Market Trends of China Facility Management Industry
This section covers the major market trends shaping the China Facility Management Market according to our research experts:
Increasing Construction Activities to Drive the Growth
- The construction industry in China has witnessed a significant rise in the past two decades. The growth of the construction sector in the country is primarily attributed to the industrial and commercial building sectors, which are among the major pillars of the country's economy. For instance, according to the National Bureau of Statistics of China, with 32.6%, the industrial sector is the largest shareholder of the country's economy.
- Facility management plays an important role during the construction and the post-construction process of the commercial and industrial facilities, as proper and regular maintenance of the buildings helps the property stay up and running and have less downtime, which is quite essential for commercial and industrial buildings.
- In January 2022, Chinas's Ministry of Housing and Urban-Rural Development reported that the construction industry in the country would grow at the same rate as the general economy and will maintain its 6% contribution to the national GDP. The government has been taking several initiatives to support the continued growth of the construction sector.
- For instance, in January 2022, the government of China unveiled a new five-year development plan for the country's construction industry. Such instances are expected to create more opportunities for the growth of the facility management market in the country.
Increased Healthcare Expenditure to Drive the Demand
- Over a decade, the healthcare sector in China has undergone a major overhaul as the country seems poised to emulate the spending trajectory of other western countries. With the country's population aging rapidly, the healthcare sector is expected to witness an upward growth trend during the forecast period.
- Within the healthcare environment, facilities management services play a critical role, directly impacting the patient experience and provisioning the efficiency of clinical care. Several vendors operating in the market are increasingly focusing on this sector. For instance, Sodexo offers a broad range of healthcare facility management services, such as operating room cleaning and instrument sterilization, along with support services for disability, rehabilitation, psychiatric, and end-of-life setting- whether in a hospital or at home.
- The increasing healthcare spending both by the government and the people in the country is further creating a supportive environment for the growth of the studied market. For instance, According to the Ministry of Finance of the Peoples Republic of China, out of the national general public budget expenditure of CNY 24,632.2 billion, health expenditure was CNY 1,920.5 billion in 2021.
- The growing investments in new healthcare facilities, especially since the pandemic outbreak, are also expected to create demand for facility management services. For instance, in November 2021, the design for a proposed 500-bed hospital in Jiaxing Kaiyi in China's Zhejiang province was unveiled by the global design and consulting firm B+H Architects.