Market Trends of Ireland Facility Management Industry
Growing Construction Sector Drives the Market Growth
- As commercial real estate investments increase, the country's demand for facility maintenance services is expected to rise. With the government's ongoing rolling out of new infrastructure projects, this sector is expected to grow significantly over the next few years.
- The Irish government estimates that in 17 years, there will be an additional 1 million people in Ireland and a population of 5.7 million. The investments needed to ensure prosperity while simultaneously balancing and sustainably addressing these developments are part of Project Ireland 2040. In the first year since its inception, Project Ireland 2040 has improved regional links, supported domestic competitiveness, and increased environmental sustainability. If there is no corresponding infrastructure, growth will be limited.
- A spatial strategy for Ireland to sustain and manage these massive demographic changes is set out in the National Planning Framework NLPM, part of Project Ireland 2040. A support system for the NPM, an infrastructure investment program, is the National Development Plan NDP, which was developed after previous mistakes.
- Further, the growing residential projects are also contributing to the demand for hard and soft services in the country; for instance, in 2022, the residential community projects Belin Woods and Palmerstown residential, worth approximately USD 100 million and USD 98 million, respectively, began with the completion anticipated in two years. As a result, the construction industry is growing in this country.
- Therefore, the growing construction sector in the country is analyzed to boost the demand for ground maintenance, waste management, and others, thereby impacting the facility management market in Ireland.
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Soft FM Offering Type Holds Significant Market Share
- Some soft services include cleaning, recycling, security, pest control, handyperson services, grounds maintenance, and waste management. As a result of the increasing complexity of project implementation in different parts of the country, facility managers have considered high-level cleaning services to be a significant growth area for their business.
- Furthermore, the COVID-19 pandemic changed how facilities operate and provide services. The role of the FM service providers may also be played more strategically and for more extended periods because organizations need to consider and adapt their plans carefully. Furthermore, the growth opportunities for incumbent firms that face difficulties such as congestion in mature markets are expected to arise with a continuous increase in commercial real estate. Although the present market penetration remains limited (relatively), the demand is expected to continue to rise, with the impact of factors such as establishing new branch offices and outsourcing soft facility management.
- The country's rising number of real estate activities drives the demand for integrated facilities management services. According to Eurostat, the total revenue generated from Ireland's real estate activities is expected to surpass USD 5.5 billion in two years.
- The Irish market offers a lucrative business with significant demand for soft FM services. Strategic acquisitions, which contribute to market growth, have occurred in the country. For instance, with the recent Irish business Service Matters Ltd (SML) acquisition, CWS International has emerged as one of the nation's biggest suppliers of workwear, cleanroom, restroom, and floor care rental services; CWS also purchased Specialized Sterile Environments (SSE), an Irish cleanroom industry expert. This business, which employs over 350 people, specializes in providing cleanroom cleaning, decontamination, and hygiene services to the Irish medical technology and pharmaceutical industries. The current acquisition has significantly boosted CWS' market dominance in the Irish hygiene market. Customers have increased by 2,600, and CWS currently has 750 employees in Ireland.
