Philippines Facility Management Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.88 Billion |
| Market Size (2029) | USD 5.26 Billion |
| CAGR (2024 - 2029) | 6.31 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Philippines Facility Management Market Analysis
The Philippines Facility Management Market size is estimated at USD 3.88 billion in 2024, and is expected to reach USD 5.26 billion by 2029, growing at a CAGR of 6.31% during the forecast period (2024-2029).
There are many different aspects to the booming facility management market in the Philippines. The industry offers excellent potential for domestic and international investors due to its wide range of applications, solid technology integration, and growing focus on sustainability. Facilities management is positioned for continuous growth and innovation, successfully influencing the future of the business environments in the Philippines as the country continues to prioritize robust, sustainable, and technologically advanced work environments.
- The market's growth is supported by the infrastructural development in the country and the governmental support in building projects in the public-private partnership model because the country's newly developed infrastructure would require FM services for managing and maintaining the facilities.
- For instance, according to the country's National Economic and Development Authority, in January 2023, more than 3,600 infrastructure projects costing a combined USD 372 billion have been planned to be completed by 2028. In addition, the country has planned to add a total of 206 projects worth USD 159 billion, out of which 136 are related to physical connectivity, nine to digital connectivity, 42 to water resources, eight to health, and two to power and energy, and so on.
- Additionally, the country is witnessing several expansions by leading organizations, creating an opportunity for the soft and hard FM (facility management) market. For instance, in April 2023, SM Investment Corporation announced to invest approximately P 90 billion (USD 1.64 billion) in capital expenditure to propel its expansion of residential developments, malls, and retail stores. The company intends to open at least three malls in 2023.
- Similarly, in June 2023, The PLDT Group announced plans to build a 12th data center facility in the Philippines to deliver digital innovation and boost the country's regional competitiveness. Through this facility, the company aims to help the Philippines be the next hyper-scaler hub of Asia and support the digital transformation journey.
- However, the lack of awareness of FM services and their benefits among the country's industrial sector of all sizes and types is the major challenge for the market's growth in the Philippines. For instance, a major portion of end users and small and medium-sized businesses continue to avoid FM because they are either unaware of or possibly skeptical of such long-term benefits, even though most multinational corporations operating in the country are aware of them.
- The organization's priorities in the cleaning services after the COVID-19 pandemic and the country's government initiatives supported the work-from-office trend in the country, which jointly created an opportunity for FM services in the post-pandemic time in the Philippines.
Philippines Facility Management Market Trends
In-house Facility Management Segment is Expected to Hold Significant Market Share
- In-house facility management services are provided by a dedicated resource employed by the client for performance monitoring and control. There is a rising demand for in-house facility managers in the Philippines to manage business-specific areas, including heavy burst-traffic zones and conference rooms used by busy executives. Additionally, in-house facility management provides training and required specialized certifications that a partner organization might not offer in their standard packages.
- In-house facility management involves recruiting specialized personnel to maintain and manage various functional attributes of a facility. Services such as cybersecurity assistance are often operated and monitored in-house to ensure the safety and integrity of the facilities. In the Philippines, Integrated Facilities Management (IFM) is witnessing rapid adoption due to the growing demands to manage end-to-end facility needs and to create consistent service levels. Integrated facility management is crucial to respond to potential disruptions proactively. It has emerged as a new approach to drive efficiencies in facility management, simplify workflows, and streamline operations.
- Commercial and residential infrastructural development is rising in the Philippines. A central bank survey revealed that in Q4 2022, 4.2% of the country's households intended to buy a house in the next 12 months, and 56% attributable to affordable housing demand. The development of significant infrastructure projects beyond Metro Manila and nationwide further drives the segment demand. Loan applications for PAG-IBIG, the Philippine government's home development mutual fund, have increased significantly since 2022. The government also looks to drive supply up for affordable housing with its 4 PH program focused on building a million houses annually until 2028.
- In the Philippines, in-house facility managers are growing in demand with the advent of Industry 4.0, further accelerating the need for a smart maintenance process to prevent equipment breakdown and optimize downtime. With advancements such as Artificial Intelligence (AI), automation, and the Industrial Internet of Things (IIoT), facility managers are striving to bring Maintenance 4.0 into practice quickly.
