Spain Facility Management Market | Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

Market Overview

The Spain Facility Management Market is expected to register a CAGR of 5.29% over the forecast period (2022 - 2027). The market is majorly driven by increasing private investments in real estate, growing facilities in the pharmaceutical industry, and hygiene factors in educational, government, and commercial properties. This has increased the contractual services in cleaning and maintenance services.

• According to European Commission, the Spanish education system has a decentralized management and administration model. Most of the investment in education is public, representing more than 87% of the total spending on education in the case of levels that are lower than higher education and more than 66% in tertiary education.
• Such large-scale investments under government undertaking increase the facility management services to be outsourced to private players. For instance, in November 2020, Interserve Group Limited, the international support services, construction, and equipment services group, received a GBP 3.6 million contract to deliver cleaning services and pest control at the campus of Autonoma University of Madrid.
• The market is witnessing multiple strategic acquisitions between the market leaders in Spain. For instance, in October 2020, DOMINION acquired FAMAEX, the Spanish start-up, to revolutionize the maintenance and repair services of commercial stores and real estate. With this technological platform through which, any company or facility manager could request and schedule a service.
• The increasing investments in the healthcare sector with new production facilities would further help in driving the growth of the studied market. For instance, In May 2021, BD (Becton, Dickinson, and Company) is building a USD 200 million high-tech manufacturing facility in Zaragoza, Spain, to support the production of pre-fillable syringes for vaccines and other biologics.
• Further, the outbreak of COVID-19 has had a mixed business impact on facilities management firms in Spain. The restrictions on the movement of people resulted in a decline in project work and a decreased level of activity across many customer sites. Significant players in the market, such as CBRE Group, and others, were adversely affected due to the pandemic lockdown.

Scope of the Report

Facility management services involve the management of building upkeep, utilities, maintenance operations, waste services, security, etc. These services are further divided into hard facility management services and soft facility management services spheres. Hard services comprise mechanical and electrical maintenance, fire safety and emergency services, building management systems controls, elevator/lifts and conveyer maintenance, etc. Soft services include cleaning, recycling, security, pest control, handyman services, ground maintenance, and waste disposal. Both in-house facility management and outsourced FM services are considered in the scope.

Report scope can be customized per your requirements. Click here.

Key Market Trends

Growing Investments in real estate and pharmaceutical industries

• The Spanish economy has witnessed substantial improvement in 2021 post the pandemic's catastrophic shock. According to Sociedad de Tasacion, the sale of dwelling homes in the country reached to 676,775 units and showed an increase of 38.1% in 2021.
• Moreover, according to data from the Spanish Land Registry (Registradores), the proportion of foreign buyers across Spain as a whole increased by 0.23 % from 9.52% in the first quarter of 2021 and 9.75% in the second quarter of 2021, suggesting that international buyers are beginning to return.
• The real estate vendors in the market have been investing in acquisitions for scaling in the real estate sectors. For instance, in September 2021, Round Hill Capital announced the acquisition serviced apartment asset in Valdebebas (Madrid) for an investment of EUR 30 million. Therefore such developments in the country is driving opportunities for facility management in the country.
• The investments in the Pharmaceutical industry increased during the pandemic. For instance, in April 2021, the government of Spain announced that the researchers would start studying the effects of mixings two vaccines. In addition, the trial is expected to draw a sample of 600 people of all ages from across Spain to determine if the Pfizer vaccine can be given to patients who have received the AstraZeneca Vaccine dose within 28 days.
• Furthermore, various acquisitions from the key players of CDMO platforms are exercising mergers and acquisitions of pharmaceutical manufacturing sites to better research and develop COVID-19 vaccines. For instance, in January 2021, the company Siegfried announced the acquisition of pharmaceutical manufacturing sites from Novartis in the Barcelona region. The company intends to transform the formerly captive manufacturing sites into flexible and competitive customer-facing CDMO platforms offering their services to various customers worldwide. Such initiatives driving opportunities for facility management in Spain.

To understand key trends, Download Sample Report