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Facility Management (FM) Market size exceeded USD 1 trillion in 2020 and is anticipated to grow at a CAGR of over 10% from 2021 to 2027. The market growth is attributed to increasing investments in the real estate and construction industries across the globe.
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Growing investments in the real estate sector are accelerating the development of smart buildings. Smart buildings integrate lights, sensors, windows, doors, HVAC units, and CCTV with a network. The development of these smart buildings has made facility management an essential preventive maintenance process. With several buildings requiring cleaning and maintenance services, there has been an increasing market demand for facility management services.
Report Coverage | Details |
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Base Year: | 2020 |
Market Size in 2020: | USD 1 Trillion |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 10% |
2027 Value Projection: | USD 2 Trillion |
Historical Data for: | 2017 to 2020 |
No. of Pages: | 350 |
Tables, Charts & Figures: | 504 |
Segments covered: | Type, Service, Application and Region |
Growth Drivers: |
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Pitfalls & Challenges: |
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The coronavirus pandemic has a high impact on the market. Currently, properties are being managed by about 5% - 10% of the total resource personnel deployed, which will add up the cost of facility management companies in the short term. In the long run, these resources are critical for the normal working of different types of properties due to which suppliers are incentivizing blue-collar workers, providing cleaning and sanitizing services for commercial & real estate properties.
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In the U.S., the outsourced facility management segment is likely to cross USD 200 billion in 2023. The U.S. healthcare and education industries are experiencing an increased market revenue for outsourcing. Outsourcing of facility management allows healthcare professionals to focus on caring for patients while also ensuring that their facilities function at optimal functionality.
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In the UK, the electrical segment is will account for 20% of the market share by 2027. Facility management services provide well-trained technicians to quickly identify and resolve issues that can cause the failure of an organization’s business operations. Outsourcing the maintenance of entire electrical systems can increase the lifecycle of electrical equipment of an organization, which is expected to reshape the industry value for electrical facility management services in the region.
Facilities management system providers design, install, maintain, and test a wide range of equipment such as high & low electrical systems. Regular assessment by a technically trained workforce can significantly reduce the long-term risk and help businesses to reduce the cost of repairs & replacements, which is slated to propel the industry demand.
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In Japan, the security segment in the facility management market is poised to expand at more than 15% CAGR till 2027. Modern devices such as electric locks, biometric readers, and exit request devices are not enough to provide complete security to the enterprise’s infrastructure and other human assets. Physical security is an important aspect of any organization to avoid unauthorized entry into an organization’s premises. Organizations need to hire trained security personnel to protect from possible hostile attacks or any illegal activities on the premises, which will drive the industry expansion. Major universities and airports across the country have become vulnerable owing to the increasing number of terror-related incidents.
In Germany, the industrial segment held 20% of revenue share in 2020. The outsourcing of facility management services helps companies to manage their corporate social responsibilities, health & safety rules adherence, and maintain the overall quality of their core business. Government regulations on maintaining a safe and hygienic environment for employees encourage owners to adopt various personalized facility management services from outside.
For manufacturing firms, it is necessary to follow safety and securing protocols & rules, thus they outsource the maintenance of electrical and mechanical services that are aligned with government guidelines. Manufacturing factories need to completely focus on their core business, thus they adopt facility management services to improve their work efficiency and productivity.
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Asia Pacific facility management market is estimated to attain a CAGR of over 15% CAGR till 2027. The APAC industry is characterized by increasing government initiatives to support smart cities. With the development of smart cities, the number of major public infrastructures, such as airports, malls, universities, hospitals, and seaports, is also increasing, which has amplified the market demand for facility management services. The rapidly growing construction sector across Asian countries, such as India and China, will also support industry progression in Asia.
Some of the key players operating in the market are Aramark, CB Richard Ellis (CBRE), Colliers International, Compass Group, Cushman & Wakefield, EMCOR Group, Inc., G4S plc, GDI Integrated Facility Services, Inc., IBM Corporation, Interserve PLC, ISS Facilities Services Inc., Jones Lang LaSalle Incorporated, OCS Group, Oracle Corporation, Planon Corporation, SAP SE, Serco Group, Sodexo, Tenon Group, and Veolia Environment.
The global market remains highly fragmented with multiple leaders sharing the market among themselves. Prominent companies operating in the market are eyeing the growing hospitality sector of regional markets. Government authorities are providing opportunities to these players to expand their regional presence through strategic initiatives. This factor aids in catering to the dynamic regulatory requirements of the hospitality industry, especially during the peak of safety protocols required amid the ongoing pandemic.
Market, By Type
Market, By Service
Market, By Application
The above information has been provided for the following regions and countries: