Facility Management: Asia-Pacific Market Scenario, Trends, Opportunity, Growth and Forecast, 2018-2028

Market Definition

A facility is something that is created, set up, or formed with a certain use in mind. A building, a factory, a warehouse, a school, or a hospital are just a few examples. Facility management encompasses a variety of linked services that are involved in operating or maintaining a facility, including janitorial, engineering, security, environmental, and gardening. MTMA segments facility management into 3 main service categories, namely Hard facility management Services, Soft facility management Services, and Additional Services.

Market Insights

APAC facility management market was recorded as more than $170 billion in 2020. Asia-Pacific facility management market witnessed a decline in 2020, however, the market is expected to grow at a CAGR of 3.1% during 2021-2028. The growing markets that make up the majority of the APAC facility management market’s development are compensating for slower growth in mature regions. Construction work and flourishing industries in developing nations, as well as a rising outsourcing culture and rising demand because of the epidemic in these markets, all promote growth in these nations. Stable facility management development is possible in developed economies due to the growing demand for affordable and energy-efficient solutions and the increased familiarity with information technologies.

Opportunities in mature markets sometimes take the shape of contract extensions because it is difficult to find new outsourcing clients in these areas because they are almost completely saturated. Single services are more frequently preferred throughout APAC. The current end user opinion on fundamental soft and hard facility management services, as well as the incumbent service providers’ reluctance to adopt new technologies because of CAPEX restrictions, attenuate market progress. Budget restrictions and intense pricing competition among some end users are also problematic.

Additionally, a problem is the lack of enough manpower. The market relies heavily on labour because it primarily offers single services. The majority of country markets, however, seldom have any regulatory norms or standards for facility management compliance, hence there is hardly any emphasis on upskilling overall due to cost concerns. The industry-wide high staff turnover rate makes the lack of labour even more of a worry.

Despite obstacles, the APAC market is still profitable for local and international IFM providers because of its rapid expansion and future prospects. As complexity and technical involvement rise, service providers must utilize technology to increase service efficiency and effectiveness. The desire of mature end customers to invest, particularly those who are likely to adopt sustainable practices, is motivating service providers to increase their search for technical solutions.

Market Dynamics: Drivers

Rising Outsourcing Culture

The permeable FM market base grows as a result of the expanding outsourcing culture, which is aided by the asset base’s ongoing increase due to new building. Market acceptance of outsourcing is growing, creating new opportunities. Additionally, it increases the market potential’s profitability greatly.

Growing Customer Needs

FM demand fluctuates as a result of constantly changing customer needs, which are frequently influenced by the economic and market environment. The recent and ongoing epidemic has had a negative effect on the FM market as a whole. However, it has also prompted a sharp increase in the need for hygienic conditions and security in buildings. The necessity for workplace management to implement pandemic risk mitigation strategies and ensure the application of appropriate protocols in the medium term is a reflection of shifting consumer demands and market possibilities.

Market Dynamics: Challenges

Preference For In-House FM Among Conservative End Users

The main impediment to the growth of the facility management market is the preference for in-house facility management among conservative end customers. Outsourcing is seen as a danger to local end users’ ability to oversee a facility’s operations by many of them as well as by certain major organisations. Additionally, they believe outsourcing could make their company more vulnerable.

Inadequate Availability of Human Resources

For service providers, a major worry will always be the lack of enough human resources. It is challenging to locate new talent or widen the labour pool, for instance, in Thailand because of the country’s extremely low unemployment rate. In addition, IFM is a less popular industry than other service industries and is frequently not on a job seeker’s radar. Lack of skilled FM specialists, particularly those with the commercial skill sets required to develop and successfully implement more integrated FM concepts, is another key human resource challenge for the sector.

Market Segmentation

• Based on Service Types, the APAC Facility Management market is segmented into
  • Soft Services
  • Hard Services
  • Additional Services
• Based on End-User, the APAC Facility Management market is segmented into
  • Commercial
  • Institutional
  • Public Infrastructure
  • Industrial
  • Others
• Based on Service Delivery, the APAC Facility Management market is segmented into
  • Outsourced FM
  • In-house FM
• Based on Delivery Model, the APAC Facility Management market is segmented into
  • IFM
  • Non-IFM
• Based on Country, the APAC Facility Management market is segmented into
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • New Zealand
  • The Philippines
  • Vietnam
  • Thailand
  • Singapore
  • Malaysia
  • Indonesia

• All market revenue has been given in US Dollar.

Historical Year: 2018-2019

Base Year: 2020

Estimated: 2021

Forecast- 2022-2028

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of APAC Facility Management Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the APAC Facility Management Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in APAC Facility Management Market based on competitive benchmarking matrix?

What are the key results derived from the market surveys conducted during APAC Facility Management Market study?