UK Facility Management Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Top Uk Facilities Management Market Companies and the Market is Segmented by Facility Management Type (In-House FM Service, Outsourced FM Service (Single FM, Bundled FM, Integrated FM)), Offering Type (Hard FM (Building Services, HVAC Services, Mechanical, Electrical & Plumbing Services), Soft FM), and End-User (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 Billion) for all the Above Segments.

UK Facilities Management Market Size

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UK Facility Management Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 69.28 Billion
Market Size (2029) USD 75.19 Billion
CAGR (2024 - 2029) 1.65 %
Market Concentration Low

Major Players

UK Facility Management Market Major Players

*Disclaimer: Major Players sorted in no particular order

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UK Facilities Management Market Analysis

The UK Facility Management Market size is estimated at USD 69.28 billion in 2024, and is expected to reach USD 75.19 billion by 2029, growing at a CAGR of 1.65% during the forecast period (2024-2029).

In terms of maturity and sophistication, the United Kingdom is one of Europe's most mature and sophisticated markets for facility management services. Given the increasing penetration of facility management services, providers are actively focusing on specialized services to obtain a foothold in the industry, which also saw many changes due to the region's macroeconomic and social changes.

  • Various service providers operating in the country have emphasized growing their presence over the last decade in order to benefit from the increasing demand for facility management, especially with the current trend favoring the outsourcing of non-core functions. The country is witnessing increased opportunities to leverage facility management and corporate real estate in innovative ways, given the dynamics across the country.
  • For instance, in April 2022, Iron Mountain, a provider of asset lifecycle management, innovative storage, and information management services, announced plans to expand into the United Kingdom. In response to increased demand for its logistics and storage capabilities from existing and new users, the company is also expected to open additional locations in Lutterworth and Kettering.
  • Furthermore, demand from various end-user industries is seeing exponential growth, positively impacting the market. According to a study by RICS in May 2022 on the United Kingdom facilities management market, the demand accelerated sharply within the healthcare sector, evidenced by a net balance of more than 55% of contributors citing an increase that is showing a more significant need present for services across all of the sectors, including the retail industry, therefore, further increasing the facility management employment opportunities.
  • The growing competition in the market impacts the profit margins and growth of existing vendors. The competition level between suppliers is so high that FM services are transitioning to commoditized in the region. However, the country's recovering economic stability is anticipated to improve the market demand gradually and, subsequently, the profit margins of the market players. As suggested by the UK Facilities Management Market Survey by RICS, the profit margins, workloads, and employment opportunities are also anticipated to grow over the next couple of years.
  • The COVID pandemic caused the demand for soft FM services to grow faster than hard services. To ensure the safety and cleanliness of buildings and occupants' circulation spaces, companies introduced a range of soft services focused on sanitization. For instance, Polyteck Group established a deep cleaning and sanitation division to meet growing demand from the UK's social housing and commercial sectors for hygiene services during the COVID-19 crisis.

UK Facilities Management Market Trends

Single FM Service is Expected to Hold Major Share

  • Working with a single facility management service provider primarily delegates task management to separate entities. It also entails having a different service provider for each service the organization requires, such as cleaning, reception, and vending machines. Using the services of specialized service providers includes several advantages.
  • It allows customers to concentrate on their core business, while single-service providers provide adequate customer services and help operational efficiency. Experts handling task management will result in much higher efficiency and service quality. It will also free company employees to focus on the most critical business areas while saving resources for non-core activities.
  • The outsourced FM is successfully used in various sectors, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing, and education. The areas that FM services look after vary widely, primarily depending on its type, the company size, and the sector in which it operates. Some organizations will only require a single service solution provider. It is driving the demand for single FM in the country.
  • Further, the Q4 2022 RICS UK Facilities Management Survey suggested that approximately 10% of the respondents believed that the single FM sector would witness the highest growth in the next twelve months. The response rate increased to 10% of the respondents that believed single FM to witness the highest growth. However, substantial respondents in the survey believed that other services, such as bundled FM and in-house services, are poised to see the highest growth rate in the next 12 months.
  • When businesses choose a single service provider, they outsource their day-to-day operations to a specialist provider. They can be assured of superior service quality and efficiency by hiring the help of specialists. Using several service providers is a time-consuming activity that necessitates the management of multiple vendors as well as the associated hazards.
  • Furthermore, the scale of the developing and developed economies makes working with a single supplier and servicer impossible. Unfortunately, many businesses still operate with a single mindset, relying on a single property management service provider for all their needs.
United Kingdom Facility Management Market: Gross Value Added (GVA) of the Construction Industry, In GBP Million, United Kingdom, Q1 2021 - Q1 2022

