Italy Facility Management Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Italy Facility Management market is segmented by Facility Management Type (In-house Facility Management, Outsourced Facility Management (Single Facility Management, Bundled Facility Management, Integrated Facility Management)), by Offering Type (Hard Facility Management, Soft Facility Management), by End-User Industry (Commercial and Retail, Institutional, Government, Infrastructure & Public Entities, Manufacturing and Industrial). The market sizes and forecasts are provided in terms of value in USD billion for all the above segments.

Italy Facility Management Market Size

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Italy Facility Management Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 2.14 %
Market Concentration Medium

Major Players

Italy Facility Management Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Italy Facility Management Market Analysis

The Italian facility management market was valued at USD 40.87 billion in the previous year. It is expected to grow at a CAGR of 2.14%, reaching USD 46.66 billion by the next five years. The International Facility Management Association (IFMA) defines facility management as combining a physical workplace with an organization's workforce and work, which includes activities like equipment upkeep, space planning, and portfolio forecasting. These services include leadership and strategy, real estate and property management, project management, quality, human aspects, emergency planning and business continuity, environmental sustainability, and others.

  • There are various trends that may propel facility management in Italy; for example, the Internet of Things (IoT) refers to physical equipment and sensors that use the Internet to connect with FM teams. They generate performance data that alerts facility managers to potential problems. FMs can monitor and control equipment from any location. FM teams use IoT to deliver real-time insights into their operations. IoT paired with FM software, such as a computerized maintenance management system (CMMS), identifies problems (e.g., uncomfortable office temperatures), automatically prepares and assigns work orders without human intervention, and tracks their execution.
  • Facility management in smart buildings utilizes data, automation, and new technologies to enable buildings to be run more efficiently and cost-effectively. An intelligent building uses sensors and automation to control all facilities, from lights to space occupancy and energy consumption. With smart technology, it becomes possible to draw out robust data to give the facilities manager the insights needed to make better business decisions.
  • Italy has a diverse commercial real estate market, including retail, office, industrial, and hospitality properties. According to recent reports, the Italian market has seen steady growth in recent years, particularly in the office and industrial sectors. Prices for commercial real estate in Italy can vary depending on location and property type, with prime locations typically commanding higher prices. Major Italian commercial real estate industry players include CBRE, Savills, and Cushman & Wakefield.
  • The Italian facility management services market is fragmented as significant local players enter the commercial sector. For instance, the market is dominated by local players such as Elmet Srl, Rekeep SpA, NAZCA, etc. The local players are offering competitive pricing in the market, which reduces the suppliers' bargaining power and thus gives the buyers an option to quickly switch their facility management vendors with minimal switching costs. Local players with fewer international relationships are leading to lesser adoption of technically advanced FM services, such as robotics used for cleaning practices which will be a major threat with a long-term effect.
  • The COVID-19 pandemic has had a significant economic impact on facility management companies. People's mobility restrictions resulted in declining project work and decreased activity at several customer sites. The pandemic lockdown impacted major industry businesses, including Sodexo Facilities Management Services, CBRE Group, and others.
  • In the post-COVID-19 future, there is an increased demand for transformation, creative solutions, and unique planning strategies. Since the emphasis shifted toward higher hygiene-related rules, better workplace safety and cleanliness, and developing a digitized work environment, sourcing and procurement are essential in the post-COVID-19 transformation, recovery, and restart of the facilities management industry.

Italy Facility Management Market Trends

In-house Facility Management Segment is Expected to Hold Significant Market Share

  • In-house facility management refers to services provided by a dedicated resource directly employed by the client organization. In this type of facility management monitoring, control of the performance is usually conducted under the terms of the conventional employee/employer relationship.
  • In-house facility management majorly involves recruiting specialized personnel to maintain and manage various functional attributes of a facility or area. These days most of the generic services are outsourced to third-party service providers. However, some services, such as security services or cybersecurity assistance, are still operated and monitored in-house to assure the safety and integrity of the facilities.
  • A sizable percentage remains held in-house at the moment to retain strict control over the. Retail and hotel industries have supported in-house staff for non-specialized services to some extent. However, organizations and individuals in underdeveloped countries continue to use contractors for specialized tasks like elevator, HVAC, and specialized MEP work.
  • Factors including increased consumer spending, economic activity and tourism activities have augmented the occupancy of large residential layouts/projects, hotels, and commercial spaces. This has, in turn, increased the need for better management of the facilities.
  • The country is witnessing increasing construction in the residential sector, which would further boost the demand for in-house facility management services. According to the Associazione Nazionale Costruttori Edili - ANCE; Istat, in 2022, following a market downturn of more than 10% in 2020, Construction investments in Italy increased in 2021 and are predicted to increase again in 2022. Prior to the outbreak of the pandemic, the pace of increase in building investments had been continuously growing.
  • In June 2022, the CBRE Investment Management, on behalf of a fund sponsored by the firm, announced the acquisition of a residential building in Rome's Talenti district. When complete, the residential area will consist of 225 rental units spread over seven floors and 225 parking spaces. The demand for in-house facility management is expected to increase in the market studied, owing to the advantages, including improved efficiency and cost saving, tailored services, and other such advantages.
Italy Facility Management Market: YoY Change in the Investments in the Construction Sector, in Percentage (%),  in Italy , 2016-2022

