Facilities Management Market Size to hit $2 trillion by 2025

Facilities Management Market size is set to reach USD 2 trillion by 2025; according to a new research report by Global Market Insights, Inc.
 

The facilities management market is expected to witness significant growth from 2019 to 2025 due to an increase in the demand for reducing the operational cost required to maintain non-core business operations in facilities. The rising awareness regarding clean and healthy workspaces for improving employee productivity is enabling companies to outsource these services. Supportive government initiatives for improving health and educational institutes are also supporting the market growth. The increase in demand for smart cities to improve the standard of living of citizens is also resulting in the rising demand for facilities management services.

 

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Rising investments in the construction sector is fueling the facilities management market growth

The rising investments in the construction sector is enabling the development of smart infrastructure equipped with light, sensors, elevators, HVAC units, and CCTV integrated into a network. The maintenance and uninterred operations of smart infrastructure is making facilities management an essential service. The rising number of construction projects for commercial and residential purposes are fueling the demand for construction and engineering facilities management services. As a large number of buildings require cleaning and maintenance services, the demand for these services is also increasing.
 

Browse key industry insights spread across 260 pages with 476 market data tables and 26 figures & charts from the report, “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” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/facilities-management-market
 

Outsourced services gaining popularity

UK Facilities Management Market Size, By Type, 2018 & 2025 (USD Billion)
UK Facilities Management Market Size, By Type, 2018 & 2025 (USD Billion)

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Outsourced facilities management services are a more attractive proposition as compared to in-house facilities management. The segment is expected to grow at a CAGR of over 7% due to the rising awareness regarding the flexibility and cost-benefits provided by outsourcing the maintenance of facilities. The growing business ecosystem is making difficult for enterprises to manage business core-operations along with different operation & maintenance activities such as cleaning, security, laundry, and electrical & mechanical maintenance. Outsourcing these non-core operations helps businesses to improve their productivity and reduce the cost of maintaining in-house facilities management staff for management of the facility. Outsourced services help businesses to get support from skilled and expert staff to reduce the downtime of their operations and improve the delivery time of their products & services.
 

Demand for physical security services is rising

Security services are expected to hold a facilities management market share of over 30% by 2025 due to an increase in the demand for protection of important assets of facilities. 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 an organization to avoid any unauthorized person to enter the organization’s premises. Outsourcing of security enables safety engineers to develop policies to ensure the security of employees and customers. A safety supervisor inspects facilities and directs employees to ensure people and property are kept safe.
 

Contract management services expected to remain an attractive growth avenue

Contract management services are expected to grow at over 8% CAGR due to an increase in the demand for managing multiple contracts with the growth of the business. Contract management manages the creation, implementation, and evaluation of multiple business contracts to maximize business performance and minimize the risk associated with the business. Effective contract management drives long-term value for the organization. Contract management help organizations to simplify their business functions and guides them to identify the key areas to optimize revenue and minimize costs. It helps businesses to implement and enhance the level of compliance amongst relevant stakeholders.
 

Government compliances are enabling demand of facilities management services across the education sector

The education segment is expected to grow at a CAGR of around 10% due to rise in government regulations regarding the environment of educational institute premises. Educational facilities consist of different building systems such as mechanical, electrical, HVAC security, and fire protection system. The management of these multiple resources in enabling schools to use facilities management services. Institutes are using facilities management services to follow strict guidelines provided by government authorities regarding health and hygiene standards in these institutes.
 

Development of smart cities is the major driver for APAC market growth

Asia Pacific facilities management market growth will be driven by a favorable regulatory climate for the development of smart city projects. For instance, according to a report published by the Mercator Institute for China Studies (MERICS), China is a leader in the development of smart cities with approximately 500 smart cities projects in 2018. The development of smart city projects is expected to incorporate multiple projects including industrial districts zones, seaports, residential real estate development projects, resorts, educational zones, logistic, and transportation centers. These large commercial projects are fueling the adoption of facilities management services in the region.
 

The companies operating in the market are acquiring projects from government and large private enterprises. The companies are also emphasizing on expanding their regional presence to gain more customers. Some of the major companies operating in the market are CA Technologies, CB Richard Ellis (CBRE), Aramark,  Colliers International, EMCOR Group, Inc, G4S plc, IBM Corporation, Cushman & Wakefield, Interserve, Jones Lang LaSalle Incorporated, OCS Group, Serco Group, ISS Facilities Services Inc.,  Planon Corporation, SAP SE, Sodexo, Tenon FM, Veolia, Oracle Corporation, and Compass group.

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