Asia-Pacific Soft Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Asia-Pacific soft facility management market is expected to register a CAGR of 5.8% over the next five years. The outbreak of COVID-19 had a mixed business impact on soft facilities management firms in the region. The soft facility management market is witnessing multiple partnership activities between vendors and commercial entities within the region. Key SFM companies, such as CBRE Group Inc., Sodexo Inc, Aden Group, Aeon Delight Co. Ltd. (Aeon Co. Ltd), and Group Atalian, are innovating consistently by making significant R&D initiatives to bring new growth opportunities for the market.

Key Highlights

• Government authorities are collaborating with private players to increase the need for new soft facility management services. For instance, Ventia supports local governments throughout Australia and New Zealand by providing soft facilities management services. The complete soft facility management services include cleaning services for parks, buildings, and community facilities such as libraries, community halls, sports facilities, and pools. Such an initiative will further enhance asset management and waste management services.
• Increasing investments in healthcare infrastructure are expected to drive market growth over the next five years. For instance, ISS is proud to be recognized as an industry leader in Cleaning Excellence with Healthcare partner Ormiston Private Hospital in New Zealand this year.
• The growing investments in automation technologies are expected to increase the region's demand for soft facility management services. For instance, IKON has been testing robotics for many years. These fully automated, multi-application cleaning robots increase the demand for cleaning and maintenance services.
• However, security services positively impact market growth. For instance, ISS Security Pty Ltd (ISS) partnered with Australia Pacific Airports (Melbourne) Pty Ltd (APAM) for a further four years to strengthen its security Services. Security Partnership that covers three major terminals at the Airport -terminals 2, 3, and 4.
• During COVID-19 pandemic, it was critical to maintaining consistent hygiene overall. Commercial cleaning service providers have provided various quality cleaning services throughout Australia. For instance, the Advanced Group Company, a significant player in the market, offered cleaning services during the COVID-19 pandemic lockdown. Post-COVID-19, there is an increasing demand for soft facility services, including office cleaning, waste management, gardening, pest control, and security guard services.

Asia-Pacific Soft Facility Management Market Trends

Infrastructure Developments are Expected to Bring New Opportunities for the Market

• An increase in the development of commercial facilities, along with large investments in infrastructure projects such as hospitals, airports, and educational institutions, are expected to drive market growth. Increasing awareness of the benefits of soft facility management services is expected to fuel the market's growth.
• Construction activities are expected to provide further momentum for the market's growth. Both central and state governments are undertaking several large and big commercial construction projects. According to the Reserve Bank of Australia, post-COVID-19, the construction sector increased by 8%.
• According to the Government of India, in March this year, the Government awarded another 8,500 km under the Bharatmala Pariyojana Project and completed an additional 11,000 km of national highway corridors. Such infrastructure developments will further boost the need for a soft facility management market.
• For instance, Aden completed its new water management plant in Vietnam. Such infrastructure developments will increase the demand for soft facility management services (cleaning and security services).

India is Expected to Witness Significant Growth

• The commercial sector is gaining momentum in India due to the IT boom and smart city development plans. The country is attracting commercial investments that drive the need for soft facility management services.
• Smart city development plans in the county also drive the soft facility management market’s growth. For instance, in December last year, the Union Government extended the timeline to June next year for the implementation of the Smart Cities Mission. The delay was caused due to the COVID-19 pandemic, and the government aims to develop 100 cities and gain investments of USD 200 million for infrastructural sectors.
• According to NITI Aayog, the Indian real estate sector is expected to reach a market size of USD 1 trillion by 2030 and will account for 13% of India’s GDP by 2025. This indicates that the real estate sector is growing, and the need for soft facility management services will grow.
• For instance, in March this year, the Aviation Minister stated that by 2025, India would have 220 new airports as the country witnessed increased domestic and international travel during the pandemic. It was added that the Government of India intended to create 33 new domestic cargo terminals. Such investments planned by the government are expected to drive the soft facility management services in India.
• Healthcare infrastructure developments are growing owing to the increasing number of patients and rising healthcare expenditure by the public and private players in healthcare systems. As per the data published by the Union Budget, total healthcare spending is projected to grow at an average rate of 0.23% during current financial year.

Asia-Pacific Soft Facility Management Market Competitor Analysis

The Asia-Pacific soft facility management market is highly fragmented due to ongoing partnerships and recent advancements in the market. Some major players in the market studied include CBRE Group Inc., Sodexo Inc., Aden Group, Aeon Delight Co. Ltd (Aeon Co. Ltd), and Group Atalian.

In June 2022, ISS's innovative project, known as FacilityCobot, was to develop a unique mobile robot that can relieve cleaning staff from repetitive or physically exhausting tasks. Such robots work efficiently alongside cleaning teams in large open spaces such as canteens and offices.

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