+1-518-618-1030 866 - 552 - 3453 USA-Canada Toll Free

Global Facilities Management Market: Cutback of Operating Costs Tops the Three Principal Drivers, says TMR

Posted on Feb 06, 2017

The global facilities management market was 28.0% occupied by the top four service providers in 2015. Amongst the top service providers which made a statement in their domestic markets, Spotless Group Limited, Bellrock Property & Facilities Management Limited, Knight Facilities Management, Arthur McKay & Co Ltd., and Quess Corp Limited are the prominent ones. Customized delivery of facilities management services and expansion of service outreach in different industries are some of the key strategies adopted by the leading players in the global market, viz. Sodexo, Inc. and ISS World Services A/S.

According to a report by Transparency Market Research (TMR), the international facilities management market is anticipated to register a double-digit CAGR of 13.6% between 2016 and 2024. In 2016, the market was valued at US$678.69 bn and is expected to reach US$1,887.19 bn by the end of the forecast period. By service type, soft services are projected to grow in quick time at a CAGR of 13.8% during the forecast period. Europe held a titanic share of US$243.55 bn in 2016 and is foretold to continue reigning the market with a US$624.95 bn share until 2024.

facillity management market

 Companies are taking to business expansion in various regions and establishment of subsidiaries in multiple nations in order to comprehend the demands and requirements in various industries. They are also looking to provide complete facilities management solutions by developing partnerships with leading players. Furthermore, the adoption of bundled facilities management services, integrated facilities services, total facilities management, and other service delivery systems has helped the industry players to exhibit a significant growth.

Businesses Increase Adoption for Reduction in Operating Costs

The TMR analysts have foreseen three chief drivers which are likely to propel the world facilities management market. Out of which, reduction in operating costs tops the list. This has helped to efficiently prioritize business activities and reduce excessive energy consumption costs by developing an integrated design for the operations. Prominent government regulations pertaining to carbon footprint and energy and waste management coupled with the control of harmful emissions have led to the adoption of facilities management by most organizations. Moreover, the adoption of outsourced services which helps to focus on core functions and reserve more time and resources to reexamine business strategies has augmented the demand in the global market.

Small Companies Grab Attention with Low Cost but Unorganized Services

Increasing price competition triggered by the entry of numerous small unorganized service providers which deliver services at a low cost could pose a threat to the organized firms. This has also forced the established players to lower their operating standards, precipitating the slim down of market size. However, the restraint is prophesied to be compensated by acquisitions and partnerships. Besides this, lack of skilled and appropriate manpower has increased the lead time and caused problems in the efficient execution of facilities management services. Nonetheless, this factor is expected to moderately impact the market with the presence of a host of service providers staffing certified, trained, and skilled laborers.

Cross-border mergers and acquisitions with widespread regional coverage and elevated customer network are anticipated to provide lucrative market opportunities. These opportunities are envisaged to have risen from the demand for extended reach of services and business activity across the globe. Thus, the rising cross-border presence of service providers and swelling awareness about facilities management services have provided a robust platform for the global market to thrive on.

The study presented here is based on a report by TMR, titled “Facilities Management Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”

The global facilities management market has been segmented in the following arrangement.

Facilities Management Market, By Service

  • Hard Services
  • Soft Services

Facilities Management Market, By Industry

  • Corporate
  • Government and Public Sector
  • Healthcare
  • Manufacturing
  • Residential and Education Institutions
  • Retail and Commercial
  • Others (Food, Sport, etc.)

Facilities Management Market, By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific (APAC)
    • China
    • Japan
    • India
    • Indonesia
    • Rest of APAC
  • Middle East and Africa (MEA)
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA
  • Latin America
    • Brazil
    • Rest of Latin America

About Us

Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

Each TMR syndicated research report covers a different sector - such as pharmaceuticals, chemicals, energy, food & beverages, semiconductors, med-devices, consumer goods and technology. These reports provide in-depth analysis and deep segmentation to possible micro levels. With wider scope and stratified research methodology, TMR’s syndicated reports strive to provide clients to serve their overall research requirement.

US Office Contact

90 State Street, Suite 700
Albany, NY 12207
Tel: +1-518-618-1030
USA - Canada Toll Free: 866-552-3453
Email: sales@transparencymarketresearch.com
Website: http://www.transparencymarketresearch.com

Back To Top