Cleanzine: your weekly cleaning and hygiene industry newsletter 25th July 2024 Issue no. 1124
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Global FM market set to grow by USD 826.91 billion from 2024-2028: boosted by increasing demand for cloud-based solutions
The global facilities management market size is estimated to grow by USD 826.91 billion from 2024-2028, at a CAGR of 9.61% during the forecast period, according to Technavio’s latest market research report, ‘Global Facilities Management Market 2024-2028’.
Technavio says that the market is driven by factors such as increasing demand for energy efficiency, the need for workplace safety and the growing trend towards outsourcing FM services, and that the impressive growth is being driven by the integration of IoT and Industry 4.0 technologies.
IoT networks, comprised of sensors, thermostats and actuators, facilitate data-driven decisions - enhancing performance and extending asset lifespan. Predictive maintenance, a key IoT application, uses real-time data for equipment condition monitoring, reducing operational costs and boosting productivity.
“FM encompasses hard services like HVAC systems, electrical installations, and plumbing, as well as soft services such as management and compliance,” it says. “AI-Powered solutions streamline operations, ensuring quick response to emergencies and maintaining regulatory compliance. Investments in efficient facilities management contribute to organisational success, fostering employee satisfaction and retention. Outsourcing to specialised firms can optimise resources and enhance cost-effectiveness, promoting sustainability and industry growth.”
Technavio predicts that small organisations in growing economies will face challenges in terms of significant budget limitations, compelling them to seek investment in strategic assets aligned with their organisational goals. “Despite this,” it says, “they may forego professional FM services from reputable providers, leading to subpar services. Consequences include increased maintenance and operational costs, negatively impacting profitability”.
Additional challenges include escalating labour costs, particularly in the North American region, which will hinder market expansion during the forecast period. To refine and optimise operations, organisations prioritise operational excellence, customer satisfaction and innovation. Advanced technologies, such as AI-enabled solutions, predictive analytics and automation, are adopted to streamline processes, promote sustainable practices, and enhance the overall client experience.
The report acknowledges that optimisation measures are being implemented to ensure superior technical facility performance, utilising cutting-edge technologies and digital building operations for transparent energy control systems and hazard management. The transformative shift towards advanced FM practices aims to reduce costs, improve efficiency and address client needs effectively.
It also notes that the soft services segment, which includes cleaning, housekeeping, transportation, catering and security, represents a significant investment and strategic asset in achieving organisational goals, and that it refines and optimises operational excellence by enhancing customer satisfaction and promoting innovation and improvement.
“Soft services contribute to a superior facility environment, enabling businesses to streamline processes, adopt sustainable practices and leverage advanced technologies like AI-enabled solutions, predictive analytics, and automation,” it says. “These measures aim to optimise operations, reduce costs and enhance the overall client experience.
“By offering management services for both hard services, such as maintenance and repairs, and soft services, like employee satisfaction and customer service, the solution providers contribute significantly to organisational goals. The FM industry's growth is driven by the need for outsourcing non-core activities, the pursuit of strategic assets and the desire for innovation and improvement to meet client needs. Sustainability and control are essential benefits of FM, ensuring long-term performance, service delivery, and adherence to industry growth.”
The report features a regional analysis and profiles a number of key players.
13th June 2024