| Status : Published | Published On : Dec, 2023 | Report Code : VREP3016 | Industry : Energy & Power | Available Format :
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Page : 245 |
Global Facility Management Market – Analysis and Forecast (2025-2030)
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 47.8 billion in 2023 to USD 88.9 billion in 2030, with a CAGR of 12.9% during the forecast period.
Facility Management involves overseeing and maintaining physical assets to ensure optimal functionality and efficiency. It includes various services such as maintenance, cleaning, security, and space management. By optimizing resources and enhancing operational effectiveness, Facility Management contributes to creating safe, productive, and sustainable environments for occupants and stakeholders.
Facility Management services are essential in various sectors including commercial buildings, office spaces, hospitals, educational institutions, retail stores, manufacturing plants, government facilities, and residential complexes.
The Facility Management market is divided into several segments according to the service type, mode, deployment model, size of the organization, and industry verticals. There are different service categories like hard and soft services, with a focus on real estate-related services driving market dominance.
The in-house segment leads, driven by its acceptance, presence, and cost-effectiveness, while outsourcing offers optimization opportunities through careful consideration of capability and cost. Cloud-based deployment accelerates growth, offering remote accessibility and cost advantages, while facility operations and security management emerge as market leaders, addressing diverse operational needs.
Market Segment
Insight by Service
The Facility Management Market encompasses various service categories including hard, soft, and supplementary services involving support, cleaning, catering, plumbing, fabric maintenance, among others.
Out of all these segments, the hard services category, particularly relevant to real estate, boosts the Facility Management Market, spurred by urbanization trends. Urbanization drives the demand for mechanical and electrical maintenance, HVAC (heating, ventilation, and air conditioning) upkeep, and related services. With increasing demand for HVAC maintenance services, reduced maintenance costs, minimized occupant turnover, and fewer vacant properties, hard facility management services are projected to dominate the market share in the foreseeable future.
On the other hand, soft and auxiliary services also play a significant role in fostering the growth of the Facility Management Market during the forecasted period.
Insight by Mode
The worldwide Facility Management market is categorized by mode into two main segments namely, in-house and outsourced, with the outsourced segment further divided into single, bundled, and integrated categories.
Out of these two segments, the in-house segment is more dominant in the market and it is attributed to its extensive acceptance, long-standing presence, and cost-effectiveness. Many end users also rely on in-house services for asset management and various auxiliary services such as cleaning, catering, and security due to their convenience.
Insight by Deployment Model
The Facility Management market, categorized by deployment, is divided into cloud-based and on-premises segments. Over the forecast period, the cloud-based market is projected to experience accelerated growth due to its ability to host software and service platforms remotely. This accessibility via the internet from any location translates to lower setup costs and easy access to data, contributing to its rapid expansion.
Insight by Solution
The worldwide Facility Management market is divided by solutions into building information modeling, integrated workplace management systems, facility operations, security management, facility environment management, lease accounting, and real estate management. Further, facility operations and security management are subdivided into lighting control, HVAC control, video surveillance, access control, emergency and incident management, sustainability management, trash management, among others.
Out of these segments and subsegments, the facility operations and security management emerge as market leaders due to increasing demand for software across diverse organizations to oversee various operational aspects, monitor essential equipment data, and manage ongoing maintenance costs,
Insight by Organizational Size
The global Facility Management market is segmented into small and medium-sized enterprises (SMEs) and large enterprises based on organizational size. The SMEs are projected to experience rapid growth at a significant Compound Annual Growth Rate (CAGR) during the forecast period due to the cost-saving capabilities and problem-solving features of these solutions.
Insight by Verticals
The global Facility Management market is characterized by industry verticals, including Banking, Financial Services, and Insurance (BFSI), IT and telecom, government and public administration, healthcare, education, retail, energy and utilities, manufacturing, construction, real estate, and others. Out of all these segments, the BFSI segment is forecasted to generate the highest revenue throughout the projected period due to the capability of streamlining various operations such as asset management, maintenance management, and work order monitoring with facility management systems such as IWMS and CMMS.
Global Facility Management Market Report Coverage
|
Report Metric |
Details |
|
Historical Period |
2018 - 2023 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025 - 2030 |
|
Market Size in 2024 |
U.S.D. 47.8 Billion |
|
Revenue Forecast in 2030 |
U.S.D. 88.9 Billion |
|
Growth Rate |
12.9% |
|
Segments Covered in the Report |
By Service, By Mode, By Deployment Model, By Solution, By Organizational Size, By Verticals. |
|
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
|
Regions Covered in the Report |
North America, Europe, Asia-Pacific, Middle East, and the Rest of the World. |
Industry Dynamics
Industry Trends
The inclination towards cloud-based solutions for facility management and the increasing demand for facility management systems integrated with advanced software are expected to hasten the adoption of facility management services.
Additionally, the introduction of transformative technologies such as cognitive computing, augmented reality, IoT, analytics, robotics, and drones is further influencing the expansion of the facility management market.
There is also a notable trend affecting the facility management market globally which is the growing demand for cleaning services due to the increasing awareness among people regarding hygiene and how it can affect health.
Integration of IoT and smart building technologies is also on the rise as it helps facility managers gather real-time data to design predictive maintenance.
There is an increased focus on sustainability and green practices for a more sustainable and environmentally-friendly facility management.
Facility managers are increasingly using data analytics and business intelligence tools to make informed decisions.
