What Has Driven the Growth of the Facility Management Services Market in Recent Years?
The facility management services market has seen considerable growth due to a variety of factors.
• Over the past few years, the market size for facility management services has seen swift expansion. The market is projected to increase from a valuation of $1744.37 billion in 2024, reaching $1981.61 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 13.6%. This growth during the historic period can be ascribed to factors such as the spread of globalization and ongoing business expansion, shifts in customer expectations within commercial environments, the rise in outsourced facility service, an emphasis on sustainability and energy efficiency, and the evolving dynamics of the workplace.
What Is the Forecasted Market Size and Growth Rate for The Facility Management Services Market?
The Facility Management Services market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for facility management services is projected to undergo rapid expansion in the coming years, arriving at $3218.49 billion in 2029 with a compound annual growth rate (CAGR) of 12.9%.
The anticipated growth during this forecast period can be linked to a global scale expansion and standardization of facilities, the outsourcing of tasks not core to business operations, increasing requirement for data-influenced decision-making, and a shift to sustainable and eco-friendly buildings, including the rise of remote workspaces and adaptable spaces. Key future trends include the implementation of predictive analytics, tailoring of flexible workspaces, better security and safety measures, demand for sustainable initiatives, and the transition to remote facility management.
What Factors Are Driving Growth In The Facility Management Services Market?
The rise in smart city projects is predicted to drive the expansion of the facility management services market. Numerous government initiatives are being implemented across different countries to facilitate the evolution of smart cities. Such initiatives leverage facility management services to bring advanced information and communication technologies (ICTs) into the Urban Facility Management (UFM) arena, offering numerous avenues for both the enhancement of existing services and the creation of new services. This is achieved through the Internet of Things (IoT), Big Data, information sharing, and intelligent applications. For example, a report published by the Institute of the Americas, a USA-based inter-American organization, in February 2024, foretells that global expenditure on smart city projects will surpass $190 billion by the close of 2023. It is predicted that by 2025, smart buildings will represent a third of industrial IoT connections, and smart utilities will account for 23%. Latin America, despite contributing to less than 10% of the global expenditure, is experiencing increased participation in smart city schemes. As such, the adoption of smart city philosophies is stimulating the growth of the facility management services market.
What Are The Main Segments Of The Global Facility Management Services Market?
The facility management services market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Service Type: Hard Services, Soft Services, Other Services
3) By Deployment Mode: Cloud, On-premises
4) By Organization Size: Small And Medium Enterprises (SMEs), Large Enterprise
5) By Industry Vertical: Healthcare, Government, Education, Military And Defense, Real Estate, Other Industry Verticals
Subsegments:
1) By Solutions: Integrated Workplace Management Systems (IWMS), Computer-Aided Facility Management (CAFM) Software, Building Management Systems (BMS)
2) By Services: Maintenance And Repair Services, Cleaning And Janitorial Services, Security Services, Space Management Services, Energy Management Services
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What Emerging Trends Are Influencing The Growth Of The Facility Management Services Market?
The emergence of technological innovations is a primary trend that is gaining traction in the facility management services sector. Enterprises are broadening their collections of services through the incorporation of technological advancements. Advanced technologies like BIM (Building Information Modeling) are commonly employed by large firms to provide both hard and soft services, consequently enhancing and upgrading their service offerings. For example, the Compass Group, a UK-based facility management services firm, unveiled Saarthi-FX, a holistic digital solution, in March 2022. This forward-thinking solution redefines how workplaces interact with facility management and aims to overhaul traditional workspaces utilizing artificial intelligence and predictive modeling to optimize office asset management and present a smarter, safer, and more efficient workspace for employees. Additionally, it offers ceaseless customer service, amalgamates technology, people, and processes in a manner that creates an exceptional employee experience, and transforms traditional workspaces into technologically-enabled environments.
Who Are the Key Players In The Facility Management Services Market?
Major companies operating in the facility management services market include:
• Atalian Servest AMK Limited
• BVG India Limited
• CBRE Group Inc.
• EMCOR Group Inc.
• International Service System A/S World
• Knight Facilities Management Limited
• Quess Corporation Limited
• Sodexo Inc.
• Spotless Group Holdings Limited
• QuickFMS
• Nuvolo Technologies India Pvt. Ltd.
• InnoMaint Systems Pvt. Ltd.
• eFACiLiTY Systems Pvt. Ltd.
• FacilityONE Technologies LLC
• Jones Lang LaSalle Incorporated
• Cushman & Wakefield PLC
• Compass Group PLC
• Aramark Services Inc.
• Colliers International Group Inc.
• Apleona GmbH
• Mitie Group PLC
• G4S Secure Solutions (UK) Limited
• ABM Industries Incorporated
• Serco Group PLC
• UGL Limited
• Vanderlande Industries B.V.
• OCS Group
• Vinci Facilities
• Amey PLC
• Johnson Controls International PLC
• SIS Group Limited
What Is The Most Dominant Region In The Facility Management Services Market?
North America was the largest region in the facility management services market in 2024. The regions covered in the facility management services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
