Facility Management Solution Market Size, Share, Outlook 2028

The facility management solution market is expected to grow from US$ 768.71 million in 2021 to US$ 1,418.85 million by 2028; it is estimated to grow at a CAGR of 9.2% during 2021–2028.

Governments across the world invest in infrastructure growth. For instance, in Union Budget 2021 of India, the Indian government gave a massive push to the infrastructure sector by allocating US$ 32.02 billion to enhance the transport infrastructure. The government increased the National Infrastructure Pipeline to 7,400 projects. Approximately 217 projects worth US$ 15.09 billion were completed as of 2020. Through the National Infrastructure Pipeline, the government invested US$ 1.4 trillion in infrastructure development as of July 2021. Further, as per the Department for Promotion of Industry and Internal Trade, FDIs in the construction development sector (townships, housing, built-up infrastructure, and construction development projects) and construction activities stood at US$ 26.14 billion and US$ 25.38 billion, respectively, between April 2000 and June 2021. In FY21, infrastructure activities accounted for a 13% share of the total FDI inflows of US$ 81.72 billion. Also, there are several investments observed in the construction of railways, ports, and airports.

Significant growth in the real estate sector due to rising focus on a safe, clean, and secure environment is one of the primary factors bolstering the growth of the facility management solution market. Additionally, the growing concept of a green building along with the enactment of the Real Estate (Regulation and Development) Act 2016, which protects home buyers and helps boost the real estate sector, stimulates the facility management solution market growth. In addition, the booming information technology industry and the growing popularity of e-commerce platforms propel the need for infrastructure and organized spaces, which also fuels the facility management solution market growth. Apart from this, several companies are using AI (artificial intelligence) and IoT (internet of things) technologies to automate facility management services for energy efficiency audits. Moreover, the higher authority of India has launched the mission of smart cities to promote inclusive and sustainable cities. The initiative has resulted in increasing investments in the infrastructure sector, which has further created a need for professional facility management services. Furthermore, the post-pandemic rising emphasis on hybrid workspaces and return-to-the-workplace strategies augment the demand for facility management services to maintain safety and productivity in companies across the world. Therefore, with the growing infrastructure sector across the globe, the demand for facility management solutions market is also increasing.

Strategic Insights

Impact of COVID-19 Pandemic on Facility Management Solution Market

The COVID-19 pandemic has shaken several industries across the world. The tremendous growth in the spread of the novel coronavirus has urged governments worldwide to impose strict restrictions on the movement of vehicles and humans. Due to travel bans, mass lockdowns, and business shutdowns, the pandemic has negatively affected economies and countless industries in various countries. The lockdown imposition has resulted in less production of commodities, goods, and services.

In 2020, the COVID-19 pandemic positively impacted the growth of the facility management solution market. The sudden outbreak pandemic has led to the increasing adoption of facility management solutions across diverse industries such as manufacturing, BFSI, retail, transport & logistics, and pharmaceuticals for automating numerous operations, limiting the workforce, ensuring the availability of essential tools to maximize productivity, and improving asset tracking.

In 2021, with the uplifting of lockdown and vaccination processes, the manufacturing and construction companies have started working again. The logistics and supply chain industry players are focusing on adopting digital technologies to curb the adverse effects of the COVID-19 pandemic on logistics operations based on traditional logistics concepts. This is boosting the logistics supply chain. Further, the increasing awareness of clients and rising need for maintenance management and security are expected to drive the facility management solution market growth in the coming years.

Lucrative Regions for Facility Management Solution Market

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Facility Management Solution Market Insights

Surging Demand for Cloud-Based Facility Management Solutions

With the digital transformation, the use of cloud-based platform is increasing due to its simple deployment and reduced deployment time and cost. Further, the internet infrastructure has matured in developed countries and is flourishing in several developing countries, allowing end users to access the cloud-based platform. A few benefits of cloud-based facility management solutions are secure hosting of critical data, improved security and scalability, and quick recovery of files. The backups are stored on a private or shared cloud host platform. Therefore, organizations can easily recover critical server data. Also, with a stable internet connection, the data can be easily accessed anywhere via secure logins. Cloud-based facility management solutions also decrease repair and maintenance costs and enhance customer satisfaction. These benefits have propelled the use of cloud-based solutions for integrating facility management services. Further, several businesses are adopting the cloud-based platform for facility management software across the world. For instance, companies such as Honeywell, QuickFMS, and Focus Softnet Pvt Ltd provides cloud-based facility management solution. Therefore, the multiple benefits of cloud-based facility management solutions would help businesses to adopt this technology for their future growth, which is projected to create lucrative opportunities for the facility management solution market in the coming years.

Component-Based Facility Management Solution Market Insights

Based on component, the facility management solution market is bifurcated into software and services. In 2020, the software segment led the market, accounting for a larger share.

Facility Management Solution Market, by Component, 2020 and 2028 (%)

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Deployment-Based Facility Management Solution Market Insights

Based on deployment, the facility management solution market is bifurcated into on premise and cloud-based. In 2020, the cloud-based segment accounted for a larger market share.

Enterprise Size-Based Facility Management Solution Market Insights

Based on enterprise size, the facility management solution market is bifurcated into small and medium enterprises, and large enterprises. In 2020, the large enterprises segment accounted for a larger market share.

Application-Based Facility Management Solution Market Insights

Based on application, the facility management solution market is segmented into BFSI, retail, transport and logistics, pharmaceuticals, government, IT and telecom, manufacturing, and others. In 2020, the manufacturing segment accounted for the largest market share.

The players operating in the facility management solution market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:

• In December 2020, Sonoma Valley Unified School District (SVUSD) and Facilitron Sonoma Valley Health partnered to use one of SVUSD's school facilities as a COVID-19 Point of Dispensing (POD) drive-thru mass immunization station.

• In December 2018, Axonator Inc. was awarded with Great User Experience and Rising star award for 2018 from FinancesOnline.

By Component

• Software
• Services

By Deployment

• On Premise
• Cloud-Based

By Enterprise Size

• Small and Medium Enterprises
• Large Enterprises

By Application

• BFSI
• Retail
• Transport and Logistics
• Pharmaceuticals
• Government
• IT and Telecom
• Manufacturing
• Others

Company Profiles

• Axonator Inc.
• Facilitron, Inc.
• FacilityBot Pte Ltd
• FM:Systems
• Hippo CMMS
• IBM Corporation
• Infraspeak
• Quickbase, Inc.
• ServiceChannel
• Upkeep Maintenance Management