Singapore Facility Management Market Size (2024 - 2029)

Singapore Facility Management Market Analysis

The Singapore Facility Management Market size is estimated at USD 1.06 billion in 2024, and is expected to reach USD 1.22 billion by 2029, growing at a CAGR of 2.93% during the forecast period (2024-2029).

The market growth is driven by the expansion of the construction industry in Singapore, supported by continuing strong growth in the public housing project pipeline amid the Housing Development Board’s (HDB) ramping up of build-to-order (BTO) flats supply. Industrial and institutional building construction is expected to contribute significantly to the public sector demand, including more projects for water treatment plants, education buildings, and community clubs.

• 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 demand for total facility management (TFM) continues to grow, the public sector organizations belonging to the country are increasingly outsourcing all non-core business activities to one service provider, enabling greater focus on core business. The consecutive increase in commercial real estate in the region is also expected to present growth opportunities for the incumbents contending with difficulties, such as congestion in mature markets.
• A growing number of buildings across Singapore are using intelligent systems equipped with sensors and artificial intelligence (AI) to manage utilities and staff amid increasing costs. Smart facilities management systems are also helping buildings become greener. Such adoption is supporting market growth, creating a need for facility management services in the country for the management of these new FM systems. For instance, companies such as Sodexo have been working with Schneider Electric to introduce the most advanced facility management services.
• The substantial outsourcing operations conducted by government organizations in the market have resulted in public sector saturation. Public sector organizations have utilized contract extensions to retain long-term partnerships with facility management players. ​The increasing market rivalry influences the profit margins and growth of current providers. The competition among vendors is so great that FM services are being commoditized in the entire region. Global firms have made investments to enter the Singapore FM market. Thus, diminishing marginal profits due to increasing competition and ongoing changes in the macro-environment are expected to disturb the facility management service demand, thereby hampering market growth.
• The COVID-19 pandemic had a significant impact on the facilities management industry in Singapore. During the pandemic, the facility management industry faced significant challenges such as a shortage of workers, increased demand for FM services leading to an increased workload, increased cost of carrying out FM services, and keeping up to date with the latest advisories from relevant government agencies.

Singapore Facility Management Industry Segmentation

Facility management includes various factors that impact organizational productivity and efficiency. FM includes management strategies and procedures for building management, infrastructure management for an organization, and general harmonization of an organization's work environment. This system standardizes services and streamlines operations for an organization.

The Singapore facility management market is segmented into type of facility management (in-house facility management, outsourced facility management [single FM, bundled FM, integrated FM]), offering type (hard FM, soft FM), end-user (commercial, institutional, public/infrastructure, industrial, other end users). The report offers market forecasts and size in value (USD) for all the above segments.