Commercial and Retail Segment is Expected to Hold Significant Market Share

  • The commercial end-user sector mostly refers to office buildings used by suppliers of business services, such as manufacturers' corporate offices, IT and communication businesses, and other service providers. Retail facilities management refers to making a company's location hygienic, secure, and welcoming while boosting the brand and simplifying things for the clients. Cleaning floors, restrooms, and window displays, assembling eye-catching retail displays, and occasionally completely renovating the facility or shop floor constitute the retail facilities management process. These tasks vary based on the requirements of the client.
  • The country's commercial building industry has seen significant investments, propelling the facility management business. Various investment firms have hired real estate management businesses to handle their real estate investments. According to CBRE Italy, the volume of investments in Italy in 2022 will be Euro11.7 billion, the second-best outcome ever, owing to a robust post-Covid rebound powered by exceptional Logistics performance and revived interest in Offices.
  • In addition, according to JLL, office leasing take-up grew in both Rome and Milan. Corporate tenants continue to seek flexibility with novel leases, while workers want a level of freedom in their working life. Milan achieved 506,000 sq. m. in 2022, an increase of 42% year on year and one of the most substantial results among European markets. In Rome, take-up climbed, totaling roughly 150,000 sq. m. (+5% YoY). As the due date approaches in 2023, the market-wide trend in company consolidations, space reduction, prime space relocating, and an increased focus on 2030 sustainability targets are anticipated.
  • In November 2022, Macquarie Asset Management bought an office property in downtown Milan for roughly EUR 119 million from an Italian real estate trust. The funds were invested as part of a managed fund. The historic building in the Porta Romana area was formerly held by All-Star, a fund administered by Kryalos SGR and backed by Blackstone funds. Such trends and advancements are projected to boost the country's need for facility management.
  • The growing retail and construction industry, increasing investment in the commercial sector, and growing smart buildings in the country are expected to drive the facility management demand during the forecast period. According to the European Real Estate Association, the value of commercial real estate in Italy was predicted to be around USD 909 billion as of the last month of 2022. Italy was Europe's fourth-largest commercial real estate market that year. The gradual growth in the commercial and real estate sectors would drive the market studied.
Italy Facility Management Market

Italy Facility Management Industry Overview

The Italian FM market is moderately fragmented. FM vendors are incorporating a powerful competitive strategy by leveraging their expertise. In addition, they are spending a large chunk of the amount on advertising. Major vendors in the market like CBRE Group Inc, ATLAS I.F.M. S.R.L., Sodexo Facilities Management Services (SODEXO GROUP), Compass Group PLC, Euro & Promos Facility Management, and S.P.A (EURO & PROMOS), among others are further focusing on offering integrated solutions to attract consumers. Smaller and new vendors in the market are expected to focus on maintaining cost-benefit over major vendors, further intensifying the competition in the country. A significant share of the focus will be directed toward the private sector, owing to the public sector reaching a mature stage in the country.

  • March 2023 - CBRE announced the launch of a new global service line that advises clients on establishing their electric vehicle charging infrastructure, including EV-charging strategy, identifying charging site locations, planning and installation of EV-charging infrastructure, and providing overall program management and ongoing maintenance.

