Lithuania Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Lithuania Facility Management Market is Segmented by Type (In-house FM Service, Outsourced FM Service (Single FM, Bundled FM, Integrated FM)), by Offering Type ( Hard FM, Soft FM) and by End-User (Commercial, Institutional, Public/ Infrastructure, Industrial).

Market Snapshot

Lithuania FM Market - Key Players.png
Study Period: 2020-2027
Base Year: 2021
CAGR: 3.48 %

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Market Overview

The Lithuania facility management market is expected to register a CAGR of 3.48% during the forecast period, 2022-2027. The government-led construction boom and surging emphasis on green building practices increase the demand for facility management in Lithuania.

  • Lithuania's facility management industry operates with integrated contracts provided by 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 country.
  • Several construction works are going on in the country, providing an opportunity for the facility management market. For instance, in Oct 2021, Petrofac received a contract of USD 640 million from PC ORLEN Lietuva to expand Mazeikiai Refinery in Lithuania. The company will support the refinery's modernization and environmental upgrade work.
  • Moreover, in Oct 2021, The ECIEEA signed a EUR 19.7 million loan agreement for the Global Rail Baltica project. The agreement includes the design of the Kaunas railway and maintenance facility infrastructure in Lithuania.
  • Various permits are being issued in the region for the waste management and storage facility, which is, in turn, expected to drive the market growth. For instance, in April 2022, Lithuania's State Nuclear Power Safety Inspectorate (Vatesi) issued two licenses to the Ignalina Nuclear Power Plant (INPP) to commence the industrial operation of radioactive waste management and storage facility.
  • The outbreak of COVID-19 has had a mixed business impact on facilities management firms, as the restrictions on the movement of people have resulted in a decline in project work and a reduced level of activity across many customer sites.
  • FM providers have been experiencing supply chain disruptions leading to difficulties in procuring materials and supplies. Also, they have found it harder to cope with staff shortages owing to various factors that include lockdown restrictions, self-isolation, and illness. However, the readily built environment has played an essential role in supporting multiple industries from health and social care to transport and utilities and helped tackle the spread of the virus.

Scope of the Report

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. The adoption of facility management solutions and services is likely to be driven by a number of factors, including an increase in demand for cloud-based facility management solutions and a rise in demand for facility management systems linked with intelligent software.

The Lithuania Facility Management Market is Segmented by Type (In-house FM Service, Outsourced FM Service (Single FM, Bundled FM, Integrated FM)), by Offering Type ( Hard FM, Soft FM) and by End-User (Commercial, Institutional, Public/ Infrastructure, Industrial).

By Facility Management Type
In-house Facility Management
Outsourced Facility Management
Single FM
Bundled FM
Integrated FM
By Offering
Hard FM
Soft FM
By End-User
Commercial
Institutional
Public/Infrastructure
Industrial
Other End-Users

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Key Market Trends

Single Facility Management to have a significant Market share

  • Working with a single facility management service provider entails primarily delegating task management to separate entities. It also entails having a different service provider for each service the organization requires, such as cleaning, reception, and vending machines. Using the services of specialized service providers has several advantages.​
  • It allows customers to concentrate on their core business, while single-service providers provide adequate services to customers and help operational efficiency. Having experts handle task management will result in higher efficiency and service quality. It will also free up company employees to focus on the most critical business areas while saving resources for non-core activities.​
  • The outsourced FM has been successfully used in various sectors, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing, and education. The areas that FM services look after vary widely, primarily depending on their type, the size of the company, and the sector in which it operates. Some organizations will only require a single service solution provider. Such demand is driving the single FM in the country.
  • When businesses choose a single service provider, they outsource their day-to-day operations to a specialist provider. They can be assured of superior service quality and efficiency by hiring the help of specialists. Using several service providers is a time-consuming activity that necessitates the management of multiple vendors and the associated hazards.
Lithuania Facility Management Market

