Healthcare Facility Management Global Market Opportunities and Strategies to 2033

This report describes and explains the healthcare facility management market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global healthcare facility management market reached a value of nearly $232.4 billion in 2023, having grown at a compound annual growth rate (CAGR) of 10.62% since 2018. The market is expected to grow from $232.4 billion in 2023 to $396.7 billion in 2028 at a rate of 11.29%. The market is then expected to grow at a CAGR of 11.79% from 2028 and reach $692.7 billion in 2033.

Growth in the historic period resulted from increased healthcare spending, increasing aging populations, growth in hospital construction projects and telehealth expansion. Factors that negatively affected growth in the historic period were rising facility management expenses and security and privacy concerns.

Going forward, digital transformation in healthcare sector, rising prevalence of chronic diseases, growing medical tourism industry and government-led healthcare reform initiatives will drive the growth. Factor that could hinder the growth of the healthcare facility management market in the future include shortage of skilled healthcare workers and economic uncertainty.

The healthcare facility management market is segmented by type into hard services and soft services. The soft services market was the largest segment of the healthcare facility management market segmented by type, accounting for 78.2% or $181.7 billion of the total in 2023. Going forward, the hard services segment is expected to be the fastest growing segment in the healthcare facility management market segmented by type, at a CAGR of 12.16% during 2023-2028.

The healthcare facility management market is segmented by service type into maintenance and repairs, cleaning, security, catering, technical support service, waste management and other service types. The cleaning market was the largest segment of the healthcare facility management market segmented by service type, accounting for 25.8% or $59.9 billion of the total in 2023. Going forward, the waste management segment is expected to be the fastest growing segment in the healthcare facility management market segmented by service type, at a CAGR of 15.00% during 2023-2028.

The healthcare facility management market is segmented by business model into outsourced and in-house. The outsourced market was the largest segment of the healthcare facility management market segmented by business model, accounting for 70% or $162.7 billion of the total in 2023. Going forward, the outsourced segment is expected to be the fastest growing segment in the healthcare facility management market segmented by business model, at a CAGR of 11.63% during 2023-2028.

The healthcare facility management market is segmented by end user into hospitals and clinics, long term healthcare facilities and other end users. The hospitals and clinics market was the largest segment of the healthcare facility management market segmented by end user, accounting for 62% or $144.1 billion of the total in 2023. Going forward, the hospitals and clinics segment is expected to be the fastest growing segment in healthcare facility management market segmented by end user, at a CAGR of 11.99% during 2023-2028.

North America was the largest region in the healthcare facility management market, accounting for 36.5% or $84.8 billion of the total in 2023. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the healthcare facility management market will be Asia-Pacific and North America where growth will be at CAGRs of 13.03% and 11.09% respectively. These will be followed by Eastern Europe and Western Europe where the markets are expected to grow at CAGRs of 10.63% and 10.41% respectively.

The global healthcare facility management market is fairly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 13.3% of the total market in 2022. The market fairly fragmented can be attributed to the presence of large number of players in different geographies. Elevance Health Inc. was the largest competitor with a 3.7% share of the market, followed by Sodexo India Services Pvt. Ltd. with 2.7%, ISS World Services AS with 2.7%, CBRE Group Inc. with 1.9%, EMCOR Facilities Services Ltd. with 0.6%, Cushman & Wakefield Inc. with 0.5%, Aramark Corporation with 0.4%, Amentum Services Inc. with 0.4%, ABM Industries Pvt. Ltd. with 0.3% and Medxcel Facilities Management with 0.1%.

The top opportunities in the healthcare facility management market segmented by type will arise in the soft services segment, which will gain $125 billion of global annual sales by 2028. The top opportunities in the healthcare facility management market segmented by service type will arise in the cleaning segment, which will gain $48.5 billion of global annual sales by 2028. The top opportunities in the healthcare facility management market segmented by business model will arise in the outsourced segment, which will gain $119.3 billion of global annual sales by 2028. The top opportunities in the healthcare facility management market segmented by end user will arise in the hospitals and clinics segment, which will gain $109.8 billion of global annual sales by 2028. The healthcare facility management market size will gain the most in the USA at $52.4 billion.

Market-trend-based strategies for the healthcare facility management market include practice management software's role in healthcare facility management, smart technology integration in healthcare facility management services, advantages of AI in healthcare facilities, prioritizing patient comfort and safety in facility management, focus on cloud-based managed services ensures uptime and security in healthcare facilities, enhancing patient outcomes with virtual care management and UV disinfection robots complements manual cleaning protocols in healthcare settings.

Player-adopted strategies in the healthcare facility management market include focus on strategic partnerships to better serve the industry and to strengthen their position, focus on enhancing its business operations through new product developments.

To take advantage of the opportunities, the analyst recommends the healthcare facility management companies to focus on specialized practice management software, focus on smart healthcare technologies integration, focus on AI integration for enhanced facility management, focus on patient-centric technologies, focus on telehealth integration for enhanced patient care, focus on hard services segment, focus on waste management and security segments, focus on in-house segment, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, continue to use B2B promotions and focus on hospitals and clinics and long-term healthcare facilities segments.