The expansion of the construction, hospitality, and tourism industries is one of the major factors driving the demand for facility management services across the world. Furthermore, the rising urbanization rate, rapid economic progress, and the launch of smart city and infrastructural development projects by the governments of several countries are also pushing up the requirement for these services, as these services are heavily required by businesses and commercial establishments such as mega food parks, shopping malls, and special economic zones (SEZs) for catering to the needs of people.
Additionally, the surging number of corporate offices and retail stores in several countries, on account of the economic growth and increasing industrialization and urbanization rates, is also fueling the demand for facility management services all over the world. Owing to the aforementioned factors, the facility management market is predicted to exhibit huge expansion in the coming years. Hard services and soft services are the two most widely used types of facility management services across the world. Between these, the demand for hard services is predicted to rise sharply in the coming years.
This will be because of the increasing infrastructural development activities, especially in developing nations such as China and India, which are consequently propelling the requirement for hard services such as mechanical & electrical maintenance and heating, ventilation, and air conditioning (HVAC). Residential, industrial, and commercial sectors are the major end users of facility management services. Amongst these, the requirement for these services was found to be the highest in the commercial sector between 2014 and 2020. This was primarily because of the high requirement for these services in offices, airports, and shopping malls.
Further, the rapid development of green/sustainable buildings is also driving the demand for facility management services across the world. Globally, the demand for these services will rise at the fastest pace in the Asia-Pacific (APAC) region over the next few years, as per the estimates of P&S Intelligence, a market research company based in India. This is attributed to the increasing construction and infrastructural development projects in regional countries in order to meet the surging requirements of people.
Furthermore, many international companies are setting up their offices, service centers, and research and development facilities in the region, owing to the high growth potential there. This is subsequently pushing up the requirement for facility management services in the region. Cleaning, property, security, support, catering, and environmental management are the major facility management services used all over the world. Some of the major organizations operating in the facility management market are Imdaad LLC, Tenon FM, Compass Group, Jones Lang LaSalle, G4S plc, Emrill Services LLC, and EMCOR Group.
Thus, it can be safely said that the demand for facility management services will surge sharply in the coming years, primarily because of the expansion of hospitality, tourism, and construction industries, rising urbanization and industrialization rates, and increasing number of retail stores and corporate offices across the world.