Facilities Management Market size worth $2 TN by 2026
Published Date: October 19, 2020 Authors: Preeti Wadhwani, Smriti Loomba
Facilities Management Market size is set to surpass USD 2 trillion by 2026, according to a new research report by Global Market Insights Inc.
Increasing government initiatives for the development of smart cities is expected to drive the facilities management industry demand. The development of smart cities is resulting in building new infrastructure, which require facilities management services for their efficient management and maintenance. The growing number of universities, airports, and hospitals in smart city development projects will create lucrative market growth opportunities.
The unprecedented shutdown of facilities due to COVID-19 pandemic has significantly dented the market growth. With health and wellness becoming key focus areas, organizations are stressing on hiring professional and trained staff. For instance, Winmar, a major player in Canada, is emphasizing on employee and public safety and strictly adhering to the CDC and Health Canada guidelines and standards of cleaning practices.
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Growing investments in the construction sector
The facilities management market has observed a growing demand in the wake of increasing investments in real estate and construction industries. The growing investments in the real-estate sector are accelerating the development of smart buildings, which has made facilities management as the essential preventive maintenance process. Besides, a large number of buildings that require cleaning and maintenance have accentuated the market demand.
Increasing competitive pressure and focus on the core business to drive the outsourced services segment
The outsourced FM services segment is projected to witness a steady growth rate of above 8% through 2026 due to the increasing stress on enterprises to focus on core competencies. Outsourcing helps businesses to maximize their return on investment and establish long-term competitive advantages in the market. Healthcare and education are the leading sectors experiencing an increased demand for facilities management outsourcing.
Browse key industry insights spread across 364 pages with 469 market data tables and 28 figures & charts from the report, “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” in detail along with the table of contents:
Extensive stress on high hygiene standards propelling the soft facilities management market growth
The soft services segment is anticipated to register more than 10% CAGR through 2026 driven by the growing uptake of cleaning services to avoid diseases and infections in any organization. In lieu of the ongoing COVID-19 pandemic, keeping workplaces clean and sanitized in the aftermath of the coronavirus could require specialized training. Hospitals and healthcare institutes are increasingly becoming dependent on facilities management service providers to keep their premises clean and hygienic.
Rapid expansion of office and retail infrastructure to boost the market demand across the commercial application
The commercial application held over 15% of the facilities management market share in 2019. Restaurants and big retail stores heavily rely on maintaining clean and safe environments in order to attract huge audience, creating new growth avenues for soft facilities management services. New commercial spaces and offices are expected to further spur the market growth.
Rising tourist count in North America to accentuate the regional market growth
The North America is set to attain around 30% of the market share by 2026. The growing tourism industry in the U.S and Canada is accelerating the adoption of cleaning and laundry services, leading to an expansion in the overall facilities management market. For instance, For instance, according to the International Trade Administration (ITA), the U.S. is expecting more than 95.5 million international visitors annually by 2023 which is nearly twice the amount compared to 2000.
Focus on inorganic growth strategies by key players to augment market share
The market has witnessed several strategic acquisitions by major vendors to acquire marginal players and strengthen their presence. 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 key facilities management market players include Aramark, CA Technologies, CB Richard Ellis (CBRE), Colliers International, Compass Group, 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, and Veolia.