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Value-added services play a pivotal role in elevating profitability and transforming a company's product offerings. They serve as a catalyst for companies to grasp the evolving needs of customers and users, enabling the introduction of innovative services that go beyond core offerings. Facility management services play a critical role in executing functions related to planning, building, and designing management.
These functions encompass elements such as equipment, furniture, and systems, ultimately enhancing an organization's competitive edge. The goal of value-added services within this framework is to effectively meet client requirements. By assisting clients in achieving their needs, these services contribute to maintaining a healthy and productive relationship between the client and the value-added service provider. The integration of facility management services into value-added services has a profound impact on both public and private sectors. This integration streamlines complexity and enhances efficiency in modern buildings, reinforcing design efficiency and output. The potential of value-added services lies in their ability to adapt to changing trends and customer preferences, ensuring the delivery of offerings that extend beyond core services. This strategic approach forms a robust foundation for the development strategies of companies operating in the facility management services market.
The escalating demand for value-added services stands as a significant driver influencing the growth trajectory of the facility management services market at a notable rate. As companies increasingly recognize the importance of these services in meeting client expectations and staying competitive, the market is poised for continued expansion. Against the backdrop of a global economy displaying indications of a moderate recession, the construction sector remains resilient, sustaining moderate growth. The long-term outlook for the global construction sector is notably promising, with projections indicating that it will outpace the growth of the global GDP in the coming decade.
Several factors contribute to this optimistic forecast, including population expansion in emerging economies, infrastructure enhancements in developed nations, a growing trend towards increased residential construction, and planned investments in renewable energy and telecommunications. Collectively, these factors are instrumental in driving the sustained growth of the construction industry on a global scale.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | type, services, application, and region. |
Facility Management Services Market Highlights:
Facility Management Services Market Overview
The facility management service market is estimated to reach a valuation of USD 670 billion by the year 2032, at a CAGR of 8.9% during the forecast period 2024 to 2032. Facility Management (FM) is a business function that integrates place, people, technology, and process to guarantee the physical environment's seamless functionality, comfort, safety, and efficiency. A group of upkeep services known as "facility management services" are used by businesses and housing developments to achieve their desired goals. The rapidly expanding tourist and hospitality industries, the need to adhere to environmental and regulatory standards, and the increased demand for value-added services all contribute to the growth of the facility management services market.
Figure 1: Facility Management Service Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The goal of the facility management services is to automate laborious and prone-to-error manual activities while focusing on compliance through core business expertise. These services are aware of the nature of the businesses and the rules that the company is subject to. The facilities management services encourage compliance by guaranteeing appropriate oversight and protocols for data security. As a result, the facility management services market is anticipated to grow rapidly during the forecast period due to the need to adhere to environmental and regulatory standards.
Facility Management Services Market Trends Insights
The new-age trend of utilizing cloud computing is aiding the facility management services market's growth.
Currently, cloud-based solutions offer a secure and protected method for hosting software related to facility management. Additionally, they aid businesses in cost reduction by enhancing security and collaboration among subsidiaries and teams dispersed across multiple regions. Moreover, cloud-based facilities management solutions offer superior security and scalability, expedited disaster recovery, and secure hosting for sensitive data.
Furthermore, backups are securely stored on either a public or private cloud hosting platform, enabling organizations to promptly access critical server information. Secure login credentials enable data access from any location with a dependable internet connection. The implementation of cloud-based facilities management systems results in increased customer satisfaction and decreased repair and maintenance costs. Therefore, the facility management market is experiencing growth due to the adoption and integration of cloud-based solutions, which can be attributed to the aforementioned benefits.
Facility Management Services Market Segment Insights
The facility management services market is primarily segmented based on service type and end-use industry.
Based on service type, the said market segment is further classified into hard services and soft services, out of which the hard services segment is estimated to dominate the market. The hard services segment is anticipated to maintain a substantial market share as a result of the infrastructure industry's sustained expansion. Furthermore, this industry encompasses cleaning, plumbing and drainage, building fabric maintenance, and various other labor-intensive services.
