Facility Management Services Market Report 2025

The facility management services market size has grown rapidly in recent years. It will grow from $1.74 trillion in 2024 to $1.98 trillion in 2025 at a compound annual growth rate (CAGR) of 13.6%. The growth in the historic period can be attributed to globalization and expansion of businesses, changing consumer expectations in commercial spaces, rise in outsourcing facility services, focus on sustainability and energy efficiency, evolution of workplace dynamics.

The facility management services market size is expected to see rapid growth in the next few years. It will grow to $3.21 trillion in 2029 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to global expansion and facility standardization, outsourcing of non-core functions, demand for data-driven decision making, shift towards sustainable and green buildings, rise of remote work and flexible spaces. Major trends in the forecast period include adoption of predictive analytics, customization for flexible workspace, enhanced security and safety measures, demand for sustainable practices, shift to remote facility management.

The rise in smart city initiatives is anticipated to drive the growth of the facility management services market in the future. Various countries are introducing several government initiatives aimed at developing smart cities. Facility management services enhance smart cities by offering innovative information and communication technologies (ICTs) in the field of Urban Facility Management (UFM) and creating new opportunities to optimize existing services and develop new ones based on the Internet of Things (IoT), Big Data, information sharing, and smart applications. For example, in February 2024, a report from the Institute of the Americas, a US-based inter-American organization, indicated that global spending on smart city initiatives is expected to surpass $190 billion by the end of 2023. Smart buildings are projected to account for one-third of industrial IoT connections, while smart utilities are forecasted to make up 23% by 2025. Although Latin America represents less than 10% of global spending, it is increasingly engaged in smart city projects. Therefore, the growing adoption of the smart city concept is driving the facility management services market.

The increasing investment in infrastructure is expected to be a driving force behind the growth of the facility management services market. Infrastructure constitutes the fundamental systems and structures necessary for the functioning of societies, economies, or organizations. Facility management services play a pivotal role in infrastructure development by facilitating the establishment of new facilities, offering diverse opportunities, enhancing operational efficiency, realizing cost savings, prioritizing sustainability, and creating comfortable, safe, and enjoyable environments for end-users. For instance, in May 2023, the UK's general government infrastructure spending escalated by 15.2% in 2021, reaching $23.8 billion. Moreover, as per a report by USA Facts, spending on infrastructure and transportation in 2022 witnessed a 21% increase. Hence, the escalating investment in infrastructure is a key driver of the facility management services market.

Technological innovations are emerging as a significant trend shaping the landscape of facility management services. Companies are augmenting their service offerings by integrating cutting-edge technologies into their portfolios. Notably, advanced technologies like Building Information Modeling (BIM) are being employed by major businesses to deliver both hard and soft services, enabling the provision of enhanced and updated services. For example, in March 2022, Compass Group, a UK-based company specializing in facility management services, introduced Saarthi-FX, an entirely digital all-in-one solution. This innovative solution redefines workplace interactions in facility management, revolutionizing traditional workspaces through artificial intelligence and predictive modeling to enhance office asset management and provide employees with a more intelligent, safer, and efficient workspace. This integrated solution ensures round-the-clock customer support, amalgamates technology, human resources, and processes to deliver an exceptional employee experience, and transforms traditional workspaces into tech-savvy environments.

Major players in the facility management services market are concentrating on innovative products like the Instanta Facility Mobile App to drive revenue growth in their domain. The Instanta Facility Mobile App serves as a comprehensive tool designed to streamline operations and boost efficiency in property management teams. For instance, in July 2022, SysServe Solutions Ltd., a US-based company specializing in facility management services, unveiled the Instanta Facility Mobile App. This novel mobile application aims to enhance turnaround times, customer satisfaction, and service quality by enabling facility and asset managers to swiftly and effortlessly receive, respond to, and approve work requests on-the-go via their mobile devices, irrespective of time or location. This initiative aligns with the objective of providing clients with digital solutions that maximize resource utilization, improving operational effectiveness, simplifying facility management processes, and offering facility managers and their teams a user-friendly interface.

In May 2022, SILA, a real estate platform based in India, acquired Forbes Facility Services from the Shapoorji Pallonji Group for an undisclosed amount. This acquisition is intended to enhance SILA's Facilities Management services business in North India and broaden its offerings to include catering services. Forbes Facility Services is a company based in India that specializes in facilities management.

Major companies operating in the facility management services market are Atalian Servest AMK Limited, BVG India Limited, CBRE Group Inc., EMCOR Group Inc., International Service System A/S World, Knight Facilities Management Limited, Quess Corporation Limited, Sodexo Inc., Spotless Group Holdings Limited, QuickFMS, Nuvolo Technologies India Pvt. Ltd., InnoMaint Systems Pvt. Ltd., eFACiLiTY Systems Pvt. Ltd., FacilityONE Technologies LLC, Jones Lang LaSalle Incorporated, Cushman & Wakefield PLC, Compass Group PLC, Aramark Services Inc., Colliers International Group Inc., Apleona GmbH, Mitie Group PLC, G4S Secure Solutions (UK) Limited, ABM Industries Incorporated, Serco Group PLC, UGL Limited, Vanderlande Industries B.V., OCS Group, Vinci Facilities, Amey PLC, Johnson Controls International PLC, SIS Group Limited.

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

Facility management services encompass the integration of people, place, processes, and technology to ensure the optimal functionality, safety, comfort, and efficiency of buildings, grounds, infrastructure, and real estate. It involves engaging external service providers to oversee building management and undertake various non-core business tasks for the organization.

Within the facility management services market, the primary service categories are hard services, soft services, and other specialized offerings. Hard services pertain to the integral structural components of a building that cannot be easily removed. These encompass solutions and services deployed through both cloud-based and on-premises platforms. Clients engaging in these services range from small and medium enterprises (SMEs) to large corporations, with diverse sectors such as healthcare, government entities, educational institutions, military and defense establishments, real estate enterprises, and others benefitting from these services.

The facility management services market research report is one of a series of new reports that provides facility management services market statistics, including facility management services industry global market size, regional shares, competitors with a facility management services market share, detailed facility management services market segments, market trends and opportunities, and any further data you may need to thrive in the facility management services industry. This facility management services 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 facility management services include the revenues earned by operations and security management, facility environment management, facility property management, contract management, and maintenance planning and control. 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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