
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Historical Data Period | 2019 - 2023 |
Market Size (2025) | USD 70.42 Billion |
Market Size (2030) | USD 76.43 Billion |
CAGR (2025 - 2030) | 1.65 % |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
United Kingdom (UK) Facility Management Industry Analysis
The United Kingdom Facility Management Industry is expected to grow from USD 70.42 billion in 2025 to USD 76.43 billion by 2030, at a CAGR of 1.65% during the forecast period (2025-2030).
The UK facility management market is experiencing significant transformation amid broader economic challenges and opportunities. According to recent data, the United Kingdom maintained its position as the leading European market for commercial real estate investments, with investments totaling EUR 43.5 billion in 2023, as reported by BNP Paribas Real Estate. This robust investment climate has created increased opportunities for innovative facility services, particularly in corporate real estate and integrated services. The market's maturity and sophistication have led providers to focus on specialized services, adapting to both macroeconomic shifts and evolving client demands.
The construction sector's performance has become a crucial indicator for facilities management industry service demand. The Office for National Statistics reported that the gross value added (GVA) of the UK construction industry reached GBP 108.7 billion in 2023, creating substantial opportunities for facility management market services across new developments. The industry has seen a particular emphasis on sustainable building practices and lifecycle management, driving demand for comprehensive facility management market solutions that can support buildings from design through operation and maintenance.
Economic factors continue to shape the market landscape, with inflation playing a significant role in service delivery and pricing strategies. The UK's inflation rate stood at 3.2% in March 2024, showing improvement from the previous month's 3.4%, according to the Office for National Statistics. This economic environment has pushed facility management providers to focus on cost optimization and efficiency improvements, leading to increased adoption of technology-enabled solutions and smart building management systems.
The commercial sector has emerged as a key growth driver, with the Construction Industry Training Board reporting a 4% increase in commercial facilities construction output in 2023. This growth is particularly significant as the Office for National Statistics projects the revenue from construction of residential and non-residential buildings to reach approximately USD 138.93 billion by 2025. The expansion has led to innovative partnerships and technological integration, exemplified by Apleona's acquisition of JCW Group Limited in September 2023, which aims to create a stronger platform for integrated facilities services across the UK and Europe.
United Kingdom (UK) Facility Management Industry Trends
Growing Trend Toward Commoditization of FM
The facilities management industry in the United Kingdom is experiencing a significant shift toward commoditization, driven by standardization and consolidation of services across facilities. This trend has attracted numerous providers, both direct and indirect, to the facility management outsourcing sector, leading to the creation of integrated facilities management services to capture larger market shares. The commoditization trend is particularly evident in government-backed infrastructure projects, where there is a strong need for standardized FM services.
The market has witnessed several established players developing integrated facilities management services to strengthen their market position. This commoditization has led to increased competition and pressure on pricing, forcing providers to differentiate through value-added services and technological innovation. The trend is further supported by the public sector's preference for bundled service contracts, driven by public spending cuts and the desire to reduce the number of suppliers while achieving cost savings. This aligns with various public sector bodies' continuous efforts to streamline their operations and improve efficiency through standardized service delivery.
Renewed Emphasis on Workplace Optimization and Productivity
Workplace solutions and productivity have become central focuses in the UK facility management market, with organizations seeking solutions that maximize operational efficiency while enhancing employee experience. Facility management solutions are increasingly being utilized to optimize productivity through specific productivity-focused tools and functions, suitable for all organizational levels from entry-level employees to top management. These solutions enable supervision and management of assets across multiple buildings, utilizing automated technology to streamline corporate operations and increase efficiency, productivity, and maintenance management.
The trend is supported by significant government initiatives, such as the British government's pledge of EUR 56 million to enhance leadership and management skills, particularly focusing on small to medium enterprises. This investment, part of the Business Productivity Review by the Department for Business, Energy, and Industrial Strategy, demonstrates the growing recognition of facility management's role in workplace optimization. The implementation of smart technologies, including climate controls, security systems, lighting controls, and preventive maintenance alarms, has become instrumental in achieving these productivity goals, while also contributing to energy efficiency and risk minimization.
