Facility Management Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.33 Trillion |
| Market Size (2029) | USD 1.66 Trillion |
| CAGR (2024 - 2029) | 4.66 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Facility Management Market Analysis
The Facility Management Market size is estimated at USD 1.33 trillion in 2024, and is expected to reach USD 1.66 trillion by 2029, growing at a CAGR of 4.66% during the forecast period (2024-2029).
- Facility management consists of multiple factors that influence the productivity and efficiency of organizations. The new management system standard, conforming with the best industry practices, constitutes a benchmark for developing and driving effective strategic, tactical, and operational FM principles across the globe.
- Services in the FM industry have been commoditized to a huge extent. Also, end-user industries are very price-sensitive, and contracts are thus aimed at shorter terms. Commercial real estate over-supply has been creating pressure on rent yields, thus leading the customers to cut costs on FM services.
- However, a late involvement of FM providers in the construction cycle, that is, post-construction led maintenance, was observed to reduce. FM players offering asset management have been involved in the early stages of infrastructure development and provide FM consultancy for preventive maintenance, longer asset life, and longer-term contracts. Enova seeks a digital omnipresence and customer service prominence for growth and modernization to support smart FM in the Middle East.
- With the increasing investments in healthcare infrastructure and the construction of healthcare facilities, the demand for FM services is rising. In recent times, infrastructure has become a crucial element in providing healthcare to the public. Hence, there has been an increased investment in the development of healthcare infrastructure across the world. Healthcare organizations are significantly investing in facilities to deliver advanced healthcare services.
- However, due to increased instances of data breaches and security threats requiring adequate skills is challenging. According to a Honeywell survey, 27% of building facilities managers surveyed had suffered a cyberattack on their OT systems in the past year, and 66% of respondents say maintaining Operation technology (OT) cybersecurity is one of their most challenging duties.
- The outbreak of COVID-19 has had a mixed business impact on facilities management firms. The restrictions on the movement of people resulted in a decline in project work and a decreased level of activity across many customer sites. Significant players in the market studied, such as Mitie, CBRE Group, and others, were adversely affected due to the pandemic lockdown.
Facility Management Market Trends
Increasing Focus on Core Competencies to Drive the Market Growth
- The significance of focusing resources, time, and expertise on core competencies is becoming increasingly evident to organizations. Core competencies are specific abilities that offer businesses a competitive edge in their specialized industries. Organizations may concentrate on their core business operations by contracting with outside service providers for facility management functions, including product development, sales, marketing, and innovation. This strategic focus allows organizations to allocate their resources effectively and achieve higher levels of efficiency and productivity.
- In addition, facility management providers are expanding their service offerings beyond traditional tasks to provide value-added services that directly support the organization's core competencies. This may include strategic facility planning, space optimization, workplace design consulting, sustainability initiatives, and energy management programs. Companies are expected to support the organization's overall business goals, providing significant cost savings, and improve the user experience by providing these value-added services.
- Further, facility management providers are recognizing the importance of employee experience and its impact on productivity, engagement, and talent retention. As organizations focus on their core competencies, facility management providers would adapt their services to create environments promoting employee well-being, collaboration, and innovation. This may involve implementing ergonomic design principles, integrating technology for seamless workplace experiences, providing amenities and wellness programs, and ensuring a safe and comfortable work environment.
- According to a Cleaning & Maintenance Management (CMM) survey, in 2022, around 24 percent of facility management personnel in the United States replied to the question by claiming that they manage college or university buildings. While industrial environments, such as manufacturing and warehousing, were recorded to be the least managed facilities. The survey findings indicate that many facility management personnel in the United States are involved in managing college or university buildings. Such institutions are expected to benefit from specialized skills, affordable solutions and current standards in the industry by collaborating with facility management providers to ensure optimal facility operations and foster an environment that is favorable to study and research.
- Additionally, facility management service providers are adapting their products to reflect these changes as firms work to streamline their operations, integrate technology, supply value-added services, and build sustainable environments. Organizations are anticipated to get specialized knowledge, tailored solutions, and innovative techniques that support their overall success by concentrating on their core strengths and strategic alliances.
Middle East and Africa is Expected to Witness Significant Growth Rates
- Qatar and Saudi Arabia's facility management markets are witnessing significant growth, and companies need to innovate their offerings to keep growing and remain profitable. However, residential, commercial, industrial, and public infrastructure sectors are the primary sectors likely to drive the studied market.
- Moreover, according to the Ministry of Finance of Qatar, infrastructure projects are given QAR 74 billion (USD 20.33 billion), or around 36.0% of the state's interest. This amount is awarded to complete key development projects on schedule, particularly those associated with hosting the FIFA World Cup in Qatar in 2022. In addition, the ministry highlighted a specific focus on two emerging fields, education, and healthcare, which are anticipated to witness the growth of educational projects and initiatives as well as healthcare projects and programs. The health sector has received nearly QAR 20 billion (USD 5.49 billion) in funding, while education has received close to QAR 17.8 billion (USD 4.89 billion).
