The global healthcare facilities management market size was valued at USD 354.67 billion in 2022. It is estimated to reach USD 1,029.50 billion by 2031, growing at a CAGR of 12.57% during the forecast period (2023–2031).
Medical tourism has constantly increased in emerging economies as they offer cost-effective treatment. This surge leads to a rise in the patient pool in the emerging economies demanding better healthcare facilities management, thereby boosting the market expansion.Healthcare facilities management encompasses the administration and upkeep of a healthcare facility's development. It is the coordination and organization of the healthcare environment to ensure its efficacy, safety, and optimal performance. It includes hard and soft services, including mechanical and electrical necessities, cleaning, security, and administrative duties. It delivers healthcare services to clinics, long-term care facilities, hospitals, surgical centers, etc.
The healthcare facility management services establish safety policies and maintenance programs, assess the need for repairs or enhancements, and manage safety and cleanliness awareness programs in healthcare settings. These aid in providing a safe and sanitary environment for nurses, physicians, outpatients, inpatients, and others. Healthcare facility management is concerned with patients' quality of life and ensures the continuity of surgical procedures by preventing equipment failures.
|Market Size||USD 1,029.50 billion by 2031|
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The past few years have seen an immense increase in healthcare expenditures in developed and developing countries. For instance, according to WHO data published in 2021, global expenditures on healthcare will total USD 8.5 trillion in 2019, or 9.8% of GDP, more than doubling in real terms during the past two decades. However, it was unevenly distributed, with high-income nations accounting for approximately 80%. Thus, the steady rise in healthcare expenditure over a decade translated into building a robust healthcare ecosystem where public and private healthcare players can outsource their work to third-party service providers like facilities management companies. This is expected to expedite market growth during the forecast period.
In developed countries, the cost of undergoing medical treatment is considerably higher than in developing nations. The products, instruments, and equipment used for treatment are also expensive. This places a massive burden on the healthcare systems in developed countries, accompanied by the additional rising costs due to a demand for less costly options in other nations. This is one of the major reasons medical tourism is increasing in emerging countries. The rise in medical tourism is expected to put more patients in hospitals, boosting demand for facilities management companies.
According to the International Travel Medical Journals article "Americans are driving to Mexico for dental treatment," published in June 2020, dental facilities in Mexico were among the first in the world to reopen their doors and welcome patients. Additionally, the article quoted that Dental Departures, a global dental online travel agency, reported four consecutive weeks of increased appointment bookings and a 60% increase in traffic in 2020. Such increasing medical tourism is driving the growth of the market.
Many low-income countries have non-existent investments in healthcare services in general. In such circumstances, there is little motivation to seek out facilities management service providers who charge typically high fees. Therefore, a lack of investment in facilities management in low-income countries is expected to be a restraint during the forecast period.
Many low-income and sometimes emerging economies spend very little on their healthcare expenditures as a proportion of their GDP. This entails that the public healthcare sector in these countries is always cash-strapped, and they can rarely invest in other services like healthcare facilities management. For instance, according to OECD Health Statistics 2021, Indonesia invested only 2.9% of its GDP in healthcare expenditure in 2018. The abysmally low healthcare investments lead to decreased investments in facilities management services. This is expected to be a major restraint during the forecast period.
Chronic diseases afflict a significant portion of the global population. Individuals afflicted with chronic disease conditions, such as diabetes, cancer, cardiovascular diseases, or age-related dementias, sometimes encounter a decline in their overall well-being due to an incapacity to effectively control their ailment. In these situations, they are admitted to healthcare institutions providing long-term care.
In such long-term care centers or hospitals, skilled facilities management services are required to support the hospital's staff. For instance, catering, waste management, and cleaning services are in high demand from facilities that house people suffering from chronic diseases. According to World Health Organization (WHO) data issued in April 2021, chronic illnesses are expected to kill 41 million people yearly, equivalent to 71% of all deaths globally. This increases the market opportunities for facilities management companies, thus boosting market growth.
Based on region, the global healthcare facilities management market is bifurcated into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
North America is the most significant global healthcare facilities management market shareholder and is anticipated to exhibit a CAGR of 12.85% during the forecast period. The region is expected to dominate the healthcare facilities management market throughout the forecast period due to high healthcare expenditures. For example, according to the Centers for Medicare & Medicaid Services, national health spending is projected to register an average annual rate of 5.4% for 2019-28 and reach USD 6.2 trillion by 2028. This is expected to accelerate the market expansion. Moreover, the growing burden of chronic diseases and the geriatric population drive the market growth over the forecast period. As per the article "Prevalence of Chronic Diseases and Risk Factors among Canadians aged 65 years and older", published by the Government of Canada in December 2020, there is a high prevalence of chronic diseases in the country, such as periodontal disease (52%), osteoarthritis (38%), osteoporosis (25.1%), cancer (21.5%), and asthma (10.7%). The country's high frequency of chronic diseases increases hospital admission, boosting the demand for healthcare facilities management services market.
Europe is estimated to exhibit a CAGR of 12.37% over the forecast period. The healthcare facilities management market in Europe is growing at a significant pace. The regional market is growing, owing to factors like the increasing high healthcare investments, the high incidence of chronic illnesses, and the presence of many facilities management companies. According to the Organization for Economic Co-operation and Development, in June 2022, the healthcare expenditure of France was around USD 304.28 billion. France also invested around 11.1% of its total GDP in healthcare in 2019 to 12.4% in 2020. This is expected to boost the market growth. Moreover, according to the 2020 report from the Germany Federal Statistical Office, the population of Germany is approximately 83 million. Within this demographic, it is observed that 16.2 million individuals are aged 67 years or older. This number is projected to reach 21.4 million by 2040. As the geriatric population increases, this population is more prone to chronic diseases that require hospital admission, which fuels the market.
