Facility Management: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

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

The market for facility management worldwide was valued at $878 billion in 2022 and is expected to increase at a CAGR of 7.3% from 2023 to 2030. With a 43% FM outsourcing rate, North America is the region with the most developed regional FM market globally. About 86% of the North American FM market’s revenue comes from the US market, with Canada accounting for the remaining 14%. The majority of top suppliers participate in both the US and Canadian markets, which are comparable in terms of sophistication and structure. The overall market is being driven by outsourcing expansion, and new opportunities are emerging from end-user sectors that are less common, like industrial, healthcare, aviation, and retail.

The main themes in North America include technology, sustainability, and energy management, similar to those in other significant developed markets. The major forces after COVID-19 will be the rapid deployment of digital technologies in service delivery and the rising significance of sustainability. The desire for problem-solving has historically been the primary driver of the hard service sector in North America. The customer strategy’s hard services were more of an afterthought than a focal point. However, the industry is shifting toward being more engineering-driven, and the FM contract will be centered around technical services.

The continent of Europe presents a complex picture with significant regional variations. For instance, the United Kingdom has one of the highest rates of outsourcing in the world (46.9%), whereas several nations in Southern and Eastern Europe only have approximately 30% outsourcing. Despite being a far less established market, Asia has by far the largest FM universe and addressable market, with outsourced FM accounting for 26.2% of total spending.

In 2022, single services will make up 70% of all services. Due to the fact that many single-service contracts (especially those involving catering) depend on building occupancy, the single-services market suffered the most from the pandemic in 2020 and 2021. In spite of the segment’s strong recovery by the end of 2021, revenues fell by 4.4% in 2020, and future revenue growth will be moderate. Its anticipated CAGR from 2023 to 2030 is 5.5%.

The global market for facility management is incredibly fragmented. There are already more than 3,000 competitors operating on a global scale. Globally, Compass is in the lead, followed by Sodexo and Aramark.

Market Dynamics: Drivers

• High inflation will be a positive force for rising prices and revenues, but it will also push expenses up and put pressure on margins even as revenue growth will be accelerated
• Growing public sector outsourcing commitment increases FM penetration and fuels market revenues for outsourced FM services
• As customers place a greater emphasis on core process optimization, cost reduction, and enhanced productivity, economic instability and a high chance of a recession may lead to an increase in the rate of FM outsourcing

Market Dynamics: Challenges

• Budget restrictions brought on by economic ambiguity and a future recession in the UK will make consumers more price sensitive, limit the possibilities for value-based upselling, and encourage aggressive pricing tactics
• The maturation of soft services outsourcing will put more strain on the sales pipelines and severely restrict chances for new projects. This is especially true in the private sector
• Despite the public sector’s robust revenue growth, many suppliers may find the lengthy tendering procedures and the slow pace of contract awards to be off-putting

 Market Segmentation

• Based on Contract Type, the Global Facility Management market is segmented into
  • Single Services
  • Bundled Services
  • IFM
• Based on Service Type, the Global Facility Management market is segmented into
  • Cleaning
  • Safety & Security
  • Catering
  • Building O&M
  • Property Services
  • Energy Services
  • Environmental Services
  • Others
• Based on End Use, the Global Facility Management market is segmented into
  • Healthcare
  • Government
  • Education
  • Commercial Offices
  • Financial Services
  • Industrial
  • Others
• Based on Service Delivery Model, the Global Facility Management market is segmented into
  • Total Outsourced
  • In-House FM
  • Small FM
• Based on Service Type, the Global Facility Management market is segmented into
  • Soft Services
  • Hard Services
  • Additional Services
• Based on Geography, the Global Facility Management market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa

• All market revenue has been given in US Dollar.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

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 Global 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 Global Facility Management Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Facility Management Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Facility Management Market study?