Global demand for healthcare FM to hit $165bn this year
The global market for Healthcare Facilities Management is estimated to be worth $165.1 billion in the year 2022, driven by the COVID-19 pandemic, and is projected to reach $222.9 billion by 2026, equivalent to a CAGR of 7.2% over the forecast period.
The latest analysis from Dublin-based ResearchAndMarkets says Soft Services, one of the segments analysed in the report, is projected to grow at a 6.5% CAGR, while growth in the Hard Services segment is readjusted to a revised 8.3% CAGR.
Healthcare FM market worldwide continues to grow at a promising rate. With world confronting challenges in the form of rising incidence of lifestyle related diseases, focus is shifting towards health and better lifestyle that is also expected to bear an impact on the FM market. The growing focus on healthcare sector is thus contributing to the increase in FM revenues.
Specifically in regions such as Europe, where governments are slashing healthcare budgets, there is growing demand for outsourced FM services. The rising threat of lifestyle diseases is also expected to foster improvements in building designs, in order to promote comfortable, productive and active lifestyles.
Increasing prevalence of chronic illnesses, rising disposable incomes of urban people, technological advancements designed to improve healthcare, rapid growth of medical tourism, and support for healthcare sector from government departments in developed and emerging economies are also supporting growth of the healthcare FM market.
The market is also benefitting from the rising expenditure on healthcare and associated infrastructure, growing focus on the aspect of hygiene, and the increasing emergence and use of technologies for maintaining sustainability. Increasing priority being given to patient wellness and safety also bodes well for the market.
Private healthcare institutions are generally more focused on implementing healthcare facility management. The growing demand for outsourced FM services remains a key growth driver for the overall healthcare FM market. The market is being driven in part by the increasing trend of hospitals and other healthcare units outsourcing facilities management.
Also driving growth are factors such as rising adoption of IoT and increasing proliferation of cloud-based solutions are expected to open up new avenues of growth in the healthcare FM market. Latest technologies such as Internet of Things (IoT) and automated guided vehicles, among others enable the providers of such services to offer improved customer service. IoT provides a steady flow of data in real-time, which allows better decision making and optimization of processes.
Automation is also increasingly being witnessed in energy management systems of hospitals. IoT and AI support energy flow and its optimization in healthcare facilities. There has also been the emergence of several smart products due to the growing IoT adoption. Smart technology can be used to improve door locks, HVAC, alarms, and security cameras, among others, and facilitates the use of mobile devices to control them, which makes remote management of a facility possible and less time-taking.
Another factor fostering market growth is the rising use of healthcare facility management software, which enables clinics and hospitals to perform routine operations smoothly and enhance patient care. It allows healthcare facilities to use their physical resources and perform automation of management functions.
Facilities management services are of two broad types, soft services and hard services. Hard facility management services refer to those that are integrated into facility or building. These are vital to the workplace environment and cannot be removed. Hard services are known to impact all people in the facility, albeit at different levels. Heating, lighting/electrical, plumbing, fire safety systems, air conditioning, and mechanical are some types of hard services.
Soft services category, especially cleaning and pest control segments, accounts for a major share and is likely to grow at a healthy rate driven by the growing importance of maintain clean environments given the highly contaminated surroundings of various healthcare facilities. The cleaning and pest control segment has considerable importance in the healthcare FM market, due to the high degree of contamination in healthcare settings.
Medical waste management is expected to register strong growth in the forthcoming years. Healthcare facilities produce a significant quantity of non-hazardous and hazardous waste on a daily basis that arises from the diagnosis and treatment of diseases. Such waste needs to be carefully and safely managed to prevent the spread of infections and diseases and to lower impact on the environment.