Global Healthcare Facility Management Market - Snapshot

Public and private healthcare expenditure is rising in many countries across the world due to an increase in chronic and other diseases. In the era of globalization, private healthcare facilities such as hospitals and nursing homes are striving to provide best in class healthcare services to attract patients and increase their revenue. Healthcare facilities are focused on providing better medical services to patients. Non-core healthcare facility management services also play a vital role in the overall satisfaction of in-patients. This led healthcare facilities to outsource non-core healthcare facility management services to professional healthcare facility management service providers. Through this strategy, healthcare facilities are able to reduce their expenditure on non-core healthcare services. This is driving demand for healthcare facility management services worldwide.    

global healthcare facility management market

There is a steady rise in the growth of the aging population in countries such as Japan and Singapore and an increase in prolonged diseases in China, India, Vietnam, the Philippines, Thailand, and other countries in Asia Pacific. The geriatric population is also rising in Europe and North America. This is leading to a rise in the number of healthcare facilities, which in turn is boosting demand for healthcare facility management services. 

There has been a rise in the number of national and international facility management contracts across the world. In 2000, there were only a handful of international facility management contracts, which later on increased to double digits by 2010. This included a rise in international healthcare facility management contracts. This factor is driving the global healthcare facility management market. Moreover, there has been a rise in the number of mergers and acquisition among healthcare facility management service providers.    

The value chain of the global healthcare facility management market consists of raw material suppliers, healthcare facility management service providers, and end-use industries. Suppliers of raw material to healthcare facility management service providers can be either third party suppliers or in-house personnel, depending on the strategy adopted by a facility management service provider. Healthcare facility management service providers are offering technological and high-quality services to create service differentiation. Companies operating in the market also offer a range of value-added healthcare facility management services, including warranty and maintenance, to increase customer base and retain existing customers. Third-party raw material suppliers operating in the market are providing labor, cleaning chemicals, and maintenance equipment among others. However, sometimes healthcare facility management service providers face certain challenges related to third-party suppliers. For instance, the quality of cleaning chemicals may not up to the standard or they may face labor issues. This ultimately affects the image of a healthcare facility management company. Therefore, the choice of raw material suppliers plays a vital role in the overall quality of the healthcare facility management services provided by a facility management company.

Based on service, the global healthcare facility management market has been segmented into hard and soft services. The hard services segment has been further divided into various non-core healthcare services such as plumbing and air conditioning maintenance, fire protection systems, mechanical and electrical maintenance, and other hard services such as fabric maintenance. The soft services segment has been further categorized into cleaning and pest control, laundry, catering, security, waste management, and other soft services such as administrative services. The soft healthcare facility management services segment is expected to account for a higher market share than the hard healthcare facility management services segment. However, the hard services segment is anticipated to expand at a higher growth rate during the forecast period. 

In terms of geography, the global healthcare facility management market has been divided into North America, Europe, Asia Pacific, Middle East &Africa, and South America.

Some of the major players operating in the healthcare facility management market are ABM Industries Inc., Aramark Corporation, Compass Group plc, Ecolab, Inc., ISS World Services A/S, Jones Lang LaSalle, IP, Inc., Manutencoop Facility Management S.p.A. (MFM), Medxcel Facility Management, Mitie Group plc, OCS Group, Secro Group plc, Sodexo, Vanguard Resources, and UEM Edgenta Berhad among others.

Global Healthcare Facility Management Market - Overview

This report on the global healthcare facility management market provides analysis for the period 2016–2026, wherein 2017 is the base year and the period from 2018 to 2026 is the forecast period. Data for 2016 has been included as historical information. The report covers market dynamics including drivers, restraints, opportunities, trends, and technology advancements that are expected to influence the expansion of the healthcare facility management market during the said period. The study provides a comprehensive analysis on market growth throughout the above forecast period in terms of value estimates (US$ Mn) across different geographies.

Global Healthcare Facility Management Market: Trends and Opportunities

A major opportunity in the global healthcare facility management market exists in “Green Cleaning.” Mature healthcare facility management markets such as North America and Europe are in the forefront in the adoption of green cleaning technologies and methods. In Asia Pacific, developed countries such as Japan and Singapore and developing countries such as Taiwan, China, and India are expected to increasingly adopt green cleaning standards. Singapore’s SGBC (Singapore Green Building Council) is promoting green cleaning standards in the healthcare facility management market in Singapore and other Asia Pacific countries. China which is the largest healthcare facility management market in Asia Pacific has already launched an actionable plan for green cleaning standards way back in 2013. The regulation mandates all public residential and commercial buildings, including hospitals, bigger than 20,000 square meters to achieve at least one star in China’s green building evaluation standard. China has set an ambitious target to reach one billion square meters of certified green buildings by 2020. Thus, healthcare facilities in China are increasingly moving to green building standards and prefer facility management service providers equipped with the knowledge of green building technologies and standards. Therefore, it is expected that green cleaning will provide a major opportunity for expansion of facility management in the healthcare sector in Asia Pacific and other regions. 

