Market Analysis and Insights

With a predicted CAGR of 6.09% from 2021 to 2030, the global facility management market was valued at USD 1,260.03 billion in 2022 and is expected to expand to USD 2,031.05 billion by 2030.

The global facility management market is expanding as a result of rising cloud-based solution usage as well as evolving organizational cultures and working practices. Furthermore, the market expansion for facility management is positively impacted by the launch of novel products and the implementation of different methods by significant vendors.

Facility Management Market Scope :

Market Definition

The practice of successfully and efficiently supervising the physical resources, infrastructure, and operations within a company's facilities or buildings is known as facility management (FM). 

Facility management's main mission is to make sure that the physical environment supports the organization's basic objectives and offers its inhabitants a secure, useful, and comfortable area. optimizing the distribution of space inside a building and its usage in order to increase production and efficiency. This entails organizing changes in space requirements, arranging meetings, and designing workplace layouts. ensuring that the building's structural, plumbing, electrical, and HVAC systems are appropriately maintained and repaired as needed to save downtime and assure safety.

Putting in place security measures, such as access control, monitoring, and emergency response preparation, to safeguard the building and its users. Another important factor is making sure safety laws are followed. Managing environmental issues, such as trash reduction, energy efficiency, and sustainability programmes to lessen the facility's environmental impact.
Budgeting, cost control, and resource allocation optimization are used to accomplish cost-effective facility operations. Choosing and overseeing service providers, suppliers, and contractors to ensure they adhere to the facility's requirements and standards.

Key Market Segmentation

Insights on Type

In 2021, Hard Services Segment Held the Biggest Market Share

There are two categories of services in the global facility management market: hard solutions and soft services. The hard services category controls the largest market share because of the substantial market demand from the construction sector.

Insights on Service

It is anticipated that the In-House Segment will Develop the Fastest

Based on the type of service, the facility management market is split between internal and external services. The in-house service category has the largest market share since the organized sector has a sizable need for internal soft services like cleaning, safety, etc. In-house services are ultimately more practical and economical because they are often constantly required. However, the market for outsourced services is also growing considerably since it is more affordable and there are more small and medium-sized firms.

Insights on End User

It's Anticipated that the Real Estate Segment Would Account for a Sizeable Portion of Income The healthcare, government, education, defense and military, real estate, and other sectors of the facility management sector are split into these groups. Over the next several years, forces on a worldwide scale are expected to have an impact on the real estate industry. In many nations, the C&D sector is held responsible. The real estate industry is also anticipated to expand significantly in other industries, notably those in the IT, BFSI , and telecommunications sectors. Furthermore, it is expected that the healthcare segment will grow significantly over the course of the projection period as a result of the facility management market's services being employed as preventative measures in many countries.

Insights on Region

The North American Region Accounted for the Highest Share

The highest market share will probably go to North America, according to facility management data. The United States and Canada's educated, prosperous, and technically skilled populations make it easier for new and emerging technologies to be adopted, and the industry's stronger positions among its participants will give organizations in this region a competitive edge over those in some other regions. In the region, there are also developed countries with sound infrastructure. As a result, there is a huge rise in demand for the solutions. enterprises involved in the IT and telecom sectors. The fastest rate of market share growth will be seen with them.

Key Company Profiles

Sodexo S.A., CBRE Group, Inc., Compass Group PLC, ISS A/S, Aramark, OCS Group Limited, GDI Integrated Facility Services, Inc., Jones Lang LaSalle IP, Inc. (JLL), Camelot Facility & Property Management, and Cushman & Wakefield plc. are the leading participants in the industry.

COVID-19 Impact and Market Status

During the pandemic, remote work was widely used, which decreased workplace occupancy. Facility managers were compelled to reconsider their approaches to space utilization and change workplace designs to account for social distancing practices as a result. 

Additionally, several businesses reduced the size of their offices or looked into flexible work options. To safeguard the safety of employees and residents, facility management specialists had to put additional cleaning and disinfection practices in place. This includes installing hand sanitizing stations, cleaning high-touch areas more often, and using contactless access methods. 
The epidemic hastened facility management's embrace of technology.

