleaning and services and implementing green cleaning practices which mainly reduce waste, conserve energy and minimize the usage of harmful chemicals
Additionally, the use of eco-friendly cleaning products can have several benefits including customer retention and attraction, reduction in environmental carbon footprint, and also boost their corporate social responsibility (CSR) profile. Moreover, it ensures that they can adhere to environmental regulations and rules and do not have to pay unnecessary fines and penalties. Hence, such factors are expected to boost the growth of market during the forecast period.
Budgetary constraints are a serious issue for small organizations in developing countries which are forced to depend on funds from investors and venture capitalists (VCs). This also prevents from choosing renowned and dependable firms that provide facility management, resulting in utilizing poor quality services which in turn goes to impact the overall ability of the company. This may even result in higher cost for maintenance and operating costs which can reduce the firm’s profitability.
Furthermore, rising labor costs and training costs along with costs for retained skilled personnel are likely to further hinder the growth of the market. Additionally, the cost of managing, maintaining, and replacing old assets further increases the company’s operating costs, and even highly effective facilities management cannot reduce the large maintenance cost. Hence the increasing budgetary constraints coupled with higher operating costs will likely hamper the market growth during the forecast period.
The soft facility management segment is estimated to witness significant growth during the forecast period. This is primarily because of the lower cost of soft services in comparison to hard services. The minimal technical expertise for the delivery of soft services allows even new Comapniesto provide such services at economies of scale. Some soft services include facility cleaning services for maintenance of hygiene and cleanliness, delivery of goods, fleet management and other transportation services, catering services, and security services.
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The soft facility management segment was the largest segment and was valued at USD 44.30 billion in 2018. In addition, the ever-increasing demand for periodic cleaning of both commercial and industrial setups, particularly after the outbreak of the COVID-19 crisis is a prevalent trend. The likelihood of most industries and companies continuing with such precautionary measures ensuring staff and guest safety is likely to boost the growth of the soft facility management segment in UK during the forecast period.
Based on end-user, the market has been segmented into commercial, government, and residential. The commercial segment is one of the largest contributors to the market. It includes a variety of sectors such as business services, information technology (IT), industrial and manufacturing, real estate, and healthcare. The increasing number of MNCs and small and medium businesses has resulted in a greater demand for commercial office spaces which will boost the growth of the market during the forecast period. Among the office segment, the largest component is the banking, financial services, and insurance (BFSI) sector as facility management is vital for property management, space optimization, and help desk management. These features also generally align with the maintenance of high profitability and pleasant customer experiences.
Additionally, the industrial and manufacturing sector requires energy-efficient management which ensures the recording, monitoring, and controlling of energy usage in real time. For example, Boeing utilizes predictive Internet of Things (IoT) technologies for managing and maintaining devices, and machines for optimum energy usage. Moreover, the shift towards green buildings also indicates the likelihood of growth of the market along with the above-discussed factors are likely to boost the growth of the facility management market in UK. Hence, such factors are fuelling the growth of this segment during the forecast period.
Comapnies 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.
Atlas Facilities Management Ltd. - The company offers facility management services such as cleaning, catering, and technical services.
PRECISION FM - The company offers facility management services such as project services, electrical maintenance services, and mechanical maintenance services.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market for FM services is experiencing significant growth due to increasing awareness of energy efficiency, sustainability, and the integration of technology. Key players in the FM industry include BEIS, BOMA, Sodexo, Apleona, RICS, and Apogee Corporation. These organizations offer a range of services, from hard FM (maintenance, repairs, and grounds maintenance) to soft FM (housekeeping, energy management, and space usage optimization). The market landscape depends on the Office for National Statistics, Construction, Organisations, Institutional sector, Infrastructure sector, Expansion plans, Commercial properties, Contract foodservice, Client locations, Corporate offices, Hospitals, Schools, Industrial sites, Customised services. The integration of Internet of Things (IoT) and Artificial Intelligence (AI) in FM is a game-changer. IoT-based facility management solutions enable real-time monitoring and data analytics, while AI optimizes energy usage and predicts maintenance needs. JLL, Infraspeak, and other leading FM providers are leveraging Building Information Modelling (BIM) and data analytics to enhance their offerings. Energy efficiency and sustainability are key priorities for many organizations, driving the demand for FM services in the institutional and infrastructure sectors. Mergers and acquisitions are common in the FM industry, with in-house and outsourced services co-existing. The future of FM lies in the effective integration of technology, data analytics, and a customer-centric approach to meet the evolving needs of workers and visitors.
Market Scope |
|
Report Coverage |
Details |
Page number |
125 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market growth 2024-2028 |
USD 19.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alby Estates Ltd., Amey Ltd., Anabas UK2 Ltd., Andron Contract Services Ltd., Atalian Servest Group Ltd., Atlas Facilities Management Ltd., B38 Group, Bellrock Property and Facilities Management Ltd., CBRE Group Inc., Compass Group UK and Ireland Ltd., EMCOR Group Inc., FMS PBC, FMS Projects Ltd., ISS AS, Jones Lang LaSalle Inc., Kier Group plc, Mitie Group Plc, PHS Bidco Ltd., PRECISION FM, and Sodexo SA |
Market dynamics |
Parent market analysis, market trends, market trends and analysis, market growth analysis, market research and growth, Market forecasting, market growth and trends, market report, market analysis and report, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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