Global Facility Management Services Market to expand at a CAGR of 6.8% by 2033

Introduction

The term 'facility' refers to something designed or positioned for a specific function. Examples of facilities that support an organization include buildings, IT infrastructure and services, lighting, furniture, and grounds maintenance. Facility or facilities management (FM) is primarily concerned with aiding individuals. It ensures the built environment's efficiency, durability, comfort, and functionality, including structures where people live and work and the surrounding infrastructure. Commercial, industrial, industrial, and other sectors utilize facility management services such as cleaning, security, and catering. Facilities managers are responsible for the entirety of an organization's operations. In addition to enterprises, hotels, and hospitals, they work in sports and recreation facilities, logistics hubs, care facilities, and educational institutions such as elementary schools, universities, and specialized research labs.

Market Dynamics

Advancing Industrialization and Urbanization to Drive the Global Facility Management Services Market

Urbanization is one of the primary reasons driving the global market expansion for facility management services. In growing nations like India, China, and Africa, the urban population has increased, which is anticipated to increase the need for residential and commercial construction. This is predicted to fuel the global expansion of the facility management services market. In India, the urbanization rate climbed from roughly 31.2% in 2011 to approximately 34.5% in 2019.

In addition, the global expansion of the tourism and hospitality industries is expected to raise demand for property management services to ensure the long-term maintenance of facilities. This is anticipated to support the growth of the global market for facility management services. Corporate offices, retail malls, and restaurants are also experiencing a rising demand for integrated facilities management services. There is a rise in the use of facility management outsourcing to boost productivity and reduce the cost of employing and retaining facility managers.

In addition, there are a variety of industries within the economic sectors, including mining, technology, transportation, and medicines. Along with the infrastructure of industrial buildings, demand for facility management services increases. Between 2015 and 2020, the price of industrial output in India's manufacturing industry increased by 5%. Due to the enormous and continuing expansion of the industrial sector, it is necessary to preserve and manage industrial buildings and facilities effectively. It is anticipated that this factor will drive the growth of the facility management services market.

Growing Government Initiatives and Spending in Building Infrastructures to Create Global Facility Management Services Market Opportunities

In addition to other infrastructure-related projects, the government and municipal authorities have undertaken the "National Infrastructure Program" and the "National Program on Strategies for Sustainable Smart Cities." These initiatives are expected to generate lucrative market prospects for facility management services. Increasing the current investment will increase the number of commercial developments, metro rail projects, social infrastructure, and green infrastructure structures.

This factor is anticipated to create chances for the global facility management services industry. As worldwide development activities rise, so does the need for facility management services for long-term building maintenance. In 2020, for example, the Chinese government planned to spend around 394 billion USD on private and public buildings. As a result, it is projected that government investments in the building infrastructure sector will provide lucrative opportunities for global business.

Regional Insights

The Asia Pacific is likely to command the market while expanding at a CAGR of 7.2%. Due to urbanization and industrialization, the increase in demand for facility management services is mainly driven by the business sector. Huge organizations need facilities management solutions since they manage many assets, people, and square footage. The expansion of the market is predicted to be driven by the requirements of large organizations. In addition, it is projected that an increase in demand from end-user industries for facility management services will drive market expansion. In addition, the market is likely to grow due to end customers' robust use of integrated facility management services and their acceptance of innovative solutions.

The expansion of the market is predicted to be driven by a rise in commercial and industrial building projects across the country. The Chinese construction industry grew from 4.3% to 4.5% in 2017 and 2018. Increasing government investment in the real estate industry is also predicted to accelerate market expansion. Infrastructure development and LEED certification are expected to contribute to the industry's projected growth.

North America is envisioned to have a share of USD 5,25,846 million, growing at a CAGR of 6.27%. The growth of commercial, healthcare, and industrial real estate in the area is predicted to contribute to the expansion of the market. The increased demand for facility management services results from the more significant maintenance expenses in these industries. The residential, retail, commercial, healthcare, and government sectors are projected to embrace facility management services such as cleaning, maintenance, and other services, which are expected to contribute to the market's growth.

As energy efficiency becomes a greater priority, it is expected that the market for facility management services will also rise. In addition, studies indicate that facilities management outsourcing is prevalent. In addition, facility management service providers are focusing on integrated facility services and construction activities, which is expected to boost the market expansion in this sector. Additionally, the market is predicted to grow because of an increase in the construction of commercial spaces and a growth in public awareness of sustainable and green architecture. As prominent organizations outsource facility management services to expand their service offerings, the market for these services is expected to grow.

Key Highlights

• The global facility management services market size was valued at USD 1,192.51 billion in 2024 and is projected to reach from USD 1,273.60 billion in 2025 to USD 2,155.77 billion by 2033, growing at a CAGR of 6.8% during the forecast period (2025-2033).
• Based on the service type, the property section is forecasted to hold the largest share, growing at a CAGR of 6.6%.
• Based on the type, the in-house section is forecasted to hold the largest share, growing at a CAGR of 6.55%.
• Based on the end-user, the commercial section is forecasted to hold the largest market share, growing at a CAGR of 8.4%.
• Based on regional analysis, the Asia Pacific is likely to command the market while expanding at a CAGR of 7.2%.

Competitive Players

• Arthur McKay & Co Ltd.
• BVG India Ltd.
• CLR FACILITIES SERVICES PVT LTD
• CBRE Group, Inc
• ISS World Services A/S
• Knight Facilities Management
• Quess Corp Ltd
• Sodexo, Inc.
• Spotless Group Holdings Limited
• Tenon Group.

Recent Developments

• In 2022, CBRE Group, Inc. declared a new investment of USD 100 million in Industrious, a fast-expanding supplier of upscale flexible office solutions. With its current primary focus on the United States, Industrious will be able to accelerate its worldwide expansion and carry out crucial strategic growth initiatives thanks to CBRE's new investment.

Segmentation

By service type

• Property
• Cleaning
• Security
• Catering
• Others

By type

• Outsourced

o Integrated Facilities Management (IFM)

o Other Outsourced

• In-house

By end-user

• Commercial
• Institutional
• Public / Infrastructure
• Industrial
• Others

By region

• North America
• Europe
• Asia-Pacific
• LAMEA