Market Trends of Greece Facility Management Industry
Single FM of the Outsourced Facility Management Type to Hold Significant Market Share
- The rising installation costs of internal facility management teams and the challenging nature of overseeing a broad range of services are driving the surge in demand for outsourcing. Companies are under intense pressure to provide value to their clients, forcing them to continuously innovate and expand their core offerings to provide better customer services.
- As a result of increased expectations from both clients and staff, companies frequently reduce their non-core facilities management expenditure. These elements are anticipated to make outsourcing a desirable option. Outsourced FM offers Single, Bundle, and Integrated FMs.
- The outsourcing of FM services has been successfully used in different sectors, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing and education. The areas covered by FM services vary widely, in particular in terms of type, size of company and sector in which they operate. This is not a one size fits all approach. Some organizations will likely only require a single service solution provider, whereas other big organizations will look for a bundled services offering or complete facilities management solution.
- End-users in the country are shifting towards outsourced facility management services to gain expertise, allow staffing flexibility, and save time and cost. Therefore, outsourcing to certified third-party vendors has positively impacted the company's operational expenses.
- SMEs are the primary end users of single FM services in the country. According to the European Commission, in 2023, the country had approximately 22,26,746 Number of people employed by SMEs operating in Greece,. SMEs in the country represent a significant presence, one of the country's major end-users of single FM services.
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Commercial Segment to Major Share in the Market
- In Greece, investment companies such as Knight Frank Greece usually specialize in the residential or commercial property market. Commercial buildings represent a promising area of investment in the region, as they offer rewarding opportunities and are often more profitable than other types of investments due to their ability to generate better cash flows. Consequently, this sector is expected to drive growth for the facility management market over the coming years.
- The country's economy has grown over the last few years, which is leading to an increased number of new construction projects like office buildings, shopping malls and housing developments. In order to support the operation of these facilities, which has led to an increased demand for complementary FM services.
- The expansion of the IT sector in the country will likely allow for more expansion in the commercial industry and facility management services. Intel Capital, Index Ventures, Accel, Andreessen Horowitz, Kleiner Perkins, Sequoia, BainCapital, and DFJ Greycroft have recently invested in three Greek startups. Major industry players such as Microsoft, Apple, Splunk, Amazon, Samsung, Teradata, Daimler, Citrix, Vmware, DellEMC, and Salesforce have acquired Greek startups.
- Moreover, the ICT sector in Greece offers several possibilities for investment in high-end, value-added facility management services with a global reach. The availability of skilled labor, strong IT and telecom infrastructure, and outstanding living and working conditions have boosted the ICT sector's demand for facility management services. Facility management offers several types of hard or soft benefits, including utilities, HVAC, and air quality, which are broad functions of facilities management.
- Furthermore, businesses look for significant cost reductions to focus on other core business activities. That can be achieved by outsourcing the task of maintaining their facility to a professional and experienced facility management company to save on utility costs in the long run.
