Healthcare Facility Management Market Report 2025

The healthcare facility management market size has grown rapidly in recent years. It will grow from $259.78 billion in 2024 to $287.76 billion in 2025 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to increased demand for healthcare services, stringent regulatory compliance, outsourcing of non-core functions, energy efficiency initiatives, aging healthcare infrastructure, increased complexity of healthcare facilities, globalization of healthcare services.

The healthcare facility management market size is expected to see rapid growth in the next few years. It will grow to $450.35 billion in 2029 at a compound annual growth rate (CAGR) of 11.8%. The growth in the forecast period can be attributed to increasing adoption of telemedicine, growing trend of outpatient care centers, enhanced focus on cybersecurity, personalized and precision medicine, population health management initiatives, resilience and disaster recovery planning. Major trends in the forecast period include technology integration and smart facilities, energy efficiency and sustainability, data-driven decision-making, telehealth facilities and technology integration, adoption of green building practices, healthcare facility staff training, patient-centric technology.

The burgeoning patient population coupled with amplified healthcare expenditure by both public and private entities is steering the growth of the healthcare facility management market. Increased investment from governments and private sectors in various countries bolsters healthcare systems, elevating service standards for patients and consequently fostering the wider adoption of healthcare facility management within these systems. As reported by the UK's Office for National Statistics in May 2023, healthcare spending in the UK surged by 9.4% in nominal terms and 9.7% in real terms. In 2021, the UK's total healthcare expenditure stood at $367.25 billion (£280.7 billion), with pharmaceutical spending at $51.84 billion (£39.6 billion) and preventive care expenditure soaring to $45.93 billion (£35.1 billion), more than doubling from the preceding year. Hence, the substantial investments by public and private participants in healthcare systems propel the expansion of the healthcare facility management market.

The escalating number of hospital construction projects is anticipated to propel the growth of the healthcare facility management market. These projects encompass the comprehensive lifecycle from planning and design to the actual construction of healthcare facilities such as hospitals, clinics, and medical centers. Healthcare facility management plays a pivotal role in ensuring the smooth construction and operation of hospitals, emphasizing high-quality patient care, safety standards, and compliance with healthcare regulations. According to a report by the American Hospital Association (AHA) in May 2023, the total count of hospitals in the US increased to 6,129 compared to 6,093 in 2022, with total admissions across all US hospitals reaching 34,011,386 compared to 33,356,853 in 2022. Consequently, the surge in hospital construction endeavors is poised to drive the healthcare facility management market's expansion.

Technological advancements emerge as a prominent trend gaining traction within the healthcare facility management landscape. Rapid technological developments are reshaping the future of the healthcare industry. For instance, in September 2022, CloudWave, a US-based independent cloud and managed services software hosting provider in healthcare, unveiled OpSus Cloud Services. OpSus Cloud Services, housed in the user's data center, presents infrastructure-as-a-service, offering computing, storage, security, backup, recovery, and comprehensive operations and system maintenance. This multi-cloud strategy ensures availability, ease of access, and robust security for hospital users, marking a pivotal shift in healthcare technology.

Major players in the healthcare facility management arena are innovating solutions like practice management software tailored for primary care clinics to gain a competitive edge and enhance revenue streams. This specialized software aims to streamline administrative and operational tasks within primary care clinics or medical practices. For instance, in August 2023, Kumo, a Malaysia-based healthcare company, introduced KumoDoc, a practice management software dedicated to primary care clinics. KumoDoc optimizes clinic operations with features like synchronized appointment scheduling and patient notifications via WhatsApp, efficient medical inventory management, a secure telehealth platform, fraud detection algorithms, and seamless billing processes. By amalgamating electronic medical records, it fosters real-time collaboration, benefiting both clinics and patients. KumoDoc's customer-centric approach aims to simplify healthcare processes, making them efficient, personalized, and convenient, ultimately supporting medical practitioners in managing daily clinic administration, benefiting primary care and medical wellness centers.

In October 2022, Apleona Group GmbH, a European provider of integrated facility management services, acquired Acacia Facilities Holdings Limited for an undisclosed amount. This acquisition is intended to enhance Apleona Group GmbH's service offerings, broaden its market presence, and improve operational efficiency. Acacia Facilities Holdings Limited, located in Dublin, specializes in facility management services.

Major companies operating in the healthcare facility management market are ABM Industries Inc., ISS World Services A/S, Jones Lang LaSalle IP Inc., Medxcel Facility Management LLC, Mitie Group PLC, Aramark Corporation, Compass Group PLC, Ecolab Inc., Sodexo SVC India Pvt. Ltd., OCS Group Limited., Serco Group PLC, Vanguard Resources Inc., Arora Holdings Limited., Cushman & Wakefield, CBRE Group Inc., Johnson Controls International PLC, Crothall Healthcare, C&W Facility Services Inc., AM Facilities Management Service Ltd., Emcor Facilities Services Inc., Epic Facilities Management, Stericycle Inc., Vitas Healthcare, WellSky, Yardi Systems Inc.

North America was the largest region in the healthcare facility management market in 2024. The regions covered in the healthcare facility management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the healthcare facility management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Healthcare facility management encompasses the holistic oversight and maintenance of healthcare infrastructure, ensuring its development, security, and operational efficiency to create a safe environment for patient care within the healthcare sector. This practice is integral for facilitating seamless services by supervising the upkeep, operations, and security protocols within healthcare facilities.

The primary categories within healthcare facility management are hard services, soft services, and additional specialized services. Hard services primarily focus on the physical aspects of the building, mandated to meet health, hygiene, and safety regulations. These services are dedicated to preserving and enhancing the structural environment. Within healthcare facility management, services include property management, cleaning, security, catering, support services, and environmental management. The delivery models for these services comprise both outsourced and in-house arrangements, tailored to meet the specific needs of hospitals, clinics, and long-term healthcare facilities.

The healthcare facility management market research report is one of a series of new reports that provides healthcare facility management market statistics, including the healthcare facility management industry's global market size, regional shares, competitors with a healthcare facility management market share, detailed healthcare facility management market segments, market trends and opportunities, and any further data you may need to thrive in the healthcare facility management industry. This healthcare facility management market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The healthcare facility management market includes revenues earned by entities from mechanical and electrical maintenance, plumbing, air conditioning maintenance, fire protection systems, laundry, and waste management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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