- Moreover, with the increasing number of building permits expected to be completed by 2022, the regional FM vendors' scope is expected to be high. Factors such as increased economic activity, consumer spending, and tourism activities have increased the occupancy of large residential layouts/projects, hotels, and commercial spaces. This has, in turn, increased the need for better management of the facilities.
- In recent years, healthcare facilities have increased in the country at a significant pace, creating substantial opportunities for facility management companies. Furthermore, several government-driven initiatives are changing the dynamics of the FM market, reshaping the healthcare landscape in Saudi Arabia, and creating a more robust institutional setup and effective regulatory frameworks to promote private sector investment in healthcare.
- Additionally, with increasing cases of COVID-19, the need for facility management to disinfect the surfaces and spaces increased. Many players in the Saudi Arabian market have adopted such technologies and services to combat the situation.
- Furthermore, South Africa is also one of the more developed markets in Africa because of its more favorable market environment and the presence of significant FM service providers. By actively participating in the local South African Facilities Management Association (SAFMA), industry members advocate for formal training and skill development, improve quality-of-service delivery, and promote FM outsourcing among local end customers.
Facility Management Industry Overview
The Facility Management Market is highly fragmented, with local and international players having decades of industry experience. The FM vendors are incorporating a powerful competitive strategy by leveraging their expertise. Also, they are spending a large chunk of the amount on advertising. The FM companies are incorporating technologies into their services, strengthening their service portfolio. A few prominent companies operating in the market include Cushman & Wakefield PLC, Jones Lang LaSalle Inc., Emeric Facility Services, SMI Facility Services, etc.
In May 2023, Planon and SAP established a strategic alliance to provide businesses with an integrated real estate and facilities management solution. Consequently, corporate entities and commercial real estate firms will gain from enhanced and more sustainable building performance as well as optimized portfolio management. The partnership provides enhanced integration of procedures and technology by combining Planon's substantial real estate and smart building management solution with SAP's superior ERP capabilities.
In April 2023, the BT Group expanded its arrangement with CBRE to include facilities and project management services for its UK portfolio, which includes more than 7,500 premises to assist more than 80,000 BT Group and Openreach employees. The contract extension extends the current cooperation until 2026 to provide an additional level of synergy and service delivery.
Facility Management Market Leaders
CBRE Group, Inc.
Jones Lang LaSalle Incorporated
Cushman & Wakefield PLC
Emeric Facility Services
SMI Facility Services
*Disclaimer: Major Players sorted in no particular order
Facility Management Market News
- June 2023: Saned Facility Management & Solution Company and Greenhouse, the Chalhoub Group's center for innovation and entrepreneurship, have joined forces to develop the "Innovation in Integrated Facilities Management" Center and Program. The center aims to improve industry innovation and efficiency by encouraging and expanding software, technology, artificial intelligence, and new ideas internally and throughout the UAE's facilities management industry.
- April 2023: Blue Skyre IBE, a prominent provider of global facilities management systems, was strategically acquired by Lessen, a tech-enabled end-to-end solution for outsourced real estate property service providers. This acquisition enables Lessen to broaden its portfolio of facilities management and Environmental, Social, and Governance (ESG) solutions as it seeks its mission to provide commercial and residential real estate with unmatched operational excellence and efficiency, enhanced services, and advanced technology—all under the control of a single, unified platform.
- June 2022: Imdaad, a group of companies based in Dubai that offers integrated, sustainable facilities management services that improve operational efficiencies of physical assets, has officially formed a new joint venture with LMD, a prominent real estate provider in Egypt, to provide a full range of quality facility management solutions across the entirety of Egypt.