Growing Demand for IFM and Outsourcing of Non-core Operations from Emerging Verticals
The demand for Integrated Facility Management (IFM) services has seen substantial growth, driven by smart city development initiatives and the increasing need for service integration across various sectors. This trend is particularly evident in locations such as Bristol, London, and Glasgow, where smart city projects have created new opportunities for integrated facility management services. The market has witnessed a significant increase in IFM agreements across various end-user sectors, with organizations recognizing the benefits of consolidating multiple services under a single provider.
The outsourcing trend has gained momentum as industries increasingly accept it as a viable option for non-core operations, including facility management. The United Kingdom's regulatory environment is conducive to outsourcing non-core business activities, and Brexit has further encouraged outsourcing activities as organizations focus more on their core business operations. This is evidenced by recent major contracts, such as Sodexo's five-year integrated facilities management contract with a global bank's London offices, valued at GBP 2 million per year, which encompasses a comprehensive range of services including catering, hospitality, cleaning, and technical services. The healthcare sector has been particularly active in this trend, with approximately 30% of integrated FM sales in Europe coming from healthcare institutions.
Segment Analysis: By Type
Outsourced FM Segment in UK Facility Management Market
The outsourced facility management services segment dominates the UK facility management market, holding approximately 56% market share in 2024, representing a value of nearly 39 billion USD. This segment's prominence is driven by organizations increasingly recognizing the benefits of delegating non-core operations to specialized FM service providers. The trend toward outsourcing has been particularly strong in sectors such as banking, finance, IT/ITES, and BPO/KPO, where companies prefer to focus on their core competencies while leveraging external expertise for facility services. Outsourced FM services encompass various delivery models, including single FM, bundled FM, and integrated facilities services solutions, providing organizations with flexibility in choosing service arrangements that best suit their operational needs. The segment's growth is further supported by the increasing adoption of technology-enabled solutions, improved operational efficiency, and the ability of FM service providers to offer specialized expertise and cost-effective solutions through economies of scale.

Segment Analysis: By Offering
Hard Facility Management Segment in UK FM Market
Hard Facility Management (Hard FM) dominates the UK Facility Management market with approximately 54% market share in 2024, representing services directly connected to the physical facilities and building structure. This segment encompasses critical maintenance services such as mechanical maintenance, building services, HVAC systems, electrical systems, plumbing, and fire safety systems. The prominence of Hard FM is driven by the increasing adoption of smart building technologies, with integrated networks of lights, sensors, HVAC units, doors, and CCTV becoming increasingly common across the UK. Major organizations like NHS Shared Business Services have been actively investing in Hard FM frameworks, focusing on sustainability, innovation, and safety standards. The segment's strength is further reinforced by the growing emphasis on energy efficiency and the need for specialized technical expertise in maintaining complex building systems.
Soft Facility Management Segment in UK FM Market
The Soft Facility Management segment is emerging as the fastest-growing sector in the UK FM market, projected to grow at approximately 2% CAGR from 2024 to 2029. This growth is primarily driven by the increasing complexity of projects across various parts of the country, with FM firms identifying high-level janitorial services as a key growth area. The segment's expansion is further accelerated by the integration of Internet of Things (IoT) technology, which enables enhanced decision-making and work process optimization across multiple industry sectors. The rising significance of outsourcing businesses and an increasing focus on delivering personalized and value-added services, including practical HSE management and local labor law compliance, are also contributing to this segment's rapid growth. The COVID-19 pandemic has acted as a catalyst for change in how facilities are managed and services are provided, leading to increased demand for specialized cleaning and hygiene services.
Segment Analysis: By End-User Industry
Commercial Segment in UK Facility Management Market
The commercial segment dominates the UK facility management market, holding approximately 32% market share in 2024. This segment primarily consists of office buildings used by business service providers, including manufacturers' corporate offices, IT and communication companies, and other service providers. The strong position of this segment is driven by the increasing demand for building decoration, essential interior fittings, and workplace solutions in the commercial sector. The market offers numerous opportunities for vendors to implement IoT-based facility management services and enhance the development of smart buildings within the United Kingdom, due to rising interest in establishing smart buildings and IoT technologies. The surge in business acumen among industry providers and the diversification of the economy from various industries continues to maximize the demand for facility services within the commercial sector.
