Market Trends of Australia Facility Management Industry
This section covers the major market trends shaping the Australia Facility Management Market according to our research experts:
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.
