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The Australia Facility Management Market is expected to grow at a CAGR of 8.13 % during the forecast period 2022-2027. Facility management consists of a wide range of solutions and services to influence enterprises' efficiency and productivity. Conforming with the industry standards and certifications, the new management system establishes a benchmark for driving effective facility management principles across Australia.
- ISO 41001 is an international standard for a facility management system. It offers a framework to implement, develop, and maintain the ideal benchmark of effective facilities management across industry sectors worldwide. Therefore, a Facility Management Standard that sets apart the industry by adopting global best practices and policies has offered a win-win situation for FM organizations and customers in this country.
- The Australian facility management market is at a mature stage. The public sector outsourcing supports the growth of the market, greater demand for end-user sectors, cost control measures, rising demand for commercial and residential spaces, and the adoption of sustainable and green practices and technological advancements. The customers in the market are highly price-sensitive, and market players provide solutions for both hard and soft services to the clients.
- The integrated facility management market is relatively at a growing stage. Its demand is increasing in the country due to greater outsourcing of services and an aim to achieve operational and cost efficiency for both vendors and clients. Facility management services are used by both MNCs and local companies in the country. However, because of their small scale of operations, local companies prefer single and bundled services, whereas MNCs prefer integrated facility management services in the country.
- Facility Management Services across Sydney, Melbourne, Perth, and Brisbane depict a growing sector. With the rising infrastructure development projects across Australia for economic growth, facility management services are also required to a considerable extent.
- The Government is backing regional industries with an investment of USD 7.1 billion in the 2022-23 Budget to drive economic development. Under the Energy Security and Regional Development Plan, the Government will transform key regions into next-generation export hubs. With investment in new and existing infrastructure projects across the region, the Government's ten-year infrastructure investment pipeline will increase from USD 100 billion to USD 120 billion.
- Furthermore, the COVID-19 outbreak has acted as a catalyst for change and has reiterated the need to pay attention to how facilities are managed and services are delivered. Moreover, at the time of COVID-19, the market has observed a significant surge in soft services like cleaning and disinfection services, creating significant market opportunities.
Scope of the Report
Facility management confines multiple disciplines to ensure functionality, comfort, safety, and efficiency of any building by integrating people, place, process, and technology. While Hard services include physical and structural services like fire alarm system lifts, among others, soft services include cleaning, landscaping, security, and similar human-sourced services, providing a solution to end-users such as Commercial Buildings, Retail, Government, Public Entities, etc.
The Australia Facility Management Market is Segmented by Type of Facility Management ( In-house FM Service, Outsourced FM Service (Single FM, Bundled FM, Integrated FM)), by Offering Type ( Hard FM, Soft FM), and by End-User (Commercial, Institutional, Public/ Infrastructure, Industrial).
|By Type of Facility Management|
|Inhouse Facility Management|
|By Offering Type|
|By End User|
|Other End Users|
Key Market Trends
Integrated Facility Management to have a significant growth
- There is a paradigm shift in the market as multiple industries are transforming from utilizing a single FM outsourcing model to an integrated services model that can meet all the core needs of customers on a large scale. In addition, with newer technology transforming the way organizations work, integrated facility management has become the key to intelligent buildings and work environments.
- IFM has been away for streamlined and efficient work and task management for various vendors. The concept has resulted in fewer contracts, teams, and resources to juggle and a single integrated view of all the management-related tasks.
- IFM offers increased visibility that leads to effective management of teams, reduced operation costs, quicker responses to requests, less downtime for employees, and a greater focus on the bigger picture. Implementing significant changes across multiple sites and services is also much easier using an IFM service provider.
- Increasing energy costs have forced buyers to look into facility management services for optimizing their energy utilization, and intelligent buildings and technology are creating a reduction in associated fees along with improving service efficiency.
- Market players are looking to expand their footprints in the region owing to the growth opportunities for the companies. For instance, in June 2021, Serco Asia-Pacific announced a new integrated facility management business unit incorporating asset management and facility management services, which will raise the level of operational expertise and delivery across Australia.
