Status : Published Published On : Oct, 2021 Report Code : VREP3016 Industry : Energy & Power Available Format : Page : 245

Global Facility Management Market – Analysis and Forecast (2021-2027)

Industry Insight by Service (Property(Heating, Ventilation, and Air Conditioning (HVAC) Maintenance, Mechanical and Electrical Maintenance, and Others), Cleaning, Environmental Management, Security, Support, Catering, and Others), by Mode (In-House and Outsourced), by Type (Hard, Soft, and Others), by Deployment Model (On-Premise and Cloud), by Solution (Integrated Workplace Management Systems, Building Information Modeling, Facility Operations and Security Management(Lighting Control, HVAC Control, Video Surveillance and Access Control, and Emergency and Incident Management), Facility Environment Management(Sustainability Management, Waste Management, and Facility Property Management), and Lease Accounting and Real Estate Management(Asset Maintenance Management, Relocation Management, and Reservation Management)), by Organization Size (Small and Medium-Sized Enterprises (SMEs) and Large Enterprises), by Industry Vertical (Banking, Financial Services, and Insurance (BFSI), IT and Telecom, Government and Public Administration, Healthcare, Education, Retail, Energy And Utilities, Manufacturing, Construction, and Real Estate, And Others),and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The global facility management market is anticipated to grow from USD 39.8 billion in 2020 to USD 68.9 billion in 2027, registering a CAGR of 10.9% during the forecast period 2021-2027. Facility management encompasses management methods and techniques to manage the building and infrastructure of an organization to safeguard the functionality of the built environment. It integrates people, places, processes, and technologies and helps an organization to focus on its core competencies. Facility management services comprise project management, inventory management, maintenance management, user management, operations management, and others to deliver services and manage facilities effectively of an enterprise. The rising adoption of disruptive technologies like cognitive computing augmented reality, IoT and analytics, robots, drones is the primary factor for the growth of the facility management market. There is an increase in spending on infrastructure, a growing focus on optimization process and energy improvements, growing demand to maintain environmental and regulatory compliances, rising adoption of integrated facility management, and transformation of the physical workforce are propelling the growth of the global facility management market.

The COVID-19 pandemic has resulted in a reduction in demand for facility management solutions and services owing to lack of labor force and disruption in supply and production of raw material in industry verticals like transportation, manufacturing, real estate, etc. However, the facility management solutions industry is anticipated to bounce back after the COVID-19 outbreak.

Market Segmentation

Insight by Service

Based on the service, the global facility management market is divided into property, cleaning, environmental management, security, support, catering, and others. The property segment in the facility management market is further sub-segmented into heating, ventilation, and air conditioning (HVAC) maintenance, mechanical and electrical maintenance, and others. The property segment holds the largest share during the forecast period owing to the rising demand for HVAC maintenance services, less maintenance and repair cost, less occupant turnover, and small vacant classes. Moreover, the HVAC segment will have a significant share owing to its use in extremely hot weather conditions as sir conditioners are widely used in commercial offices, hotels, residential buildings, manufacturing facilities, etc.

Insight by Mode

Based on the mode, the global facility management market is bifurcated into in-house and outsourced. The outsourced segment is further segmented into single, bundled, and integrated. The in-house category dominates the market owing to its high acceptance rate, long-standing existence, and less price. Moreover, various end-users rely on in-house services for managing their assets and other services like cleaning, catering, and security owing to the convenience offered.

Insight by Type

Based on type, the global facility management market is divided into hard, soft, and others. Soft service type contributes to the highest revenue as the commercial and residential buildings need soft services to manage their day-to-day operations efficiently.

Insight by Deployment Model

Based on the deployment model, the global facility management market is bifurcated into on-premise and cloud. The cloud-based deployment model is anticipated to grow at a faster pace owing to its ability to host software and service platform from remote locations which is beneficial during the COVID-19 crisis. Thus, it can be accessed from anywhere via the internet, resulting in low deployment costs and easy access to the data.

