The global facility management services market size was valued at USD 978.92 billion in 2021. It is expected to reach USD 1769.66 billion by 2030, growing at a CAGR of 6.8% during the forecast period (2022-2030). The term 'facility' refers to something constructed or placed for a specific purpose. Buildings, IT infrastructure and services, lighting, furniture, and grounds upkeep are all facilities supporting an organization. The field of facility or facilities management (FM) focuses on assisting people. It guarantees the efficiency, sustainability, comfort, and functioning of the built environment, including the structures where people reside and work and the infrastructure around them. Commercial, industrial, and other industries employ facility management services like cleaning, security, catering, and others. Facilities managers essentially take care of everything that keeps an organization running. They work in various settings, including businesses, hotels, hospitals, sports and recreation facilities, logistics hubs, care facilities, and educational institutions like primary schools, universities, and specialized research labs.
The expansion of the construction sector and rising demand for outsourced integrated facility management services are only two factors driving the growth of the global market for facility management services. The market for facility management services is expected to expand as more small and large businesses use integrated and outsourced facility management services. Additionally, it is forecasted that the deployment of technologies like the Internet of Things (IoT) and big data in facility management, particularly in Europe and North America, will support the growth of the market for facility management services. The facility management services market share expansion is anticipated to be hampered by a lack of experienced labor, managerial understanding, and reliance on the internal facility management team.
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Advancing Industrialization and Urbanization to Augment Market Growth Prospect
An increase in urbanization is one of the main reasons driving the global market growth for facility management services. In developing nations like India, China, and Africa, there has been a surge in the urban population, which is expected to enhance demand for residential and commercial structures. This is then anticipated to fuel the expansion of the market for facility management services globally. Between 2011 and 2019, the urbanization rate in India increased from approximately 31.2% to 34.5%.
In addition, the global expansion of the tourist and hospitality industries is anticipated to increase the demand for facility management services to ensure the long-term upkeep of buildings. This is expected to stimulate the expansion of the worldwide facility management services market. Furthermore, corporate offices, shopping malls, and restaurants are seeing an increased demand for integrated facilities management services. There is an increase in outsourcing facility management services to increase productivity and lower the cost of hiring and keeping on-staff facility managers.
In addition, there are numerous industries in the economic sectors, such as those related to mining, technology, transportation, and pharmaceuticals. The demand for facility management services rises along with the infrastructure for industrial buildings. India's manufacturing industry saw a 5% increase in industrial production prices between 2015 and 2020. The requirement for properly preserving and managing industrial buildings and facilities arises from the significant and ongoing growth of the industrial sector. The development of the facility management services market is predicted to be fueled by such a reason.
Lack of Skilled Personnel and Capital in Emerging Economies to Restrict Market Growth
Education in developing nations like Chile, Africa, and others is not growing as quickly as their economies. Therefore, a factor impeding the expansion of the facility management services market share is the lack of professional workforce and staff in large organizations in emerging countries. For instance, in developing nations like China, India, and other nations, roughly 48% of people still lack literacy.
The number of adult illiterates in developing nations, including South Asia, West Asia, and Africa, is over 781 million. As a result, most people in underdeveloped countries think paying for facility management services is a waste of money. Therefore, it is anticipated that social cohesion, a lack of qualified labor, and a lack of capital in developing nations like China, India, and others will restrain the expansion of the worldwide facility management services market.
Growing Government Initiatives and Spending in Building Infrastructures
The "National Infrastructure Program" and "National Program on Strategies for Sustainable Smart Cities," among other infrastructure-related operations, have been undertaken by the government and local authorities. These initiatives are anticipated to create lucrative market opportunities for facility management services. Increasing investment will result in more commercial projects, metro train projects, social infrastructure, and green buildings.
This element is expected to provide opportunities for the global facility management services market. The demand for facility management services for long-term building upkeep is rising as development activities expand globally. For instance, the Chinese government intends to spend approximately USD 394 billion on private and public construction in 2020. Consequently, it is anticipated that government investments in the building infrastructure industry would present profitable prospects for the global industry.
The global facility management services market is bifurcated based on the service type, type, end-user, and region.
Per the service type, the fragments are property, cleaning, security, catering, and others.
