Facility Management Market: Overview
The size of the Facility Management market was estimated at USD 41.7 billion in 2021, and it is anticipated to increase at a CAGR of 12.3%. The size of the world market for facility management services is expanding as a result of rising industrialization and urbanization. Urbanization's impact on commercialization's impact on demand for higher productivity and lower maintenance in various corporate offices all contribute to the market's expansion. Additionally, the increased need for residential and non-residential construction, including various mega projects, drives the demand for higher construction investment. In 2021, an estimated 762,000 brand-new residences were sold in the US. Huge investments are needed for these projects, which necessitates using maintenance services to extend the lifespan of construction structures, resulting in expanding the market for facilities management services. With the significant expenditure needed to purchase these assets, various organizations are becoming more aware of the need to manage the assets and properties. Hence accelerating market expansion.
The growth of the facility management market is being driven by governments in numerous nations placing a greater emphasis on infrastructure development, particularly the building of railways, ports, airports, and other infrastructural items. The Facility Management Market is also anticipated to increase due to several partnerships with private contractors and government projects involving multinational players. Therefore, the Facility Management Market is expanding due to expanding infrastructure. Governments in rich and developing nations invest in various industry sectors, including tourism. There were 15 million more foreign tourists (overnight tourists) in 2021 than in 2020, marking a modest 4% increase in global tourism. The development of new infrastructure made possible by these tourism industry investments will accelerate the facility management market expansion.
Additionally, cloud-based solutions have provided dependable hosting Facility Management software that lowers operating costs, improves security, and fosters communication across teams and subsidiaries spread across different places. Data is readily available at any time, anyplace. The use of cloud-based solutions has increased due to all these advantages for the stability of the facility management market.
Facility Management Market: COVID-19 Impact
The COVID-19 epidemic has caused economic disruption as a result of successive lockdowns. The COVID-19 outbreak, which turned normalcy on its head, shook even well-managed organizations. The sector has also been affected, but facilities managers have fought back since the pandemic started by looking at new opportunities for remote work or socially isolated settings. In contrast, increased awareness of cleaning, management, maintenance, and security is expected to drive the industry in the future. To make the containment zones COVID-free, governments in the worst-affected nations, including Spain, Italy, the United States, China, and the United Kingdom, are investing in these services. Furthermore, service providers are focused on delivering end-to-end facility management services to corporations and government sectors, allowing them to function successfully in confined environments. As a result, the assistance provided by these service providers during the pandemic would strengthen the programs started by the government to fight the virus worldwide.
Facility Management Market: Drivers
Growing Infrastructure Investments due to Increased Consumer Spending to Boost Market’s Growth
Government organizations worldwide make significant investments in the building and infrastructure industries. Three factors—renovation of existing buildings, new building construction, and civil engineering—are crucial to developing the infrastructure. Most of the services associated with this industry's performance and expansion are tied to the market’s tendency to upgrade existing buildings. To keep the infrastructure clean and green, i.e., smart building construction, governmental authorities in emerging nations contract with various commercial contractors, including service providers and various international companies. For instance, during the next 11 years, the Saudi Arabian government intends to raise USD 36 billion (135 billion riyals) for transportation projects. This project's main aims include roads, ports, airports, and railroads. This project is funded by the government as well as several private businesses. According to the Ministry of Energy, Saudi Arabia intends to invest USD 425 billion (1.6 trillion riyals) in industrial and infrastructural projects over the next ten years. The Vision 2030 program of Saudi Crown Prince Mohammed bin Salman will gain from this private sector investment. As a result, the market is anticipated to be driven by the expansion of the infrastructure sector in several nations.
Demand for Cloud-Based Facility Management Solutions Is Increasing due to Its Remote Accessibility Capability
Cloud-based solutions offer a trustworthy approach to host facilities management software. They boost security and cooperation between teams and subsidiaries in diverse locations, allowing businesses to save operational expenses. Other advantages of cloud-based facilities management solutions include secure data hosting, increased security and scalability, and rapid disaster recovery. Businesses can rapidly access critical server data from backups since they are stored on a shared or private cloud host platform. With the help of secure logins, the data is easily accessed from any location with a good internet connection. With an estimated 7.9 billion people on the planet today, 5.25 billion have access to and utilize the internet. This indicates that 66.2% of people on the planet utilize the internet. Thus, the growing internet penetration will increase demand for cloud-based facility management. Cloud-based facilities management systems also improve customer satisfaction while cutting repair and maintenance expenses. With these advantages, facility management services are increasingly being integrated using cloud-based solutions, which is expected to fuel market expansion.
Facility Management Market: Restraints
Lack of Uniformity and Managerial Ignorance to Restrict Market Growth
Businesses do not completely recognize the benefits of facilities management. The problem results from a failure to understand and use the required technology. Many businesses still use cloud computing technology and have not yet embraced an IoT ecosystem. In addition, the transition from conventional to contemporary office designs is still in its infancy. Even though facilities management is a vital part of operations, organizations lack the knowledge to provide solutions. Businesses now find it difficult to give their facilities management department the same emphasis as their core company operations. Another problem is a lack of uniformity, particularly in complexes with multiple buildings. Prompt action is needed to retain access and guarantee security when breakdowns occur.
