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

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

Key Highlights

• Norway 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.
• ISS Facility Services in Norway has announced an agreement with energy giant Equinor to provide services to its office locations on July, 2021. The deal is for five years, with the possibility of a five-year extension.
• Nordic IoT Networks (Niot) was built to deliver quick LoRa network coverage across Sweden, Norway, and Denmark to address the growing demand for IoT connection spurred by the increasing number of IoT projects and sensors deployed. For instance, In 2021, Netmore Group, a specialist IoT operator, acquired Nordic IoT Networks. Netmore connects properties, offers private and open 5G networks, and uses LoRaWAN to enable massive IoT connectivity.
• Facilities management organizations have experienced a diverse response to the COVID-19 outbreak. The restrictions on people's movement resulted in a drop in project work and a slowdown in activity at numerous client sites. The pandemic lockdown had a negative impact on significant industry participants such as ISS Facility Services, Coor Service Management, Presis Vegdrift AS, Toma Facility Services AS, Sodexo, and others.

Key Market Trends

Industrial Sector is Expected to Witness Significant Growth

• The gaining interest in establishing smart buildings, comprehensive climate solutions for controlling the temperature and humidity of a building, and manufacturing environment provide various opportunities for the vendors in the market to introduce industrial-based facility management and accelerate the growth of commercial properties and equipment in Norway. For instance, in June 2021, Kaph Entreprenor AS ("Kaph"), a Norwegian company, has agreed to be acquired by Polygon Group. Kaph and Polygon are both claims remediation firms specializing in Project Management and repairing building damage caused by floods, fire, and other weather events.
• In Norway, 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.
• According to an E.U. observer report, Norway is a significant oil producer, with a strong economy and low unemployment. The oil and gas industry is booming. As the largest oil producer in Western Europe, Norway has numerous oil firms such as Equinor ASA, Aker BP AS, Total S.A., Exxon Mobil Corporation, Lundin Energy Norway, and others. These oil firms generate billions in revenue, which creates opportunities for Facility Management services in Norway.
• Equinor, Norway's largest energy business, opened a representative office in Hanoi in May 2022 to leverage into the country's growing potential.
• Norway's security and safety in the oil and gas industry create opportunities for service businesses, equipment suppliers, and other third parties to perform specialized on-site operations.

Tech innovations in Facilities Management is Expected to Witness Significant Growth

• In 2022, most people will have more access to technology than ever before. People have grown to rely on technology for a higher standard of living, from solutions that make professions more meaningful to advancements that improve personal life.
• The Ministry of Health and Care Services in Norway ensures that everyone in Norway receives excellent and equal health and care services, regardless of where they live or their financial situation. As Minister of Health and Care Services, Bent Hoie strive toward consistently introducing innovative technologies and intelligent solutions into the health sector, which has been more critical than ever during the COVID-19 pandemic.
• The Facility Management market is witnessing multiple partnership activities between the commercial entities in Norway. For instance, in February 2021, Observe Medical ASA announced a more substantial presence in Norway due to a partnership arrangement with Yallow Life Science AS, a Norwegian MedTech agency, and increased collaboration with Norway Health Tech.
• Kongsberg Maritime (KM) announced the release of Blue Insight in Oct 2021, a sophisticated cloud-based digital toolkit that enables cutting-edge ocean data collection, visualization, contextualization, management, and sharing. The Blue Insight ecosystem, which focuses on marine and meteorological data, is critical for both scientific and industrial users of the maritime environment.

Competitive Landscape

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

• May 2022 - Siemens Smart Infrastructure created an open, modular software suite for the electrical grid that allows for more efficient digital twin modeling. The program allows engineers to keep the power grid cyber-resilient while simultaneously producing a digital twin of the grid for planning, simulation, real-time operations, and grid maintenance.
• July 2021 - Coor signed an agreement to acquire assets in the Veolia Technical Management business sector, which is part of Veolia Sverige AB, divesting its businesses in Sweden and Norway. The acquisition expands Coor's technical property servicing and maintenance capabilities.

Additional Benefits:

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

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