North America Facility Management Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.89 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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North America Facility Management Market Analysis
The North America facility management market size is valued at USD 387.39 billion in the current year. It is expected to reach USD 468.83 billion over the next five years, reaching a CAGR of 3.89% during the forecast period. Facility management consists of multiple factors that influence the productivity and efficiency of organizations. The new management system standard, conforming with the best industry practices, constitutes a benchmark for developing and driving effective strategic, tactical, and operational facility management (FM) principles across North America. Moreover, Facility management 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.
- There are various trends that may propel facility management in North America; 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.
- Further, the growth in construction activities is significantly boosting the demand for FM services in the region. For example, the rising population across the globe is increasing the demand for food and beverage industries. For instance, Biotics Research Corporation, a nutritional supplement maker, plans to spend USD 9 million to build an 88,000-square-foot warehouse, laboratory, and office facility in the United States and expects to complete it by 2023. Similarly, in June 2021, Darigold announced its plan to spend USD 500 million to build a 400,000-square-foot processing facility in the United States by the end of 2023. Such projects are expected to drive the demand for FM services in the country.
- The US government has recognized the importance of a clear strategy for industrial development. The country has been witnessing multiple industrial expansion activities, also expanding the scope of facilities management services. For instance, California's Petaluma is the first place to ban new gas stations, which means that there will be no new constructions of gas stations here. The city aims to become carbon neutral by 2030, to move in that direction. The city currently has 16 active gas stations for its 60000 residents. According to Mayor Teresa Barret, the city is taking one step at a time, gradually working towards change. The Mayor also said that the city did not make this decision to be the first; instead, it was a conscious decision to reach the carbon-neutral goal by 2030. A bill was passed with this new rule, and it is mentioned in the bill that the city does not require a new gas station as there are gas stations within a five-minute drive from every residence.
- The COVID-19 pandemic 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. The workplace was regarded as a strategic tool for business improvement. Employee dissatisfaction and disengagement reduced employee productivity and organizational productivity. Furthermore, the COVID-19 pandemic raised employee expectations in the workplace. Due to the need for safer and cleaner workplaces, organizations optimized the workplace in line with regulatory rules and employee expectations. As a result, the market for facilities management is expected to rise further.
- On the flip side, the need for enterprises to evaluate possible cyber risks across their operational technology (OT) environments and take action to strengthen their security posture is more than ever as IT and OT systems continue to converge. Facility managers may offer crucial insider advice in developing and implementing a diligent cybersecurity plan to safeguard important OT systems as the threat landscape continues to change at an alarming rate. Cyber catastrophes can impact beyond financial loss; operational and reputational harm can be just as bad, if not worse. Facility managers and IT staff can better position themselves to make informed purchasing decisions, implement targeted OT security measures, and maintain increased cyber resilience across OT environments by knowing the cybersecurity concerns surrounding OT systems.
North America Facility Management Market Trends
Hard FM Services are Expected to Hold Significant Share the Market
- Hard facilities management services refer to mechanical services that cannot be removed and are usually structured within the building. Hard services mainly include heat, ventilation, and air-conditioning (HVAC) maintenance; lift and escalator maintenance; mechanical, electrical, and plumbing (MEP) services, decoration and refurbishment; fire safety system maintenance; drainage; building management systems (BMS); total energy management, emergency generation; UPS system, and project management. Moreover, complex facility management ensures that all electrical and mechanical equipment is regularly serviced and maintained for optimum efficiency and safety. Another crucial role of this type of facility management is power system services, including normal power, switchgear, electrical substations, standby generators, and emergency power systems.
- One of the principal benefits of hard facility management is creating and operating a planned maintenance schedule across all areas of facility management. For instance, it significantly enhances the energy efficiency of buildings by choosing the most effective supplier and reducing heat loss from premises. As a result, this type of facility management service can lengthen a premise's operational lifespans and reduce the risk of minor problems escalating into costly incidents. In the region, the increasing demand for on-site electrical and mechanical solutions in both the commercial and industrial sectors makes electromechanical and operational maintenance account for a significant market share in revenue. Additionally, the need for fire and security systems, which must be placed by law in every structure, has contributed to increased regional development.
