The facility management solution market size is expected to grow from US$ 768.71 million in 2021 to US$ 1,418.85 million by 2028; it is anticipated to expand at a CAGR of 9.2% from 2021 to 2028.
Analyst Perspective:
Cost trends, such as rising energy prices and labor costs, influence the facility management solution market. Managing energy costs and optimizing resource allocation are crucial components of facilities management. The outsourcing of facilities management services is a growing trend. Many organizations are considering outsourcing to specialized service providers to enhance efficiency and focus on core business operations. Sustainable facilities management practices are gaining importance. Organizations are adopting measures to minimize the environmental impact of their physical environments, including reducing energy and water usage, implementing waste management best practices, and adopting green cleaning practices.
Market Overview:
Facilities management utilizes tools and services to ensure the operational effectiveness, safety, and environmental sustainability of buildings, infrastructure, and real estate. It is a profession that focuses on supporting individuals and organizations by ensuring that the built environment, including the buildings and surrounding infrastructure, offers optimal functionality, comfort, safety, sustainability, and efficiency. The primary goal of facility management is to integrate people, places, and processes within the built environment to enhance the quality of life for occupants and improve the productivity of the core business operations. Organizations can create a conducive environment that promotes well-being, productivity, and success by effectively managing facilities.
The facility management solution market is driven by several key factors that impact its growth and expansion. Firstly, the increasing demand for cost-effective and efficient management of buildings and infrastructure plays a significant role. As organizations strive to optimize their operational efficiencies and reduce expenses, they turn to professional facilities management services to handle their property maintenance, security, and overall facility operations. Additionally, the growing prominence of sustainability and environmental responsibility has led to the adoption of green practices in the facility management solution market, such as energy-efficient solutions and waste management strategies. Furthermore, the rapid urbanization and industrialization in developing countries have created a need for comprehensive facility management solutions to support the growing infrastructure requirements. Technological advancements, such as the Internet of Things (IoT) and Artificial Intelligence (AI), have also revolutionized the facilities management industry, enabling remote monitoring, predictive maintenance, and intelligent building automation. These driving factors propel the facility management solution market forward, offering opportunities for service providers to deliver innovative solutions and cater to the evolving needs of businesses and organizations.
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Facility Management Solution Market: Strategic Insights
Market Size Value in US$ 768.71 million in 2021 Market Size Value by US$ 1,418.85 million by 2028 Growth rate CAGR of 9.2% from 2021 to 2028. Forecast Period 2021-2028 Base Year 2021
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Facility Management Solution Market: Strategic Insights
| Market Size Value in | US$ 768.71 million in 2021 |
| Market Size Value by | US$ 1,418.85 million by 2028 |
| Growth rate | CAGR of 9.2% from 2021 to 2028. |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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Market Driver:
Increasing Demand for Cloud-Based Solutions
The demand for cloud-based solutions in the facility management solution market has surged significantly, transforming how organizations handle their facilities and assets. Cloud technology provides many benefits, including scalability, which allows businesses to adjust their operations based on changing needs without requiring substantial infrastructure investments. This adaptability enables organizations to optimize their resources in response to dynamic market conditions effectively. Another advantage of cloud technology in facilities management is its flexibility, which allows remote access and control of facilities regardless of location. This is particularly advantageous for organizations with multiple sites or distributed workforces, enabling facility managers to access real-time data, monitor performance, and make informed decisions from any location and at any time. This flexibility enhances operational efficiency and boosts overall productivity for facility management teams.
Additionally, cloud-based solutions offer improved data management capabilities by centralizing storage and management in the cloud. This ensures a single source of truth for all facility-related information, leading to better collaboration, data accuracy, and streamlined workflows. Facility managers can easily track and analyze maintenance, energy consumption, occupancy, and more data, facilitating data-driven decision-making and enhancing operational performance. Furthermore, cloud technology provides robust security features to safeguard sensitive facility data. Cloud service providers invest profoundly in cybersecurity measures, such as encryption, authentication, and access controls, to ensure the confidentiality and integrity of data, addressing organizations' concerns regarding data security and compliance. As a result, the facility management solution market continues to witness a growing adoption of cloud-based solutions due to these diverse benefits.
Segmentation and Scope:
The "Facility Management Solution Market" is segmented based on component, deployment, enterprise size, application, and geography. In terms of components, the facility management solution market is segmented into software and services. Based on deployment, the market is segmented into on-premise and cloud. In terms of enterprise size, the market is bifurcated into large enterprises and SMEs. Based on application, the facility management solution market is segmented into BFSI, retail, transport and logistics, pharmaceuticals, government, IT and telecom, and manufacturing. Based on geography, it is segmented into North America, Europe, Asia Pacific, the Middle East, Africa, and South America.
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Segmental Analysis:
Based on components, the facility management solution market is segmented into software and services. The software segment is expected to grow significantly during the forecast period. The services segment is projected to experience a higher compound annual growth rate (CAGR) in the coming years. Facility management services encompass activities that integrate the physical workplace with an organization's workforce and operations. These services include equipment maintenance, space planning, portfolio forecasting, emergency preparedness, business continuity, environmental sustainability, communication, project management, quality management, real estate and property management, leadership and strategy, and more.
