Market Size of Netherlands Facility Management Industry
|2019 - 2029
|Base Year For Estimation
|Market Size (2024)
|USD 7.17 Billion
|Market Size (2029)
|USD 7.69 Billion
|CAGR (2024 - 2029)
*Disclaimer: Major Players sorted in no particular order
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Netherlands Facility Management Market Analysis
The Netherlands Facility Management Market size is estimated at USD 7.17 billion in 2024, and is expected to reach USD 7.69 billion by 2029, growing at a CAGR of 1.41% during the forecast period (2024-2029).
However, given the dynamics present in the area, there are growing potential to combine facility management and corporate real estate.
- In terms of development and expertise, the Netherlands is one of the most important outsourced markets for facility management services. Small local companies concentrate on single contracts and single-service solutions, while the region's facilities management business operates with integrated contracts given by big vendors across continents and boundaries.
- The bundled service contracts are expected to benefit from the public spending cuts, as the public sector clients are keen on reducing the number of suppliers and cutting costs. This is also in line with the developments in various public sector bodies that continually simplify their operations. As the need for total facilities management (TFM) continues to grow, the public sector organizations belonging to the region are increasingly outsourcing all 'non-core business activities to one service provider, enabling greater focus on core business.
- The Facility Management industry, one of the service industries in Europe that positively affected the economic output, is likely to witness the feasible impact of Brexit during the forecast period. As a member of the EU, the FM firms serving in the netherlands enjoyed all the benefits of specializing in activities with a comparative advantage. Foreign Direct Investment (FDI) inflow, including the free labor movement, supported the country's firms in hiring experts from across the EU.
- To meet the customers' various demands, the market players are developing new services to cater to their needs. For instance, recently, Axalta opened a new refinish facility in the Netherlands. The facility includes the new Dutch Axalta Refinish Academy, an innovative body shop environment for training refinishers. It also boasts the recently-launched Daisy Wheel 3.0, which enables fully end-to-end automated color mixing for the first time and works seamlessly with Axalta's Digital Colour Management.
- On the flip side, the market is expected to create a roadblock for itself to update faster on technology as such long-duration contracts with extensions saturate the market thus, impact its growth. When the industry trends indicate to the solution and services providers to use new and emerging technology for facility management, long-term contracts can be counterproductive in the market. Moreover, the growing competition in the market impacts the profit margins and growth of existing vendors. The level of competition between suppliers is so high that FM services are transitioning to commoditized in the region.
- Further, the facility manager's role is growing more notable and even changing from operational to strategic. This COVID-19 pandemic created a opportunity for the facility manager to consolidate the new office environment and the demands of employees in terms of working from home into the corporate culture. Though, more compliance is anticipated, also concerning suppliers. The focus will be more on quality and results and smaller on a fixed schedule.