North America Facility Management Market Market Size

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.