Commercial End User Sector is Expected to Hold a Significant Market Share

  • Office buildings used by providers of business services, including manufacturers' corporate offices, IT and communication companies, and other service providers, are mainly referred to as the commercial end-user sector. Due to this, the overall supply of commercial building decoration, essential interior fittings, and management grew in importance, pushing the region's commercial sector market.
  • In October 2022, SPIE UK, the independent European provider of multi-technical services in communications and energy, declared a new contract with Altrad Babcock, a professional in the delivery of aftermarket, engineering, and upgrade services to the entire energy industry. The agreement mainly supplies facilities management services to 3 buildings in Renfrew, Renfrewshire. As part of the contract, SPIE UK would be significantly responsible for completing HVAC and mechanical works, reactive services, preventative and planned maintenance, and lifecycle projects for three separate buildings, including a large manufacturing facility.
  • Moreover, the overall spread of COVID-19 forced the mass closure of workspaces and the implementation of work-from-home policies in several industries, especially in the corporate buildings of the IT as well as telecommunication sector, which negatively impacted the market.
  • Additionally, the market offers several opportunities for vendors to implement and execute various IoT-based facility management and enhance the development of smart buildings within the United Kingdom. It is due to the rising interest in establishing smart buildings and IoT technologies. Also, the surge in the business acumen among industry providers and the diversification of the economy from various industries is anticipated to maximize the demand for facility management services within the region.
  • In January 2023, Fisco UK, the Facilities management company, partnered with (MWS) managed workplace services provider Apogee Corporation to expand its overall IT offering and deliver a more automated and integrated solutions portfolio to its client base. Through the partnership, the firm boosted machinery uptime for its clients by around 28% compared to its previous MWS supplier. Hence, these significant developments are poised to drive the demand for FM services in the commercial space in the United Kingdom.
UK Facility Management Market: Value of the Commercial Property Market, in USD Billion, the United Kingdom, 2018 to 2021

UK Facilities Management Industry Overview

The United Kingdom facility management market is fragmented as it is a highly competitive market with several players of different sizes. This market is expected to experience several mergers, acquisitions, and partnerships as companies continue to invest in strategically offsetting the present slowdowns they are experiencing.

  • November 2022 - Atlas FM announced that the cleaning and support services business Lewis & Graves Partnership (L&G) had joined the Atlas family. With L&G joining, Atlas could offer a new level of expertise and service delivery to existing and future education clients.
  • June 2022 - ISS mobilized a contract with a global investment company, abrdn, to deliver services across ten sites in Scotland and England. The agreement sees ISS delivering technical, catering, support, workplace, and cleaning services.
  • June 2022 - Kier was awarded a place on the Crown Commercial Service's (CCS) GBP 35 billion (~USD 43.35 billion) Facilities Management and Workplace Services RM 6232 Framework. The company would provide hard services, including mechanical and electrical engineering maintenance, several statutory obligations, including asbestos management and electrical testing, and internal and external building fabric maintenance.

UK Facilities Management Market Leaders

  1. CBRE Group, Inc.

  2. Mitie Group PLC

  3. EMCOR Facilities Services Inc.

  4. Atlas FM Ltd

  5. Andron Facilities Management

*Disclaimer: Major Players sorted in no particular order

UK Facility Management Market Concentration
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UK Facilities Management Market News

  • October 2022: Kier was selected by NHS Ayrshire & Arran to build Foxgrove, a facility for mental health in Irvine at Ayrshire Central Hospital. It will be Scotland's first medium-secured adolescent hospital care for young people, acquired under The Health Facilities Scotland Framework.
  • September 2022: The BBC expanded its facilities management contract with Mitie for an additional two years. Under the extension, Mitie will continue to deliver an extensive range of facilities management services, including logistics, maintenance, engineering, cleaning, and landscaping across the organization's nationwide property portfolio, such as its iconic sites in London, Cardiff, Glasgow, and Salford.
  • August 2022: CBRE Group Inc. acquired E2C Technology, an Artificial Intelligence/ Machine Learning (AI/ML) data-driven technology, which is expected to enhance and differentiate its facilities management service. It offers and unlocks significant value for the clients through various cost-efficient operational reliability and technical excellence, sustainability solutions, and improved workplace experience.

