UK Facility Management Market Size

Statistics for the 2023 & 2024 UK Facility Management market size, created by Mordor Intelligence™ Industry Reports. UK Facility Management size report includes a market forecast to 2029 and historical overview. Get a sample of this industry size analysis as a free report PDF download.

Market Size of UK Facility Management Industry

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