Germany Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Germany Facility Management Market is segmented by Type of Facility Management (In-house Facility Management, Outsourcing Facility Management (Single FM, Bundled FM, Integrated FM)), By Offering Type (Hard FM and Soft FM), By End-User (Commercial, Institutional, Public/Infrastructure, Industrial).

Market Snapshot

Germany Facility Management Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: >3.5 %

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Market Overview

The Germany Facility Management Market is expected to register a CAGR above 3.58% from 2022 to 2027. The growth in German facility management services is attributed to the increasing demand for customized in-house and outsourced facility management solutions. Moreover, the rising number of commercial and residential buildings in major cities pushes the demand for facility management services across the country.

  • The growing investments in commercial properties are expected to increase the region's demand for facility management services. It is quite evident with the recent developments happening in the country. For instance, in August 2021, Google is opening a new Google Cloud region in Berlin-Brandenburg, with investment plans in renewable energy. The company plans to further invest in Germany’s transition to a digital and sustainable economy. The company plans to invest approximately EUR 1 billion in digital infrastructure and clean energy by 2030.
  • Additionally, rapid infrastructure development and the rising focus on integrated facility management services are anticipated to positively influence the German facility management market over the coming years.
  • Further, the facility manager's role is growing more notable and changing from operational to strategic. This COVID-19 pandemic is an opportunity for the facility manager to consolidate the new office environment and the demands of employees in terms of working from home in the corporate culture. Though, more compliance is anticipated, also concerning suppliers. The focus will be more on quality and results and smaller on a fixed schedule.

Scope of the Report

Facility management (FM) incorporates many disciplines to ensure the built environment's functionality, safety, comfort, and efficiency by integrating people, process, place, and technology. Facility management includes management methods and techniques for building operations and maintenance, support services, environmental management, and property management for an organization, and overall harmonization of the work environment by standardizing services and streamlining processes for end users.

The German Facility Management Market is segmented by Type of Facility Management (In-house Facility Management, Outsourcing Facility Management (Single FM, Bundled FM, Integrated FM)), By Offering Type (Hard FM and Soft FM), By End-User (Commercial, Institutional, Public/Infrastructure, Industrial).

By Type of Facility Management
Inhouse Facility Management
Outsourced Facility Management
Single FM
Bundled FM
Integrated FM
By Offering Type
Hard FM
Soft FM
By End-User
Commercial
Institutional
Public/Infrastructure
Industrial
Others

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Key Market Trends

Increasing Demand for Customized Solutions

  • Despite the tremendous income potential of outsourced FM, services are becoming more commoditized across Europe, and organic growth is difficult to come by. Service integration and advanced advisory services focusing on productivity, user experience, and sustainability will become the norm in the business. According to CBRE Group, technology is fueling interest in managed workspace and co-working, with 60% of occupiers believing serviced offices will play a part in managing their accommodation needs in the next three years.
  • Co-working will entail numerous organizations, businesses, and individuals sharing space, similar to managed workspace, where a third party provides space and facilities. As it has been labeled, the co-working revolution reflects a growing demand among professionals and creatives for autonomy, a lack of hierarchy, flexibility, and community.
  • The growth in German facility management services is attributed to the increasing demand for customized in-house and outsourced facility management solutions. Moreover, the rising number of commercial and residential buildings in major cities pushes the demand for facility management services across the country. Rapid infrastructure development and the rising focus on integrated facility management services are anticipated to positively influence the studied market.
  • Further, in July 2021- Intel announced to invest of USD 20 billion to begin constructing eight chip plant facilities in Belgium, Germany, France, and the Netherlands in early 2021. Such developments are driving more opportunities for vendors to have security services for facility management. Overall, with increased expansion of manufacturing facilities in the region is expected to drive the demand for facility management.
Germany Facility Management Market Share

