Facilities Management Market to grow at a CAGR of 9.29%, Increasing emphasis on outsourcing building management services to Boost Growth - Technavio
NEW YORK, Feb. 2, 2024 /PRNewswire/ -- The facilities management market is estimated to grow by USD 730.53 billion from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 9.29% during the forecast period. Increasing emphasis on outsourcing building management services is a key factor driving growth. Presently, major corporations, including multinational companies (MNCs), and some small to medium-sized businesses (SMBs) are showing a growing preference for outsourced services and solutions provided by third-party service providers. Outsourcing management to third parties involves assessing the optimal balance between keeping services in-house and outsourcing them, considering factors like capability, cost, and service scope. Additionally, outsourcing is shaping the landscape in various regions. The growing focus on outsourcing building management services is expected to propel market growth in the foreseeable future.
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Technavio has segmented the market based on End-user (Commercial, Government, and Residential ), Service (Soft services and Hard services ), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
- The commercial segment will account for a major share of the market's growth during the forecast period. The commercial sector plays a vital role with significant demand coming from various industries such as business services, information technology (IT), industrial and manufacturing, real estate, and healthcare. Office buildings are expected to dominate this segment due to the growing need for safe, secure, and efficient workspaces. Additionally, this sector encompasses diverse facilities such as bank branches, brokerages, check-cashing outlets, credit unions, insurance offices, and standalone automated teller machines (ATMs).
By geography, the global facilities management market is segmented into APAC, North America, Europe, South America, and the Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth.
- APAC is estimated to contribute 42% to the growth by 2027. APAC ranks among the top three contributors to the market, with expectations for the region to experience the fastest growth compared to other areas. This growth is primarily due to the rapid expansion of IT sectors like ICT and BFSI, which heavily rely on management services. Major purchasers of these services in the region include Australia, China, Hong Kong, India, and Japan. The shift towards outsourcing facility management services instead of using in-house services is a key driver of market growth. Furthermore, increased demand from the construction and real estate sectors in countries like China, India, and Australia is also contributing to market expansion in the region.
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- The adoption of green cleaning products is a primary trend shaping the growth.
- The rise in budgetary constraints is a significant challenge restricting growth.
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Facilities Management: Benefits
Facilities management encompasses a wide range of services and practices aimed at optimizing the functionality, safety, and efficiency of physical spaces. This includes building maintenance, energy, and asset management, and implementing sustainability solutions. Space planning and interior design enhance the utilization of space while cleaning, security, and HVAC services ensure a comfortable and secure environment. Fire safety systems and emergency response planning are crucial for safety compliance, alongside waste management and pest control. Regular facility inspections and maintenance, as well as repairs and renovations, contribute to the upkeep of the infrastructure. Technology integration, such as IoT, aids in optimizing operations, while budgeting and cost control ensure financial efficiency. Company and compliance management, disaster recovery planning, and the implementation of sustainable practices are also essential facets of effective facilities management.
What are the key data covered in this Facilities Management Market report?
- CAGR during the forecast period
- Detailed information on factors that will drive the growth between 2023 and 2027
- Precise estimation of the size and its contribution to the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- Growth of the Facilities Management industry across APAC, North America, Europe, South America, and the Middle East and Africa
- A thorough analysis of the competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of Facilities Management companies
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ToC:
Executive Summary
Market Landscape
Market Sizing
Historic Sizes
Five Forces Analysis
Segmentation by End-User
Segmentation by Service
Segmentation by Geography
Customer Landscape
Geographic Landscape
Drivers, Challenges, & Trends
Company Landscape
Company Analysis
Appendix
About US
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging trends and provide actionable insights to help businesses identify opportunities and develop effective strategies to optimize their positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable insights to identify opportunities in existing and potential areas and assess their competitive positions within changing scenarios.
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Website: www.technavio.com
SOURCE Technavio
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