Facilities management market to grow 4% annually until 2025

The global facilities management services market was valued at USD 740.1 billion in 2020 and is projected to grow at a compound annual growth rate of 4% through 2025, according to market analysis.

Facilities management encompasses services and tools that support the functionality, safety, and sustainability of buildings and real estate. These services include lease management, maintenance, space management, and energy management. They are broadly categorized into hard services, which deal with physical assets like plumbing and HVAC systems, and soft services, such as security and custodial care.

While the recent pandemic caused a short-term market decline, the need for managing vacant properties post-pandemic is expected to drive medium to long-term profitability. Increased requirements for security and maintenance, coupled with the adoption of technologies like drones and CCTV for remote servicing, are further contributing to market growth.

Geographically, the APAC, EMEA, and North American regions each represent approximately 30% of the global market share. Key players identified in the market include ISS Facility Service, CBRE, Compass Group PLC, and Cushman & Wakefield, who are focusing on competitive pricing and enhanced value delivery.