Insight by Solution

Based on the solution, the global facility management market is divided into integrated workplace management systems, building information modeling, facility operations and security management, facility environment management, and lease accounting and real estate management. The facility operations and security management are further subdivided into lighting control, HVAC control, video surveillance and access control, and emergency and incident management. The facility environment management is further divided into sustainability management, waste management, and facility property management. The lease accounting and real estate management are further divided into asset maintenance management, relocation management, and reservation management. The facility operations and security management dominate the market owing to the increasing software demand from various enterprises to manage various operational areas, tracking of important equipment information, manage recurring & maintenance costs.

Insight by Organization Size

Based on organization size, the global facility management market is divided into small and medium-sized enterprises (SMEs) and large enterprises. SMEs are anticipated to grow at a high CAGR as these solutions reduce cost and troubleshooting problems.

Insight by Industry Vertical

Based on industry vertical, the global facility management market is divided into Banking, Financial Services, and Insurance (BFSI), IT and telecom, government and public administration, healthcare, education, retail, energy and utilities, manufacturing, construction, and real estate, and others. Among these industry verticals, BFSI is anticipated to have the largest revenue during the forecast period as facility management solutions like IWMS and CMMS will help to manage various processes like asset management, maintenance management, and work order tracking.

Industry Dynamics

Industry Trends

The rising demand for cleaning services due to the COVID-19 pandemic making people hygiene conscious, evolving workplace culture, mounting benefits of outsourcing, rising infrastructural advancement, mounting alertness about the protection of assets, rising need for technical skills, and industry know-how are the key trends impacting the facility management market globally.  

Growth Drivers

The rising connectivity technology such cloud-based services, artificial intelligence, IoT, need for connected devices, expansion of construction industry & hotel industry, building automation, increasing complexity in technology like smart energy management, rising awareness about workplace safety, change in organization structure & work management, the introduction of innovative solutions by the industry players, rising need to comply with regulatory and economic regulations such as ISO 41000, government initiatives to invest in infrastructure development are the factors bolstering the growth of the global facility management market. Furthermore, collaborations of private contractors and international players in various government projects, increasing investment in the tourism industry will fuel the growth of the facility management market globally.

Challenges

Lack of managerial awareness about facility management solutions and standardization and integration of facility management with legacy ERP systems are the challenges faced by the global facility management market.

Opportunities

The rising trend of outsourcing facility management operations and technological development in SMEs are opportunities for the global facility management market.

Geographic Overview

North America holds the largest share in the facility management market owing to its dominance in property and technical FM firms with strong know-how, sustainable and well-established economies having investment in R&D activities, and advancement of technologies like AI, ML, cloud. Moreover, there are opportunities for facility management services in industries like aviation, healthcare, and industrial in the region.

Competitive Insight

The industry players are adopting strategies like M&A, collaborations, new product launches, joint ventures, partnerships, and geographical expansion in order to sustain the market and have a competitive edge in the global facility management market.

IBM collaborated with Sund & Bælt, a company that owns and operates some of the largest infrastructure in the world, to assist in IBM's development of an AI-powered IoT solution designed to help prolong the lifespan of aging bridges, tunnels, highways, and railways.

Accruent introduced enhancements in its cloud-based manufacturing solutions. The major Accruent cloud-based manufacturing solution includes synchronization of asset data between EAM and EDM solutions, API-based integration options for Meridian EDM software, and Single sign-on (SSO) for Accruent manufacturing solutions.

Some of the key players operating in the facility management market: Oracle, Accruent, IBM, SAP SE, Planon, iOffice, Trimble Inc., FMX, FM:Systems, and Archibus.

Facility Management Market Size and Market Analysis

Source:VynZ Research

Frequently Asked Questions

The growth rate for the global facility management market during the forecast period 2021-2027 is 10.9%.
Lack of managerial awareness about facility management solutions and standardization and integration of facility management with legacy ERP systems are the challenges faced by the global facility management market.
The rising connectivity technology such as cloud-based services, artificial intelligence, IoT, need for connected devices, expansion of construction industry & hotel industry, building automation are the factors bolstering the growth of the global facility management market.
North America holds the largest share in the facility management market.
Some of the key players operating in the facility management market: Oracle, Accruent, IBM, SAP SE, Planon, iOffice, Trimble Inc., FMX, FM:Systems, and Archibus.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Facility Management Market