Global Healthcare Facility Management Market: Key Segments

Based on the type of service, the global healthcare facility management market is segmented into hard and soft services. Hard services can again be sub-segmented into various non-core healthcare services such as plumbing and air conditioning maintenance, fire protection systems, mechanical and electrical maintenance, and other hard services such as fabric maintenance. Soft services can be sub-segmented into cleaning and pest control, laundry, catering, security, waste management, and other soft services such as administrative services. Although the global market size of soft healthcare facility management services is expected to be more than the hard healthcare facility management services, nevertheless, hard services are anticipated to witness a higher growth rate than soft services during the forecast period.   

Geographically, the global healthcare facility management market is divided into regions such as North America, Europe, Asia Pacific, Middle East & Africa, and South America. The regional healthcare facility management markets have been analyzed in terms of value in US dollars (US$). Prominent countries profiled in the report include the U.S, Canada, Germany, the U.K., France, China, India, Japan, Malaysia, Singapore, Taiwan, Indonesia, Vietnam, Philippines, Thailand, GCC, South Africa, and Brazil.   

Global Healthcare Facility Management Market: Scope of the Study

The report also includes key technological developments in the healthcare facility management market. The report includes Porter Five Force analysis, which highlights suppliers’ power of influence, buyers’ power of influence, threat from new market players, any threat of substitution, and level of competition among healthcare facility management service providers. Value chain analysis, identifying raw material suppliers including third-party raw material suppliers, healthcare facility management service providers, and end-use industries (healthcare) is also covered in the report. Regional trends and each segment’s incremental opportunity analysis have also been added in the report. The report also covers incremental opportunity analysis of a segment’s attractiveness on the basis of market share index and CAGR across North America, Europe, Asia Pacific, Middle East & Africa, and South America. In Asia Pacific, we have provided incremental opportunity analysis of hard and soft services of China, India, Japan, Malaysia, Singapore, Taiwan, Indonesia, Vietnam, the Philippines, and Thailand.

Global Healthcare Facility Management Market: Competitive Landscape

The report also includes market share analysis of major players operating in the global healthcare facility management market based on their 2017 revenues, competition landscape, which includes competition matrix, and geographical spread. The report benchmarks leading companies on the basis of their capabilities and potential to grow. Factors including R&D focus are attributed to a company’s capabilities, market position, and offerings. Factors including revenue growth, market share, segmental growth, infrastructure facilities, and future outlook are attributed to a company’s’ potential to grow.

Company profiles of major players include overview of company, major business strategies, and key developments. The companies profiled in the global healthcare facility management market include ABM Industries Inc., Aramark Corporation, Compass Group plc, Ecolab, Inc., ISS World Services A/S, Jones Lang LaSalle, IP, Inc., Manutencoop Facility Management S.p.A. (MFM), Medxcel Facility Management, Mitie Group plc, OCS Group, Secro Group plc, Sodexo, Vanguard Resources, and UEM Edgenta Berhad.

The global healthcare facility management market is segmented as below:

Global Healthcare Facility Management Market, by ServiceType

  • Hard Services
  • Soft Services

Global Healthcare Facility Management Market, by Hard Services

  • Plumbing, Air Conditioning Maintenance
  • Fire Protection Systems
  • Mechanical and Electrical Maintenance
  • Others (Fabric Maintenance, etc.)

Global Healthcare Facility Management Market, by Soft Services

  • Cleaning & Pest Control
  • Laundry
  • Catering
  • Security
  • Waste Management
  • Others (Administrative Services, etc.)

Global Healthcare Facility Management Market, by Geography

  • North America
    • U.S.
    • Canada
    • Rest of North America
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Malaysia
    • Singapore
    • Taiwan
    • Indonesia
    • Vietnam
    • Philippines
    • Thailand
    • Rest of Asia Pacific
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of Middle East & Africa
  • South America
    • Brazil
    • Rest of South America
.