Revenue Forecast

The base year revenue estimate is $784.03 billion, with a CAGR of 6.5% for the study period from 2023 to 2028.

The Impact of the Top 3 Strategic Imperatives on the Global Facility Management Industry

Competitive Intensity

Why

• Industry saturation has resulted in similar offerings across service providers, with a lack of competitive advantages. It is challenging to compete with well-known property management brands while maintaining a strong cash flow for future expansion through mergers and acquisitions (M&A).
• Many firms have been sluggish in terms of updating their technology and service models, leading to service commoditization and declining margins. There is an urgent need to break away from traditional approaches and embrace innovation to stay competitive.

Frost Perspective

• Service providers should focus on their strengths and target sectors while finding avenues to strengthen their position in the industry. Those unable to innovate or differentiate themselves risk losing engagements and becoming irrelevant.
• Facility management (FM) businesses should recognize the urgent need for transformation across all sectors. They should pursue partnerships, collaborations, and M&As to address future skill requirements.

Transformative Megatrends

Why

• The workplace, technology advancements, and workforce dynamics are evolving in tandem with the lingering effects of the COVID-19 pandemic and the global agenda on energy efficiency and environmental sustainability development.
• These shifts impact customer demographics, prompting a need for innovative value propositions and improved business models.

Frost Perspective

• Service providers should promptly adapt to changing needs while internally strategizing and prioritizing organizational resilience to navigate various changes. Swift initiatives to refine service offerings and cater to emerging demands will give service providers a competitive edge.
• They should derive value propositions centered around their clients' technological journeys, sustainability targets, and business productivity, effectively within the emerging work landscape.

Disruptive Technologies

Why

• Given the industry's inclination for cutting-edge technologies and a strong preference for innovative business models, clients are likely to embrace more intricate value propositions.
• This will lead to an accelerated transition to value propositions that prioritize technologies such as the Internet of Things (IoT) and big data.

Frost Perspective

• Integrating technologies into FM offerings through acquisitions, partnerships, or the expansion of internal capabilities is essential.
• In addition to meeting the growing demand for technology-driven solutions, leveraging technologies such as robotics can help alleviate concerns about rising labor costs.
• The growing emphasis on transparency, consistency, and reliability for data management elevates the need to explore technology-supported solutions

Scope of Analysis

• The purpose of building, installing, or establishing a facility that can be a building, a factory, a warehouse, a school, or a hospital is to meet specific needs. FM comprises several services, including janitorial, engineering, security, environmental, and landscaping services, to run or maintain a facility. This study segments FM into 3 main service categories: hard FM services, soft FM services, and additional services.
• Hard FM Services: Hard services, or engineering solutions, involve servicing the components of a building or a facility that people cannot remove. Generally, the law mandates these components to ensure the building’s proper functioning and the safety and welfare of its occupants. Hard services include mechanical and electrical (M&E) services for lighting; plumbing; electrical systems; heating, ventilation, and air-conditioning (HVAC); general building works; fire safety systems; and painting/graffiti removal. Solutions may range from one-off reactive maintenance jobs to complete asset management and preventive maintenance solutions.
• Soft FM Services: These services create a safer, more pleasant environment inside a building or a facility and include cleaning, catering, pest control, security, and business support.
• Additional Services: These services include energy, property (space planning, relocation), environmental (waste, recycling) management, and information technology (IT) and telecommunications services.

Definition of FM End Users

Commercial

• This segment comprises the office and retail subsectors.
• Office refers to corporate office buildings that business service providers occupy (e.g., the corporate offices of manufacturers, communication and IT, finance and insurance, and property management) and includes single- and multi-tenant office buildings.
• Retail includes shopping centers, shops, malls, supermarkets, restaurants, cafes, factory outlets, wholesale stores, warehouses, and distribution centers.

Institutional

• This segment comprises the education and healthcare subsectors.
• Education facilities only include public and private universities and higher education colleges and exclude other education facilities, such as primary/secondary schools and small- and mid-sized educational institutions (e.g., kindergartens, preschools, and daycare facilities).
• Healthcare facilities cover public and private hospitals and aged care facilities but exclude other small- and mid-sized mental and physical health facilities.

Public/ Infrastructure

• This segment comprises the government and infrastructure subsectors.
• The government refers to office buildings at the central and local government levels, including only administrative offices and excluding defense and social housing facilities, prisons, parks, hospitals, schools, and other public properties and facilities that government departments administer.
• Infrastructure includes facilities for land and water transportation, such as ports, roadways, airports, railways, and transportation hubs.

Industrial

• This segment comprises the manufacturing and energy subsectors.
• Manufacturing covers facilities from small, medium, and large manufacturing businesses (e.g., industrial, food and beverage, metal, automotive, and chemical) and includes equipment and parts manufacturers, paint producers, and sales representatives of the general industry.
• Energy refers to the facilities from the primary energy and resource sector (e.g., coal, iron ore, other metal ore or mineral mining, and oil and gas exploration) and includes operations in remote mining campsites and villages that accommodate the workforce near mine sites.

Others

• Others includes sports complexes that serve as public event venues, such as sports grounds and aquatic pools; leisure, event, and entertainment facilities (e.g., cinemas, theaters, exhibition halls, and showgrounds); and public theme parks and gardens.

Key Competitors

• Aramark
• Sodexo
• ISS
• Compass Group
• CBRE
• Jones Lang LaSalle
• Cushman & Wakefield
• Serco
• Colliers International
• BGIS
• Veolia
• Aplena
• City FM
• OCS
• Savills
• Knight Frank
• Fluor
• G4S
• ABM
• GDI
• EMCOR
• Integrated Electrical Services, Inc.
• EllisDon
• Black & McDonald
• NewMark
• Transwestern
• Brewer-Garrett
• Grupo Eulen
• Elior
• Samsic Facility
• Dr Sasse
• SPIE
• WISAG Service Holding SE
• Coor
• Rekeep
• Caverion
• Sauter FM GmbH
• GSF Group
• Sol
• Four FM
• SIMACEK GmbH
• Mitie
• Vinci Facilities
• IMAC
• STRABAG Property and Facility Services GmbH
• UEM Edgenta Berhad
• Downer Group
• AEON Delight Co., Ltd.
• Aden Group
• Tenon Group
• Taisei Co., Ltd.
• SIS Limited
• Onewo
• Shenzhen SDG Service
• S&I Corp.
• Nippon Kanzai Co., Ltd.
• Kyobo Realco Inc.
• BVG India Limited
• Updater Services Limited
• EFS Facilities Services Group
• Imdaad Group
• Emrill Services LLC
• Bransitas Group
• Sawatzky Property Management