Facility Management (FM) Market Size, By Type (Outsourced, In-house), By Service (Hard Service [Electrical, Civil, Mechanical, Specialized], Soft Service [Cleaning, Laundry, Landscaping, Security], Management Service [Contract Management, Energy & Utilities, Maintenance Planning and Control]), By Application (Education, Commercial, Transportation, Industrial, Government & Public, Healthcare), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 – 2032

Industry Statistics

Facility Management Market size valued at USD 1 trillion in 2022 and is predicted to grow at more than 13% CAGR between 2023 and 2032, on account of rapid modernization and increasing infrastructure development projects.
 

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With the rapid population growth and modernization in countries such as India and China, the emphasis on the development of smart cities and business hubs has become more prevalent. The rising number of fast-growing economies has also resulted in the incorporation of multiple projects spanning residential real estate, logistics and transportation centers, and industrial zone development. The implementation of large-scale commercial projects will stimulate the adoption of facility management services to ensure seamless functionality, safety, efficiency, and sustainability of the core businesses.
 

Skilled internal staff and essential components and systems must be equipped for efficient facility management as it is an integral part of any organization. To reduce maintenance costs, however, organizations often rely on their in-house facility management teams. These factors may lead to reduced FM services outsourcing and create a hindrance to industry expansion to some extent. Despite these challenges, the escalating investment in infrastructure development projects to impact economic growth will create lucrative opportunities for facility management service providers.
 

Industrialization & urbanization in developing economies to promote in-house FM software development

The facility management market from the in-house segment is slated to exhibit around 12% growth rate through 2032. This is attributed to the ability of in-house systems to deliver seamless and efficient operations over outsourced counterparts. In-house FM services are also associated with financial gains, improved customer satisfaction, and better career prospects for employees. Rapid urbanization and industrialization will therefore boost the reliance on in-house software to manage facility operations, especially in developing economies such as India.
 

Investments in infrastructure development to fuel hard facility management service demand

The market size demand from the hard service segment is set to register 12% gains from 2023 to 2032. Hard services in facility management include the maintenance of structures, equipment, and other physical building elements. Over the years, governments have been introducing infrastructure development programs, such as the National Infrastructure Delivery Plan 2016–2021 in the UK. Such initiatives, along with the mounting investment in automobile, transportation, energy, and other industrial sectors will amplify the demand for hard FM services.
 

The facility management market value from the electrical hard service segment crossed USD 619.5 billion in 2022. With the accelerating deployment of HVACs, computer systems, and other smart technologies in buildings, the requirement for continuous and uninterrupted power supply has increased. These trends will augment the requirement for dedicated skilled workforces across business organizations to manage advanced electrical systems, further driving the adoption of electric FM services.
 

Focus on cleaning & waste disposal efficiency to bolster FM service use in healthcare applications

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Based on the application, the healthcare segment will account for approximately 15% share of the facility management industry by 2032. The need to adopt effective waste disposal and cleaning practices to avoid disease transmission in healthcare centers, including clinics and labs, is promoting the usage of FM services. Major hospitals are also issuing contracts to FM service providers for effective management of their operations.
 

Asia Pacific to emerge as a key development hub for FM service providers

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Regionally speaking, the Asia Pacific facility management market size is anticipated to depict above 15.5% growth through 2032, owing to the rise in government initiatives to support smart city developments. Countries such as China, Taiwan, and Singapore are among the major regions where local governments have initiated smart city innovation movements. These factors will aid in the development of major public infrastructures including malls, airports, and hospitals, consequently increasing the use of FM software in the region.
 

Impact of COVID-19 pandemic on business trends

COVID-19-induced setbacks have become prevalent across industry verticals, including the global facilities management market, since the onset of the pandemic. To address these challenges, service providers have been focusing on sanitization and workspace reorganization to reduce risks and increase resiliency. The digitalization of collaborative tools has also become a necessity to remotely support customers. As a result, FM organizations have shifted their preference toward digitalized solutions to increase business efficiency and scope, enabling a steady industry recovery from the crisis.
 

Strategic merger & acquisition initiatives to strengthen the business landscape

Key players operating in the global facility management market include Aramark Corporation, CBRE Group, Inc., Compass Group PLC, EMCOR Group, Inc., IBM Corporation, ISS Facility Services, Inc, Interserve PLC., OCS Group Limited, Oracle Corporation, SAP SE, Serco Group Plc, Tenon Group, Sodexo, and Veolia Environment, among others. These companies are focusing on strategies such as mergers and acquisitions to solidify their presence in the industry.
 

This market research report on facility management includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032, for the following segments:

Market, By Type

• Outsourced
• In-house

Market, By Service

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

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
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Chile
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Qatar