Monitoring indoor air quality, occupancy levels, and energy usage grew more dependent on building management systems (BMS) and Internet of Things (IoT) gadgets. The availability of cleaning supplies, personal protective equipment (PPE), and other necessary products for maintenance and safety was disrupted, as it was in many other sectors, by supply chain interruptions in the facilities management sector.

Many organizations cut spending on facility management as a result of the pandemic's economic unpredictability. Several facilities management initiatives have been postponed or reduced.

In facility management, the epidemic altered the top priorities. Priority was given to health and safety, and facilities' compliance with new health standards and recommendations received more attention.

Latest Trends

1. Asset management and monitoring for facilities is being done more and more with IoT devices and sensors. Predictive maintenance, energy optimization, and better space utilization are all made possible by these devices' real-time data on anything from equipment performance to occupancy levels. 

2. Large volumes of data gathered from sensors and other sources are being analyzed using cutting-edge data analytics and artificial intelligence. Facility managers can plan ahead, maximize resources, and anticipate maintenance needs with the aid of this data-driven strategy. Sustainability and energy efficiency are becoming more important to facility managers. 

3. In order to decrease energy usage and environmental effects, technologies including smart lighting, HVAC systems, and renewable energy storage are being incorporated. Real-time monitoring and remote control of building systems and assets are made possible by remote facility management technologies.

4. In order to predict when equipment or systems are likely to break, predictive maintenance employs data analytics and AI. With this strategy, downtime is kept to a minimum, maintenance expenses are decreased, and asset lifespan is increased.

5. Facility managers are placing more emphasis on optimizing space consumption due to shifting workplace dynamics and the expansion of remote work. This entails putting in place procedures for workplace reservations, hot-desking options, and flexible workspace designs.

Significant Growth Factors

Organizations have been forced to maximize their current facilities as a result of rising real estate expenses. Utilizing their physical spaces effectively and spending less on real estate are two goals of facility management services for businesses. Companies are always looking for methods to reduce operating costs. Process streamlining, decreased maintenance costs, and reduced energy use may all be achieved through facility management. Operations are now more effective and data-driven thanks to the incorporation of technology in facility management. The capabilities of facility management are enhanced by smart building technology, IoT sensors, and predictive maintenance systems. In terms of their systems and infrastructure, modern structures have grown increasingly sophisticated. Management and upkeep of these complex structures require facility management services. 

Restraining Factors 

Facility management services may be seen as an extra expense by many organisations, especially smaller ones. It might be difficult to persuade some organisations to invest in these services due to the high costs associated with implementing cutting-edge technology and complete facilities management systems.

Process and workflow adjustments are frequently needed when implementing facilities management technologies. Employee and stakeholder resistance to change can hinder the adoption of new practises and technology.

Compliance with a range of legal requirements, including as building, safety, and environmental regulations, is a requirement of facility management. It can be difficult and expensive to comply with these regulations. Data security and privacy are issues that are brought up by the collecting and administration of data in facility management. It is essential to safeguard private information regarding structures, resources, and residents.

Recent Developments in the Global Facility Management Market: A Snapshot

• In July 2022, facilities management provider 14forty, a division of Compass Group UK & Ireland, signed a multi-year agreement with online retailer N Brown Group plc to provide cleaning, catering, and security services at N Brown Group's location in Manchester's Northern Quarter as well as distribution centres in Oldham and Glossop. A hundred or so employees were welcomed by 14forty, which had moreover combined activities from three different firms under a single contract.

• To fulfil rising occupant demand for all-inclusive occupancy management services, CBRE Group announced in January 2022 that it will purchase Buildingi. Buildingi's space utilization data management and Computer-Aided Design (CAD) services will be completely integrated with CBRE's Occupancy Management team to support the company's occupancy management offerings. With the help of Buildingi's cutting-edge technology in CAD, Integrated Workplace Management Systems, and Building Information Modelling, this purchase seeks to give clients a comprehensive occupancy management solution. CBRE is known for its best-in-class occupancy management expertise.

Key Segments Facility Management Market

by Type 
• Soft Services
• Hard Services

By Application Overview 
• Commercial Buildings
• Government Buildings
• Residential Buildings

Regional Overview 

North America
• U.S
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America