Growth Drivers
The growth in the demand for interconnected devices coupled with growth in the hotel and construction sectors are driving the adoption of connectivity technology and the growth of the Facilities Management market.
Other factors such as building automation complexity, organizational shifts, and regulatory compliance also contribute to the growth.
Additionally, international expansion in facility management is boosted by partnerships on government projects and increased investment in tourism. Also, shifting workplace cultures, increasing outsourcing benefits, advancing infrastructure, asset protection concerns, and the growing demand for technical skills and industry expertise are all influential factors of growth of the Facilities Management market.
Challenges
Managerial unfamiliarity with solutions, standardization issues, and integrating facility management into legacy ERP systems are some significant challenges in the global Facility Management market. Also, high internal team setup costs and the complexity of managing diverse services results in the growing need for outsourcing. Businesses face pressure to innovate and expand service offerings to enhance customer value amidst increasing demands.
Opportunities
Outsourcing facility management is gaining traction as businesses look to enhance value creation and optimize operational models. Before outsourcing, they assess the optimal balance between in-house and outsourced services carefully considering factors like capability, cost, and coverage. This inclination creates new opportunities for the facilities management sector to grow significantly.
Geographical overviews
North America is projected to dominate the Facility Management market due to the presence of economically and technologically advanced nations like the US and Canada, adoption of cutting-edge technology, and strong financial stability among market players. The region also has a competitive edge due to sophisticated infrastructure and high demand for such services especially among early adopters like BFSI and IT & telecom companies.
The Asia Pacific market also shows significant growth potential due to rapid urbanization and expanding commercial sectors. Countries like China, India, Japan, and South Korea lead the market due to their robust economies, higher investments in infrastructure, and adoption of advanced technologies and sustainability initiatives which further fuel demand and offer rewarding opportunities for facility management providers.
Competitive Insight
To sustain the market and gain a competitive edge in the worldwide facility management market, the industry players are implementing tactics like M&A, collaborations, new product launches, joint ventures, partnerships, and geographic expansion. To aid in the creation of an AI-powered IoT solution intended to help extend the lifespan of old bridges, tunnels, highways, and railways, IBM worked with Sund & Belt, a firm that owns and runs some of the largest infrastructures in the world. Enhancements were made to Accruent's cloud-based manufacturing solutions. The primary Meridian EDM software API-based integration options, asset data synchronization across EAM and EDM systems, and single sign-on (SSO) for Accruent manufacturing solutions are all part of the Accruent cloud-based manufacturing solution.
Key Players covered in the Report
Some of the key players operating in the facility management market are Oracle, Accruent, IBM, SAP SE, Planon, iOffice, Trimble Inc., FMX, FM: Systems, and Archibus.
Recent Developments by Key Players
ABM has entered into a three-year agreement to manage parking operations for Oracle Park in San Francisco. ABM shall manage three separate parking facilities. This partnership builds upon ABM’s substantial parking facility management presence across San Francisco, including its position as the largest operator in the Financial District.
Accruent has acquired RedEye (an Australia-based engineering document management company which specializes in cloud-native solutions. This acquisition reflects Accruent’s ongoing commitment to providing EDMS differentiated, cloud-enabled solutions to drive business productivity. The acquisition enables Accruent to offer a versatile SaaS solution that enables customers across various industries, whether on-premise or cloud-based, to securely manage their engineering documents, drawings, and media from any device.
News & Update
Oracle and Propre Japan Inc. entered a partnership in May 2020. Oracle Japan would assist Propre Japan Inc. in modernizing Propre's global big data platform for real estate across 17 nations. Oracle's customer base would grow thanks to this alliance.
To develop a collaborative cloud-based solution that would enhance building performance, SAP teamed up with Honeywell in June 2020. The Honeywell Forge enterprise performance management system and SAP Cloud Platform will serve as the foundation for the solution. Customers could gain from improved tenant experience, decreased carbon footprint, cheaper energy costs, and optimized building efficiency thanks to the solution.
Koch Industries, Inc. declared in April 2020 that it had finished buying the remaining share of Infor from Golden Gate Capital. Koch implemented solutions across its companies in areas like enterprise resource planning, human resources, supply chain, asset management, and finance in addition to being an investor since 2017.
Trimble was purchased by MRI Software in April 2021. Manhattan Real Estate and Workplace Solutions were successfully acquired by MRI Software from Trimble.
The Facility Management Services Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- By Service
- Property
- Heating, Ventilation, and Air Conditioning (HVAC) Maintenance
- Mechanical and Electrical Maintenance
- Others
- Cleaning
- Environmental Management
- Security
- Support
- Catering
- Others
- Property
- By Mode
- In-House
- Outsourced
- By Type
- Hard
- Soft
- Others
- By Deployment Model
- On-Premise
- Cloud
- By Solution
- Integrated Workplace Management Systems
- Building Information Modeling
- Facility Operations and Security Management
- Lighting Control
- HVAC Control
- Video Surveillance and Access Control
- Emergency and Incident Management
- Facility Environment Management
- Sustainability Management
- Waste Management
- Facility Property Management
- Lease Accounting and Real Estate Management
- Asset Maintenance Management
- Relocation Management
- Reservation Management
- By Organization Size
- Small and Medium-Sized Enterprises (SMEs)
- 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
- Others
Region Covered in the Report
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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Source: VynZ Research
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Facility Management Market