The Asia-Pacific region is growing at the quickest rate. The major reasons for the market's growth include the increasing cases of cancers and infectious diseases, increasing healthcare expenditures, and the increasing scope for medical tourism in the region. According to the Globocan 2020 data, there were 4.57 million cancer cases in 2020, which is projected to reach 6.85 million by 2040 in China. Due to the rise in cancer diagnoses, there will likely be a greater need for hospital beds in China. The expansion of the market is anticipated to be boosted by this factor. Moreover, as per the data provided by the Ministry of Tourism in 2019, the medical tourism industry in India was estimated to have reached USD 9 billion in 2020 from USD 5 billion in 2015, before the outbreak of COVID-19. Growth in the medical tourism sector is expected to boost the demand for facilities management companies that offer holistic services.
The Middle East and Africa accounted for the least market share. However, the market is expected to grow due to the region's increasing government initiatives. For instance, in June 2021, the Ministry of Health and Prevention (MoHAP) announced the launch of the 'Public Health Management' system. The system will allow the adoption of global standards for managing health facilities' infrastructure and promote public health and disease prevention information. Its implementation is expected to aid facilities management companies in planning and preparing for future projects. Major regional players are also undertaking various strategies like partnerships, collaborations, mergers, acquisitions, and launches. For instance, in May 2021, facilities management company Emrill announced the launch of Emrill Consultancy to expand its offering in the UAE and GCC's facilities management sector, including the healthcare industry. Therefore, the market is expected to grow over the forecast period.
The global healthcare facilities management market is segmented by product type and end-user.
Based on product type, the global healthcare facilities management market is divided into waste management, catering services, cleaning services, security services, technical support services, and other products.
The cleaning services segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 13.80% throughout the forecast period. Cleaning services include disinfection, janitorial, and deep cleaning, amongst others. Cleaning is a fundamental task performed by facilities management businesses. Factors such as growing healthcare expenditures, an increase in hospital-acquired infections, and building significant hospital chains worldwide are predicted to propel the market growth. In addition, cleaning services include decreasing the risk of healthcare-associated infections (HAI), increasing nurse and patient engagement, and adopting innovative technologies to boost productivity and quality assurance. It contains patient room sanitization, floor and room refinishing, and efficient turnaround of patient beds for admission.
According to the study Epidemiology of healthcare-associated infection reported from a hospital-wide incidence study: considerations for infection prevention and control planning,' published in August 2021, the Incidence of HAI for the combined hospitals was 250 HAI cases per 100,000 acute occupied bed-days (AOBD). The increase in these infections will boost the demand for better cleaning services, promoting market growth.
Waste management is a vital service provided by facilities management companies. Factors such as the growing use of disposable and single-use equipment, personal protective equipment (PPE), and growing environmental regulations worldwide are expected to boost the market growth. The services under waste management are varied, and different providers have their service options. For instance, companies such as MedPro Waste Disposal offer low-cost, secure medical waste disposal with predictable service and cost. In addition, the COVID-19 epidemic substantially increased medical waste generation across numerous countries worldwide. For instance, according to the data shared by India's Central Pollution Control Board (CPCB), the country generated over 18,000 tons of COVID-19-related bio-medical waste between June and September 2020. The massive increase in bio-medical waste generation is creating a demand for service providers, due to which the market is expected to grow.
Based on the end-user, the global healthcare facilities management market is segmented into hospitals and clinics, long-term healthcare facilities, and other end-users.
The hospitals and clinics segment owns the highest market share and is estimated to exhibit a CAGR of 12.80% during the forecast period. Hospitals and Clinics use services from facilities management companies extensively because they need to cut costs and increase efficiency. The increase in Hospital Acquired Infections (HAI) and the growing demand for hygiene and cleanliness at hospitals are expected to boost market growth during the forecast period. The rising number of hospital admissions and admissions to the intensive care unit increases the demand for healthcare facilities management, thereby driving market expansion.
For instance, as per data issued by the Australian Institute of Health and Welfare in May 2022, about 11.8 million hospital admissions occurred in 2020-21, 6.3% higher than 2019-20. It was also reported that out % of 11.8 million hospitalizations, 7.0% involved a stay in the Intensive Care Unit, and 3.8% involved cardiovascular disease. Such rising emergency and critical care admission creates the need for healthcare facilities management and is thus expected to drive the market segment's growth.
Long-term healthcare facilities provide therapeutic, rehabilitative, and ongoing skilled care to patients needing assistance with activities of daily living. These facilities seek the services of facilities management companies since they need help in various areas such as catering, cleaning, and security, among others. The Rankin government of Nova Scotia, Canada, invested USD 96.5 million in new long-term care beds and facilities in July 2021 to better serve long-term care residents, their families, and long-term care staff. As part of a multi-year plan, the region will add 264 new beds to the Central Zone and replace 1,298 beds in 14 nursing homes and three residential care facilities throughout the province. Such funding for establishing new facilities is expected to drive the market segment's growth over the forecast period.