UK Facilities Management Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of COVID-19 Impact on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Trend Toward Commoditization of FM

      2. 5.1.2 Growing Demand for IFM and Outsourcing of Non-core Operations from Emerging Verticals

      3. 5.1.3 Renewed Emphasis on Workplace Optimization and Productivity

    2. 5.2 Market Challenges/Restraints

      1. 5.2.1 Market Saturation in the Public Sector

      2. 5.2.2 Growing Competition Expected to Impact Profit Margins of Existing Vendors

    3. 5.3 Analysis of Penetration of Integrated Facility Management Services in the United Kingdom

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Facility Management Type

      1. 6.1.1 Inhouse Facility Management

      2. 6.1.2 Outsourced Facility Management

        1. 6.1.2.1 Single FM

        2. 6.1.2.2 Bundled FM

        3. 6.1.2.3 Integrated FM

    2. 6.2 By Offering Type

      1. 6.2.1 Hard FM

        1. 6.2.1.1 Building Services

        2. 6.2.1.2 HVAC Services

        3. 6.2.1.3 Mechanical, Electrical, and Plumbing Services

      2. 6.2.2 Soft FM

    3. 6.3 By End User

      1. 6.3.1 Commercial

      2. 6.3.2 Institutional

      3. 6.3.3 Public/Infrastructure

      4. 6.3.4 Industrial

      5. 6.3.5 Other End Users

    4. 6.4 By Region

      1. 6.4.1 London and South East England

      2. 6.4.2 South West England

      3. 6.4.3 Midlands and East England

      4. 6.4.4 North of England

      5. 6.4.5 Rest of the United Kingdom

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles*

      1. 7.1.1 CBRE Group Inc.

      2. 7.1.2 Mitie Group PLC

      3. 7.1.3 EMCOR Facilities Services Inc.

      4. 7.1.4 Atlas FM Ltd

      5. 7.1.5 Andron Facilities Management

      6. 7.1.6 ISS UK

      7. 7.1.7 JLL Limited

      8. 7.1.8 Serco Group PLC

      9. 7.1.9 Kier Group PLC

      10. 7.1.10 Amey PLC

      11. 7.1.11 Atalian Servest

      12. 7.1.12 Sodexo Facilities Management Services

      13. 7.1.13 Compass Group

      14. 7.1.14 Engie Facility Management (Engie SA)

      15. 7.1.15 Vinci Facilities Limited

      16. 7.1.16 Aramark Facilities Services

    2. 7.2 Market Share Analysis

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OUTLOOK OF THE MARKET

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UK Facilities Management Industry Segmentation

Facility management confines multiple disciplines to ensure functionality, comfort, safety, and efficiency of any building by integrating people, place, process, and technology. While complex services include physical and structural services like fire alarm systems lifts, soft services include cleaning, landscaping, security, and similar human-sourced services, providing a solution to end-users such as commercial buildings, retail, government, public entities, etc.

The UK Facility Management Market is segmented by facility management type (in-house FM service, outsourced FM service (single FM, bundled FM, integrated FM), offering type (hard FM (building services, HVAC services, mechanical, electrical & plumbing services), soft FM), and end-user (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
Inhouse Facility Management
Outsourced Facility Management
Single FM
Bundled FM
Integrated FM
By Offering Type
Hard FM
Building Services
HVAC Services
Mechanical, Electrical, and Plumbing Services
Soft FM
By End User
Commercial
Institutional
Public/Infrastructure
Industrial
Other End Users
By Region
London and South East England
South West England
Midlands and East England
North of England
Rest of the United Kingdom
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UK Facilities Management Market Research FAQs

The UK Facility Management Market size is expected to reach USD 69.28 billion in 2024 and grow at a CAGR of 1.65% to reach USD 75.19 billion by 2029.

In 2024, the UK Facility Management Market size is expected to reach USD 69.28 billion.

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.

In 2023, the UK Facility Management Market size was estimated at USD 68.14 billion. The report covers the UK Facility Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UK Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

UK Facilities Management Industry Report

Statistics for the 2024 UK Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Facility Management analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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UK Facility Management Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)