Global Facility Management Market - Segmented by Solution (Strategic Planning and Project Management, Asset and Inventory Management, Maintenance Management, Workplace and Relocation Management, Sustainability Management), Service (Consulting, Managed Services, Integration, and Deployment), Deployment Type (On-Premise, Cloud), End User (IT and Telecom, Healthcare, Education, Retail, Banking, Financial Services, and Insurance), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global facility management market was valued at USD 31.96 billion in 2017 and is expected to reach a market value of USD 64.5 billion by 2023, registering a CAGR of 12.41% during the forecast period of 2018–2023. Facility management solutions enable efficiency and agility in business functioning, and they are gaining vital importance in organizations. The facility management concept comprises of software and solutions that allow efficient management and use of workspace, real estate, assets, relocation of offices and buildings, and energy management. It standardizes services and streamlines processes. Enterprises are moving beyond the traditional concept of facility management, to address rapid technology changes and current business needs, that are helping in the increasing adoption of these solutions.
Study segmentation is by strategic planning and project management, asset and inventory management, maintenance management, workplace and relocation management, and sustainability management. The market segmentation is by consulting, managed services, and integration and deployment, and by deployment type into on-premise or cloud.
Adoption of IoT is a Major Opportunity
At present, businesses are increasingly looking for instant ease-of-working culture, merchandise and workflow management, and copying the idea of connected devices. Thus, facility management is soon poised to look, drastically, different from just a decade ago. With the introduction of next-generation technologies, such as the Internet of Things, and advanced connectivity spectrums, like 5G, the digital transformation of business centers are expected to have an increase in demand over the next few years. Moreover, the number of IoT connected devices is expected to touch 30 billion by 2020.
Also, for large enterprises managing the static and dynamic assets poses a variety of challenges, particularly when it comes to fulfilling while defending against loss or threat, regulatory standards, and exploiting the life cycle of various kinds of workflows. The proper management of software license, digital assets, and hardware are one of the most important ways to reduce costs. For example, logistics and fleet management companies need to be sure that they can precisely track assets along the entire supply chain, in case of unpredicted breakdown or loss, which can lead to system failures and service delays. Hence, in such cases, the adoption of IoT helps ease the operations and maintenance process.
Cloud Deployment is Anticipated to Witness a Healthy CAGR
The cloud-based deployment model aids in collecting large volumes of server-storage resources into an integrated solution, while providing backup of the user’s database on different servers, to guarantee the reliability of the data. Cloud-based software cost less as compared to other deployment models, and they allow businesses to circumvent IT costs, such as hardware and support staff. Additionally, growing volume of unstructured data/content in enterprises and the need for secure, reliable and cost-efficient data storage infrastructures has pushed the demand for cloud-based solutions in the security testing market. In the cloud storage era, users have access to the stored data in systems without geographical limitation. The users pay only for the resources that are needed, while the providers bear the cost of building and maintaining storage architecture. In recent years, the low-cost and ease of implementation have made cloud deployment a highly desirable delivery model among the enterprises, worldwide.
North America Dominated the Global Market in Facility Management
Latest technological breakthroughs have assisted the advancement of facility management solutions that can make the overall processes highly efficient and significantly improve accuracy in various applications. There have been a series of new solutions, mergers & acquisitions in North America to take advantage of this opportunity. The primary driver behind the investments has been the continuous evolution and application of new technologies to unlock enormous volumes that were previously considered non-commercial. With these series of investments, IT and Telecom, BFSI, real estate, and healthcare applications in North America are set to boom over the next five years.
Key Developments in the Market