Download Sample, Adoption of Cloud-Based Technologies is Propelling the Market Expansion
Facilities management software is transitioning to a new paradigm: software-as-a-service (SaaS). Cloud-based facilities management software (SaaS) provides more functionality, greater dependability, cheaper prices, and more chances for customization, allowing organizations to simplify operations like never before. Besides, cloud-based solutions provide a dependable way of hosting facility management software. They also assist organizations minimize operational expenses by improving security and coordination across teams and subsidiaries present in numerous places. Other benefits of cloud-based facilities management solutions include safe data hosting, increased security and scalability, and rapid disaster recovery.
The backups are kept on a shared or private cloud host platform, allowing organizations to easily retrieve crucial server data. The data may be viewed securely from anywhere with an internet connection. Cloud-based facilities management solutions also improve customer satisfaction while cutting repair and maintenance costs. These advantages have increased the usage of cloud-based systems for integrating facility management services which is anticipated to contribute towards the expansion of the market during the forecast period.
The backups are kept on a shared or private cloud host platform, allowing organizations to easily retrieve crucial server data. The data may be viewed securely from anywhere with an internet connection. Cloud-based facilities management solutions also improve customer satisfaction while cutting repair and maintenance costs. These advantages have increased the usage of cloud-based systems for integrating facility management services which is anticipated to contribute towards the expansion of the market during the forecast period.
Expanding Infrastructure and Technological Developments are Accelerating the Market Growth
Governments all across the world spend extensively in the building and infrastructure sectors. Infrastructure expansion is primarily reliant on three components: renovation of existing structures, new building construction, and civil engineering. However, the industry is well-positioned to capitalize on global infrastructure developments. Governments in emerging markets are working with a variety of private contractors, including service providers and multinational companies, to keep infrastructure clean and green, including smart building development. As a result, the market is likely to be driven by the expansion of the infrastructure sector in various nations.
Furthermore, service providers all around the world have multiple potential to win contracts from the private sector, which boosts global market share. In addition, globalization has accelerated the evolution of organizational culture. Companies are broadening their company operations and work culture. Technological development and innovation have an impact on work culture. Work-from-home opportunities, flexible schedules, and authority decentralization are shaping organizational culture and work style. As a result, changing organisational culture and work style promotes the expansion of the facility management (FM) business. These reasons are expected to drive the facility management industry forward.
Furthermore, service providers all around the world have multiple potential to win contracts from the private sector, which boosts global market share. In addition, globalization has accelerated the evolution of organizational culture. Companies are broadening their company operations and work culture. Technological development and innovation have an impact on work culture. Work-from-home opportunities, flexible schedules, and authority decentralization are shaping organizational culture and work style. As a result, changing organisational culture and work style promotes the expansion of the facility management (FM) business. These reasons are expected to drive the facility management industry forward.
Recent Trends in the Facility Management Industry
- IoT integration for smarter building management and maintenance.
- AI-powered predictive maintenance for cost-saving and improved uptime.
- Increased adoption of cloud-based facility management software for scalability.
- Integration of mobile technology for on-the-go facility management tasks.
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Lack of Awareness, Technical Issues and High Costs are Likely to be a Challenge for the Market Progress
Several big facilities management service firms that made a significant initial investment in facility services experienced few issues as a result of long-term contracts. Most of the time, major organizations use novel technologies, such as Building Information Modelling (BIM), to deliver hard and soft services, allowing them to give better and upgraded services. On the other hand, small and medium-sized businesses in many nations are insufficiently applying the inputs at the early step, which is the designing stage. Because small and medium-sized businesses lack Operation & Maintenance (O&M) practices, this leads to sustainability issues in building facilities, particularly during the post-occupancy period.
Furthermore, service providers in developed and emerging economies such as the United States, the United Kingdom, Germany, and China deal with key challenges such as a lack of understanding on how to use technology in their practice, lack of assistance on data needs and delivery and technical issues. In addition, many organizations are unaware of the benefits of facility management. The problem is caused by a lack of understanding and acceptance of the necessary technologies. Many businesses are still deploying cloud computing technologies and have not yet established an IoT ecosystem. As a result, they are the key factors impeding market expansion. However, in order to tackle such challenges, the workforce and cost control will be critical.
