Global Facilities Management Market Sees Increased Preference to Bundled Services

Facilities management (FM) refers to a highly promising emerging market in the services industry. Companies operating in the facilities management arena provide a variety of services to maintain and support to infrastructure and business activities or processes in a number of industries. Facilities management has been envisioned to emerge as one of the fastest expanding markets in real estate, corporate, and residential industries. The services offered as a part of facilities management help enterprises in paying more attention on their core services so as to improve them, while also substantially reducing their energy and operating costs incurred in undertaking a variety of business processes. 

Transparency Market Research (TMR), states that the global market for facilities management will exhibit a promising 13.6% CAGR over the period between 2016 and 2024, rising from a valuation of at US$606.46 bn in 2015 to US$1,887.19bn by the end of 2024.

In this blog post, TMR analysts uncover some of the key developments and trends observed in the market in the recent times:

Q. What are some of the key trends observed in the global market for facilities management?

The rising adoption of the economical and convenient bundled services is one of the key trends observed in the global market for facilities management in the recent years. In addition to being economical, bundled facilities management services, which commonly combine services such as cleaning, security, and food, help improve cross-service efficiency and professional development of facilities management services.

Looking at the encouraging rise in demand, a number of companies in the market have started providing bundled FM services in order to expand their client-base and deliver quality and valued services. Companies are increasingly providing a variety of hard and soft services in bundled form to increase the efficiency of services. Prominent companies offering bundled FM services include London-based G4S plc and Northampton-, U.K., based 14forty FM Support Services (Compass Group UK and Ireland Limited). These companies provide a variety of FM services such as food and hospitality, cleaning, security, reception, workplace management in bundled form.

Q. What are some of the key challenges of operating in the market for facilities management?

The market for facilities management is increasingly witnessing the entry of a large number of companies, making the vendor landscape significantly fragmented and intensifying the level of competition. The increasing availability of common services at competitive prices from companies aspirating to strengthen their hold on the market has become a key concern for established vendors in the market.

Services offered at cheaper rates by smaller companies are compelling large vendors to reduce costs of their offerings to retain consumers. The need to reduce profit margins to enable changes in cost structures could be one of the key challenges for companies in the global facilities management market. Lack of skilled professionals is also a key concern hindering the growth prospects of the global facilities management market.


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