These utilities are integrated into the physical structure of the building. Additionally, the heavy services sector is being propelled by the burgeoning expansion of the building and construction industry, which can be attributed to the worldwide surge in urbanization. In addition, soft services, which are the subsegment of the service type that is expanding at the quickest rate, are anticipated to expand substantially over the forecast period. Furthermore, this increase can be attributed to heightened investments in sectors such as energy management, wastewater management, waste management, and renewable energy management.
Based on the end-use industry, the facility management services market is further sub-segmented into real estate, healthcare, education, and military & defense. Out of which, the real estate sub-segment dominates the market share. The real estate sector is anticipated to be the most active sector in the said market segment ly during the forecast period, owing to the continuous growth in the construction and development industries in numerous nations. Furthermore, it is anticipated that the real estate sector will experience significant growth in the market share, followed by the remaining sectors, which primarily consist of IT & telecommunications and BFSI enterprises.
Moreover, the healthcare sector is expected to experience substantial growth over the said forecast period due to the rising implementation of facility management services as preventative measures in numerous nations. Apart from this, the government sector is also estimated to earn a substantial market share by the end of the forecast period, which is primarily attributed to the government's emphasis on infrastructure investment. The educational sector encompasses a wide variety of services, including but not limited to space management, integrated services management, and technical maintenance. The highest demand exists in the healthcare and education industries for these services, which enable end-users to concentrate on and improve their core businesses.
Facility Management Services Region Insights
The facility management services market is primarily studied across four major regions, namely, North America, Europe, Asia-Pacific, and the Rest of the World. Out of which, the Asia-Pacific region dominates the market share.
The Asia-Pacific region accounted for the largest market share of about 37.92% in 2021. The region is a major hub for industrial manufacturing and, in recent years, has become a focal point for significant investments and business expansions. The rapidly growing construction spending, infrastructure development, increasing emphasis on the safety and security of the facility, and stringent government regulations regarding facility management are a few of the factors that are expected to drive the market growth.
Apart from this, the Asia-Pacific region is projected to hold the largest market share in facility management as a result of the presence of numerous organized and unorganized businesses in China and India. Moreover, well-established companies are placing emphasis on establishing collaborations with regional participants in order to deliver their services to end-users and expand their market presence. Furthermore, the APAC facility management services market is being widely impacted by the expanding implementation of innovative technologies, including advancements on the Internet of Things (IoT) and business tactics.
Furthermore, the North American facility management services market is anticipated to have consistent growth as a result of the integration of emerging technologies, including but not limited to the Internet of Things, artificial intelligence, and robot adoption. Furthermore, the implementation of security measures in critical states across the United States and Canada in response to the COVID-19 pandemic precipitated a market decline between 2020 and 2021. As an alternative, the market is anticipated to expand significantly over the course of the forecast period due to increased participation in government-sponsored programs.
Apart from these two regions, the European region is anticipated to experience significant growth over the coming years, owing to the preventive measures being implemented by the administrations of numerous countries in the region. Service-oriented organizations can optimize their personnel, output, and revenue by implementing these proactive measures.
Facility Management Services Market Key Players & Competitive Insights
Major key competitors in the said market segment employ crucial strategies, including partnerships, joint ventures, mergers and acquisitions, product launches, and business expansion deals to expand their business operations across the globe and have a strong command over a certain region in the market.
Facility Management Services Market Key Companies Insights
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Aramark Corporation (US)
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ASMACS Group. (India)
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CBRE (US)
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SIS Group Limited (India)
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Knight Frank (UK)
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Sodexo (France)
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Compass Group PLC (UK)
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EMCOR group. Inc (US)
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GDI integrated facility service (Canada)
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ISS Facility Service Inc. (Denmark)
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Cushman & Wakefield (US)
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Jones Lang LaSalle IP, Inc. (US)
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OCS Group Limited (UK)
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Quess Corp Ltd. (India)
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Apollo Facility Management Service (India)
Recent Developments
January 2022 -
In January 2022, Sodexo signed an acquisition deal with Accent Food Services to acquire its business, which will help Sodexo expand its services.
December 2021 -
In December 2021, Cushman & Wakefield announced that it would invest USD 150 million in a flexible co-working space provider company called WeWork to provide world-class facilities to its customers.
January 2022 -
JLL acquired Sacramento-based Hank, which is a virtual engineering platform powered by AI that autonomously optimizes the management systems of commercial buildings to deliver comfort, air quality, and energy savings.
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