Japan Facility Management Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.40 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Facility Management Market Analysis
The Japanese facility management market is expected to grow at a CAGR of 8.40% during the forecast period, 2022-2027. The growing emphasis on outsourcing of non-core operations and growth in the real estate sector is expected to drive the Japanese 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.
The increased spending on the infrastructural aspect in Japan can be cited as one of the major drivers of the growth of the FM market. Moreover, the increasing focus on optimization processes and energy efficiency improvements are the main driving forces for the development of the facility management market.
Along with this, real estate, manufacturing, retail, and the public sector are a few industry verticals that have witnessed high infrastructural growth in the country. These verticals mentioned above constitute the primary end users of facility management solutions, owing to the growing need for integrating data from operational facilities into other business applications.
The region's facility management industry operates with integrated contracts provided by significant vendors across continents and borders, and small local players focus on single contracts and single-service solutions. However, there are increasing opportunities to leverage facility management and corporate real estate in new ways, given the dynamics occurring across the region.
Facility management (FM) includes management methods and techniques for building management, infrastructure management for an organization, and overall harmonization of the work environment in an organization. This system standardizes services and streamlines processes for an organization. Across the last decade, several service vendors operating in the region have been focused on expanding their presence to leverage the increasing demand for facility management, especially with the recent trend favoring the outsourcing of non-core operations. Further, Japan has been witnessing increased opportunities to leverage facility management and corporate real estate in innovative ways, given the dynamics across the country.
Japan has adopted several efforts to attract investment and visitors to aid the country's recovery from the impacts of the Covid-19 epidemic. The International Monetary Fund upped the country's economic growth forecast for 2022 to 2.4%, citing Japan's reaction to the COVID-19 epidemic.
Japan Facility Management Market Trends
This section covers the major market trends shaping the Japan Facility Management Market according to our research experts:
Integrated FM to exhibit a significant growth rate
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 customers' core needs 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 Various Vendors, 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. Implementing large changes across multiple sites and services is also much easier using an IFM service provider.
The trends in the Japanese 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.
Moreover, various market vendors are expanding their business operations through various contracts. For instance, in April 2022, NIPPON KANZAI Co. entered into a share transfer agreement to acquire 40% of the shares of JTB Asset Management Co. Ltd.
Commercial End User Sector is expected to hold major share
The commercial segment is one of the prominent segments that contributes a good share in the facility management market in Japan. Japan's resilient GDP growth after the COVID-19 pandemic is expected to positively influence the studied market. The growth of the commercial segment is attributed to the rapid infrastructural development and rising demand for 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 Japan will allow more expansion in the commercial sector along with facility management services.
For instance, the telecom players are focusing on 5G deployments in Japan, which will create significant opportunities for the region's facilities management sector. For instance, in April 2022, Softbank borrowed around USD 282 million to develop 5G base stations, aiming to further strengthen its 5G network in japan. As per Softbank, it will cover 90% of the Japanese population with a 5G network at the end of March 2022.
Moreover, Japan accounts for most of the development projects being undertaken in the country's commercial sector. Moreover, the Tokyo Olympics held in july 2021 saw a massive investment of 15.4 billion, making it the most expensive summer game ever, per a study from University of Oxford researchers.
The construction industry benefitted from the Tokyo olympics as many developments were made, including the 68,000-capacity national stadium and seven other venues for the olympic, costing USD 3 billion, and 25 other facilities were renovated. Further, the country is rapidly recovering from the construction halt of the commercial sector during the COVID-19 pandemic driving the growth of the studied market.
Japan Facility Management Industry Overview
The Japanese Facility Management market is highly fragmented as it is a highly competitive market with the presence of several players of different sizes. This market is expected to experience a number of mergers, acquisitions, and partnerships as companies continue to invest in offsetting the present slowdowns that they are experiencing strategically.
January 2022 - CBRE Group has strengthened its brokerage services for hotel-related assets. With expertise in hotels and ryokans, CBRE Hotels provides comprehensive solutions for selling and purchasing hospitality assets, strategy developments, and closing.
September 2021 - Cushman and Wakefield introduced matterport's 3D virtualization tools for first-class property evaluation and enhanced property marketing. This virtualization tool is based on a global contract that the company signed last year with matterport, which gives the customer a turnkey solution for 3D scanning of the managed facilities.
