Nigeria facility management services Market Outlook - 2027
The Nigeria facility management services market was valued at $8,446.0 million in 2019, and is projected to reach $12,662.1 million by 2027, registering a CAGR of 6.4% from 2020 to 2027. Facility management services offer maintenance support and escalate the value of a building or infrastructure. In addition, these services have revolutionized commercial and industrial buildings, by maximizing returns on real estate investments for owners through value-added programs and superior management expertise. These services directly support owner’s financial and operational goals.Varied types of facility management services consist of cleaning, electrical services, landscaping, plumbing, security, and others.
One of the major factors that drive the growth of the Nigeria facility management services market is the growth in urbanization in the country. Urbanization in Nigeria grew from around 41.7 to 50.3% from 2008 to 2018. In addition, expansion of tourism, institutional buildings, and hotels is expected to contribute toward the economic growth of the country. This, in turn, results in demand for facility management services for proper maintenance of properties. The value of tourism receipts in Nigeria grew by over 300% from 2015 to 2018. Moreover, urbanization can influence sustainable development if managed properly by increasing productivity, allowing innovation, and occurrence of novel ideas. Hence, this trend is expected to continue to drive the Nigeria facility management services market growth.
Further, factors such as increased investments in railways,roadways, and airport constructions is expected to generate the need for facility management services in Nigeria. In addition, rise in investments in commercial buildings such as retail buildings, government buildings, and hotels are expected to create the need for effective facility management services such as heating ventilation & air conditioning (HVAC) services, electrical services, plumbing, security, and others. This is expected to lead to the development of the Nigeria facility management services market.
Catering segment is projected to grow at a highest CAGR
Facility management service providers in Nigeria such as Eko Maintenance, Global PFI Group, and others (which manage multiple assets) aim at integrating sustainable environment, real estate, technology, infrastructure, and individuals to gain maximum efficiency. Thus, increase in awareness for safeguarding assets is expected to boost the growth of the Nigeria facility management services market. Further, growth of the construction industry in Nigeria is driven by lower taxes, new tax incentives, comparatively low interest rates, and growth in economy. In 2019, the Nigeria government planned to invest $3.3 billion in the nation’s infrastructure funded through both public and private capital. Hence, government investments in the building infrastructure sector is expected to offer lucrative opportunities for the market. On the contrary, lack of capital, social cohesion, and shortage of skilled labor isexpected to hamper growth of the market.
commercial segment holds dominant position in 2019
COVID-19 has negatively influenced a variety of construction services, which include consultancy, outsourcing, and manpower support for the building industry. The negative trends in the economy of Nigeria is anticipated to decline growth of the Nigeria facility management services industry. Further, travel prohibitions due to lockdown and unavailability of staff have also affected the demand for facility management services in Nigeria. Moreover, decreased consumer demand and consumption has led to reduction and slowdown of sales of facility management services in Nigeria over the course of the current economic year. Therefore, the Nigeria facility management services market is expected to be negatively affected in 2020.
The Nigeria facility management services market is segmented on the basis of service and application. By service, it is divided into security, property, catering, cleaning, and others. The property segment is expected to dominate the market throughout the forecast period. This is attributed toincrease in demand for refrigeration systems in the retail sector for preserving food, beverages, and medicines, which is expected to stimulate the growth of HVAC services, and thereby the facility management services market in Nigeria.
Further, by application, it is divided into industrial, commercial (retail, government buildings, healthcare, educational, and others) and residential. The commercial segment is expected to dominate the market throughout the forecast period. These services are used in commercial areas for improving health of buildings and to protect physical structure of a building. Moreover, daily requirementsforcleaning & security services by offices, shopping malls, theatres, and other commercial spaces is expected to boost the facility management services market in Nigeria.
The key companies profiled in the report includeAlpha Mead Group, Briscoe Properties Limited, Cxall Facilities Management, Eko Maintenance, FilmoRealty, Global PFI Group, Grandeur Real-Estate Company, Green Facilities Ltd., Libra Reliance Properties, Provast, Trim Estate & Facility Management Services, and Willco Property Management.
Key Benefits For Stakeholders
The report provides an extensive analysis of the current and emerging trends and dynamics of the Nigeria facility management services market.
In-depth market analysis is conducted by constructing estimations for the key segments between 2019 and 2027.
Extensive analysis of the market is conducted by following key product positioning and monitoring of the top competitors with in the market framework.
A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
The market forecast analysis from 2020 to 2027 is included in the report.
The key players operating in the market are profiled in this report, and their strategies are analyzed thoroughly, which help understand the competitive outlook of the Nigeria facility management services industry.
Nigeria Facility Management Services Market Segments
- Alpha Mead Group
- Briscoe Properties Limited
- Cxall Facilities Management
- Eko Maintenance
- Global PFI Group
- Grandeur Real-Estate Company
- Green Facilities Ltd.
- Libra Reliance Properties
- Trim Estate & Facility Management Services
- Willco Property Management
Nigeria Facility Management Services Market Report Highlights
Key Market Players
Eko Maintenance Ltd., FilmoRealty Limited, Cxall Facilities & Management Services Ltd., Green Facilities Ltd., Trim Estate and Facility Management Services, Global Property & Facilities International Ltd., Libra Reliance Limited., Provast Ltd., .Willco Property Management, Briscoe Properties Limited, Alpha Mead Group., Grandeur Real-Estate Company
The Nigeria facility management services market has witnessed considerable development over the past few years, owing to growth in new construction activities and rise in awareness of people toward maintenance of assets. In 2019, the property segment dominated the market and is expected to continue this trend in the future. Facility management services are widely used in sectors such as offices, malls, institutional buildings, and manufacturing industries. In 2019, the commercial sector witnessed majority of the share of the Nigeria facility management services market.
Increase in demand for cleaning, security, and catering services from commercial sectors, namely, malls, shopping centers, lodging, government buildings, and other commercial sectors is anticipated to propel the Nigeria facility management services market growth. In addition, rise in urbanization and industrialization in the country acts as a substantial driver for the growth of the facility management services market. Moreover, surge in disposable income of individuals and increase in demand for new residential and infrastructural construction, further complements the Nigeria facility management services market growth. However, dearth of skillful staff is expected to impede the growth of the Nigeria facility management services market. On the other hand, expansion of the infrastructure industry offer lucrative opportunities to the facility management service providers.