United States Facility Management - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The United States Facility Management Market size is estimated at USD 283.27 billion in 2024, and is expected to reach USD 380.34 billion by 2029, growing at a CAGR of 6.07% during the forecast period (2024-2029).

The surge in demand for various customized solutions for different in-house and outsourced facility management is one of the significant factors driving the growth of the facility management service market in the United States.

Key Highlights

• The growing number of residential and commercial buildings in major cities is enhancing the overall need for facility management services throughout the country. With an increase in focus on integrated facility management services and the rising developments in the infrastructure, the market is expected to experience a positive impact.
• To comply with the changing technological age, tools like robot facility monitoring and augmented reality that are integrated with IoT are steadily increasing in the country. Hence, more and more software providers are now committed to innovation, making room for AI and robotics in the facility management market.
• In March 2023, ABM, a provider of facility services, infrastructure solutions, and parking management, signed a multi-year agreement to provide first-class housekeeping solutions and to manage day-to-day and event staffing for Tropicana Field and Al Lang Stadium. With this partnership, ABM would serve as a single source for deploying a professional workforce that is mainly dedicated to delivering janitorial services that augment the fan experience across over one million square feet of stadium space at the venues.
• According to the US Census Bureau, total construction spending in November 2023 was estimated at a seasonally adjusted annual rate of approximately USD 2.05 trillion, up by 0.4% from October's revised figure of USD 2.04 trillion. This rise in overall construction spending is expected to amplify the market's growth opportunities significantly.
• One of the key factors limiting the growth of this market is safety concerns related to device and network security. A growing number of security breaches and the increased threats posed by organized crime groups are expected to hamper the market's growth throughout the forecast period.

United States Facility Management Market Trends

Increasing Investments in Healthcare Infrastructure and the Construction of Healthcare Facilities

• Due to a growing number of patients and higher healthcare expenditures by the public and private players, healthcare has become one of the most important sectors within the United States. It is estimated that national healthcare spending will increase at an annual rate of 5.5% from 2018 to 2027 in the United States, reaching approximately USD 6 trillion, according to data provided by the Centers for Medicaid Services and Medicare.
• The extraordinary growth in healthcare spending led to the development of a number of different types of care facilities at hospitals and clinics. In addition, the outsourcing of facility management services by healthcare sectors, such as nursing homes, hospitals, and third-party professionals, has significantly increased in the United States. As a result, the demand for facility management services in the healthcare industry has increased.
• Healthcare facilities generate a large volume of both hazardous and non-hazardous waste daily. The quality of patient care may be compromised by hazardous waste if not properly handled. It may cause environmental pollution and the spread of infections.
• In the United States, Medxcel is one of the biggest and most respected providers of healthcare facility services. Over the past four years, Medxcel has provided customers with savings of USD 80 million on facility management expenditures.
• As per the Population Reference Bureau's Population Bulletin, "Aging in the United States," the overall number of Americans who are aged 65 and above is predicted to reach around 95 million by 2060. The majority of elders face mental illnesses, chronic diseases, injuries, and disabilities. The healthcare sector in the United States is under pressure to provide quality care services, high-technology healthcare equipment, and respond to new consumer preferences.

Commercial Segment to Drive Major Market Demand

• Commercial construction is mainly for the purpose of business through new buildings like offices or a new industrial facility. A service provider mainly provides the entire basic infrastructure of the building, which includes maintenance of lifts, building repair, cleaning of windows, painting, and care of doors, ceilings, and many more.
• In the workplace, smart building technology also plays a key role in assisting facilities managers in building a more energy-efficient, comfortable environment, managing building assets and systems, and planning for future needs.
• In November 2023, Matterport Inc., the 3D digital twin platform provider for the built world, and Belden Inc., a worldwide supplier of network infrastructure and digitization solutions, signed a new partnership with the aim to provide 3D digital twin-powered connectivity solutions for facilities management across industrial automation, smart buildings, broadband, and many others.
• Flexible workspaces with sustainable IT infrastructure have grown significantly in the northeastern United States over the years. The region has the cleanest mechanisms, programs, and policies that augment the adoption of green technology. The US professional cleaning services are experiencing tremendous growth on account of the amplified popularity of "green cleaning technology." The use of sustainable washing agents, which involve special chemicals, equipment, and techniques, is a key factor aiding the overall growth of the market.
• The prime responsibility for facilities management in the retail sector involves keeping the store area clean, safe, and attractive. The retail clients of NEST stated that they received more foot traffic than expected during the COVID-19 pandemic. NEST manages 60,000 retail locations throughout the United States and Canada, with the majority in the United States, and provides an integrated solution that pairs financial acumen and business analytics with an overall consultative approach for both reactive and preventative maintenance.

United States Facility Management Industry Overview

The US facility management market is fragmented owing to the presence of major local and global players. The growing demand for facility management services is expected to attract more players, which will intensify the competition. Compass Group PLC, Sodexo Inc., CBRE Group Inc., Ingersoll Rand (Trane), Ecolab, ISS Facilities Services Inc., G4S PLC, Jones Lang LaSalle Incorporated (JLL), EMCOR Group Inc., and Cushman & Wakefield are some of the notable players in the market.

• In January 2024, CBRE Group Inc. and Brookfield Properties announced a strategic partnership that leverages the combined power of both firms to drive tenant satisfaction and property performance. The partnership will allow CBRE and Brookfield Properties to provide one another with a full range of real estate management services for more than 65 million square feet of office space in the United States, which include construction operations, property accounting, procurement work, and technology support.
• In January 2024, Nuvama Asset Management, the alternatives-focused asset management arm of Nuvama Wealth Management Ltd and Cushman & Wakefield, announced the formation of a new 50:50 joint venture entity, Nuvama and Cushman & Wakefield Management Private Limited (“NCW”). The new entity will act as a powerful platform offering a full suite of capabilities for investing in commercial real estate.

Additional Benefits:

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

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