Japan Facility Management Market Leaders
Globeship Sodexo
JLL Japan
Compass Group Inc.
CBRE Japan
Cushman & Wakefield
*Disclaimer: Major Players sorted in no particular order
Japan Facility Management Market News
April 2022 - Cushman and Wakefield have decided to acquire land for the development of a large-scale logistics facility in Sakai-Cho, Sarushima-gun, Ibaraki Prefecture through Sakai Furukawa Facility LLC. The company will develop a facility of around 110,000 square meters.
December 2021 - CBRE Group supported the development of a multi-tenant logistics facility for real estate company Arai Provance Co. Ltd. The comprehensive services included large-scale logistics facility project management,
October 2021 - CBRE Group has established a new business arm to strengthen its data centers in real estate. With data transaction volume expected to double in the next two years and the expansion of cloud services, the demand for data centers will only increase.
Japan Facility Management Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption And Market Defination
1.2 Scope of the study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power Of Suppliers
4.2.2 Bargaining Power Of Buyers
4.2.3 Threat Of New Entrants
4.2.4 Threat Of Substitutes
4.2.5 Intensity Of Competitive Rivalry
4.3 Impact Of Covid-19 On The Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Emphasis on Outsourcing of Non-core Operations
5.1.2 Steady Growth in Commercial Real Estate Sector
5.1.3 Strong Emphasis on Green Practices and Safety Awareness
5.2 Market Challenges/Restraints
5.2.1 Regulatory & Legal Changes
6. MARKET SEGMENTATION
6.1 By Fcaility Management
6.1.1 Inhouse Facility Management
6.1.2 Outsourced Facility Management
6.1.2.1 Single FM
6.1.2.2 Bundled FM
6.1.2.3 Integrated FM
6.2 By Offering
6.2.1 Hard FM
6.2.2 Soft FM
6.3 By End User
6.3.1 Commercial
6.3.2 Institutional
6.3.3 Public/Infrastructure
6.3.4 Industrial
6.3.5 Other End Users
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Globeship Sodexo
7.1.2 JLL Japan
7.1.3 Compass Group,Inc
7.1.4 CBRE Group Japan
7.1.5 Cushman & Wakefield
7.1.6 RISE Corp. Tokyo
7.1.7 Nippon Kanzai Co
7.1.8 ISS World
7.1.9 Aramark Facilities Services
7.1.10 G4S Facilities Management
7.1.11 Compass Group
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Japan Facility Management Industry Segmentation
Facility management (FM) is a profession that incorporates many disciplines to ensure functionality, safety, comfort, and efficiency of the built environment by integrating people, process, place, and technology. FMs contribute to the business's bottom line through its responsibility for often maintaining an organization's most significant and most valuable assets, such as property, equipment, buildings, and other environments that house personnel, productivity, inventory, and other elements of the operation.
Facility management services involve the management of building upkeep, utilities, maintenance operations, waste services, security, etc. These services are further divided into hard facility management services and soft facility management services spheres.
Both in-house facility management and outsourced FM services are considered in the scope. The integrated facility management service (IFM) market, along with single and bundled services, is included in the outsourced FM services segment.
The Japan Facility Management Market is segmented by Type of Facility Management (In-house Facility Management and Outsourced Facility Management (Single FM, Bundled FM, Integrated FM)), by Offering type (Hard FM, Soft FM), and by End-user (Commercial, Institutional, Public/Infrastructure, Industrial).
| By Fcaility Management | |||||
| Inhouse Facility Management | |||||
|
| By Offering | |
| Hard FM | |
| Soft FM |
| By End User | |
| Commercial | |
| Institutional | |
| Public/Infrastructure | |
| Industrial | |
| Other End Users |
Japan Facility Management Market Research FAQs
What is the current Japan Facility Management Market size?
The Japan Facility Management Market is projected to register a CAGR of 8.40% during the forecast period (2024-2029)
Who are the key players in Japan Facility Management Market?
Globeship Sodexo, JLL Japan, Compass Group Inc., CBRE Japan and Cushman & Wakefield are the major companies operating in the Japan Facility Management Market.
What years does this Japan Facility Management Market cover?
The report covers the Japan Facility Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Facility Management Industry Report
Statistics for the 2024 Japan Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Facility Management analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
