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Next-gen Facility Management to Integrate Energy and Property Management Services for Market Advantage


News provided by

Frost & Sullivan

04 Feb, 2020, 13:05 GMT

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Vendors building capabilities in analytics will enjoy greater growth opportunities, finds Frost & Sullivan

SANTA CLARA, California, Feb. 4, 2020 /PRNewswire/ -- A perceptible shift in facility owners' focus from cost savings to service outcomes, user experience, and business productivity is opening up the market for integrated facility management (IFM). IFM is expected to increase its share of the total addressable FM market from 10.3% in 2018 to 13.9% by 2025, while the total market is forecast to grow from $819.53 billion to $945.11 billion during the same period at a compound annual growth rate (CAGR) of 2.1%.

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Future of Facility Management (PRNewsfoto/Frost & Sullivan)

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"Partnerships, collaborations, and merger & acquisition activity are rapidly altering the competitive landscape, as converged FM services, property management, and energy management (EM) are proving vital to stay relevant," said John Raspin, Partner at Frost & Sullivan. "Meanwhile, these new business models, as well as the rising prevalence of Internet of Things (IoT), Big Data, and advanced connectivity, are creating a parallel need to build or acquire data analytics capabilities to complement service delivery."

Frost & Sullivan's recent analysis, The Future of Facility Management (FM), Forecast to 2025, analyzes the transformational trends in the FM market as well as new business opportunities through 2025. It examines the main technologies and services in the market and the factors that are likely to influence the competitive landscape. It covers the growth markets in the regions of North America, Europe, Asia-Pacific (APAC), and Rest of the World (RoW).

For further information on this analysis, please visit: http://frost.ly/3zg

"The commoditization of FM services in the developed markets of Europe and North America is compelling suppliers to innovate to maintain margins and growth," noted Raspin. "By 2025, the Middle East region will be the fastest-growing IFM market, while the total FM market will experience a greater influx of Chinese and other Asian firms into the top tier."

Besides IFM, vendors are delivering sophisticated client advisory services to cater to an increasingly demanding customer base. For additional revenue opportunities, they will look to:

  • Integrate workplace change management (WCM) into core FM and IFM services to address the business productivity needs of clients.
  • Explore options for the acquisition of technical FM skills and energy services in high-growth industrial and commercial applications.
  • Develop expertise in specific use-case areas such as workplace analytics.
  • Target the hard services market. This will be a faster growing segment than soft services, and success will be determined by technical ability, customer intimacy, and self-delivery.
  • Broaden the service offering and move into the higher growth areas, such as EM and IFM.

The Future of Facility Management (FM), Forecast to 2025 is part of Frost & Sullivan's global Homes & Buildings Growth Partnership Service program.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

The Future of Facility Management (FM), Forecast to 2025
MEB 7-19

Contact:
Jaylon Brinkley
T) +1 210 247 2481
E) jaylon.brinkley@frost.com
http://ww2.frost.com

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