Market Size of Soft Facility Management Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.20 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Soft Facility Management Market Analysis
Revenue from the soft facility management market is expected to grow at a CAGR of 5.2% over the next five years. Key soft facility management companies, such as CBRE Group Inc., Jones Lang LaSalle IP Inc., Cushman & Wakefield PLC, Emeric Facility Services, and Sodexo Inc., are innovating consistently by making significant R&D investments.
- Increasing demand for outsourced facility management, infrastructural developments, and investments in the private sector are some of the key drivers responsible for market growth. For instance, Saudi Arabia is one of the most prominent countries in the region concerning infrastructural development. According to the IMF, the country's GDP amounted to USD 833.54 billion last year and is expected to cross USD 1,072.44 billion by the end of the forecast period. Soft Facility management services are also expected to grow significantly as infrastructure development projects contribute to their economic growth.
- Healthcare industries are also expanding their operations worldwide, which might create opportunities for the SFM market. For instance, in April this year, Gabri Labs, a pharmaceutical technologies company, will open a facility in Dubai Science Park to locally produce medical devices. Gabri Lab's new facility will allow it to produce an initial volume of 12 million units per year, with further expansions planned by next year. The institutional development will positively impact the growth of the soft facility management services market.
- According to the Saudi Arabian Royal Commission of Riyadh City report, Saudi Arabia announced that it plans to host 7,000 new businesses. With the influx of businesses, the region is expected to see a boost in demand for SFM services. The increasing number of commercial establishments and technology integration are expected to drive the market growth.
- Key players offer soft facility management services and contribute to significant growth in the market. For instance, Sodexo offers soft services such as cleaning, catering, vending, etc. The company's services saw a significant slump due to the COVID-19 pandemic. Post-COVID-19, the demand for cleaning and catering has been expected to create new opportunities for the SFM market.
