Market Trends of Denmark Facility Management Industry
This section covers the major market trends shaping the Denmark Facility Management Market according to our research experts:
Single Facility Management to Have a Significant Share
- Working with a single facility management service provider primarily delegates task management to separate entities. It also entails having a different service provider for each service the organization requires, such as one for cleaning, one for reception, and one for vending machines. Using specialized service providers has several advantages.
- It allows customers to concentrate on their core business, while single-service providers provide effective customer services and help operational efficiency. Experts handling task management would result in much higher efficiency and service quality. It would also free company employees to focus on the most important business areas while saving resources for non-core activities. According to Statistics Denmark, the private sector employs the maximum number of people in Denmark. In Denmark, approximately two million people were working in private enterprises as of the third quarter of 2022.
- Outsourced FM has been successfully used in various sectors, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing, and education. The areas that FM services look after vary widely, primarily depending on its type, the size of the company, and the sector in which it operates. Some organizations would only require a single service solution provider. Such demand is driving the single FM in the country.
- When businesses choose a single service provider, they outsource their day-to-day operations to a specialist provider. They can be assured of superior service quality and efficiency by hiring specialists. Using several service providers is a time-consuming activity that necessitates the management of multiple vendors and associated hazards. It helps create significant opportunities for the market vendors to expand single FM services in the country.
- In Denmark, FM vendors have been largely concentrating on improving their service offerings and establishing themselves as a single-point option for end-to-end FM services. Single service provision is relatively straightforward; a purchasing organization procures a single FM service from a supplier under a single service contract.
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Commercial End-user Sector is Expected to Hold Major Share
- The commercial sector is one of the prominent segments that contributes a good share of facility management in Denmark.
- Denmark accounts for most of the development projects undertaken in the country's commercial sector. However, under the project Denmark Forward, the Danish government has proposed a new plan to spend around DKK 160 billion (~USD 23.056 billion) on infrastructure.
- The investments from the Danish government across a range of infrastructure and related commercial projects are also increasing the demand for facility management services in the commercial sector. According to the IMF, Denmark's government spending to gross domestic product ratio is expected to fall by 0.7 percentage points between 2022 and 2027. This general drop only occurs for a while, most notably in 2025 and 2026. In 2027, the ratio is expected to be 49.83 per cent.
- 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 Denmark would allow more expansion in the commercial sector along with facility management services.
- Telecom players are focused on 5G deployments in Denmark, creating significant opportunities for the region's facilities management sector. For instance, in Feb 2022, Telenor Denmark announced that it plans to upgrade another 1400 masts to 5G throughout 2022, commence the deployment of a 5G standalone network, and shut down its 3G network and interconnect its masts and core network through fiber.
