Market Trends of Norway Facility Management Industry
In-house Facility Management Offering Type Holds Significant Market Share
- In-house facility management refers to services provided by a dedicated resource directly employed by the client organization. In this type of facility management, monitoring and control of the performance is usually conducted under the terms of a conventional employee/employer relationship.
- In-house facility management involves recruiting specialized personnel to maintain and manage various functional attributes of a facility or area. These days, most generic services are outsourced to third-party service providers. However, some services, such as security services or cybersecurity assistance, are still operated and monitored in-house to ensure the safety and integrity of the facilities.
- Organizations manage their buildings' maintenance and repair, including electrical systems, plumbing, HVAC, and other infrastructure. The in-house staff cleans and maintains the workplace, ensuring cleanliness, hygiene, and tidiness.
- Factors including increased consumer spending, economic activity, and tourism activities have augmented the occupancy of large residential layouts/projects, hotels, and commercial spaces. This has, in turn, increased the need for better management of the facilities.
- The country is witnessing increasing construction in the residential sector, which would further boost the demand for in-house facility management services. According to Statistics Norway, the number of residential buildings in Norway built from 2021 to April 2023 amounted to almost 60,000 units. In the decade between 2011 and 2020, approximately 296,000 residential buildings were built in Norway.
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Commercial and Retail End-User Holds Significant Market Share
- The commercial end-user sector mostly refers to office buildings used by suppliers of business services, such as manufacturers' corporate offices, IT and communication businesses, and other service providers.
- Retail facilities management refers to making a company's location hygienic, secure, and welcoming while boosting the brand and simplifying things for the clients. Cleaning floors, restrooms, and window displays, assembling eye-catching retail displays, and occasionally completely renovating the facility or shop floor constitute the retail facilities management process. These tasks vary based on the requirements of the client.
- Also, the market provides several chances for manufacturers to adopt and execute different IoT-based facility management and smart building development across the country. This is due to the increased interest in constructing smart buildings and IoT technology. Furthermore, the increase in business acumen among industry suppliers and the expansion of the economy from diverse industries is expected to boost demand for facility management services in the country.
- Increasing non-residential building construction and development drive the demand for facility management (FM) services in the commercial and retail sectors of the Norway FM market. As the number of retail properties grows, there is a corresponding need for comprehensive facility management to ensure these buildings' efficient operation, maintenance, and optimization.
- According to Statistics Norway, the number of existing non-residential buildings in Norway increased constantly between 2010 and 2023. In 2023, there were over 2.7 million non-residential buildings existing in Norway.