- In February 2023, a Manila Water Co. Inc. unit partnered with Damosa Land Inc. to manage water facilities for an industrial estate. Manila Water's subsidiary, Manila Water Philippines Ventures Inc. (MWPV), is spending about USD 2.20 million to operate and manage the water system of Anflo Industrial Estate (AIE), Damosa Land's industrial development for trade and agriculture. The partnership aims to meet the estimated demand of 2.6 million liters per day by integrating additional facilities into AIE's existing systems, generating demand for facilities management in the country.
- The Philippines is recognized as one of the most dynamic markets in Asia, whose fast-emerging economy consistently sustains its growth. The country's real estate industry is considered one of the most resilient. Its excellent financing services, capitalization, and pro-business climate drive the best in-house facility management solutions.
Commercial Segment is Expected to Hold Significant Share in the Market
- Commercial facilities in the Philippines need expert facility managers for cleaning, maintenance, and security management of commercial buildings. Commercial facility management firms coordinate between an organization's internal departments and external parties to provide services. The FM would negotiate vendor contracts, assign local vendors, and liaise between tenants and service providers.
- There has been a rise in adaptive commercial spaces in the Philippines recently, and according to a recent study by Cushman & Wakefield, the Philippines branch of Booking.com, an online travel agency, selected the service provider to find a new space for Booking.com's new office for further expansion. To fulfill the travel agency's aim of shifting to a new area in the Central Business District (CBD) of Makati, a city in the Philippines' Metro Manila region, Cushman & Wakefield identified an ideal space by negotiating with the owners to lease a small vacant space adjoining the client's current office. Booking.com was able to lease extra space with a 15% discount from the building's original rental rate, all due to the facility management services provided by Cushman & Wakefield.
- In the Philippines, Hard Facility Management is gaining significant growth for commercial spaces as they can provide businesses with access to expert services in HVAC, electrical, plumbing, and maintenance of a commercial area. For instance, the aviation industry in the country has become more connected, thereby augmenting the need to integrate data between systems to increase efficiency across the connected aviation ecosystem.
- In June 2023, AirAsia Philippines' parent company, Capital A, launched a logistics business and an aircraft maintenance, repair, and overhaul facility in the country. The engineering business of Capital A provides heavy maintenance, repairs, and overhaul (MRO) services for the group's commercial aircraft, propelling the market growth.
- Commercial facility operators in the country are looking to outsource the manaPhilippines'eir businesses to focus more time and attention on investments. A single-source facility management solution helps them streamline decision-making, creating economies of scale and identifying new opportunities for creating destination-worthy groups. Furthermore, having a partner with the know-how to meet critical goals is essential for commercial facility owners on their path to decarbonization.
- Overall, managing and maintaining a large commercial facility, including its systems and infrastructure, can take time and effort. Therefore, many commercial space operators in the Philippines use a third-party facility management service provider instead of building their dedicated IT workforce, propelling the market growth in the studied segment.
Philippines Facility Management Industry Overview
The Philippines facility management market is fragmented with the presence of major players like Atalian Global Services Philippines Inc., Servicio Filipino Inc., Meralco Industrial Engineering Services Corporation, SGS Philippines Inc., and Cushman & Wakefield PLC. Players in the market are adopting strategies such as partnerships, mergers, innovations, and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In June 2023, JLL Philippines received the ISO 41001:2018 certificate in Facilities Management from BQSR Certifications Inc., which is a globally recognized ISO certification body accredited by the International Accreditation Service.
In February 2023, Cushman & Wakefield PLC opened a Shared Services Center (SSC) in Manila, Philippines. The center is located on the 32nd floor of the BDO Ecotower along 9th and 32nd Street, Bonifacio Global City, Metro Manila.
Philippines Facility Management Market Leaders
Atalian Global Services Philippines Inc.
Servicio Filipino Inc.
Meralco Industrial Engineering Services Corporation
Cushman & Wakefield Plc.
SGS Philippiness Inc.
