Market Size of South Africa Facility Management Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.62 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Africa Facility Management Market Analysis
The GCC facility management market was valued at USD 9.71 billion the previous year and is expected to grow at a CAGR of 4.62%, reaching USD 13.09 billion by the next five years. The rising commercial real estate sector in South Africa is anticipated to create a significant demand for professional facility management services. As businesses expand, relocate, or upgrade their facilities, they might seek comprehensive facility management solutions to ensure their properties' efficient operation and maintenance.
- Increasing demand for outsourced facility management, infrastructural developments, and investments in the private sector are some of the key drivers responsible for market growth. Services in the FM industry have been commoditized to a great extent. Also, end-users are very price-sensitive, and contracts are thus aimed at shorter terms. A real estate over-supply has been creating pressure on rent yields, thus leading the customers to cut costs on FM services.
- South Africa's population growth, economic dynamism, and rapid urbanization are also expected to generate business opportunities, provided that investments are made to enhance infrastructure and regional connectivity, in line with the Africa Union's Agenda 2063.
- Moreover, South Africa's facility management industry operates with integrated contracts provided by significant global vendors and small local players, focussing on single contracts and single-service solutions. Such diverse capability of meeting various clientele requirements could further drive market growth.
- However, the shortage of skilled personnel in specific areas of facility management in the country, such as specialized maintenance or sustainability services, could be a potential barrier to market growth.
- Further, with the outbreak of COVID-19, the facility management market in South Africa would have witnessed a slight decline in growth. During the initial phase of the virus outbreak, the imposed lockdown led to a workforce shortage across the FM companies, as the majority were non-local.
- A significant trend in adopting Specialized area-based services has been recorded instead of the unprecedented demand for computing capacity following a sudden and significant shift to online working due to the COVID-19 pandemic. Domestic vendors have observed a rise in specialized cleaning for the booming data center business.
