PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1520610
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1520610
Global facility management market was valued at USD 1301.54 billion in 2023, expected to reach USD 2093.32 billion in 2031, with a CAGR of 6.12% for the forecast period between 2024 and 2031. Changes in technology, green initiatives, and contemporary trends such as rising disposable incomes and rapid urbanization influence facility management (FM) to conduct businesses and respond to daily difficulties.
AR technology used by FM companies provides an easy and interactive way to see and traverse complicated facilities. By superimposing digital information on the actual world, AR improves spatial comprehension, allowing facility managers to find equipment, identify trouble areas, and plan maintenance more efficiently.
The diversification of regulations that regulate the property market, combined with an increasingly sophisticated range of outsourcing arrangements, promises to create a considerably broader and more flexible set of business support atmospheres in the future.
The demand for FM services is increasing as expenditures in healthcare infrastructure and healthcare facility construction continue. Infrastructure has recently emerged as a critical component in providing public healthcare. As a result, global investment in healthcare infrastructure development has surged. Healthcare organizations are making significant investments in infrastructure to provide modern healthcare services. In March 2024, the International WELL Building Institute (IWBI) recognized JLL for the third year in a row for its exceptional commitment, leadership, and impact in prioritizing health and well-being in the built environment.
Institutionalization of Hybrid Working Fuels the Demand for FM Services
As hybrid working has become a more common practice in many businesses these days, the FM industry may expect it to have a substantial impact on workplace capacity planning. Presently, office capacity requirements are shifting, with many employees to have their own workspaces at home. It creates a completely new dynamism regarding new forms of services and finance requirements for employees whose workplaces are located at their respective homes. In addition to capacity planning, the transition to hybrid work will impact the types of space provided in corporate workplaces, with the traditional office settings expected to become primarily a place for collaboration and teamwork, some individual workspaces exist.
Furthermore, a conference room can be imagined as a connected meeting room, that is, a space where individuals can gather and digitally link to any location. For instance, in November 2023, Meeting-Rooms-as-a-Service (MRaaS) was developed by HCLTech in partnership with Cisco Webex, which enables productive worldwide workforce collaboration. By enabling customers to join meetings from any meeting platform provider using Webex devices, MRaaS modernizes outdated meeting rooms.
Rise of PropTech Drives Market Growth
Over the next five years, the trend of property technology, or PropTech, will be comparatively more familiar to people. Described as the meeting point of real estate and emerging technologies such as IoT, blockchain, big data, drones, virtual and augmented reality, and artificial intelligence (AI) that are being offered in the real estate market, PropTech aims to revolutionize the real estate industry by virtualizing and digitizing physical infrastructure.
PropTech is expected to go towards smart technology-based building control, merging several apps so that businesses can easily manage various building functions from a single location. However, it involves commercial lateral such as building assessment and financial management.
In April 2023, Asset OS was released by the premier PropTech firm, Dottid, which is revolutionizing the commercial real estate (CRE) business by generating revenue growth and efficiency for asset managers and brokers. By combining data and processes into one location and integrating powerful features of several platforms, tools, and workflows into a single user-friendly interface, Dottid's patented technology in transforming the real estate industry and saving CRE firms with a significant amount of money and time.
Growing Focus of Government on Development
Governments throughout the world have been investing more money in infrastructure development, which has sparked the creation of new technologies and the adoption of best practices, raising the standard of facility management services provided across the world. In February 2024, a USD 772.6 million investment was announced by the Biden-Harris administration for projects related to rural infrastructure. More than a million people in rural communities would benefit from the funding by gaining access to modern infrastructure, clean drinking water, and high-speed internet.
Similarly, Germany allocated USD 63 billion in 2024, more than 60.2% from the previous year, for green infrastructure, aiming to achieve a sustainable future by 2045. It would consequently lead to authorities seeking facility management services through private and public entities. Continuous maintenance and management are required in such projects to ensure operational efficiency, safety, and endurance. With substantial budget allocation by governments towards infrastructure development, remarkable growth is witnessed in the global facility management market, driven by the rising demand for cost-effective management of public facilities and assets.
Hard Services to Hold the Major Global Facility Management Market Share
With increasing growth in the infrastructure industry all over the world, the hard services segment holds a larger market share than the soft services segment. Furthermore, services such as building fabric maintenance, drainage, plumbing, cleaning, and others related to the physical structure of the building are included in the segment. Moreover, the increasing urbanization throughout the world is giving rise to the building and construction sector, further driving the demand for hard services. In March 2023, Infracare Facilities Management, based in UAE, announced the introduction of Infracare Home Services, a new subsidiary that provides customers with a variety of high-quality and cost-effective services in homes around UAE. In another instance, in October 2023, a prominent facility management company, ISS Facility Services Middle East - FZ-LLC, launched Pure Space Production, a specialized cleaning service product in China. The product is specifically designed to cater to the needs of the industry and manufacturing segment, as cleanliness, energy efficacy, and output are vital in these segments.
North America Dominates the Global Facility Management Market Share
North America dominates the global facility management market, driven by its advanced infrastructure, high technological adoption, robust economic base, and stringent regulatory environment. The region, especially the United States and Canada, boasts mature infrastructure requiring sophisticated facility management services to ensure optimal operations. North America leads in integrating advanced technologies such as IoT, AI, and automation, enhancing service efficiency and effectiveness. The strong economic conditions allow for significant investments in infrastructure and comprehensive facility management solutions. The region's growing focus on sustainability and green building practices further drives the demand for energy-efficient and sustainable facility management services. Moreover, the presence of leading global facility management providers with extensive networks and comprehensive service offerings contributes to North America's market dominance.
In January 2024, Honeywell International Inc. introduced an automated platform, Advance Control for Buildings, for the purpose of building management. The new platform has technologies to make buildings safer, smarter, and more sustainable as well as integrated cybersecurity and quicker network speeds.
Future Market Scenario (2024 - 2031F)
With growing adoption of AI, IoT devices, and other automation tools, FM industry is expected to be more tech-driven in future. Real-time monitoring, predictive maintenance, and data-based decision making will be enabled using technology integration to enhance cost savings.
Facility management will emphasize more on achieving sustainability as companies are investing in eco-friendly practices and other energy-saving solutions in which carbon footprints can be reduced.
There will be a growing demand for comprehensive facility management services incorporating hard as well as soft services with integration of technology.
Key Players Landscape and Outlook
Global facility management market has a vast landscape with established companies and new players entering the market, competing for their respective market shares. Prominent players are expected to maintain their market share by offering innovative products, engaging strong distribution networks, and creating brand recognition through various marketing strategies.
In April 2023, BT Group renewed its relationship with CBRE to provide facilities and project management services to its United Kingdom portfolio, which includes over 7,500 locations and serves over 80,000 BT Group and Openreach employees. The extended deal includes CBRE's continuous supply of host services to support BT Group's Better Workplace Programme, the most significant workplace improvement and consolidation plan of its kind in the United Kingdom.
However, new entrants are coming with distinct formulations using sustainable practices disrupting the market and gain the market share. Expanding product portfolios and enhancing the brand presence online will lead to greater demand in the forecast period.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work