The facility management market is expected to grow considerably by 2027 owing to rising investments for the development of smart buildings across key regions and economies.
According to recent studies, facility management as a discipline is gaining vast recognition among the developers of smart and sustainable cities to ensure an urban environment that can efficiently meet sustainable development goals (SDGs). In recent years, favorable government initiatives to promote smart cities have augmented industry uptake.
The facility management market has been bifurcated based on application, type, service, and region.
In terms of service, the market has further been segmented into management services, soft services, and hard services. Under soft services, the market has been classified into specialized services, electrical, mechanical, civil.
The civil segment is speculated to expand at a CAGR of over 5.0% through the review timeline owing to rising investments in the construction sector. The mechanical segment held a market share of above 10% in 2020 and is slated to witness optimistic growth over the forecast period.
This expansion is attributed to the rise in the number of factories. The specialized services segment is expected to develop at around 5.0% CAGR over the assessment period due to the prevalent adoption of HVAC and elevator systems.
Under hard services, the market has been categorized into security, cleaning, laundry, and landscaping.
The cleaning segment accounted for more than 10.0% market share in 2020 and is likely to showcase solid growth over 2021-2027. Growing focus towards preventing the spread of infections and diseases within organizations is estimated to bolster segmental expansion.
The landscaping segment is anticipated to progress at a CAGR of approximately 8.0% over the projected timeframe owing to the importance of planning and maintaining an attractive exterior of business facilities among organizations.
Under management services, the market has been divided into maintenance planning & control, contract management, and energy & utilities.
The energy & utilities segment amassed a substantial market share of almost 40.0% in 2020 and is set to grow at a steady pace through the study period. Increasing emphasis towards preventing the spread of diseases and infections within organizations is expected to fuel market uptake.
The maintenance planning & control segment is projected to develop at a CAGR of about 7.5% over the forecast period due to increasing demand for the smooth and efficient functioning of daily operations.
With respect to application, the facility management market has been segregated into healthcare, government & public sector, transportation, industrial, education, and commercial.
In 2020, the commercial sub-segment attained a market share of nearly 10.0% and is speculated to exhibit robust expansion through the stipulated timeframe. Rapidly improving standards of living along with mounting demand for commercial buildings is slated to propel segmental growth.
The education sub-segment is deemed to progress at a growth rate of approximately 10% over the analysis period on account of the growing necessity to maintain a physical environment that is comfortable, safe, secure, accessible, well illuminated, and ventilated.
In 2020, the transportation sub-segment held above 5% market share and is likely to expand at a notable growth rate through the forecast timeline. Increasing need to maintain a consistent service standard for customers, smooth flowing operations, and a safe & secure environment is anticipated to support market growth in the next few years.
From the regional perspective, the LATAM facility management market is poised to grow at about 5% CAGR over the study timeline owing to increasing penetration of global MNCs in the region.
The MEA facility management market recorded over 8% market share in 2020 and is set to progress at a sturdy pace through 2021-2027. Growing investments in the real estate sector, the development of economic cities, and other infrastructural developments are projected to drive regional market expansion.