- The 2022 data released by Japan Refrigeration and Air Conditioning Industry states that in 2021, the demand for air conditioning equipment in North America amounted to around 16.5 million units, the most elevated number of the past decade. Further, the United States Energy Information Administration's (EIA) Residential Energy Consumption Survey (RECS) estimations stated that 76 million primarily occupied United States homes (64% of the total) use central air-conditioning devices. About 13 million households (11%) utilize heat pumps for heating or cooling equipment. By 2023, all new residentials air-conditioning and air-source heat pump devices marketed in the United States will require fulfilling the latest energy efficiency standards, fueling the rise of HVAC services. The rising use of air conditioners, in houses and offices around the United States will be one of the drivers stressing the need for hard facility management services in the region.
- Moreover, the growing regional collaborations with other end-user industries also contribute to the market growth. For instance, in 2022, ATCO Frontec, a part of the ATCO group, was selected to perform maintenance and operational work on 15 NDND installations across Alberta, including armories, training camps, and military museums. The five-year contract was awarded on behalf of DND to Defense Construction Canada DCC, a Crown corporation providing federal infrastructure and environmental protection services.
- According to New York State Energy Research and Development Authority, for the first time, heat pumps - electrically powered and highly efficient devices that deliver heating and cooling - topped gas-powered furnaces in total units sold in the U.S. Americans bought more than 4.3 million heat pump units in 2022, compared to roughly 3.9 million natural gas furnaces. Modern cold-climate heat pumps are a smarter, more efficient, and environmentally friendly option to keep homes comfortable without using fossil fuels. Heat pumps extract heat from the air, ground, or water and transfer it inside a building for heating and outside for cooling. Such a huge number of sales would drive the market.
Commercial Segment is Expected to Hold Significant Share of the Market
- The facility management service market's growth in the United States is attributed to the increasing need for customized solutions for different outsourced and in-house facility management services. Moreover, the rising number of commercial buildings in major cities further drives the nationwide need for facility management services. Additionally, increased infrastructure development and the increasing focus on integrated facility management services will drive the market's growth. Investors highly demanded modern offices with long-term tenants despite all the discussions surrounding hybrid work culture. The growing business acumen among industry players and diversification of the economy from automobile sector to other industry avenues is expected to increase the demand for facility management services.
- The United States has experienced a striking surge in commercial construction spending for manufacturing facilities. Construction spending has significantly increased since the end of 2019. According to the US Census Bureau, the value of commercial construction that has been put in place has reached USD 114.79 billion in 2022 from USD 94.55 billion in 2021. Warehouses and private offices were the most common types of commercial construction started in the United States. Growth in the commercial construction sector is likely to create demand for facility management services in the United States.
- Various retail businesses are expanding their presence by opening new stores in the United States, creating demand for soft FM services. For instance, in April 2023, IKEA store owner Ingka Group announced a plan to spend EUR 2 billion (USD 2.2 billion) to expand in the United States over the next three years. With this plan, the company finalized to open eight new big IKEA stores and nine smaller stores and upgrade existing stores in the US, which is IKEA's second-biggest market by sales after Germany.
- Further, in June 2022, ISS announced that it had been awarded a 5-year contract to provide integrated facilities management services with a major US retailer. ISS will provide integrated facilities management services across retail, office, and industrial space. This contract represents around 1% of our Group revenue. Such long term contracts would drive the market to grow.
- Accoding to American Institute of Architects, based on short-term projections, the U.S. non-residential construction market is expected to grow by approximately 19.7% in 2023. In 2023, growth is expected to be the largest in industrial construction, with a year-on-year change close to 55%, and the lowest for religious buildings, which are expected to grow by roughly five percent. Such huge rise in non residential construction is expected to drive the demand for the studied market.
North America Facility Management Industry Overview
The North American facility management market is moderately consolidated with the presence of several players like CBRE Group, Inc., Jones Lang Lasalle Ip Inc., Cushman & Wakefield Plc, Emeric Facility Services Llc, Smi Facility Services, etc. The companies continuously invest in strategic partnerships and service developments to gain substantial market share. Some of the developments in the market are:
In February 2023, Planon Corporation and Gilbane Building Company announced they had formed a strategic collaboration to serve the real estate sector and facility management market with solutions that leverage Gilbane's many years of experience in integrated construction and facility management services with Planon's technology for smart building and workplace management solutions. The partnership between Planon and Gilbane will enable organizations undertaking building construction projects to create end-to-end lifecycle maintenance plans, space allocations, asset registers, and other crucial operational management tools before a new facility is opened.