Facility Management Market: Segment Overview
With Increased Usage of Facility Management Software, Services Category to Acquire Largest Market Share
Services are essential when deploying and integrating facility management technologies into a facility. As they primarily concentrate on streamlining corporate procedures and enhancing facility operations, services play a significant role in the facility management industry. Services are regarded as the foundation of facility management since they are essential to meeting clients' specific needs. Experts in the management sector also advise clients on the weak points in their facilities and offer remedies that would meet their particular company requirements. Organizations in a variety of industries can effectively increase the performance and agility of their facilities with the use of facility management services. The demand for services is anticipated to rise along with the market for facility management solutions, particularly for quality evaluation and auditing, deployment, and integration services.
Real Estate Sector to Dominate Market due to Growing Public and Private Investment in Construction Sector
The real estate industry is expected to be influenced by global factors during the next few years. It can be attributed to the continued international expansion of the construction and development sector. The real estate industry is predicted to rise considerably in market share, followed by the remainder, mostly made up of businesses in the IT, telecommunications, and BFSI sectors. Furthermore, market development for the government sector is anticipated to be gradual. This is due to the government's emphasis on investing in infrastructure. The Indian government, along with the governments of numerous states, has launched several initiatives to encourage sector development. The Smart City Project, which seeks to create 100 smart communities, presents an opportunity for the real estate industry.
Facility Management Market: Regional Landscape
Middle East and Africa to Acquire Major Market Share due to Increase Construction Activity
The Middle East and Africa acquired a major market share due to increased construction activity. Businesses must innovate their goods to preserve development and profitability amid the enormous expansion of the facilities management sectors in Qatar and Saudi Arabia. However, the residential, commercial, industrial, and public infrastructure sectors will likely drive the market under consideration. According to Qatar's Ministry of Finance, QAR 74 billion, or around 36.0% of the state's stake, will go toward infrastructure projects. This amount is specifically earmarked for projects connected to hosting the FIFA World Cup Qatar 2022. The ministry underlined a specific focus on two crucial fields, namely education and healthcare, which are anticipated to see the growth and extension of educational projects and initiatives and healthcare programs and projects.
Additionally, the regional FM suppliers' coverage is anticipated to be broad, given the rising number of development permits likely to be finalized by 2022. The occupancy of major residential layouts/projects, hotels, and commercial spaces has increased due to rising economic activity, consumer spending, and tourism activities. Better facility management is becoming more necessary as a result of this.
The Asia Pacific is predicted to have the fastest growing market presence due to several organized and unorganized businesses in China and India. Additionally, established corporations are putting their efforts into forming partnerships with local businesses to broaden their geographic reach and provide consumer services. The market in the nation is also being impacted by the expanding use of cutting-edge technologies like business strategies and Internet of Things (IoT) evolutions. India's facility management market is anticipated to increase significantly throughout the projection period. It is ascribed to expanding government initiatives to create smart cities across the country. As of 2022, 226 smart city initiatives have already been finished, totaling Rs. 6,297 crores. Thus, with the continual upgradation of the infrastructure, the regional market will flourish in the coming years.
Global Facility Management Market: Competitive Landscape
In February 2022, Farnek, a forward-thinking green facilities management (FM) provider based in the United Arab Emirates, launched a new smart FM technology solutions company. The internally developed HITEK solution 4.0 was first introduced in Q3 of last year, connecting people, assets, and spaces from various remote sites using intelligent analytical platforms for cleaning, security, and maintenance. By utilizing the Internet of Things (IoT), Building Management Systems (BMS), Cloud, Machine Learning (ML), and Artificial Intelligence (AI), these services could be intelligently centrally managed and monitored (AI). In September 2021, Disrupt-X, a Dubai-based Internet of Things (IoT) development company, announced a collaboration with Imdaad, a Dubai-based group of companies that provides integrated, sustainable Facilities Management (FM) services that improve operational efficiencies of physical assets, to introduce IoT technology to improve FM services in the UAE.
Few of the players in the Facility Management Market include Oracle Corporation (US), International Business Machines Corporation (US), Trimble Inc. (US), SAP SE (Germany), MRI Software LLC (US), Fortive (US), Infor (US), Planon (US), Facilities Management eXpress (US), Service Works Global (UK), FM: Systems (US), Causeway Technologies (UK), iOFFICE + SpaceIQ (US), Space well International (Belgium), UpKeep Maintenance Management (US), Archidata Inc. (Canada), JadeTrack Energy Management Software (US), FacilityONE Technologies LLC (US), Apleona GmbH (Germany), Facilio (US), OfficeSpace Software Inc. (US), InnoMaint (India), efacility (India), QuickFMS (India), Nuvolo (US), and zLink (US)
Global Facility Management Market is Categorized as Below:
By Deployment Mode
By Organization Size
Key Elements Included In The Study: Global Facility Management Market
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