Growing Investments in Commercial Properties

  • According to Savills, a real estate company, approximately EUR 22.9 billion was invested in German commercial property during the first half of 2021. With EUR 13 billion, the investment volume in Q2 was the second-highest of any quarter since the country's outbreak of the Covid-19 pandemic but remained around 17% below the five-year average quarterly volume before the pandemic.
  • Thus, the growing investments in commercial properties are expected to increase the region's demand for facility management services. It is quite evident with the recent developments happening in the region. For instance, in August 2021, Google is opening a new Google Cloud region in Berlin-Brandenburg with investment plans in renewable energy. The company plans to further invest in Germany’s transition to a digital and sustainable economy. The company plans to invest approximately EUR 1 billion in digital infrastructure and clean energy by 2030.
  • Modern offices with long-term tenants remain highly sought-after by investors despite all the discussions surrounding hybrid working. The growing business acumen among industry leaders and diversification of the economy from automobile industries to other avenues is expected to increase the demand for facility management services in the country.
  • Moreover, in October 2021, SPIE, an independent multi-technical services provider in energy and communications, renewed its partnership with Siemens Energy for the coming three years. The multi-technical service provider will be responsible for the technical facility management of 385,000 square meters of office and production space occupied by Siemens Energy.
Germany Facility Management Market Growth

Competitive Landscape

The Germany Facility Management Market is moderately competitive with diverse firms of different sizes. This market is anticipated to encounter several partnerships, mergers, and acquisitions as organizations continue to invest strategically in offsetting the present slowdowns they are experiencing. The clients in this region are employing FM services to increase the ease of their business operations. The market comprises key solutions and service providers, such as Strabag SE, Bilfinger SE, Dussmann Group, Wisag Facility Service Holding GmbH, and Compass Group PLC.

  • February 2022 - Bilfinger signed a memorandum of understanding (MoU) with Rock Tech Lithium on the construction of the German facility. According to the MoU, Bilfinger would be overtaking engineering, procurement, and construction management services.

Recent Development

  • April 2022 - Facility management and technical building services company Koberl Group completed the acquisition of Wiesbaden-based air conditioning and refrigeration contractor Kriotec. The acquisition would enable the company to expand its products and services portfolio. Further, with the acquisition of Kriotec Kalte- und Klimatechnik GmbH and Kriotec Gewerbekälte GmbH, the company could directly offer its customers refrigeration, cooling, and air conditioning technology along with strengthening its presence in the Frankfurt/Rhein-Main region.
  • April 2021 - VertiGIS, a leading geographic information systems (GIS) solution provider and software developer, acquired the longstanding development partner KMS Computer GmbH, a leading computer-aided facility management (CAFM) software specialist based in Dresden, Germany.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness- Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Trend Toward Commoditization of Facility Management

      2. 5.1.2 Growing Investments in Commercial Properties

    2. 5.2 Market Challenges

      1. 5.2.1 Ongoing Changes in Macro-environment

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type of Facility Management

      1. 6.1.1 Inhouse Facility Management

      2. 6.1.2 Outsourced Facility Management

        1. 6.1.2.1 Single FM

        2. 6.1.2.2 Bundled FM

        3. 6.1.2.3 Integrated FM

    2. 6.2 By Offering Type

      1. 6.2.1 Hard FM

      2. 6.2.2 Soft FM

    3. 6.3 By End-User

      1. 6.3.1 Commercial

      2. 6.3.2 Institutional

      3. 6.3.3 Public/Infrastructure

      4. 6.3.4 Industrial

      5. 6.3.5 Others

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Strabag SE

      2. 7.1.2 Bilfinger SE

      3. 7.1.3 Dussmann Group

      4. 7.1.4 Compass Group PLC

      5. 7.1.5 Wisag Facility Service Holding GmbH

      6. 7.1.6 Vinci SA

      7. 7.1.7 Spie Group

      8. 7.1.8 Aramark

      9. 7.1.9 Cushman & Wakefield PLC

      10. 7.1.10 ISS Facilities Services Inc.

      11. 7.1.11 Sodexo Inc.

      12. 7.1.12 Apleona GmbH

      13. 7.1.13 Kotter GmbH & Co. KG

      14. 7.1.14 Koberl Group

      15. 7.1.15 VertiGIS

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The Germany Facility Management Market market is studied from 2020 - 2027.

The Germany Facility Management Market is growing at a CAGR of >3.5% over the next 5 years.

Bilfinger SE, Dussmann Group, Compass Group PLC, Strabag SE, Wisag Facility Service Holding GmbH are the major companies operating in Germany Facility Management Market.

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