In January 2023, facility management group (International Service System) ISS A/S extended and expanded its partnership with a global technology company in North America. The three-year renewed deal, running until the end of 2025 and supported by the company's food services brand ISS Guckenheimer, represents an estimated annual revenue of above 1% of the ISS Group's revenue. The division would support the client's workplace culture with the delivery of cafés, coffee bars, micro-kitchens, catering, and project management.
North America Facility Management Market Leaders
CBRE Group, Inc.
Jones Lang Lasalle Ip Inc.
Cushman & Wakefield Plc
Emeric Facility Services Llc
Smi Facility Services
*Disclaimer: Major Players sorted in no particular order
North America Facility Management Market News
May 2023: UTSA will appoint new contracts for campus custodial and grounds services beginning June 1, 2023. AHI Facility Services Inc. (AHI) will oversee custodial responsibilities, while Yellowstone Landscape (Yellowstone) will oversee the grounds. Services are expected to transition smoothly, without interruption or change to the campus experience for faculty, staff, or students. Through these contracts, UTSA will continue its focus on supporting the beauty and functionality of its campuses. Services provided by AHI and Yellowstone are vital to creating and maintaining clean, engaging spaces while ensuring daily operations run efficiently and effectively.
March 2023: Compass Group and multinational pharmaceutical firm AstraZeneca plc have established a new collaboration for integrated facilities management concentrated on the workplace experience. The contract furthers Compass Group's present scope of work to deliver facility management and food services to all AstraZeneca belongings in North America. Compass Group has been a high-performing AstraZeneca supplier for more than a decade. The enhanced deal is founded on a 'vesting' contract model in which market players are equally committed to each other's success.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
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 Analysis of the Macro Economic Trend
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Trend Toward Commoditization of Facility Management
5.1.2 Growing Investments in Commercial Properties
5.2 Market Restraints
5.2.1 Lack of Managerial Awareness
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 In-house 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
6.1.3 By Offering Type
6.1.3.1 Hard FM
6.1.3.2 Soft FM
6.2 By End-user Vertical
6.2.1 Commercial
6.2.2 Institutional
6.2.3 Public/Infrastructure
6.2.4 Industrial
6.2.5 Other End-user Verticals
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 CBRE Group, Inc.
7.1.2 Jones Lang Lasalle Ip Inc.
7.1.3 Cushman & Wakefield Plc
7.1.4 Emeric Facility Services Llc
7.1.5 Smi Facility Services
7.1.6 Sodexo Inc.
7.1.7 Ahi Facility Services Inc.
7.1.8 ISS A/S
7.1.9 Shine Facility Services
7.1.10 Guardian Service Industries Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
North America Facility Management Industry Segmentation
Facility management (FM) services involve the management of building upkeep, utilities, maintenance operations, waste services, security, etc. These services are further segmented by hard facility management services and soft facility management services. The adoption of FM solutions and services is likely to be driven by several factors, including an increase in demand for cloud-based FM solutions and a rise in demand for FM systems linked to intelligent software.
The North America facility management market is segmented by type (in-house facility management, outsourced facility management, (single fm, bundle fm, and integrated FM)), offering type (hard FM and soft FM), and end-user vertical (commercial, institutional, public/infrastructure, industrial, and other end-user verticals).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Type | |||||
| In-house Facility Management | |||||
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| By End-user Vertical | |
| Commercial | |
| Institutional | |
| Public/Infrastructure | |
| Industrial | |
| Other End-user Verticals |
Frequently Asked Questions
What is the current North America Facility Management Market size?
The North America Facility Management Market is projected to register a CAGR of 3.89% during the forecast period (2024-2029)
Who are the key players in North America Facility Management Market ?
CBRE Group, Inc. , Jones Lang Lasalle Ip Inc. , Cushman & Wakefield Plc , Emeric Facility Services Llc and Smi Facility Services are the major companies operating in the North America Facility Management Market .
What years does this North America Facility Management Market cover?
The report covers the North America Facility Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Facility Management Market Industry Report
Statistics for the 2024 North America Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America 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.
