Facilities Management (FM) 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 and Others), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

Facilities Management Market size exceeded USD 1 trillion in 2019 and is set to register 5% growth rate from 2020 to 2026. Growing investments in the tourism sector are supporting the industry growth.
 

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Supportive government initiatives for the development of smart cities will also support the market growth. The development of smart cities is resulting in new infrastructural development such as commercial spaces, educational zones, logistics, and transportation centers across the cities.
 

The COVID-19 pandemic is inflicting high human losses worldwide and necessary protection measures are severely impacting economic activities. Governments across the globe have imposed stringent lockdowns, resulting in travel restrictions. These restrictions have impeded the facilities management service providers to use their full workforce. The COVID-19 outbreak is restricting the industry growth.
 

Growing emphasis on outsourcing the FM services fueling the UK market demand

The UK in-house service accounted for over 40% of the facilities management market share in 2019 owing to fixed costs associated with the management of facilities and rapidly changing business demands. In-house employees usually perform better than outsourced employees. In-house service may lead to a financial gain, improved customer satisfaction, and employee career prospects in the long run. Fixed cost and rising number of startups are enabling organizations to use in-house services. The organizations focusing on employee retention are relying on in-house services.
 

Market growth for mechanical services in China is expected to surge

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In China, mechanical facilities management market is poised to grow at above 5% CAGR through 2026 on account of expanding manufacturing sector in the country. For instance, in the second quarter of 2019, China's manufacturing output expanded at a rate of nearly 6% compared to the same period in the previous year. The increase in manufacturing facilities is resulting in the rising adoption of mechanical FM services. These services help businesses to manage the maintenance of different mechanical equipment such as boilers, diesel generators, and water pumps
 

Airport facilities involve several mechanical equipment such as dollies, chocks, aircraft tripod jack, and aircraft service stairs. Maintenance of heavy equipment diverts the airport authority’s attention from their core flight operations. Airport authorities outsource these activities to third-party service providers that manage the maintenance of these heavy equipment, reducing the failure of these systems by timely replacement of older & defective parts.
 

Supportive government initiatives are driving the Brazil market revenue

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The Brazil healthcare sector is likely to capture more than 10% of the facilities management market share in 2026 impelled by supportive government initiatives to improve healthcare centers. Healthcare centers must ensure that service requests are responded quickly & efficiently and must maintain preventive maintenance schedules to continue their operations without any interruption. Public & private hospitals are crowded places, where thousands of footfalls happen daily. The management of such a huge crowd is a big challenge for hospital administration.
 

Major hospitals are offering contracts to facilities management service providers to manage their facilities effectively. The ongoing COVID-19 pandemic has also exerted immense strain on hospitals and medical institutes to maintain a high level of hygiene and cleanliness in their premises.
 

Growing tourism industry in Europe is fueling the facilities management market outlook

Europe market generated around 20% of the revenue share in 2019 led by the growing tourism industry. The rising number of tourists in the region is enabling hotels, restaurants, shopping malls, and airports to outsource facilities management services to handle large number of tourists and focus on service quality and efficiency. Moreover, outsourcing these services is helping tourism service providers to reduce costs & expenses associated with businesses in the long run.
 

Strategic acquisitions and partnerships remain key market growth strategies

The major industry participants are acquiring other service providers to expand the facilities management capabilities and regional coverage. For instance, in February 2019, Cushman & Wakefield acquired Quality Solutions, Inc., a facility management enterprise. The acquisition helped the company to strengthen its presence across North America and improved its market position. This acquisition also helped the company to gain a competitive advantage over its competitors.
 

Some of the major facilities management market players 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.
 

This market research report on facilities management (FM) includes in-depth coverage of the industry, with estimates & forecast in terms of revenue in USD from 2015 to 2026, for the following segments:

Market, By Type

• Outsourced
• In-house

Market, By Service

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

Market, By Application

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

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