Market Trends of Iceland Facility Management Industry
This section covers the major market trends shaping the Iceland Facility Management Market according to our research experts:
Integrated Facility Management to have a significant share
- There is a paradigm shift in the market as multiple industries are transforming from utilizing a single FM outsourcing type of model to an integrated services model that can meet all the core needs of customers on a large scale. In addition, with newer technology transforming the way organizations work, integrated facility management has become the key to smart buildings and work environments.
- For the more giant corporations, IFM has been away for streamlined and efficient work and task management. The concept has primarily resulted in fewer contracts, teams, and resources to juggle and a single integrated view of all the management-related tasks. In comparison with overseeing each independent stakeholder and every task multiple times, IFM offers increased visibility that leads to effective management of teams, reduced operation costs, quicker responses to requests, less downtime for employees, and a greater focus on the bigger picture. It is also much easier to implement large changes across multiple sites and services using an IFM service provider.
- The trends in the market are for a progression from single services to bundled services and further toward the integrated facilities management approach. This offers a broad scope of services provided and longer-term contracts, which adds value and drives better quality and economies of scale. Also, this is increasing the demand for outsourced services, where specialist expertise is required.
- Companies in the region are looking to expand their presence, and many IT companies are entering the country, which is also creating an opportunity for the market to expand significantly. For instance, in April 2022, AtNorth announced its plans for a third data center campus in Iceland. The company has acquired a hectare plot of land in Akureyri in Northern Iceland. The site will span a total of 4,000 sqm with six data halls and 12 MW of capacity.
- In Jan 2022, Data center operator Verne Global announced that it is expanding its campus in Iceland in the next 12 months, and the company has secured an investment of USD 93 million as additional investment from Digital9Infrastructure.
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Commercial End User Sector is expected to hold major share
- The commercial segment is one of the prominent segments that contributes a good share of facility management in Iceland. This segment is owing to the rapid infrastructure development and rising demand from hotels, retail outlets, malls, and office buildings in the country.
- The commercial sector covers office buildings occupied by business services, such as corporate offices of manufacturers, IT and telecommunication, finance and insurance, property, and other service providers. The rise in the IT sector across Iceland will allow more expansion in the commercial sector along with facility management services.
- In Feb 2022, Ericsson signed a new five-year contract with Icelandic telecommunications company Siminn. The partnership entails further development of Siminn's nationwide 4G network and boosts Siminn's 5G expansion in the region. The goal is to have 90% 5G coverage by the first half of 2025.
- In April 2021, EDITION announced the opening of eight new anticipated hotels across the globe, including Iceland, by the end of 2022. The company has collaborated with architects T.arch and designers Roman and Williams to introduce EDITION Hotels in Iceland.
- Moreover, the gaining interest in establishing smart buildings and other IoT technologies is also providing various opportunities for the vendors in the market to introduce IoT-based facility management and accelerate the growth of smart buildings in the country.
