Facility Management Market Overview:
The International Facility Management Association (IFMA) has defined facility management as the practice of coordinating physical workplace with the people and work of the organization which encompasses various activities such as equipment maintenance, space planning, and portfolio forecasting. Facility management includes various competencies such as emergency preparedness & business continuity, environmental sustainability, human factors, communication, project management, quality, real estate & property management, leadership & strategy, and others. However, the report majorly focuses on technology part of facility management, which includes software and services used to increase efficiency and effectiveness of facility management services.
The global facility management market is segmented on the basis of component, deployment, organization size, industry vertical, and geography. Based on component, the market is bifurcated into solution and services. Solution segment includes asset management, workplace & relocation management, strategic facility planning, real estate & lease management, maintenance management, and others (sustainability management, project management, program management, and technology management). As per deployment platform, the market is categorized into cloud-based and on-premise. Web-based solutions have been included in cloud-based segment, while software for mobile including iOS and Android are included in on-premise segment. By organization size, the market is studied across large organizations and SMEs. Based on industry vertical, it is classified into banking, financial services & insurance (BFSI), IT & telecom, public sector, healthcare, manufacturing, retail, real estate, and others (energy & utility and travel & hospitality). Geographically, the facility management market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Global Facility Management Market Segmentation
The global facility management market was valued at $31,207 million in 2016, and is expected to reach $80,849 million by 2023, growing at a CAGR of 14.4% from 2017 to 2023. The major factors that drive the market growth are increase in adoption of cloud-based solutions, change in organization structure & work management, and introduction of novel solutions by key players in the market. Other factors that hinder the market growth include lack of awareness about facility management solutions & their benefits and increase in demand for service outsourcing.
The North American facility management market generated the highest revenue in 2016, owing to increase in ICT spending, presence of a large number of enterprises, and rise in adoption of IoT. The Asia-Pacific facility management market is expected to grow at the highest CAGR, owing to increase in penetration of internet, development of the construction industry, and surge in need of better data management.
The key players operating in the global facility management industry include IBM Corporation, Oracle Corporation, SAP SE, Ioffice Corporation, Inc., Archibus, Inc, FM System, Inc., CA Technologies, Inc., Accruent, LLC, Planon Corporation, and Trimble, Inc. These players have expanded their market presence by adopting various business strategies such as acquisition, geographical expansion, product development, strategic alliance, and collaboration.
Top Investment Pockets
The following graph signifies the growth potential of the global facility management market by vertical. It is observed that the market growth is driven by the public sector vertical, which occupied the largest market share in 2016. However, major growth is observed in the healthcare sector where facility management solutions are expected to witness considerable adoption in the near future.
By Component: Solution Segment
Solution segment include software availed by the key vendors that cater to the growing needs of efficient facility management. Facility management software is designed to perform various functions such as asset management & tracking of important equipment information, management of maintenance & recurring costs, to increase asset efficiency, streamline work order process, automate maintenance workflows, and others.
By Deployment Platform
A cloud-based deployment platform possesses the ability to host software and the service platform from remote locations, which can be accessed and used from anywhere with the help of the internet. Cloud-based access requires only one application login to sign in to all computers, instead of installing suites of software programs on multiple computers. Low deployment cost and easy accessibility to data on cloud are encouraging end users to implement cloud-based facility management solutions.
By Organization Size
Large-enterprises with employee size more than 1,000 have the ability to invest and focus towards facility management at a higher level as compared to small & midsize organizations. Every industry has around 10‐15 large-scale vendors who dominate the market and have more number of loyal customers as compared to small vendors. Furthermore, the requirement of facility management solutions is comparatively higher in large-scale organizations due to large number of staff, space management, and assets of the organization. This is expected to positively affect the growth of facility management market in large organization segment.
Therefore By Geography
In Latin America, facility management industry is expected to grow at a considerable rate due to its strong GDP growth and high infrastructure investments. Among competitors, mergers & acquisitions is expected to be the key growth strategy to increase service offerings and vertical scope. In the Middle East, the facility management market is expected to grow at the fastest rate due to increase in construction activities, change in work culture within the organizations, and ease of contract management.
Key Benefits :
- In-depth analysis of the global facility management market and dynamics is provided to understand the market scenario.
- Quantitative analysis of the current trends and future estimations from 2017 to 2023 is provided to assist strategists and stakeholders to capitalize on prevailing opportunities.
- Porter’s Five Forces analysis examines the competitive structure of the facility management market and provides a clear understanding of the factors that influence the market expansion.
- A detailed analysis of the geographical segments enables identification of profitable segments for market players in the global facility management industry.
- Comprehensive analyses of the trends, subsegments, and key revenue pockets are provided.
- Detailed analyses of the key players operating in the facility management industry and their business strategies are anticipated to assist stakeholders to take informed business decisions.
Facility Management Market Key Segments:
- Asset Management
- Workplace & Relocation Management
- Strategic Planning Management
- Real Estate & Lease Management
- Maintenance Management
- Others (Sustainability Management and Incident Management)
By Deployment Model
By Organization Size
- Small & Midsize
By Industry Vertical
- IT & Telecom
- Public Sector
- Real Estate
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
The key players profiled in the report are as follows:
- IBM Corporation
- Oracle Corporation
- SAP SE
- Ioffice Corporation
- Archibus, Inc.
- FM System, Inc.
- CA Technologies, Inc.
- Accruent, LLC
- Planon Corporation
- Trimble, Inc.