Integrated Facilities Management

Integrated Facilities Management Market Size and Global Outlook

The impact on FM will likely be indirect, as the effects of the conflict feed through into commodity prices, inflation, and ultimately perhaps economic growth. The main impact will likely be through higher energy prices, which add to the inflationary forces already being felt across most European economies and now visible at a global level.

• The North American FM market in 2022 grew moderately with high demand for services, like security, cleaning and catering services, hard service, which were impacted, due to component shortage half the year in 2022, but 2023 seems positive

• Europe is still facing the energy crisis, which seems to settle down by H1 2023, but in 2022, the region’s growth was impacted, due to the Russia–Ukraine war

• Other regions, including APAC and MEA FM markets, will also grow, due to increasing demand and buyer’s maturity in 2023, though in 2022 slow growth was observed

Integrated Facilities Management Global Market Maturity 

• IFM penetration is still low outside Western Europe and North America

• IFM contracts form about 25-30 percent of all FM outsourcing contracts in developed markets

• APAC and LATAM are witnessing increasing IFM adoption because large scale construction and efforts of large global buyers to consolidate supply

Integrated Facilities Management Industry Trends

• Suppliers are building best practices, which includes social distancing practices, technology adoption to limit human touch etc.

• Buyer has the largest bargaining power for small/medium FM service providers

• Suppliers are maintaining minimum essential workforce at client sites, by providing incentives and other benefits like food and accommodation

Integrated Facilities Management Drivers and Constraints

• Political and economic unrest in Europe, owing to BREXIT and other factors, are expected to slow the growth of service in Europe

Drivers

Improving economies and growth of industries

• With the improvement in economic conditions across developing countries and large-scale industrial development, allied industries, such as construction and real estate, have prospered, leading to a higher demand for outsourced FM services

Multigenerational workforce

• Large multinationals today have multiple generations of employees working together and each have their own set of values and priorities. This is driving the demand for workspace strategies that can bridge the gap and foster collaboration, and FM has a major role to play in this, as it directly impacts the employees’ perception of the workplace and work environment

Operational benefits

• Large buyers have a very complex portfolio of property, including office space, warehouses, manufacturing units, etc., which lead to issues related to managing and standardization of services

• Outsourcing to a single FM supplier would allow buyers to standardize the level of services across various locations. Productivity and efficiency could be enhanced through the introduction of various KPIs and compliance clauses in the contract

Constraints

Subcontracting practices

• Subcontracting, a common practice in the FM industry, indirectly affects the buyer, since subcontractors charge a margin to the service provider, which is eventually passed onto the buyer. This margin-on-margin increases the spend of the buyer, which is essentially a trade-off for exploiting local synergies at a tactical level

Awareness of FM outsourcing

• There is also a low level of awareness among buyers in developing markets about the opportunities presented by outsourcing FM services with respect to cost savings and operational efficiencies

Why You Should Buy This Report

• The report includes a thorough facilities management market analysis and gives information about emerging and developed markets.
• It details the current trends and growth potential of regional markets. 
• The report lists out key facility management suppliers regionally and globally. 
• It contains a full SWOT analysis of ISS, CBRE, Sodexo, etc.
• It explains the cost structure, pricing and the best procurement practices of the facility management industry.