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Commercial End User Sector is expected to hold major share
- The commercial sector majorly covers the office buildings occupied by business services, such as corporate offices of manufacturers, IT and communication, insurance, property, and other service providers.
- The facility management services in the commercial sector are witnessing a rise in demand owing to the surging awareness among the users on optimizing their retail building management expenditure. Also, the market in the commercial sector is anticipated to observe significant growth during the forecast period, primarily because of an increase in the number of malls, hotels, commercial centers, and other commercial sites in the country.
- Moreover, the commercial sector covers office buildings occupied by business services, such as corporate offices of manufacturers, IT and telecommunication, finance and insurance, property, and other service providers. The rise in the IT sector across Australia will allow more commercial sector expansion and facility management services.
- Telecom players are focusing on 5G development in Australia, which will create significant opportunities for the region's facilities management sector. For instance, in June 2021, Telstra Exchange announced that 75% of all Australians can now access to 5G network wherever they live. The Telstra 5G presence is in more than 2,700 suburbs and more than 200 cities and towns across Australia.
- In March 2022, As per JLL, the country is witnessing strong demand for more office space. The JLL's analysis shows that Sydney accounts for 60% of all tenant briefs across Australia's office markets for the first two months. Sydney CBD recorded fewer briefs issued compared to 2021 data, but the total square meter requirement was higher, showcasing strong demand for tenants looking for larger space.
The Australian facility management market is highly fragmented as it is a highly competitive market with the presence of several players of different sizes. This market is expected to experience a number of mergers, acquisitions, and partnerships as companies continue to invest in offsetting the present slowdowns that they are experiencing strategically.
- April 2022 - ISS Australia has extended its partnership with Australia Pacific Airports (Melbourne) Pty Ltd ( APAM) for a further four years for managed security services. This security partnership covers three significant terminals at the airport.
- Feb 2022 - Earthsure, a joint venture of Ventia and Suez, has invested USD 16 million in Victoria for new alternatives for the recycling and treatment of contaminated soil and hazardous waste that will help drive the circular economy.
- Jan 2022 - Ventia has partnered with UGL for critical infrastructure business. Under the partnership, Ventia will manage and provide planned and corrective maintenance for property assets in 184 locations across the state.
Table of Contents
1.1 Study Assumption And Market Definition
1.2 Scope of the study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power Of Suppliers
4.2.2 Bargaining Power Of Buyers
4.2.3 Threat Of New Entrants
4.2.4 Threat Of Substitutes
4.2.5 Intensity Of Competitive Rivalry
4.3 Impact Of COVID-19 On The Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Emphasis on Outsourcing of Non-core Operations
5.1.2 Steady Growth in Commercial Real Estate Sector
5.1.3 Strong Emphasis on Green Practices and Safety Awareness
5.2 Market Challenges/Restraints
5.2.1 Regulatory & Legal Changes
6. MARKET SEGMENTATION
6.1 By Type of Facility Management
6.1.1 Inhouse Facility Management
6.1.2 Outsourced Facility Management
220.127.116.11 Single FM
18.104.22.168 Bundled FM
22.214.171.124 Integrated FM
6.2 By Offering Type
6.2.1 Hard FM
6.2.2 Soft FM
6.3 By End User
6.3.5 Other End Users
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 CBRE Group
7.1.2 Ventia Services Group
7.1.3 ISS Australia
7.1.4 Sodexo Facilities Management Services
7.1.5 JLL Limited
7.1.6 Australia Facilities Management
7.1.7 Cushmanand Wakefield
7.1.8 Serco Facilities management
7.1.9 Vinci Facilities Limited
7.1.10 Compass Group Inc.
7.1.11 Apleona GmbH
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Australia Facility Management Market market is studied from 2020 - 2027.
What is the growth rate of Australia Facility Management Market?
The Australia Facility Management Market is growing at a CAGR of 8.13% over the next 5 years.
Who are the key players in Australia Facility Management Market?
CBRE Group, Ventia, ISS Australia, Sodexo Facilities Management Services, JLL Limited are the major companies operating in Australia Facility Management Market.