The facility management market is growing at a high CAGR because of the rising investments towards infrastructure development and increasing construction activities across different parts of the world.
That’s according to a study conducted by BlueWeave Consulting, which reveals that the global facility management market was worth $43.4 billion in 2021, and is forecast to grow at a CAGR of 12.2% to reach revenues of around $94.1 billion by 2028.
The growth is attributed to rising investment towards infrastructure development and increasing construction activities along with flourishing tourism in different parts of the world.
Furthermore, the rising adoption of advanced technologies such as cloud computing, SaaS, IoT, artificial intelligence (AI), etc., is also offering lucrative growth opportunities.
Growing tourism is emerging as the major driving factor for the growth of the facility management market across the globe, with governments, along with private players, significantly investing post-pandemic in developing commercial spaces such as hotels, public houses, restaurants, etc., along with the management of historical sites, which is fuelling the demand for facility management services.
Rising Business Collaborations and Partnerships
With the increasing potential of facility management, several players are adopting various competitive strategies to exploit the growth potential of the market. Strategies such as partnerships, mergers, collaborations, etc., are increasingly becoming common. For instance, Dexterra Group Inc. recently announced the acquisition of the privately-owned TRICOM Facility Services group of companies. This acquisition is aimed at expanding the integrated facility management business unit of the Dexterra Group.
Facility Management Market – By End-User
Based on end-user, the global facility management market is segmented into commercial and retail, manufacturing and industrial, government, infrastructure, public entities, institutional, and others. The commercial segment accounts for the largest market share owing to the rising number of commercial spaces such as offices, hospitals, hotels, airports, sports facilities, restaurants, etc., in different parts of the world. These commercial facilities are opting for in-house facility management services to comply with regulatory guidelines regarding safety and hygiene. However, the manufacturing and industrial segment are projected to witness the highest growth rate during the forecast period.
Facility Management Market – Regional Insights
Geographically, the Asia-Pacific region dominates the facility management market. However, the Middle East & Africa is also growing at a substantial rate during the forecast period. The economic diversification in Middle Eastern countries such as Saudi Arabia, Israel, Iran, Turkey, etc., and the rising establishment of commercial facilities such as offices, manufacturing plants, hotels, etc., is significantly propelling the growth of the facility management market.
Impact of COVID-19 on Facility Management Market
The facility management market was among the worst affected industries due to the COVID-19 pandemic outbreak. The rapidly escalating COVID-19 cases around the world prompted the government of various countries to impose strict lockdown and social distancing measures. This resulted in the operations of different end users industries of facility management including construction, manufacturing, retail, commercial, etc. The commercial spaces including offices, hotels, airports, etc., were forced to close to prevent the community transmission of the virus. Due to this, the demand for facility management services witnessed a significant drop during the COVID-19 period.
According to the report, the leading market players are Archibus Inc., Trimble Navigation Ltd, Broadcom Inc., Satnav Technologies, FM System Inc., SAP SE, IBM Corporation, Planon Corporation, iOffice Corporation, Oracle Corporation, CB Richard Ellis, Veolia Environment, Colliers International, Planon Corporation, Compass Group, Cushman & Wakefield, Jones Lang LaSalle Incorporated, GDI Integrated Facility Services, Inc., EMCOR Group, Inc., and others.