October 29, 2001—The European market for ‘integrated facilities management’ is poised for significant growth as existing and prospective customers become increasingly aware of the potential benefits of service outsourcing.
A new study by Frost & Sullivan identifies the drive for business flexibility as a key factor in the growth of the European integrated facilities management which it values at $9.14bn in terms of 2000 revenues in. Frost & Sullivan’s definition excludes both specialised, single-service contracts and ‘bundles’ which cover just one or two services.
Frost & Sullivan says the market grew 16% last year but expects this to be the peak of expansion. The study cites the quest for reduced operating costs as a further factor stimulating growth in the European market, expected to reach $17.69 bn worth of contracts in 2007.
The UK accounts for just over half (52.8%) total revenues, with Germany, claiming a 23.5% market share. Frost & Sullivan says growth prospects in the German market are not very encouraging: “Development of genuinely outsourced integrated facilities management in Germany is expected to be somewhat impaired by social issues and compounded by a generally conservative business environment.”
The researchers predict UK market share will rise to 56.8% in 2002, Germany will fall to 20.5% and Italy increase marginally from 5.1% to 5.6%. Other regions show either no change or a small decline in market share.
Market share calculations at a total European level found that only Johnson Controls hold a revenue share in excess of 5%. At present, the company stands as the only truly European-wide provider. Others, such as Dalkia, Elyo and Siemens, have a wide reach but, says Frost & Sullivan, lack the same coherence in provision across all European regions.
The European Integrated Facilities Management Market is available from Frost & Sullivan, price Eur 5,000.
—Richard Byatt
Reprinted with permission; copyright 2001 i-FM