Commercial End-User Sector is expected to hold major share

  • The commercial and retail segment is one of the significant segments contributing a good share of facility management in Lithuania. This segment is due to the rapid infrastructure development and rising demand from hotels, retail outlets, malls, and office buildings.
  • In Feb 2021, Baltisches Haus, a Lithuania-based commercial real estate development and management company, announced that it would invest EUR 13.5 million in 2021. The investment will focus on completing ongoing projects and preparing for next year's projects. In 2020 the company invested EUR 9.2 million in commercial real estate.
  • The country is witnessing various investment drives to boost economic, social, and territorial cohesion, supporting key EU priorities such as green and digital transition. For instance, in Feb 2022, European Commission partnered with Lithuania for EUR 6.4 billion from 2021 to 2027.
  • The invasion of Russia on Ukraine in February 2022 impacted Lithuania's overall facility management market. As per data released by European Commission's blueprint network, 48,000 refugees from Ukraine have been registered in the country till 22 April 2022, and the actual number could be even higher. Lithuania is 10th in the EU in the number of refugees officially registered.
  • In March 2022, the Lithuanian Economy Minister stated that the country is open to IT companies from Russia and Belarus. This comes after many companies and employees are looking to relocate from Russia and Belarus to Lithuania. This step is expected to boost the growth of the facility management market in the region.
Lithuania Facility Management Market

Competitive Landscape

The Lithuania facility management market is highly competitive with the presence of diverse firms of different sizes. This market is anticipated to encounter a number of partnerships, mergers, and acquisitions as organizations continue to invest strategically in offsetting the present slowdowns that they are experiencing. The clients in this region are employing FM services to increase the ease of their business operations. The market comprises key solutions and service providers, such as ISS World, Diversey Holdings Ltd, and City Service SE, among others.

  • Oct 2021 - Baltisches Haus has entered into a deal with Danish cloud services leader CLOUDEON part of Devoteam, for 440 square meter office rent in the new business and leisure complex.

Recent Developments

  • Sep 2021 - Baltisches Haus opened a new shopping center in Kretinga. This is the second commercial building of the real estate developer and manager in Kretinga. The area is 3000 square meters with a supermarket format store in the center of the area.
  • June 2021 - PVcase, a start-up developer of digital solar park design tools, agreed with Baltisches Haus to lease an office in the business and leisure complex Boksto Skveras. The lease agreement is for an area of 730 square meters.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumption 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 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Impact of COVID-19 on The Market

  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

      3. 5.1.3 Increasing Demand of Energy Management Services

    2. 5.2 Market Challenges/Restraints

      1. 5.2.1 Lack of Skilled Workforce

  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 FM

        2. 6.1.2.2 Bundled FM

        3. 6.1.2.3 Integrated FM

    2. 6.2 By Offering

      1. 6.2.1 Hard FM

      2. 6.2.2 Soft FM

    3. 6.3 By End-User

      1. 6.3.1 Commercial

      2. 6.3.2 Institutional

      3. 6.3.3 Public/Infrastructure

      4. 6.3.4 Industrial

      5. 6.3.5 Other End-Users

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 ISS World

      2. 7.1.2 Diversey Holdings Ltd

      3. 7.1.3 City Service SE

      4. 7.1.4 UAB Clean Solutions

      5. 7.1.5 Baltisches Haus

      6. 7.1.6 Dussmann Service SRL

      7. 7.1.7 Civinity Namai

      8. 7.1.8 UAB BNTP

      9. 7.1.9 Indema

      10. 7.1.10 UAB Inservis

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Lithuania Facility Management Market market is studied from 2020 - 2027.

The Lithuania Facility Management Market is growing at a CAGR of 3.48% over the next 5 years.

ISS Service, Diversey Holdings LTD, City Service SE, UAB Clean Solutions, Baltisches Haus are the major companies operating in Lithuania Facility Management Market.

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