Africa Facility Management - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The Africa Facility Management Market size is estimated at USD 27.21 billion in 2024, and is expected to reach USD 36.52 billion by 2029, growing at a CAGR of 6.06% during the forecast period (2024-2029).

Travel booking, waste removal, security, plumbing and draining, air conditioning maintenance, luggage services, decoration, and refurbishment are also included in the management of facilities. The growth of infrastructure activity is the most important factor that has led to a high market share for facilities management. The demand for the abovementioned sectors continues to grow, resulting in overall market growth as a result of the construction of new infrastructure.

Key Highlights

• The service providers of facility management systems are the engineers, maintenance, and installers of a wide range of devices, such as high voltage equipment or Low Voltage Equipment. A broad range of skills, e.g., readiness for disaster, project management, leadership, and strategic orientations, are part of Facility Management. For the improvement of resource and organizational asset management, Africa Facility Management solutions are applied.
• The major drivers for the growth of this market have been the growing demand for facility management services by third parties, infrastructure investments, and private sector expenditure. The growth of Africa's population, economic dynamism, and rapid urbanization are also predicted to create opportunities for businesses if investment is undertaken in upgrading infrastructure and regional connectivity under the Agenda 2063 of the African Union.
• A number of players in the continent have expanded their geographic scope, even though FDI has been slow to grow. Some of the important examples are South African firms that have entered Namibia, such as Standard Bank, and strategic investments and partnerships by Ethiopian Airlines to revive struggling African airlines throughout Africa.
• However, market expansion is expected to be hampered by difficulties with operating costs and a lack of infrastructure in the region. In South Africa, an insufficient interest in investment is holding back economic activity. As a result of the slow economic development in this area, local players are more important than ever before, and consequently, its penetration rate is low. In comparison to integrated facilities management, these operators offer a single and multi-bundled service. Long-term business opportunities in the region are anticipated to arise from government initiatives and international support actions for infrastructure development, improving growth prospects for facility management in the region.
• COVID-19 is expected to have an impact on the facilities management market in African countries. Due to China's role as Africa's leading trading partner, the adverse effects of COVID-19 are also felt in Africa. As China has closed its ports and manufacturing facilities, there is a drop in demand for African goods. Chinese importers have canceled their purchases or offered lower prices because of port constraints. It is expected that, together with an increased focus on hygiene and higher cost, market growth for facility management would be limited within the shorter to medium term. In order to meet the growing demand for facility management, there has been increased awareness on a number of matters such as cleanliness, maintenance procedures, and ventilation following COVID.

Africa Facility Management Market Trends

Infrastructural Development Continue to Open Up new Opportunities for FM Vendors ​

• The biggest users in Africa are the housing, business, industry, and public infrastructure sectors. Oil and gas companies, financial institutions, and sports or healthcare facilities will be the future sectors. In addition, market buyers' increasing awareness has led operators in the field of plant management to adopt an appropriate price.
• The growth of outsourced facility management in the area is expected to be stimulated by increasing emphasis on green construction across developing sectors, such as retail and real estate. For instance, Growthpoint Properties, a South African real estate development company, has promised to provide all new office buildings with at least four stars in the SA Green Building Council's star rating and also enhance their environmental performance.
• The developers of shopping malls have also committed to the construction of green buildings. For example, recently, Novare Equity Partners, a mall and retail space development company across Africa, applied for green approvals to build its Great North Mall at Zambia's capital of Lusaka in order to attract well-known African retailers Shoprite Holdings and Pick n Pay. At little extra cost, resource-saving features have been put into place in the shopping center and are expected to reduce energy costs by almost 40%.
• Due to Africa's exposure to a climate that can be extremely unpredictable, it is more and more frequent that the population suffers severe floods followed by prolonged droughts. In addition, Southern Africa's complexity is caused by a wide range of different social, environmental, economic, and political perspectives. This has led to the development of sustainable infrastructures because of the need for enabling growth and improvement in quality of life while also leading to demand for integrated facility management.

Nigeria is Expected to Witness Significant Growth

• Government initiatives and support from international organizations are driving investments in the infrastructure development of this country. Nigeria has been one of the growth-oriented countries. This initiative is expected to lead to increased infrastructure spending in both state and privately owned sectors, which would provide an opportunity for facility management firms to increase their presence on the market.
• In addition, in the commercial sector in Nigeria, end users such as offices, shopping malls, restaurants, government buildings, and others have increased their demand for facility management services. Moreover, it is anticipated that the rapid expansion of the tourism and real estate sectors will drive Nigeria's economy.
• Moreover, the market's growth is stimulated by a greater emphasis on environmentally friendly buildings. In addition, EchoStone plans to work with local banks so that buyers of homes will be able to access lower interest rates as well as longer loan periods by 2023 when it builds 182,000 affordable, environmentally friendly houses in Lagos, Nigeria.
• On the other hand, the facility management vendors in the region are mostly private and small to medium-sized companies operating in silos, which makes it difficult to meet international standards and deal with the heterogeneity of services due to varied customer needs and face difficulty in customer integration. The strategic approach towards partnerships and alliances might be helpful for companies to gain a competitive advantage and capture a more extensive customer base, which can result in increased growth.

Africa Facility Management Industry Overview

The facility management market in Africa is moderately fragmented due to local players and small to medium-sized firms. The major players, such as Bidvest facilities, Apleona, G4S Africa, and Integrico Private Limited, have adopted various growth strategies, such as new product launches, expansions, joint ventures, partnerships, and others, to strengthen their position in this market.

In October 2022, Allied Universal and G4S signed an MOU to accelerate the migration of customers and employees into sustainable solutions through global collaboration in sustainability and security with Shell Petroleum.

In August 2022, Massmart partnered with Green Wave Group and industrial technology multinational Schneider Electric to install BMS solutions in all its South African stores over the next year and a half.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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