Facility Management Market Size

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.