Facility Management Market

Facility Management Market Size & Growth (2021 - 2026)

The global facilities management market was valued at $ 51 billion in 2020 and is determined to reach $ 98 billion by 2025, expanding at a compound annual growth rate of 14.4% from 2020 to 2025.

The International Association for Facilities Management (IFMA) has defined facilities management as the practice of coordinating the physical workplace with people and the work of the firm includes several activities like device maintenance, space planning and portfolio predicting. Facility management, in general, contains different skills, such as readiness to any emergencies and continuity of business, sustainability towards environment, human elements, communication, project management, quality, property management, and leadership and strategy, etc. However, the report focuses mainly on the technological aspect of facilities management, which includes software and services used to increase the efficiency and effectiveness of facilities management services.

Recent developments:

• In January 2018, Accruent acquired Kykloud, a UK-based asset management and topography software provider. This acquisition is expected to strengthen Accruent's current strength in capital planning and asset management.
• In February 2018, SAP launched the SAP Asset Strategy and Performance Management solution to improve the intelligence of assets across the digital supply chain. This new solution should help SAP customers define, plan and monitor performance data on a network of connected assets in real time.
• In May 2017, Trimble declared the completion of its purchase of Network Mapping Group Limited (NM Group). The deal is anticipated to improve Trimble's solutions to offer immense value-added data modeling and 3D asset visualization for the utility sector.

Market growth and trends:

The demand for facilities management services has increased in recent years and is expected to increase significantly over the forecast period. This growth is attributable to the increase in public investments in sectors such as transport, energy, construction and others. These services can be provided by two methods, namely internal services and outsourced services.

Drivers and market Restraints:

The global market for facility management is majorly supported by the need to maintain environmental and regulatory compliance, increased demand for integrated facility management to achieve economies of scale, shifting focus to the virtual workplace and mobility, the rise in development of sustainable infrastructure, emergence of the SaaS implementation model, growing adoption of IoT and connected smart devices for building automation, and so on.

The other prominent factors driving growth in this business are the increased adoption of cloud-based solutions, the change in organizational structure and work management, and the introduction of new solutions by key market players. Other factors hampering market growth include a lack of knowledge of facility management solutions and their benefits, and increased demand for external services.

However, the lack of knowledge of management and dependence on the management team of internal facilities may limit the expansion of this market to some extent.

FACILITY MANAGEMENT MARKET REPORT COVERAGE:

Market segmentation:

The global facility management market is segmented by component, implementation, organization size, vertical sector, and geography.

Facility Management Market - By Components:

the market is divided into solutions and services. The solutions segment includes relocation and workplace management, strategic facility planning, asset management, real estate and lease management, maintenance management, and more (sustainability management, project management, program management, and technology management).

Facility Management Market - By Implementation:

the market is classified in the cloud and on-site. Web solutions have been included in the cloud-based segment, while mobile software, including iOS and Android, is included in the local segment. The cloud-based deployment is anticipated to develop with a remarkable growth rate in the coming years owing to the high accessibility and affordability offered by these solutions compared to its counterpart.

Facility Management Market - By Organization Size:

the market is studied in large organizations and SMEs. The large enteprises are the major contributors to the global facility management market, which however, is determined to alter in the foreseen years with the increasing investments in the SMEs.

Facility Management Market - By Vertical Sector:

the global facility management market is classified in banking, financial and insurance services (BFSI), IT and telecommunications, the public sector, health, manufacturing, retail, real estate and others (energy and public services and travel and hospitality).

Regional Analysis:

Geographically, the global facility management market is analyzed in North America, Europe, Asia-Pacific, and LAMEA.

The North American facility management market generated the most substantial revenues in 2018 due to increased ICT spending, the presence of large numbers of companies, and increased IoT adoption. The Asia Pacific facility management market is deemed to grow with the notable CAGR due to increasing Internet penetration, development of the construction industry, and growing demand for better management of data.

In Latin America, the facility management business is foreseen to advance with a considerable portion because of its robust GDP and considerable investment in infrastructure. Among competitors, mergers and acquisitions should be the key growth strategy to increase service offerings and vertical reach. In the Middle East and Africa, the facility management market is likely to progress at the fastest rate because of the surge in construction activities, changing work cultures within organizations and ease of contract management.

Key players in the market:

Major players in the global facility management market are IBM Corporation, Oracle Corporation, SAP SE, Loffice Corporation, Inc., Archibus, Inc., FM System, Inc., CA Technologies, Inc., Accruent, LLC, Planon Corporation, and Trimble, Inc. These players have expanded their market presence by adopting various business strategies such as acquisition, geographic expansion, product development, strategic alliance, and collaboration.