Industrial Segment in UK Facility Management Market
The industrial segment is emerging as the fastest-growing sector in the UK facility management market, with an expected growth rate of approximately 2.4% during 2024-2029. This robust growth is driven by the increasing need for asset management services across manufacturing industries such as electronics, food and beverage, and automotive sectors. The segment's growth is further supported by anchor projects by the government, low taxes, and business-friendly regulations favoring automation and advancement of the manufacturing sector. The infrastructure of many industrial projects consists of electrical substations, internal roads, networks for potable water, firefighting systems, irrigation, and stormwater management, creating sustained demand for comprehensive maintenance services including fire safety, electrical maintenance, technical support, cleaning, and HVAC services.
Remaining Segments in End-User Industry
The institutional, public/infrastructure, and other end-user segments play vital roles in shaping the UK facility management market landscape. The institutional segment, encompassing healthcare and education sectors, focuses on providing specialized integrated facilities services for hospitals, aged care facilities, universities, and schools. The public/infrastructure segment covers facility management applications in federal, state, and local government buildings, justice departments, and transportation infrastructure. Other end-user industries, including retail, hospitality, and leisure sectors, contribute to market diversity by demanding specialized facility management services tailored to their unique operational requirements. These segments collectively drive innovation in service delivery and technological advancement in the facility management sector.
United Kingdom (UK) Facility Management Industry Overview
Top Companies in UK Facility Management Market
The UK facility management market features prominent facility management companies like Mitie Group, Compass Group, Sodexo, and Serco Group leading the industry through continuous innovation and service excellence. Companies are increasingly focusing on technological integration, implementing smart building solutions, IoT-enabled services, and data analytics to enhance operational efficiency and service delivery. Strategic partnerships and collaborations with technology providers have become crucial for developing comprehensive FM solutions. The industry witnesses a strong emphasis on sustainability initiatives, with companies investing in green technologies and eco-friendly practices. Market leaders are expanding their service portfolios through both organic growth and strategic acquisitions, particularly in areas like energy management, workplace optimization, and integrated facility management solutions. There is also a growing trend toward offering specialized services in emerging sectors such as healthcare, education, and data centers, while maintaining strong positions in traditional sectors like commercial and government facilities.
Dynamic Market Structure Drives Industry Evolution
The UK facility management market exhibits a moderately fragmented structure, characterized by the presence of both global conglomerates and specialized local players. Large international facility management companies leverage their extensive resources, technological capabilities, and cross-border expertise to serve major clients, while local specialists maintain competitive advantages through deep regional knowledge and customized service offerings. The market has witnessed significant consolidation through mergers and acquisitions, as larger players seek to expand their service portfolios and geographical presence. Companies are increasingly focusing on vertical integration to offer comprehensive facility service provider solutions, from basic maintenance to complex integrated services.
The competitive dynamics are shaped by the increasing trend toward integrated facility management services, with major players expanding their capabilities through strategic acquisitions and partnerships. Market participants are actively pursuing opportunities in emerging segments while strengthening their core service offerings. The industry structure is evolving with the entry of technology-focused companies and specialized service providers, creating new competitive pressures and opportunities for innovation. Companies are increasingly differentiating themselves through specialized expertise in specific sectors or service areas, while maintaining flexibility to adapt to changing market demands.
Innovation and Adaptation Drive Market Success
Success in the UK facility management market increasingly depends on companies' ability to innovate and adapt to evolving client needs while maintaining operational efficiency. Incumbent players are focusing on developing comprehensive service offerings that integrate traditional facility management with advanced technological solutions, particularly in areas such as energy management, sustainability, and workplace optimization. Companies are investing in digital transformation initiatives, including artificial intelligence and automation, to enhance service delivery and operational efficiency. The ability to provide customized solutions while maintaining cost competitiveness has become crucial for market success, along with developing strong relationships with key stakeholders across various sectors.
