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Next-Gen Solutions Will Transform Facility Management Market within 5 Years


News provided by

Frost & Sullivan

26 Jul, 2016, 09:43 GMT

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The global outsourced FM market will near $1 trillion by 2025, with integrated FM as the fastest growing segment, finds Frost & Sullivan's Energy & Environment Team

LONDON, July 26, 2016 /PRNewswire/ -- The next 5 years will be defining ones for the facility management (FM) market. As services mature and commoditise, innovation through new business models, technology deployment, and more sophisticated value propositions will be critical for growth. Enabling technologies such as Internet of Things (IoT), Big Data and advanced connectivity will drive efficiency for both service suppliers and clients, while changes to both the future workplace and workforce create robust opportunities for integrated workplace change management solutions. Partnerships, collaboration and mergers and acquisitions (M&As) will increase to facilitate service integration, convergence with energy management, delivery of business productivity, smart technology, and internationalisation of contracts. Successful suppliers will position themselves as client advisors on business productivity in order to provide a value proposition beyond mere cost management.

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Facility Management Frost Sullivan Energy Environment Building Technology

Photo - http://photos.prnewswire.com/prnh/20160726/392889

New analysis from Frost & Sullivan, The Future of Facility Management (http://www.frost.com/sublib/display-report.do?id=MBEB-01-00-00-00&src=PR), finds that the market will touch $945.11 billion by 2025 with integrated FM (IFM) as the fastest growing segment. The study examines 8 trends transforming the FM market and envisions the industry in ten years' time. The research offers growth projections, a vision of future competition, technology impact, emerging business models, and details the key Mega Trends shaping the market.

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/EU_PR_AZanchi_MBEB-19_Jul16

"Increasing price competition that erodes market share and profits compel FM service providers to focus on the retention and growth of existing customers by leveraging technology," said Frost & Sullivan Energy & Environment Partner John Raspin. "Anything as a Service or XaaS business models will allow first-movers to own and re-define customer relationships."

Region-wise, the fastest growing FM markets will be APAC and the Middle East even as North America and Europe continue to lead in terms of innovation. Further:

  • Europe will exhibit the highest rate of M&A activity.
  • North America will see service integration enhance efficiency and margins as single-service markets stagnate.
  • The dynamic FM market in APAC will be driven by economic growth, commercial construction, and a rising culture of service outsourcing.
  • Markets such as the UK and the Nordics will be forerunners in workplace optimisation and business productivity as local participants innovate to overcome commoditisation of FM.
  • High growth in the Middle East will be fuelled by construction activities and strong presence of multi-national firms.

"Demanding and complex regulations will encourage top companies to outsource compliance to capable FM providers and sustainability service firms," added Raspin. "This will enable the FM market to also be a driver for sustainability management."

Overall, the global outsourced FM market will become a complex marketplace worth almost $1 trillion by 2025, with bundled and integrated services accounting for a combined 35% of total revenues.

The Future of Facility Management is part of the Home & Buildings Growth Partnership Service program. Frost & Sullivan's related studies include: The Future of Lighting, 2016 Global Homes and Buildings Industry Outlook, European Energy Savings Contract and Performance Contracting Market, DC Distribution Opportunities and Impact on Homes and Buildings, World Voice Alarm Systems Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact
Anna Zanchi
Corporate Communications – Europe
P: +39.02.4851 6133
E: anna.zanchi@frost.com
http://www.frost.com

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