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The UK Facility Management Market size is estimated to grow at a CAGR of 4.28% between 2022 and 2027 and the size of the market is forecast to increase by USD 17.47 billion. The growth of the market depends on several factors such as the increasing demand for cloud-based facilities management solutions, the growing demand for smart facilities, and the greater emphasis on outsourcing building management services.
This report extensively covers market segmentation by type (soft facility management and hard facility management) and end-user (commercial, government, and residential). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Facility Management Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market in UK. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The increasing demand for technologically advanced solutions in the facility management market in UK 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 facility management market in UK during the forecast period.
One of the key trends observed in UK facility management 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 UK facility management 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 facility management market growth in UK 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 vendors to 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 43.09 billion in 2017. 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 facility management market in the UK. 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 facility management market in the UK 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 facility management market in UK along with the above-discussed factors are likely to boost the growth of the facility management market in UK.
Vendors 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 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 facility management market in UK report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Facility Management Market Scope in UK |
|
Report Coverage |
Details |
Page number |
124 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.28% |
Market growth 2023-2027 |
USD 17.47 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.85 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alby Estates Ltd., Amey Ltd., Anabas UK2 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, Sodexo SA, and Andron Contract Services Ltd. |
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, 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. |
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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 Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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