Market contenders are finding opportunities by focusing on specialized niches and developing expertise in specific sectors or service areas. The increasing emphasis on sustainability and environmental compliance is creating new opportunities for companies that can demonstrate strong capabilities in these areas. Success factors also include the ability to navigate regulatory requirements, particularly in sensitive sectors such as healthcare and government facilities. Companies are developing robust risk management strategies to address challenges related to labor availability, cost pressures, and changing client expectations. The market rewards players who can maintain service quality while adapting to evolving industry standards and technological advancements. The facility services industry is thus poised for growth, driven by innovation and strategic adaptation.
United Kingdom (UK) Facility Management Industry Leaders
-
CBRE Group, Inc.
-
Mitie Group PLC
-
EMCOR Facilities Services Inc.
-
Atlas FM Ltd
-
Andron Facilities Management
- *Disclaimer: Major Players sorted in no particular order

United Kingdom (UK) Facility Management Industry News
- March 2024: Sodexo Health & Care extended established partnerships for catering, retail, and soft FM services at two hospitals at Stoke-on-Trent in Staffordshire. Under a new 10-year contract worth EUR 38 million a year covering both hospitals as part of a Private Finance Initiative (PFI), Sodexo will continue to deliver catering, retail, and soft FM services throughout the PFI and the retained estate at both hospitals.
- March 2024: Mitie was awarded a place on the Crown Commercial Service’s (CCS) Healthcare Soft Facilities Management (FM) Framework agreement for three years with an option to extend for a year. As a prequalified supplier, the integrated services provider will be able to bid for contracts that support the provision of Healthcare Soft FM services to the NHS and other organizations within the healthcare industry in England, including NHS Hospital Trusts, Community Health Trusts, Mental Health Trusts, and General Practices.
United Kingdom (UK) Facility Management Industry 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 Assessment of the Impact of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
-
5.1 Market Drivers
- 5.1.1 Growing Trend Toward Commoditization of FM
- 5.1.2 Growing Demand for IFM and Outsourcing of Non-core Operations from Emerging Verticals
- 5.1.3 Renewed Emphasis on Workplace Optimization and Productivity
-
5.2 Market Restraints
- 5.2.1 Market Saturation in the Public Sector
- 5.2.2 Growing Competition Expected to Impact Profit Margins of Existing Vendors
- 5.3 Workforce Analysis and Employment Trends in the UK FM Industry
6. MARKET SEGMENTATION
-
6.1 By Facility Management Type
- 6.1.1 In-House Facility Management
- 6.1.2 Outsourced Facility Management
- 6.1.2.1 Single FM
- 6.1.2.2 Bundled FM
- 6.1.2.3 Integrated FM
-
6.2 By Offering Type
- 6.2.1 Hard FM
- 6.2.1.1 Building O&M and Property Services
- 6.2.1.2 Mechanical, Electrical, and Plumbing Services
- 6.2.1.3 Other Hard FM Services (includes Energy Services)
- 6.2.2 Soft FM
- 6.2.2.1 Safety and Security Services
- 6.2.2.2 Office Support Services
- 6.2.2.3 Janitorial Services
- 6.2.2.4 Catering Services
- 6.2.2.5 Other Soft FM Services
-
6.3 By End-user Industry
- 6.3.1 Commercial
- 6.3.2 Institutional
- 6.3.3 Public/Infrastructure
- 6.3.4 Industrial
- 6.3.5 Other End-user Industries
-
6.4 By Region
- 6.4.1 London and South East England
- 6.4.2 South West England
- 6.4.3 Midlands and East England
- 6.4.4 North of England
- 6.4.5 Rest of the United Kingdom
7. COMPETITIVE LANDSCAPE
-
7.1 Company Profiles*
- 7.1.1 CBRE Group Inc.
- 7.1.2 Mitie Group PLC
- 7.1.3 EMCOR Facilities Services Inc.