Facility Management Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions 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 Assessment of Impact of COVID-19 on the Facility Management Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Investments in Healthcare Infrastructure and the Construction of Healthcare Facilities
5.1.2 Requirement of Building Information Modeling (BIM) in Commercial Buildings Addresses the Growth
5.1.3 Increasing Focus on Core Competencies
5.2 Market Restraints
5.2.1 Increased instances of Data Breaches and Security Threats
5.2.2 Inadequate Standardization and Managerial Awareness
6. MARKET SEGMENTATION
6.1 By Type of Facility Management Type
6.1.1 In-house Facility Management
6.1.2 Outsourced Facility Mangement
6.1.2.1 Single FM
6.1.2.2 Bundled FM
6.1.2.3 Integrated FM
6.2 By Offerings
6.2.1 Hard FM
6.2.2 Soft FM
6.3 By End-Users
6.3.1 Commercial
6.3.2 Institutional
6.3.3 Public/Infrastructure
6.3.4 Industrial
6.3.5 Other End-Users
6.4 By Geography
6.4.1 North America
6.4.1.1 United States
6.4.1.2 Canada
6.4.2 Europe
6.4.2.1 United Kingdom
6.4.2.2 Germany
6.4.2.3 France
6.4.2.4 Rest of Europe
6.4.3 Asia Pacific
6.4.3.1 China
6.4.3.2 Japan
6.4.3.3 India
6.4.3.4 South Korea
6.4.3.5 Rest of Asia Pacific
6.4.4 Latin America
6.4.4.1 Brazil
6.4.4.2 Mexico
6.4.4.3 Rest of Latin America
6.4.5 Middle East and Africa
6.4.5.1 Qatar
6.4.5.2 Saudi Arabia
6.4.5.3 United Arab Emirated
6.4.5.4 South Africa
6.4.5.5 Egypt
6.4.5.6 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 CBRE Group, Inc.
7.1.2 Jones Lang LaSalle Incorporated
7.1.3 Cushman & Wakefield PLC
7.1.4 Emeric Facility Services
7.1.5 SMI Facility Services
7.1.6 Sodexo, Inc.
7.1.7 AHI Facility Services, Inc.
7.1.8 ISS Facility Services, Inc.
7.1.9 Shine Management & Facility Services
7.1.10 Guardian Service Industries, Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE TRENDS
Facility Management Industry Segmentation
Facility management (FM) services involve the management of building upkeep, utilities, maintenance operations, waste services, security, etc. These services are further segmented by hard facility management services and soft facility management services. The adoption of FM solutions and services is likely to be driven by several factors, including an increase in demand for cloud-based FM solutions and a rise in demand for FM systems linked to intelligent software.
The Facility Management Market is Segmented By Type of Facility Management Type (In-house Facility Management, Outsourced Facility Management (Single FM, Bundled FM, Integrated FM), By Offerings (Hard FM, Soft FM), By End-User (Commercial, Institutional, Public/Infrastructure, Industrial), and Geography (North America (United States, Canada), Europe(United Kingdom, Germany, France, Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Rest of Asia Pacific), Latin America (Brazil, Mexico, Rest of Latin America), Middle East and Africa(Qatar, Saudi Arabia, United Arab Emirates, South Africa, Egypt, Rest of Middle East and Africa)).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
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| In-house Facility Management | |||||
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| By End-Users | |
| Commercial | |
| Institutional | |
| Public/Infrastructure | |
| Industrial | |
| Other End-Users |
| By Geography | ||||||||
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Facility Management Market Research Faqs
How big is the Facility Management Market?
The Facility Management Market size is expected to reach USD 1.33 trillion in 2024 and grow at a CAGR of 4.66% to reach USD 1.66 trillion by 2029.
What is the current Facility Management Market size?
In 2024, the Facility Management Market size is expected to reach USD 1.33 trillion.
Who are the key players in Facility Management Market?
CBRE Group, Inc., Jones Lang LaSalle Incorporated , Cushman & Wakefield PLC , Emeric Facility Services and SMI Facility Services are the major companies operating in the Facility Management Market.
Which is the fastest growing region in Facility Management Market?
Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Facility Management Market?
In 2024, the Asia Pacific accounts for the largest market share in Facility Management Market.
What years does this Facility Management Market cover, and what was the market size in 2023?
In 2023, the Facility Management Market size was estimated at USD 1.27 trillion. The report covers the Facility Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What future developments are expected in the Facility Management Market?
Future developments in the Facility Management Market are a) Rising use of AI and machine learning for predictive maintenance b) Increased focus on user experience and workplace wellness c) Further integration of smart building technologies
What are the emerging trends in Facility Management Market?
Emerging trends in the Facility Management market are: a) Adoption of green practices b) Use of drones for inspection and monitoring c) Integration of workspace management solutions with health and wellness programs
Facility Management Industry Report
The facilities management industry is witnessing remarkable growth, fueled by the surge in demand for cloud-based solutions and significant infrastructural investments. As organizations strive for agile workplaces, the adoption of facility management solutions is escalating, offering real-time monitoring for enhanced occupant satisfaction and productivity. The integration of Building Information Modeling (BIM) further revolutionizes asset management, boosting efficiency and sustainability. Despite challenges like managerial awareness and a shortage of skilled professionals, the industry sees a trend towards outsourcing to focus on core business operations, promising further expansion. This strategic shift, coupled with the adoption of innovative technologies, is poised to elevate efficiency and productivity levels within the facility management industry. Mordor Intelligence™ provides in-depth analysis of the facilities management market, including market share, size, revenue growth, and forecasts, available as a free report PDF download, offering valuable insights into this booming sector.