The property section is forecasted to hold the largest share, growing at a CAGR of 6.6%. The market is driven by several important factors, including the rise of the infrastructure and construction industries. The residential, commercial, industrial, and other properties use HVAC (heating, ventilation, and air conditioning) systems. Furthermore, there has been a rising need for refrigeration systems in the retail industry to preserve food, drinks, and medications, which is anticipated to stimulate the expansion of HVAC services and, in turn, the market for facility management services.
The other section will hold the second-largest share. Landscaping, laundry management, and garbage management are included in this part. These services are provided by well-known companies, including Sodexo Inc., Quess Corp., and Spotless Group Ltd. The facility management services market share is anticipated to rise as there is an increase in hotels and other commercial buildings.
Per the type, the fragments are outsourced and in-house.
The in-house section is forecasted to hold the largest share, growing at a CAGR of 6.55%. Services used inside the walls of the business are referred to as in-house facility management services. The in-house facilities management services relate to a service given by a dedicated resource explicitly accepted by the client business, with employee relationships monitoring and controlling performance. Cleaning, catering, and other in-house services are the most common.
The outsourced section will hold the second-largest share. Services for property management purchased from a third-party company are known as outsourcing. There are two types of outsourced facility management services: integrated facility management and other outsourced services. In facilities management, outsourcing transfers an organization's whole management and decision-making authority (IFM). Other outsourced services include janitorial and environmental work.
Per the end-user, the fragments are commercial, institutional, public/infrastructural, industrial, and others.
The commercial section is forecasted to hold the largest market share, growing at a CAGR of 8.4%. Commercial sectors employ facility management services such as CCTV, security, electrical, and elevator maintenance. The commercial sectors use facility management services to enhance building wellness and safeguard a building's physical structure. The market for facility management services is anticipated to develop due to the daily cleaning and security services provided by workplaces, shopping centers, commercial spaces, and theaters.
The institutional section will hold the second-largest share. Public and private hospitals can receive medical services from the institutional sector. This facility is employed in several industries, including higher education institutions, primary and secondary schools, and universities. The use of facility management services to maintain durable building structures and a rise in awareness of these services in the institutional sectors are anticipated to fuel market expansion.
The region-wise segmentation of the global facility management services market includes North America, Europe, Asia-Pacific, and LAMEA.
The Asia Pacific and North America are Anticipated to Lead the Regional Market
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The Asia Pacific is likely to command the market while expanding at a CAGR of 7.2%. Due to increased urbanization and industrialization, the business sector is the primary driver of the demand for facility management services. Because they have a lot of assets, employees, and space to handle, large enterprises need facility management solutions. It is anticipated that these requirements of large-scale businesses will propel market expansion. Additionally, increased demand from end-user industries for facility management services is expected to drive market growth. The market is also anticipated to increase due to end customers' strong adoption of integrated facility management services and their acceptance of advanced solutions.
The regional market expansion is anticipated to be fueled by an increase in the nation's commercial and industrial construction activity. For instance, the Chinese construction industry expanded from 2017 to 2018 from 4.3% to 4.5%. Additionally anticipated to accelerate market expansion is an increase in government investment in the real estate industry. The industry is expected to grow due to increased attention paid to infrastructure development and LEED certification.
North America is envisioned to have a share of USD 5, 25,846 million, growing at a CAGR of 6.27%. The regional market expansion is anticipated to be fueled by the increase in commercial, healthcare, and industrial real estate in the area. These sectors have higher maintenance costs, which is why more people require facility management services. The facility management services market growth is also anticipated to develop due to end users in the residential, retail, commercial, healthcare, and government sectors adopting facility management services, including cleaning, maintenance, and other services.
The market for facility management services is also anticipated to expand as energy efficiency becomes a bigger priority. Additionally, statistics indicate widespread use of outsourced facilities management services. Furthermore, facility management service providers are concentrating on integrated facility services and construction activities, which is anticipated to accelerate the market growth in this area. The market is also expected to expand as a result of an increase in the building of commercial spaces and a rise in public awareness of sustainable and green architecture. The market for facility management services is anticipated to increase due to key companies outsourcing facility management services to expand their service offerings.
List of key facility management services market companies profiled