The global facility management services market is expected to grow from $1,361.71 billion in 2022 to $1,562.42 billion in 2023 at a compound annual growth rate (CAGR) of 14.7%. The facility management services market is expected to reach $2,557.57 billion in 2027 at a CAGR of 13.1%.
The growth of the facility management services market is expected to be propelled by the increasing adoption of smart city initiatives. Numerous governments worldwide are introducing initiatives aimed at developing smart cities.
Facility management services play a pivotal role in supporting smart cities by implementing innovative Information and Communication Technologies (ICTs) in the realm of Urban Facility Management (UFM). This opens up new avenues for optimizing existing services and creating novel services based on cutting-edge technologies like the Internet of Things (IoT), Big Data, information sharing, and smart applications.
For instance, in 2021, the Government of India invested a substantial amount of Rs 205,018 crore (US$ 28.31 billion) in the smart city mission. Additionally, in January 2020, city governments in the United States planned to invest over $41 trillion over the next two decades to enhance infrastructure and leverage IoT technology. Such significant investments are set to transform urban living through IoT adoption, thus driving the growth of the facility management services market.
Technological innovations represent a prominent trend gaining traction in the facility management services market. Service providers are diversifying their portfolios by integrating advanced technologies into their offerings. Large enterprises, in particular, are leveraging innovative technologies such as Building Information Modeling (BIM) to enhance the delivery of both hard and soft services, thereby improving and upgrading their service offerings.
For example, in March 2022, Compass Group, a UK-based facility management services company, introduced Saarthi-FX, a fully digital one-stop solution. This innovative solution reimagines workplace interactions within facility management, aiming to revolutionize traditional workspaces by harnessing the power of artificial intelligence and predictive modeling.
It enhances office asset management, fosters a smarter, safer, and more efficient workspace, and ensures seamless 24/7 customer support. Saarthi-FX integrates technology, human resources, and processes to create a superior employee experience and transform conventional workspaces into tech-enabled environments.
North America emerged as the largest region in the facility management services market in 2022. The market report covers several countries, including Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.