3 major trends that will drive facilities management market forecast
Publisher : Fractovia | Published Date : 2019-12-27Request Sample
Rising investments in real estate as well as construction worldwide will drive facilities management market trends over the forecast timeframe. For example, the government of Canada had issued additional funding of USD 81.2 billion in 2017 across five main infrastructure streams that include trade, social, transportation, public transit and green infrastructure.
Canadian government has also taken numerous initiatives to enable the development of infrastructure for rural and northern communities. For instance, ‘Investing in Canada’ is a plan taken up by the Canadian government to build and develop advanced economic cities. There has been an increase in the investments in various smart city projects around the globe that has resulted in an increasing demand for facilities management services.
With a major growth of hospitality and tourism sectors across the world, the demand for FM services has witnessed major growth in restaurants, entertainment centers and hotels. Key providers of facilities management services include CB Richard Ellis (CBRE), Colliers International, G4S plc, CA technologies, Aramark and EMCOR Group, Inc.
High scrutiny as well as strict regulations have helped the companies outsource and deploy tech solutions which could maximize the FM efficiencies. Listed below are few trends that could foster facilities management market trends over 2019-2025 :
1) Rising need for outsourcing facility management
There has been a heavy emphasis by enterprises and institutions to lay their focus on the core competencies which will help them secure a competitive edge over other firms. This will drive the growth of the outsourced service segment significantly over the projected time period.
Mounting competition in every business sector has coerced organizations to outsource the non-core business operations to mainly a third-party service providers. The facility management services when outsourced, enables managing the day-to-day work of the facility by well-trained and skilled labor.
The overall operational cost of the business is reduced by outsourcing of these kind of work as the management does not need to employ and train the in-house staff. Similar trends worldwide will significantly bolster facilities management industry forecast.
2) Increase in construction activities across the world
Rapid increase in industrialization will help the manufacturing companies to expand, creating the need outsource more management requirements at their facilities to be able to improve the focus on their basic competencies. These facility management services include operation, maintenance and construction. Substantial growth has been attributed to large number of construction activities and projects that have been taken up by the governments to fuel economic expansion.
Increasing post-construction services like the cleaning and maintenance of the buildings and electric and mechanical work will also drive facilities management market trends. As the number of commercial structures rises, the need to hire or contract efficient, cost-effective FM service provides will grow. The industry represents a vital employment source for people.
3) Developing smart offices and residential spaces
Hard service segment will own a large part of the facilities management industry share by 2025 owing to the rapid increase in the development of smart offices and homes. Smart homes and offices have various physical assets like elevators, HVAC systems, Electrical & mechanical equipment and fire safety systems.
These systems need robust installation and regular maintenance for their smooth operations which would boost the demand for facilities management services and solutions. The providers of hard FM services are known to have skilled labor that manage work like electricals, civil construction and mechanical work without interrupting the customer’s core business operations.