Italy Facility Management Market Leaders

  1. CBRE Group Inc

  2. ATLAS I.F.M. S.R.L.

  3. Sodexo Facilities Management Services (SODEXO GROUP)

  4. Compass Group PLC

  5. Euro & Promos Facility Management S.P.A (EURO & PROMOS)

*Disclaimer: Major Players sorted in no particular order

Italy Facility Management Market Concentration
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Italy Facility Management Market News

  • November 2022 - EMK Capital acquired a majority stake in Service Key SpA('Service Key'), an Italian-integrated facility management company offering soft and hard facility management services to a blue-chip client base from its two founders. EMK Capital invested in Service Key to help enlarge its service offering and geographical coverage within Italy via an organic and acquisition-based growth strategy.
  • November 2022 - The Italian Medicines Agency (AIFA) granted ReiTheraoperational permission to open an additional manufacturing area at its pharmaceutical establishment in the Castel Romano Technopole for the large-scale manufacturing of viral vectors for vaccinations and gene therapy. ReiTherais a biotech business focused on developing novel technologies, GMP production, and clinical translation of genetic products and vaccines for advanced therapies.

Italy Facility Management Market Report - 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 Market Size and Estimates for the Period of 2021-2028

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Impact of COVID-19 on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Trend of Smart Buildings

      2. 5.1.2 Steady Growth in Commercial Real Estate Sector

    2. 5.2 Market Restraints

      1. 5.2.1 Fragmented Market with Several Local Vendors

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Facility Management Type

      1. 6.1.1 In-house Facility Management

      2. 6.1.2 Outsourced Facility Management

        1. 6.1.2.1 Single Facility Management

        2. 6.1.2.2 Bundled Facility Management

        3. 6.1.2.3 Integrated Facility Management

    2. 6.2 By Offering Type

      1. 6.2.1 Hard Facility Management

      2. 6.2.2 Soft Facility Management

    3. 6.3 By End-User Industry

      1. 6.3.1 Commercial and Retail

      2. 6.3.2 Institutional

      3. 6.3.3 Government, Infrastructure & Public Entities

      4. 6.3.4 Manufacturing and Industrial

      5. 6.3.5 Others

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 CBRE Group Inc

      2. 7.1.2 ATLAS I.F.M. S.R.L.

      3. 7.1.3 Sodexo Facilities Management Services (SODEXO GROUP)

      4. 7.1.4 Compass Group PLC

      5. 7.1.5 Euro & Promos Facility Management S.P.A (EURO & PROMOS)

      6. 7.1.6 Rekeep SpA

      7. 7.1.7 Olly Services SRL

      8. 7.1.8 NAZCA

      9. 7.1.9 Elmet SRL

      10. 7.1.10 Kier Group PLC

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability
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Italy Facility Management Industry Segmentation

The study tracks the facility management (FM) industry-related trends in Italy by analyzing the industry turnover accrued through end-user contracts by the service providers. The study tracks the revenues accrued from services offered for building operation and maintenance (mechanical and electrical services, heating and ventilation, plumbing, building services control and management systems, building fabric portable application testing, fire protection systems, fire alarm and detection systems), environmental management (energy management services, waste management, recycling services), IT and telecommunication (establishment and maintenance of IT systems, the introduction of software packages), support services (cleaning, catering, vending, courier services, laundry services, post room staffing and management, reception staffing, security) and property management (space planning and design, asset management, property acquisitions and disposals, relocation management).

The scope of the study has been segmented for Italy by Facility Management Type (In-house Facility Management, Outsourced Facility Management (Single Facility Management, Bundled Facility Management, Integrated Facility Management)), by Offering Type (Hard Facility Management, Soft Facility Management), by End-User Industry (Commercial and Retail, Institutional, Government, Infrastructure & Public Entities, Manufacturing and Industrial). The market sizes and forecasts are provided in terms of value in USD billion for all the above segments. The market sizes and forecasts are provided in terms of value in USD billion for all the above segments. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study tracks the revenue accrued from the different FM players operating across the country. The study further analyzes the overall impact of COVID-19 on the ecosystem.

By Facility Management Type
In-house Facility Management
Outsourced Facility Management
Single Facility Management
Bundled Facility Management
Integrated Facility Management
By Offering Type
Hard Facility Management
Soft Facility Management
By End-User Industry
Commercial and Retail
Institutional
Government, Infrastructure & Public Entities
Manufacturing and Industrial
Others
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Italy Facility Management Market Research FAQs

The Italy Facility Management Market is projected to register a CAGR of 2.14% during the forecast period (2024-2029)

CBRE Group Inc, ATLAS I.F.M. S.R.L., Sodexo Facilities Management Services (SODEXO GROUP), Compass Group PLC and Euro & Promos Facility Management S.P.A (EURO & PROMOS) are the major companies operating in the Italy Facility Management Market.

The report covers the Italy Facility Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Italy Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Italy Facility Management Industry Report

Statistics for the 2024 Italy Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Italy Facility Management analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Italy Facility Management Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)