- 7.1.4 Cushman & Wakefield PLC
- 7.1.5 G4S Facilities Management UK Limited
- 7.1.6 ISS UK
- 7.1.7 Serco Group PLC
- 7.1.8 Kier Group PLC
- 7.1.9 Sodexo Facilities Management Services
- 7.1.10 Compass Group
- 7.1.11 Equans
- 7.1.12 VINCI Facilities Limited
- 7.1.13 Aramark Facilities Services
- 7.1.14 Andron Facilities Management
- 7.1.15 CSM Facilities Management Group
- 7.2 MARKET SHARE ANALYSIS OF KEY VENDORS
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
United Kingdom (UK) Facility Management Industry Industry Segmentation
Facility management is an organizational function that integrates people, places, and processes within the built environment to improve people's quality of life and the productivity of the core business.
The UK facility management market is segmented by facility management type (in-house FM service, outsourced FM service (single FM, bundled FM, and integrated FM)), offering type (hard FM (building O&M and property services, mechanical, electrical, and plumbing services, other hard FM services (including energy services)), and soft FM (safety and security services, office support services, janitorial services, catering services, other soft FM services)), and end users (commercial, institutional, public/infrastructure, industrial, and other end users), and region (London and South East England, South West England, Midlands & East England, North of England, and Rest of the United Kingdom). The market sizes and forecasts are in terms of value USD for all the above segments.
By Facility Management Type | In-House Facility Management | ||
Outsourced Facility Management | Single FM | ||
Bundled FM | |||
Integrated FM | |||
By Offering Type | Hard FM | Building O&M and Property Services | |
Mechanical, Electrical, and Plumbing Services | |||
Other Hard FM Services (includes Energy Services) | |||
Soft FM | Safety and Security Services | ||
Office Support Services | |||
Janitorial Services | |||
Catering Services | |||
Other Soft FM Services | |||
By End-user Industry | Commercial | ||
Institutional | |||
Public/Infrastructure | |||
Industrial | |||
Other End-user Industries | |||
By Region | London and South East England | ||
South West England | |||
Midlands and East England | |||
North of England | |||
Rest of the United Kingdom |
United Kingdom (UK) Facility Management Industry Research FAQs
How big is the UK Facility Management Market?
The UK Facility Management Market size is expected to reach USD 70.42 billion in 2025 and grow at a CAGR of 1.65% to reach USD 76.43 billion by 2030.
What is the current UK Facility Management Market size?
In 2025, the UK Facility Management Market size is expected to reach USD 70.42 billion.
Who are the key players in UK Facility Management Market?
CBRE Group, Inc., Mitie Group PLC, EMCOR Facilities Services Inc., Atlas FM Ltd and Andron Facilities Management are the major companies operating in the UK Facility Management Market.
What years does this UK Facility Management Market cover, and what was the market size in 2024?
In 2024, the UK Facility Management Market size was estimated at USD 69.26 billion. The report covers the UK Facility Management Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UK Facility Management Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Our Best Selling Reports
United Kingdom (UK) Facility Management Industry Research
Mordor Intelligence provides comprehensive insights into the UK facility management market through detailed industry analysis, market outlook, and growth forecasts. Our research extensively covers various segments including building services, security services, janitorial services, and integrated facilities services, offering stakeholders a thorough understanding of market dynamics and emerging opportunities. The report pdf delivers actionable intelligence on market segmentation, competitive landscape analysis, and strategic developments of leading facilities management companies UK, enabling businesses to make informed decisions in this evolving FM industry.
Our consulting expertise extends beyond traditional research to provide tailored solutions for the facilities management sector. We assist organizations in developing robust go-to-market strategies, conducting comprehensive competition assessments of top facilities management companies UK, and analyzing customer needs and behaviors specific to workplace solutions and maintenance services. Our team specializes in technology scouting for smart building solutions, regulatory assessment for compliance requirements, and strategic partner identification for service expansion. Through B2B surveys and data analytics, we help clients understand market positioning, service optimization opportunities, and customer satisfaction metrics, ensuring sustainable growth in the dynamic United Kingdom facility management market.