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Facilities Management Market: Cross-border M&As Reveal Mammoth Opportunity for Growth Till 2024

03-02-2017 11:18 AM CET | Industry, Real Estate & Construction

Press release from: TMR - Consumer Goods

Facilities Management Market: Cross-border M&As Reveal

Facilities Management Market: Snapshot

Cost reduction has become imperative in almost all sectors, be it manufacturing, corporate, educational, or residential. Facilities management has emerged as the ideal tool to offer high-quality services such as cleaning, maintenance, and security at a low cost. The economical pressure that most companies have been under is owing to consistently rising maintenance and operation costs, which impacts the performance of the firm in the long run. The improvement of business activities is also dependent on the effective control of harmful gas emissions. Rising government regulations on waste management and energy have compelled organizations to turn to facilities management in a bid to improve the long-term sustainability of their businesses and the environment.

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Fueled by these current and emerging trends, the global market for facilities management is expected to report a 13.6% CAGR during the forecast period. This market is expected to witness an upward growth in value from US$606.4 bn in 2015 to US$1,887 bn by 2024.

Growing Europe FM Market Looks to Demand from Manufacturing Industries

The global facilities management market comprises North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Europe is by far the most prominent regional market for facilities management, with the opportunity to be worth US$624.9 bn by 2024. Rising from a US$219.5 bn worth in 2015, the Europe market is projected to expand at a 12.5% CAGR therein. This can be attributed to the growing demand for support and maintenance services by manufacturing industries in the region and the surging demand for a variety of technical services such as plant maintenance, fabrication, and HVAC. While the U.K. is the largest revenue generator in this regional facilities management market, Germany is expected to register the highest growth over the coming years.

Asia Pacific is poised to witness the fastest growth by 2024, clocking in a 15.5% CAGR during the forecast period. This FM market is estimated to reach a worth of U$437.1 bn by 2024, fueled by the rapid development of education and residential sectors and their demand for soft services, such as catering, mailroom, pest control, cleaning, waste management, and security. India and China are anticipated to witness flourishing growth in the facilities management market thanks to the rise in soft service and technical outsourcing in several industries.

Corporate Sector Stands Out in Adoption of Facilities Management Services

The facilities management market caters to several end-use industries, namely government and public, manufacturing, retail and commercial, corporate, healthcare, and educational and residential. The corporate sector is the largest contributor to the overall revenue of the facilities management market and also the fastest developing industry segment, registering an impressive 15.1% CAGR from 2016 to 2024. This segment accounted for a 21.3% share in the FM market by industry in 2015, propelled by the growing need to support and maintain core services in corporate sectors such as IT and BFSI (banking, financial services, and insurance). While North America and Europe have been witnessing large-scale adoption of facilities management services in the corporate sector, the MEA and APAC regions are expected to gain traction thanks to the increasing adoption of outsourced FM services.

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