The facility management services market analysis, the overall market is predicted to progress at 5.4% CAGR (Compound Annual Growth Rate) over the next ten years. Future Market Insights predicts the facility management services market valuation to grow from US$ 46,858.5 million in 2023 to US$ 79,285.6 million by 2033.
The global facility management services market size in the year 2018 accounted to be nearly US$ 38,010 million. By following an average CAGR of 4.6% during the period between 2018 and 2022 it reached US$ 45,457.8 million by its end.
A Market Dominated by Outsourced Services
In implementing and integrating facility management services in an enterprise's facilities, services are critical. The global facility management market is dominated by outsourced services that focus on enhancing business processes and optimizing facility operations. Facility management consultancy services are the backbone of any facility management since they are essential in meeting customers' unique needs.
The demand for in-house facility management services is also likely to grow promisingly, particularly for quality evaluation and auditing. This segment is anticipated to witness a higher growth rate over the forecast years. Implementation and integration have become crucial for business owners.
Facility management services impact businesses' long-term goals of higher productivity and reduced maintenance in various corporate offices. Also, the increased need for industrial development, including various mega projects is driving up the demand for real estate.
Key Market Contributors
Cloud-based solutions provide a safe and secure way to host facilities management software. They assist firms in lowering operational expenses by enhancing security and communication across teams. Similarly, spreads subsidiaries across numerous locations.
Secure hosting of sensitive data, better security and scalability, and rapid disaster recovery are advantages of cloud-based facilities management solutions. The backups are saved on a public or private cloud hosting platform. Allowing businesses to retrieve vital server data quickly. Secure logins allow data to be accessed anywhere with a reliable internet connection.
Thanks to cloud-based facilities management systems, customer satisfaction is improved, and repair and maintenance expenses are reduced. Consequently, the adoption of cloud-based solutions for integrating facility management services has increased.
Organizations aren't fully aware of the advantages of facility management services. The issue stems from a lack of knowledge and the adoption of the required technology. In addition, the issue that occurs particularly in operations with many buildings is a lack of consistency. When problems arise, immediate action is essential to ensure access and security.
Many companies are still utilizing cloud computing technologies and are yet to implement an IoT ecosystem. Furthermore, their move from traditional workplace layouts to contemporary ones is still in its early stages.
Facility management outsourcing is becoming increasingly popular with the growing complexity of workspaces. Organizations are rethinking their business models to increase value development. They do examine the proper balance of insourcing and outsourcing—based on capability, cost, and coverage—before outsourcing facility management to third parties.
In numerous locations, including Europe, and North America, outsourcing has played a key role in expanding the facility management consulting services market. The rise in demand for high-quality working experiences and lower operational expenses are driving the market's key trends and opportunities.
The growing installation costs of in-house facilities management teams are driving the rise in outsourcing demand. Demand for cloud-based facilities management systems is surging to boost market potential.
Companies should focus on consumer value, by continuously innovating and expanding their core offerings to provide better customer service. Moreover, the challenging task of administering a vast array of services is poised to create new opportunities for the market players.
Recent Industry Developments
The global adoption of facility management services surged during the years 2020 and 2021 that is still driving the market since then. For facility operation and maintenance managers, the pandemic had a positive influence on revisiting business policies as well.
- The merger between Turner & Townsend Holdings Ltd and CBRE Group, Inc. was concluded in November 2021. By purchasing a 60% ownership position in the business, CBRE joined forces strategically with the former company.
- Oracle teamed with Propre Japan Inc. in May 2020. Oracle Japan plans to assist Propre Japan Inc. in developing Propre's real estate big data platform. In addition to this, it is now available in 17 countries across the world. Oracle's client base grew impressively as a result of this agreement.
- Koch Industries, Inc. announced in April 2020 that it has finalized the purchase of the remaining share of Infor from Golden Gate Capital. Koch is a leading client of Infor in addition to being one of its prominent investors since 2017. The buy-up enabled the integration of Infor solutions throughout its companies. The areas include enterprise resource planning, human resources, supply chain, asset management, and finance.
- Fortive purchased ServiceChannel in July 2021. ServiceChannel is a prominent provider of multi-site software as a service (SaaS). Along with Accruent and Gordian, it increased Fortive's portfolio of Facility and Asset Lifecycle workflow solutions.
Arthur McKay, BVG India, CBRE Group, EMCOR Group, and Quess Corp are some famous companies operating in the global market. Competitiveness in the market is getting heightened by the expanding use of cutting-edge technologies. This includes AI-based management solutions and IoT evolutions. So, global players are focusing on forming alliances with regional players to expand their geographic reach and offer services to SMEs.
These insights are based on a report on Facility Management Services Market by Future Market Insights.