*Disclaimer: Major Players sorted in no particular order
Philippines Facility Management Market News
- July 2023: The government of the Philippines bid out the operations and maintenance (O&M) contracts of the Metro Rail Transit (MRT) Line 3 and the Light Rail Transit (LRT) Line 2 as a "bundle." The Department of Transportation (DOTr) announced the bundling of the two contracts. Bundling up the two O&M contracts would require the MRT-3 Management, the current operator of the train line, to be transferred to the Light Rail.
- February 2023: A Manila Water Co. Inc. unit partnered with Damosa Land Inc. to manage water facilities for an industrial estate. Manila Water's subsidiary, Manila Water Philippines Ventures Inc. (MWPV), is spending about USD 2.20 million for the operation and management of the water system of Anflo Industrial Estate (AIE), Damosa Land's industrial development for trade and agriculture. The partnership aims to meet the estimated demand of 2.6 million liters per day by integrating additional facilities into AIE's existing systems. This is generating demand for facilities management in the country.
Philippines Facility Management Market Report - 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 Impact of COVID-19 on the Philippine Facility Management Market
4.4 Indicative Global Facility Management Cost Index
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand for Office Space from the BPO Sector
5.1.2 Increasing Investment in Public and Private Infrastructure Development
5.2 Market Restraints
5.2.1 Lower Awareness of Facility Management Services
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 Facility Management
6.1.2.2 Bundled Facility Management
6.1.2.3 Integrated Facility Management
6.2 By Offering Type
6.2.1 Hard Facility Management
6.2.2 Soft Facility Management
6.3 By End User
6.3.1 Commercial
6.3.2 Institutional
6.3.3 Public/Infrastructure
6.3.4 Industrial
6.3.5 Other End Users
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Atalian Global Services Philippines Inc.
7.1.2 Servicio Filipino Inc.
7.1.3 Meralco Industrial Engineering Services Corporation
7.1.4 SGS Philippines Inc.
7.1.5 Cushman & Wakefield LLC
7.1.6 Sodexo Group
7.1.7 Santos Knight Frank Inc. (Knight Frank LLP)
7.1.8 Century Properties Management Inc.
7.1.9 Mansion Maintenance Co. Inc.
7.1.10 Kontrac Facilities Management Services Inc.
7.1.11 CBRE Group Inc.
7.1.12 Jones Lang LaSalle Inc.
7.1.13 Artelia Group
7.1.14 WeCare Facility Management Services Inc.
7.1.15 Hydron Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Philippines Facility Management Industry Segmentation
Facility management can be defined as a professional service provided by market vendors to handle the non-core operations of various businesses, such as cleaning, maintenance, etc. By hiring an FM service provider, these businesses can focus more effectively on their core operations, which is essential for business growth. FM services are created to meet the needs of businesses, and the vendors in the nation make money through service contract agreements, which include services in manufacturing facilities, public buildings, and infrastructures.
The Philippines facility management market is segmented by type (in-house facility management and outsourced facility management (single FM, bundled FM, and integrated FM)), offering type (hard FM and soft FM), and end-user industry (commercial, institutional, public/infrastructure, industrial, and other end users). 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 Offering Type | |
| Hard Facility Management | |
| Soft Facility Management |
| By End User | |
| Commercial | |
| Institutional | |
| Public/Infrastructure | |
| Industrial | |
| Other End Users |
Philippines Facility Management Market Research FAQs
How big is the Philippines Facility Management Market?
The Philippines Facility Management Market size is expected to reach USD 3.88 billion in 2024 and grow at a CAGR of 6.31% to reach USD 5.26 billion by 2029.
What is the current Philippines Facility Management Market size?
In 2024, the Philippines Facility Management Market size is expected to reach USD 3.88 billion.
Who are the key players in Philippines Facility Management Market?
Atalian Global Services Philippines Inc., Servicio Filipino Inc., Meralco Industrial Engineering Services Corporation, Cushman & Wakefield Plc. and SGS Philippiness Inc. are the major companies operating in the Philippines Facility Management Market.
What years does this Philippines Facility Management Market cover, and what was the market size in 2023?
In 2023, the Philippines Facility Management Market size was estimated at USD 3.64 billion. The report covers the Philippines Facility Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Philippines Facility Management Industry Report
Statistics for the 2024 Philippines Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines 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.
