Market Trends of Europe Hard Facility Management Industry
This section covers the major market trends shaping the Europe Hard Facility Management Market according to our research experts:
HVAC Service Demand is on the Frontline
- The European Commission has suggested stricter regulations for the treatment of urban wastewater as well as for surface and groundwater pollution. For the well-being of both humans and ecosystems, clean air and water are crucial. For instance, the environment Act of last year by the United Kingdom's government mandates that the administration establish legally binding environmental goals for England in four priority areas, including air quality, as well as an additional goal on fine particulate matter (PM2.5), which is thought to be the air pollutant that poses the greatest risk to human health.
- Energy-efficient HVAC systems services are in high demand across industries owing to the EU's adoption of stringent regulations. Energy-efficient technologies are more likely to be required as public awareness of greenhouse gas emissions grows. In the U.K., Germany, and France, it is anticipated that these variables would have the greatest effects on the demand for modern temperature-control equipment.
- Some European countries have experienced heat waves in the past year like never before. According to climate data provider Kayrros, emissions from coal and gas increased significantly throughout Europe in July because of high temperatures driving up demand for air conditioning. From 12 June to 17 July, the bloc's daily carbon emissions increased by 18%. By upgrading the outdated HVAC equipment and increasing the effectiveness of the duct system, power and fuel consumption can be significantly decreased. Implementing these developing technology services can help reduce emissions and your carbon footprint.
- As per the report of ING, a worldwide economic research expert, the European construction sector is predicted to expand by 2.5% this year because of new investment from the EU recovery fund. The construction industry significantly influences the demand for HVAC facility services in Europe. These rising construction growths are expected to drive the demand for HVAC installations and maintenance services.
- Furthermore, the pandemic made filtration even more crucial, which played a big part in the region's increased demand for HVAC equipment in the region. According to multiple pieces of research, interior locations, including workplaces (offices, factories), and other indoor settings like churches, restaurants, shopping malls, and cars, were most conducive to COVID-19 transmission. Compared to raising the air exchange rate in enclosed environments, air filtration decreased the risk of viral transmission. The demand for air filtration and purification increased manifold after the COVID-19 outbreak across the globe, including European countries.
- According to JRAIA, Europe's demand for air conditioning equipment reached its highest level in ten years, at over 8.9 million units. The only notable exception to this overall upward tendency was during the investigated period when only about 7.6 million units were sold. Since 2015, the demand for air conditioning has been rising gradually.
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Growing Commercial Construction Drives the Market
- As a result of the widespread construction in Europe and the continued growth of different residential, commercial, and industrial constructions across the region have driven the Europe HFM market. Although construction activity paused due to the adverse impact of the COVID-19 pandemic, the market is recovering, with more investments being made in the industry. A recent study found that the strength of the European construction market was evidenced by the 5.2% growth in total investment in the last year.
- The United Kingdom and Spain remained most active in the case of commercial construction this year. According to the organization's 65th Statistical Report, Slovenia (+10.4%), Spain (+5.4%), Ireland (+7.3%), and the Netherlands (+5.0%) would have the fastest-growing construction markets in Europe this year. Germany's construction is expected to rise by 1%, and France would see 3.5% growth. Thereby the demand for engineering and consulting, installation and commissioning, operational improvement, and maintenance services are anticipated to grow in the upcoming periods.
- Numerous large-scale new infrastructure plans and initiatives have been launched globally during the last few years. To aid EU Member States in recovering their economies from the coronavirus epidemic, the European Commission established Next Generation EU, a €750 billion (USD 771 billion) fund. With the growing infrastructure, businesses seek more individualized services, convenience, and on-demand maintenance and repair services, the HFM managers are rapidly digitizing their services. The Companies have recognized the long-term cost benefits linked to preventative maintenance from asset management services, thereby raising recurring maintenance and repair income for sector operators.
- The European market highly depends on outsourcing hard facility services for their enterprises. Ongoing service contracts and agreements, growing product development rates, and market expansion contribute to the HFM market's growth. Building planning, design, and maintenance are aided by mechanical, electrical, and plumbing (MEP) service providers, who also provide services, including machine monitoring and repair and plumbing system design and maintenance.
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