Facilities Management Market: Soft Services to Remain Most Widely Adopted Service TypeQ

In the highly competitive Poland market for facilities management, key vendors are steadily expanding their range of services, venturing into non–traditional service areas, and focusing on ways of extending present contracts. Outsourcing facility management services to the specialized service providers through contracts is majorly seen across segments where comparatively higher maturity is attained, such as the corporate and manufacturing sectors.

Transparency Market Research estimates that the Poland facilities management market has excellent growth prospects in the next few years. The market is expected to exhibit a healthy 9.7% CAGR from 2016 to 2024, owing to which, the market, which held an opportunity of US$14.34 bn in 2015, is expected to rise to US$32.62 bn by 2024.

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Rapid Pace of Infrastructure Development to Help Corporate Sector Retain Dominance

In Poland, facilities management services have strong demand from corporate sector due to growing office spaces and increasing adoption of support services to enhance the core business activities. Additionally, with stable expansion of the economy and rising foreign investments in Poland, facilities management market is expected to see traction across the corporate sector in the near future. Presently, the corporate sector is the dominant end-use sector of the Poland, and is expected to account for a dominant 19% of the overall market in 2016.

Furthermore, growing infrastructure development across the corporate sector in key cities such as Wronia, Woloska, and Grzybowska across Poland is expected to increase the adoption of facilities management services. Following the corporate sector, retail industry in Poland is also expected to see a vast rise in infrastructure development projects and lead to an increased demand for a variety of facilities management services.

The manufacturing sector in the country is also expected to adopt facilities management services at a promising rate due to increasing investments and process automation across the segment. The increasing adoption of technical services such as utilities installation, operation and maintenance of equipment by small factories is creating new opportunities for the facilities management market across the manufacturing sector in Poland.

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Soft Facilities Management Service Segment to Continue its Lead in Poland

Of the two key categories of facilities management services: hard services and soft services, the segment of soft services holds the leading position and is expected to account for a nearly 60% of the market in 2016.

In terms of growth rate, however, these two segments are expected to have almost similar growth patterns over the period between 2016 and 2024, with the demand for hard services exceeding that for the latter by a margin of merely 1%. Despite lagging behind the hard services segment, the segment of soft services facilities management is anticipated to be the largest revenue contributor throughout the forecast period as well.

The close gap in the growth prospects of the hard and soft facilities management services is due to demand balance between existing and new customers, wherein soft services are the most outsourced services by both old and new customers. Outsourcing of hard services is largely limited to few industrial sectors, which account for a majority of share of the market’s overall revenues.

Effectively delivery of hard services mostly require specialized workforce and certified vendors. Demand for hard services facilities management is especially surging in manufacturing industry as it enables manufactures in achieving an automated environment and improving efficiency in production systems.

The market is highly fragmented and competitive, featuring a strong base of domestic as well as international service providers. Some of the key vendors in the market are Gegenbauer Polska,

Bilfinger HSG Facility Management GmbH, Sodexo, Inc., Dussmann Polska Sp.z o.o., Impel Tech Solutions, and Cushman & Wakefield.

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