Asia Pacific Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Asia Pacific Facility Management Market is expected to grow at a CAGR of 12% over the forecast period 2022 to 2027. Contract globalization and services integration is expected to accelerate growth in the FM market, particularly the commercial building sector, given the increase in penetration of commercial building services through the forecast period. The market is forecast to record high growth in the Asia Pacific.

• Governments from all around the Asia Pacific are investing heavily in the building and infrastructure industries. Restoration of existing buildings, new building construction, and civil engineering are the three main components of infrastructure development. However, the business is well-positioned to gain from infrastructure expenditures in the global context. The industry's proclivity drives most facility management services, presentations, and market growth for renovating existing facilities.
• Various large facilities management service providers with a significant initial investment in facility services in Asia - Pacific region, on the other hand, have very few issues with limited technology adoption due to long-term contracts.
• Increasing the investments in healthcare infrastructure and the Construction of Healthcare Facilities in China is expected to drive the growth of the industry. For instance, in October 2021, Hospital infrastructure has been addressed as the prerequisite of healthcare delivery which intensively affects medical quality. Over the past decade, China has proposed investment plans for hospital infrastructure to promote healthcare development in underdeveloped regions.
• However, security concerns related to devising safety and network safety are restraining market growth. Increasing security breaches and cybercrime group threats are causing distrust and affecting the market growth in the region. Furthermore, the region's public sector has begun to seek longer-term contracts from facilities management companies. Still, the lack of certainty about future labor prices and supplies makes building projects riskier. This could function as a big impediment to the players bidding for long-term contracts.
• In addition, the COVID-19 epidemic had a mixed economic impact on facilities management companies in the Asia Pacific region. The limits on people's movement resulted in a drop in project work and a drop-in activity at several customer locations. With the construction sector being severely hit, the studied market witnessed a negative impact during 2020.

Scope of the Report

The tools and services that support the functioning, safety, and sustainability of buildings, grounds, infrastructure, and real estate are referred to as facilities management. Lease management, including lease administration and accounting, is part of facilities management.

Asia - Pacific Facility Management Market is segmented by Type of Facility Management In-house Facility Management, Outsourced Facility Management, and Integrated Facility Management (IFM). Offering types are Hard FM, Soft FM, and End-user Commercial, Institutional, Public/Infrastructure, and Industrial.

Report scope can be customized per your requirements. Click here.

Key Market Trends

Commercial Buildings Segment to hold significant share in the market

• The facility management business has been boosted by new investments in the Asia Pacific commercial construction industry. Several investment firms have enlisted the help of real estate management services to manage their real estate portfolios. The continuous construction of commercial buildings across countries in the region is expected to drive the demand for facility management services.
• The commercial sector is expected to develop at the highest rate because of the large penetrable segment and a high degree of technological acceptance in South Korea. FM demand continues to be driven by large-scale construction and activity in core commercial locations such as Seoul. While the development of logistical infrastructure for online shopping/retail outlets is the major focus area in the suburbs, the relatively large size of MNC activities can be attributed to both commercial and industrial sectors.
• According to the Singapore Department of Statistics, Singapore's commercial building demand was estimated at SGD 2.76 billion in 2021. This increased above last year, indicating that the industry was recovering from the COVID-19 outbreak.
• According to the Beijing Municipal Bureau of Statistics, from 2018 to 2021, the monthly price index for newly constructed commercial and residential buildings is slightly changing in Beijing, China. The cost of newly constructed commercial and residential property in China's capital city remained unchanged in December 2021 compared to the previous month.

To understand key trends, Download Sample Report