On the other hand, the software segment focuses on technology solutions that improve the efficiency and effectiveness of facility management. Facility management software automates and streamlines various processes, leading to better facility management. Examples of facility management software include Integrated Workplace Management Systems (IWMS), Building Information Modeling (BIM), and Facility Operations software. The software segment plays a vital role in integrating various elements of facility management, including maintenance, asset management, and space planning. These software solutions frequently utilize technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) to deliver advanced features and insights for facility management.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Regional Analysis:
The North American region plays a pivotal role in the facility management solution market, driving the global market. Despite being affected by economic recessions, North America remains a substantial market for facility management services, with the United States being a pivotal contributor to this growth. The range of facility management offerings and solutions in North America is extensive, encompassing segments such as facility operations and security management, facility environment management, and space management. These segments provide organizations with comprehensive solutions to manage their facilities and optimize operational performance efficiently. The demand for integrated facility management in North America is fueled by various factors, including the need for cost-effective maintenance practices, streamlined staffing, and the ambition to enhance overall facility performance. Additionally, the region benefits from a concentration of major players in the facility management industry, further contributing to its growth and competitiveness.
Key Player Analysis:
CBRE, Compass Group, Dussmann, G4S Limited, IBM Corporation, Johnson Controls, Oracle, Serco, Sodexo, and Veolia Group are the key facility management solution market players profiled in the report.
Recent Developments:
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the facility management solution market. A few recent key facility management solution market developments are listed below:
- In October 2023, SodexoMagic, the successful collaboration between Magic Johnson Enterprises and Sodexo, Inc., recently formed a new alliance with SalusCare, the leading nonprofit organization focusing on mental health and substance abuse treatment in Southwest Florida. This strategic partnership signifies a significant achievement for SodexoMagic as it expands its service offerings to the SalusCare community. Throughout a five-year contract, SodexoMagic will deliver comprehensive solutions encompassing food service, environmental services, and facilities management, providing vital support to the SalusCare organization. With approximately 19 dedicated SodexoMagic employees, this collaboration aims to enhance the overall well-being and satisfaction of the SalusCare community through high-quality service delivery and operational excellence.
- In August 2023, CBRE has recently announced the implementation of its Smart Facilities Management (FM) Solutions, which have proven instrumental in enhancing operational reliability and driving efficiency across a vast portfolio of Global Workplace Solutions client sites. This encompasses over 20,000 locations, surrounding a staggering 1 billion square feet. Using CBRE's Smart FM Solutions introduces a more intelligent approach to facility maintenance. Leveraging CBRE's Nexus AI-based platform, coupled with its extensive collection of building operations and utilization data (widely considered the largest in the industry), these solutions provide actionable insights that optimize FM workflows and deliver favorable outcomes. By employing the power of artificial intelligence and data analytics, CBRE's Smart FM Solutions enable organizations to make informed decisions, streamline processes, and achieve high levels of operational efficiency in managing their facilities.
- In May 2023, Willowmore Pte Ltd and CBM Pte Ltd announced a collaboration in developing an advanced integrated facilities management platform to revolutionize the facility management industry. This groundbreaking platform will merge cutting-edge technologies such as 5G, IoT, digital twin, data analytics, RPA, and AI with robotics and automation, creating a comprehensive and unprecedented approach to the complex field of facility and infrastructure management.
- In April 2023, Lessen, a leading technology-driven provider of comprehensive outsourced real estate property services, announced a strategic acquisition of Blue Skyre IBE, a globally recognized provider of facilities management solutions. This acquisition marks a significant milestone for Lessen as it expands its portfolio of services in facilities management and Environmental, Social, and Governance (ESG) solutions. With this strategic move, the company reaffirms its commitment to delivering unmatched operational excellence, streamlined services, and cutting-edge technology to commercial and residential real estate sectors, all through a unified and integrated platform.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Deployment, Enterprise Size, and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
In 2020, North America led the market with a substantial revenue share, followed by Europe and the Asia Pacific. North America is a prospective market for facility management solution developers.
Based on application, the facility management solution market can be 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.
Based on component, the facility management solution market is segmented into software and services. In 2020, the software segment led the facility management solution market, accounting for the largest share in the market.
The market opportunity lies in developing countries. Developing countries have become a hub of opportunity for various markets, including the facility management solution market. Further, the surging demand for cloud-based facility management solutions and the rising trend of outsourcing facility management operations are presenting significant potential for the future growth of the facility management solution market players.
The growing infrastructure sector and managing better productivity and efficiency with multiple facility management solutions are driving the growth of the facility management solution market.
The major companies in facility management solution includes Axonator Inc.; Facilitron, Inc.; FacilityBot Pte Ltd; FM:Systems; Hippo CMMS; IBM Corporation; Infraspeak; Quickbase, Inc.; ServiceChannel; Upkeep Maintenance Management.
The List of Companies - Facility Management Solution Market
- Axonator Inc.
- Facilitron, Inc.
- FacilityBot Pte Ltd
- FM:Systems
- Hippo CMMS
- IBM Corporation
- Infraspeak
- Quickbase, Inc.
- ServiceChannel
- Upkeep Maintenance Management
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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