Market Size of Iceland Facility Management Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 2.20 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Iceland Facility Management Market Analysis
The Iceland facility management market is anticipated to record a CAGR of above 2.2% over the forecast period (2022 - 2027). The growing emphasis on outsourcing non-core operations and growth in property management is expected to drive the Iceland market for facility management services. Along with this, the government regulation on safety measures and environmental concerns to follow green practices is expected to drive the market.
- Iceland has its prominence in outsourced markets for facility management services in terms of development and sophistication. The region's facility management industry operates with integrated contracts provided by significant vendors such as MainManager, Diversey, etc., across various cities, and small local players focus on single contracts and single-service solutions. However, given the dynamics occurring across the region, there are increasing opportunities to leverage facility management and corporate real estate in new ways.
- In terms of the end-user demand, the contribution of growing tourism in previous years increased the facility management market in Iceland hospitality management, primarily driven by the government's constrained budgets that lead to the continuous outsourcing of essential facility management services.
- In terms of end-user demand, the public and Infrastructure sector's contribution to the facility management market in Iceland is more significant than any other end-user. For instance, in Dec 2021, KCAP revealed its design for the Keflavik airport area in Iceland, comprising an area of 55 square kilometers around Iceland's global aviation hub.
- Services in the FM industry have been commoditized to a great extent. Also, end users are very price sensitive, and contracts are thus aimed at shorter terms. A real estate over-supply has been creating pressure on rent yields, thus leading the customers to cut costs on FM services.
- Owing to the COVID-19 pandemic scenario, FM providers in the country should review and revise business contingency plans and test alternative methods to enable options such as slimmed-down office hubs and remote working with sequential impacts for network bandwidth, user licenses, etc.
