Sweden Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Sweden Facility Management Market is expected to grow at a CAGR of 2.5% over the forecast period 2022 to 2027. Sweden is supposed to be one of the most mature and sophisticated outsourced markets for facility management services.

Key Highlights

• Sweden is one of the significant outsourced markets for facility management services in terms of development and sophistication. The country's facility management industry operates with integrated contracts provided by significant vendors across continents and nations, and small local players focus on single contracts and single-service solutions. However, they are increasing opportunities to leverage facility management and corporate real estate in new ways.
• Moreover, facility management (FM) includes management methods and techniques for building management, infrastructure management for an organization, and overall harmonization of the work environment in an organization. This system standardizes services and streamlines processes for an organization.
• Considering the market for Sweden facility management, it has been subjected to moderate growth due to the rise in demand for people with an improved requirement. During the forecast period, this scenario is expected to support the market's growth. As a result of the ongoing pandemic, the market in the region has been steadily growing. However, the epidemic has limited production, resulting in a significant drop in business inputs.
• The outbreak of COVID-19 has had a mixed business impact on facilities management firms. The restrictions on the movement of people resulted in a decline in project work and a decreased level of activity across many customer sites. Significant players in the market, such as Krohne Messtechnik GmbH., Itasca International Inc., Durr Systems Inc., and others, were adversely affected due to the pandemic lockdown

Key Market Trends

Commercial Property Market is Expected to Witness Significant Growth

• In Sweden, investment companies usually decide to specialize either in the residential or commercial property market. As commercial investments suggest higher cash flow potential and often provide better returns on investment, the commercial buildings segment offers lucrative opportunities, making them an attractive form of investment in the country, consequently boosting the Facility Management Market's growth during the forecast period.
• In May 2022, In support of a pan-European residential strategy, Patrizia, an investment manager in the real estate market, purchased a residential development near Stockholm, Sweden, from Scandinavian Property Group (SPG) for EUR 62 million.
• In Sweden, the Facility Management market sees a lot of collaboration between enterprises. For instance, In April 2022, NCAP Tritax Eurobox was assisted by NCAP, a specialist Nordic real estate investment and asset management firm, in purchasing a prominent 95,000-meter square site in Malmo's Fosie Industrial Area. Tritax, in collaboration with developer MIGS Logistic Properties, will speculatively renovate the site after the existing lease expires in 2024. The deadline for completion is 2025.
• According to CBRE, In 2021, real estate investment volumes in the Nordics hit new highs of EUR 63.6 billion, up 44% from the previous year, with Sweden and Norway both setting new records. With several significant platform deals in the Nordics, the multifamily sector is expected to see record levels of investment in 2021.
• In Sep 2020, Cytiva announced that it plans to invest USD 500 million in production capacity over the next five years, employing approximately 1,000 people in Austria, China, Singapore, Sweden, and the United States and introducing new manufacturing lines with enhanced automation.

Big Data Allows Facility Management Teams to Drive for Efficiency, Sustainability, and Cost Savings

• Facility management has evolved rapidly in recent years, resulting in widespread changes in Sweden's industries. Facility management in the region is witnessing a paradigm transition as trends such as data, disruption, shifting amenities, and innovative workplace concepts gain strength and popularity.
• Outsourced FM has proven effective in various industries, including government, retail, professional services, healthcare, technology, logistics, manufacturing, and education. FM services cover a wide range of categories, generally determined by the company's kind, size, and industry. There is no such thing as a one-size-fits-all solution. Some businesses will need a single service solution provider, but others will need a bundled services package or a full facilities management solution.
• Vendors in the region have been providing technical services to their customers that offer multiple advantages for clients. For instance, In Jan 2022, Durr's software tools from the DXQanalyze series took top place in the Industry 4.0 Innovation Award. The intelligent program collects and analyses data to determine the best course of action. The software can predict potential difficulties using machine learning.
• JLT Mobile Computers, a Swedish rugged computer manufacturer, is creating a software development division in February 2021 to bolster its Internet of Things services business (IoT).
• The Swedish freight and logistics business has seen a lot of mergers and acquisitions. SDK Freja announced its acquisition of IRT logistics in 2022. The agreement will allow Freja to extend its market in Sweden. JAS Worldwide acquired Greencarrier Freight Services in 2021. It will be able to increase its presence in the Nordic countries due to the acquisition.
• In Sweden, the Facility Management market sees a lot of collaboration between enterprises. For instance,Itasca will collaborate with Rescale for FLAC3D Cloud Computing in February 2022. Itasca has teamed up with Rescale to make running Itasca applications in the cloud easier. This is accomplished by Rescale pre-installing software on the cloud. Itasca has currently configured FLAC3D 7 for use with Rescale.

Competitive Landscape

The Sweden Facility Management Market is a fragmented market. It is a highly competitive market without many dominant players present in the market.

• February 2022 - Itasca announced that it would release a two-dimensional numerical modeling program in 2022. FLAC2D is a 2D variant of FLAC3D that combines FLAC's efficiency with FLAC3D's power. This will also improve future development by making the user experience consistent across programs.
• December 2021 - KROHNE joined the Digital Data Chain Consortium (DDCC) to continue the work of the DIN SPEC 91406 consortium and to support a coordinated approach for the process industries for automatic object identification and efficient transmission of object information.

Additional Benefits:

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

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