by Brianna Crandall — December 6, 2019 — The facilities management (FM) market is expected to witness significant growth globally from 2019 to 2025, according to a new research report by Global Market Insights. The FM market size exceeded USD 1 trillion in 2018 and is poised to witness over 7% compound annual growth rate (CAGR) between 2019 and 2025, reaching USD 2 trillion by 2025.
The report points out that facilities management is an important organizational function that integrates place, people, and process within the facility’s environment with the purpose of improving the quality of life for building occupants and the productivity of the organization’s core business. FM manages valuable assets including property, buildings and equipment.
Facilities management market drivers
The growth is expected due to an increase in the demand for reducing the operational costs required to maintain non-core business operations in facilities. The rising awareness of the need to provide clean and healthy workspaces for improving employee productivity is driving companies to outsource these services.
Government support for initiatives to improve health and educational institutes, as well as an increasing demand for smart buildings and cities to benefit the environment and improve the indoor experience are also creating business opportunities for facilities management services such as cleaning, security, and landscaping.
Rising investment in the construction sector is adding to smart infrastructure equipped with light, sensors, elevators, HVAC units and CCTV integrated into a network, says the report. The maintenance and operations of smart infrastructure is making facilities management an essential service. With the rise in both commercial and residential construction, the demand for cleaning, maintenance, engineering and facilities management services is also increasing.
Also, growing industrialization around the world will encourage manufacturing companies to outsource the management of their facilities to enable their focus on core competencies.
In addition, the report points to the growing tourism sector in such countries as India and China as supporting the adoption of FM services at restaurants, hotels, airports, and entertainment centers to improve day-to-day operations and provide a superior experience for guests and customers.
Challenges to growth
The report lists challenges for the facilities management industry as: slow adoption of outsourced FM services; and the integration of facilities management with legacy enterprise resource planning (ERP) systems.
The report provides key industry insights spread across 260 pages, with 476 market data tables and 26 figures and charts.
Interested readers can order either a sample of the report or the full report, Facilities Management Market Size by Type (Outsourced, In-house), by Service (Hard Service [Electrical, Civil, Mechanical, Specialized Services], Soft Service [Cleaning, Laundry, Landscaping, Security], Management Service [Contract Management, Energy & Utilities, Maintenance Planning and Control]), by Application (Education, Commercial, Transportation, Industrial, Government & Public Sector, Healthcare), Industry Analysis Report, Regional Outlook), Growth Potential, Competitive Market Share & Forecast, 2019 – 2025, from the GMI website.