Furthermore, service providers in developed and emerging economies such as the United States, the United Kingdom, Germany, and China deal with key challenges such as a lack of understanding on how to use technology in their practice, lack of assistance on data needs and delivery and technical issues. In addition, many organizations are unaware of the benefits of facility management. The problem is caused by a lack of understanding and acceptance of the necessary technologies. Many businesses are still deploying cloud computing technologies and have not yet established an IoT ecosystem. As a result, they are the key factors impeding market expansion. However, in order to tackle such challenges, the workforce and cost control will be critical.
Acquisitions and Partnerships are Providing Traction to the Market Development
Major market participants are concentrating their efforts on research and development in order to manufacture products that meet the demands of their customers. They also explore various market strategies, such as technological advancements, mergers, and acquisitions, in order to get a competitive advantage in the global market. For example, in September 2022, Aldar Properties PJSC ("Aldar") declared that it is expanding its property and integrated facilities management platform by acquiring Spark Security Services, a renowned UAE-based manned guarding security services provider. This acquisition benefitted both companies by opening doors for a broad portfolio of existing assets and enabling new business development. Later, in October 2022, Apleona, a European market leader in integrated facilities situated in Neu-Isenburg near Frankfurt am Main, entered a contract for the acquisition of Acacia Facilities Holdings Limited and its subsidiary Acacia Facilities Management Limited.
This partnership was anticipated to improve the service that both Apleona and Acacia provided. Earlier, in August 2021, Imdaad Group had announced cooperation with Disrupt-X, a Dubai-based IoT development business, to use IoT technology to improve FM services in the UAE by monitoring indoor air quality (IAQ) and the water quality of swimming pools and tanks. Disrupt-X's Ignite Shield provides a number of solutions, including Smart Outdoor and Indoor Air Quality Monitoring, Smart Water Infrastructure Monitoring (water leakage with data breakdown), water tanks monitoring, SPA monitoring, industrial assets monitoring, swimming pool monitoring, and water pressure monitoring from single homes to buildings and communities.
This partnership was anticipated to improve the service that both Apleona and Acacia provided. Earlier, in August 2021, Imdaad Group had announced cooperation with Disrupt-X, a Dubai-based IoT development business, to use IoT technology to improve FM services in the UAE by monitoring indoor air quality (IAQ) and the water quality of swimming pools and tanks. Disrupt-X's Ignite Shield provides a number of solutions, including Smart Outdoor and Indoor Air Quality Monitoring, Smart Water Infrastructure Monitoring (water leakage with data breakdown), water tanks monitoring, SPA monitoring, industrial assets monitoring, swimming pool monitoring, and water pressure monitoring from single homes to buildings and communities.
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Increasing Demand for Facility Management is Impacting the Market Expansion
North America is anticipated to hold the largest global facility management market share during the forecast period. This is due to the existence of key competitors in the facility management business, a growth in the use of new technology, and an increase in demand for professional and managed services. Demand for facility management systems is significant in infrastructure development nations such as the United States and Canada. The market in North America is likely to be driven by increased demand for facility management services in the BFSI, IT & telecom, retail, and other industries. Furthermore, the Asia Pacific facility management market is expected to expand rapidly over the forecast period. This might be attributed to an increase in the number of enterprises providing similar services in emerging nations such as India and China. The facilities management business in India is rapidly growing, which has resulted in a significant increase in commercial activity in major cities.
The report provides a detailed overview of the facility management market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the facility management market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the facility management market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the facility management market. Some key countries and regions included in the facility management market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Benelux, Nordic Region, Russia, Poland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, ASEAN, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Turkey, North Africa Countries, East Africa Countries, Rest of MEA |
Facility Management Market Research Report Covers In-depth Analysis on:
- Facility management market detailed segments and segment-wise market breakdown
- Facility management market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in facility management industry)
- Current, historical, and forthcoming 10 years market valuation in terms of facility management market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Facility Management Market Demand Analysis
- Facility management market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the facility management market
- Regulatory landscape by key regions and key countries
- Facility management market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on facility management market forecast by countries
- Mergers and acquisitions in the facility management market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key trends influencing the facility management market?
The rise of smart buildings, automation, sustainability practices, and technology integration such as IoT and AI are driving growth in the facility management market.
What are the challenges in the facility management industry?
Facility managers face challenges like technological integration, budget constraints, and ensuring compliance with regulations, all while striving to maintain efficient operations and sustainable practices.
How does facility management impact business sustainability?
Effective facility management reduces energy consumption, enhances resource efficiency, and ensures eco-friendly practices, supporting businesses in meeting sustainability goals and reducing operational costs.
