Facilities Management Market Size By Type (Outsourced, In-house), By Service (Hard Service [Electrical, Civil, Mechanical, Specialized Services], Soft Service [Cleaning, Laundry, Landscaping, Security], Management Service [Contract Management, Energy & Utilities, Maintenance Planning and Control]), By Application (Education, Commercial, Transportation, Industrial, Government & Public Sector, Healthcare), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2025

Industry Trends

Facilities Management (FM) Market size exceeded USD 1 trillion in 2018 and is poised to witness over 7% CAGR between 2019 and 2025.
 

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Facilities management is an important organizational function, which integrates place, people, and process within the facility’s environment with the purpose of improving the standard of life of the people and productivity of the core business. FM manages valuable assets including property, building, equipment, and other environments that house personnel, productivity, inventory, and other important elements of operations.
 

The growing tourism sector in developing countries including India and China is supporting the adoption of facilities management services at restaurants, hotels, airports, and entertainment centers. These facilities use management services to perform their day-to-day operations effectively. These services help the tourism industry by providing a superior experience for their guests to attract new and retain existing customers, creating a compelling environment for guests. They also help in providing trained facilities management workforce that can efficiently maintain the hygiene and environment at tourist facilities.
 

The supportive government initiatives for the development of smart cities is another factor supporting facilities management market growth. The development of smart cities is resulting in building new infrastructure across the cities such as commercial spaces, educational zones, logistic, and transportation centers. These centers require FM services for their efficient management and maintenance. The growing number of universities, airports, and hospitals in smart city development projects create lucrative business opportunities for facilities management services such as cleaning, security, and landscaping. 
 

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Organizations outsourcing facilities management to increase focus on their core operations

In mature markets such as the UK, the outsourced facilities management (FM) market is expected to grow at a steady CAGR of around 6% as the overall FM demand is more focused on specialized services such as environmental management, energy, and IT infrastructure related services. Service providers in this region are increasingly focusing on innovation to retain their customer base and sustain in the highly competitive market. Businesses outsource their facility-related activities, such as cleaning, maintenance & planning, that are crucial for running daily operations of an organization. Outsourcing helps businesses to reduce the operating and capital expenditure for training and maintaining in-house staff and equipment for the management of facility.
 

Cleaning services are expected to register fastest growth in the facilities management market

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The Japanese cleaning services market size is expected to grow over USD 7 billion by 2025. The growth is attributed to the high emphasis on maintaining hygiene at workplace in the country. Traditional organizations use their in-house labor for managing the complete cleaning operations of their facilities. Modern organizations are inclining towards outsourcing the cleaning and maintenance operations. Apart from educational institutes and healthcare centers, facilities cleaning services are also used in retail warehouses, office units, manufacturing plants, and entertainment centers.
 

Demand for electrical services is expected to surge over the forecast period

Based on the type of service, the facilities management market has been segmented into hard, soft, and management services. Hard services are expected to hold a market share of over 50% by 2025 due to the demand for a skilled workforce for managing electrical and mechanical equipment in facilities. This segment includes electrical & mechanical plant and equipment management, fire safety & emergency services, Building Management Systems (BMS) controls, lifts & conveyors, and security systems. Any failure may halt crucial business operations and cause a delay in the delivery of services or products to clients.
 

Electrical services provide organizations consistency by maintaining the entire electrical system of facility. Facilities management services provide well-trained technicians to quickly identify and resolve issues that cause the failure of the organization’s business operations. Outsourcing the maintenance of the entire electrical systems can increase the lifecycle of electrical equipment of an organization.
 

Government initiatives are supporting the healthcare segment growth

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Application segments include commercial, healthcare, transportation, government & public sector, industrial and education. The healthcare sector in the U.S. facilities management (FM) market is expected to grow with a CAGR of over 6% due to supportive government initiatives to improve healthcare centers. The centers must ensure that service requests respond quickly & efficiently and maintain preventive maintenance schedule to continue their operations without any interruption.
 

Public and private hospitals are crowded places with high footfall every day. The management of such a huge crowd is a big challenge for hospital administration. The maintenance of other electrical, mechanical, medical, and surgical equipment in hospitals is also important for providing efficient healthcare services. Facilities management services help hospitals to perform their operations efficiently without any interruption.
 

Growing tourism sector in North America is fueling the market growth

North America held a facilities management market share of over 30% in 2018 due to the growing tourism industry in the region. The rising number of tourists in the region is enabling hotels, restaurants, shopping malls, and airports to outsource FM services in order to handle large tourists and focus on service quality and efficiency. Moreover, outsourcing these services is helping tourism service providers to reduce costs and expenses associated with businesses in the long run. The demand for facilities management services is increasing rapidly across several industrial sectors in the region such as healthcare, government, corporate offices, and universities.
 

Strategic acquisitions and partnerships remain key growth strategies

The major leaders operating in the market are acquiring other service providers to expand the facilities management capabilities and regional coverage. For instance, in January 2019, Cushman & Wakefield acquired Quality Solutions, Inc. (QSI) to enhance facilities management capabilities. This acquisition helped the company to expand its coverage across North American markets through QSI’s strong supply chain of more than 50,000 qualified suppliers and more than 75 facilities traders.
 

Some of the major companies operating in the facilities management market are Aramark, CA Technologies, CB Richard Ellis (CBRE), Colliers International, Cushman & Wakefield, EMCOR Group, Inc, G4S plc, IBM Corporation, Interserve, ISS Facilities Services Inc., Jones Lang LaSalle Incorporated, OCS Group, Oracle Corporation, Planon Corporation, Serco Group, Sodexo, Tenon FM, Veolia, and Compass Group.
 

The facilities management (FM) market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue in USD from 2014 to 2025, for the following segments:

By Type

• Outsourced
• In-house

By Service

• Hard Service
  • Electrical
  • Civil
  • Mechanical
  • Specialized Services
• Soft Service
  •  Cleaning
  • Laundry
  • Landscaping
  • Security
• Management Service
  • Contract Management
  • Energy & Utilities
  • Maintenance Planning & Control

By Application

• Government & public sector
• Industrial
• Commercial
• Education
• Transportation
• Healthcare

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
  • Netherlands
• APAC
  • China
  • Japan
  • India
  • ANZ
  • South Korea
  • Singapore
  • Taiwan
• LAMEA
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Chile
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Qatar