The?facility management market?was valued at USD 40.41?billion in 2019,?and is expected to reach a market value of USD 81.49?billion by 2025, registering a CAGR of 12.51% during the forecast period of 2020-2025.
- Facility management (FM) includes management methods and techniques for building management, infrastructure management for an organization and also the means of overall harmonization of the work environment in an organization. This system standardizes services and streamlines processes for an organization.
- The increased spending on the infrastructural aspect can be cited as one of the major drivers for the growth of the FM market. Moreover, the increasing focus on optimization processes and energy efficiency improvements are the main driving forces for the development of the facility management market.
- Along with this, real estate, manufacturing, retail, and the public sector are also a few industry verticals which have witnessed high infrastructural growth. These verticals mentioned above constitute the primary end users of facility management solutions, owing to the growing need for integrating data from operational facilities into other business applications.
- However, security concerns related to the safety of devices and networks is one of the factors restraining the market growth. Increasing security breaches and growing threats of cybercrime groups are creating skepticism, thus affecting the growth of the market.
Scope of the Report
Facility management encompasses multiple disciplines to ensure the functionality of the built environment by integrating people, place, process, and technology. Also, facility management is the coordination of a facility’s operations meant to make the organization as a whole more effective at what it does. The facility management is applied in various industry verticals like retail, education, and healthcare, among others as per the need of the business.
Key Market Trends
Integrated Facility Management to Witness Higher Growth Rate
- Integrated facility management is a method of combining many (or all) of the office related services and processes under one vendor and management team. IFM streamlines internal and vendor-related communication, simplifying day-to-day operations management, and improving productivity in the organization.
- With multiple vendors working on different components of the organization, redundancy and overlap are inevitable. Costs are also an important factor of concern as different teams spend their time and money on initiatives that do not align with the company’s future goals. With IFM, inefficiency and unnecessary expenditure become easy to identify, since there is greater visibility.
- The North American region has largely set the global standard for integrated facility management (IFM) services, owing to the home presence of large contract management and real estate firms. The North American market has a presence of large nationally and internationally operating IFM companies from the backgrounds of technical FM, property management, and support services.
North America Occupies the Largest Market Share
- Latest technological breakthroughs in the North American region have assisted the advancement of facility management solutions that makes the overall processes highly efficient and significantly improve accuracy in various applications.
- There have been a series of new solutions, mergers and acquisitions in the North American region to take advantage of this opportunity. The primary driver behind these investments are the continuous evolution and increasing application of new technologies to unlock enormous volumes that were previously considered non-commercial.
- With these series of investments, IT and telecom, BFSI, real estate, and healthcare applications in North America are set to boom over the next five years.
The facility management market is moving toward a consolidated stage due to the presence of a few number of players concentrated in a few countries. These major players have adopted various growth strategies, such as mergers and acquisitions, new product launches, expansions, joint ventures, partnerships, and others to strengthen their position in this market. The major players in the market are IBM Corporation, Oracle Corporation, SAP SE, Planon Corporation, among others.
- June 2018 - SAP SE announced plans to collaborate with Accenture, Capgemini, and Deloitte to accelerate customer adoption of SAP S/4HANA Cloud in the process manufacturing, discrete manufacturing, and service industries.
- June 2018 - SAP SE announced that it has more than doubled the number of digital innovation solutions and significantly expanded design-led engagement services with the launch of the SAP Leonardo Partner Medallion Initiative. SAP Leonardo technologies empower enterprises with intelligent technologies for every business process, to create better outcomes.
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