Market Size of Japan Facility Management Industry
| 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.
