Soft Services Facilities Management Market Size, Share & Industry Analysis, By Service Type (In-house and Outsourcing), By Industry Vertical (Healthcare, Government, Education, Military & Defense, Real Estate and Others) and Regional Forecast, 2019-2032

The global soft services facilities management market size was valued at USD 425.53 billion in 2018 and is projected to grow worth USD 926.71 billion by 2032, exhibiting a CAGR of 5.4% during the forecast period. Asia Pacific dominated the soft services facilities management market with a market share of 30.12 % in 2018.

In recent times, enterprises are focusing on improving the day-to-day organizational activities to reduce operational costs and achieve efficiency in overall working. This enables companies to bring transparency across various organizational operations and support to take vital decisions. In such a scenario, internal and external regulations and norms are contributing to the soft services facilities management market growth. Additionally, the integration of IoT and analytics, cognitive computing, etc. supplementing facilities management are further contributing to the market size of soft services facilities management.

MARKET TRENDS

Growing Awareness for Energy Management is a Key Factor Contributing to Market Growth

Today, enterprises are focusing on improving productivity and optimizing daily operational activities while reducing energy consumption. Owing to this, soft services facilities management manufacturers are adopting automated technologies to reduce energy consumption level. Also, the intervention of governmental bodies is compelling suppliers to upgrade the existing technologies and streamline it with the regulatory norms. Furthermore, government initiatives to invest in the real estate sector and build smart cities are creating opportunities for facilities management solution providers. This is owing to the integration of energy-efficient solutions and products integrated into buildings for various operational functions.

MARKET DRIVERS

Integration of Latest Technologies across Various Industry Verticals to Drive the Market

Introduction of The Internet of Things is emerging as a major driver for soft services facilities management. IoT provides a constant, real-time stream of data which helps to make better decisions and ensures work process optimization across various industry verticals. Further, increasing appetite for outsourcing businesses and rising focus of companies to deliver personalized and value-added services such as credible and effective risk management, including HSE and local labor law management are other factors contributing to the soft services facilities management market growth.

 Evolving Regulatory and Standardization Norms to Broaden Market Outlook

The emergence of Health, Safety and Environment (HSE) and ISO 41000 standards are the major growth-enablers for this market. Further, these standards encompass ISO 41011, 41012, 41013, and 41001, which ensure better performance and provide guidance on strategic thinking for conducting facilities management services. Also, service level agreements (SLAs) related to regulatory compliances are bringing a new need for greater expertise in facilities management services.

MARKET RESTRAINT

Lack of Managerial Awareness can be a Limiting Factor

Adoption of facilities management across the globe is widening. However, there is a huge gap in understanding and adoption of prerequisite technologies. Usage of conventional technologies is expected to hinder the soft services facilities management. Further, enterprises are still integrating cloud computing systems over the IoT ecosystem. Besides, lack of skills and expertise is creating serious headwinds for the market of soft services facilities management.

SEGMENTATION

By Service Type Analysis

Outsourcing Segment to Generate Highest Revenue in the Forecast Period

Based on service type, the study of the market of soft services facilities management is segmented into in-house and outsourcing.

The outsourcing segment is expected to generate the highest revenue in the coming years owing to increase in noncore operations at individual locations. Further, several factors such as cost savings, lack of digital skills within the ecosystem are creating an attractive opportunity for leading vendors that are associated directly or indirectly with this function. This engagement of vendors is creating a potential impact on the outsourcing business. For instance, according to secondary sources, outsourcing has exceeded 50 percent of the overall facilities management across the Middle East, North America, and Europe.

The in-house segment is expected to grow at a considerable rate with growing facilities management across various industrial verticals.

By Industry Vertical Analysis

Real Estate Segment to Grow Significantly in the Forecast Period

Based on industry vertical, the market of soft services facilities management is further segregated into healthcare, government, education, military & defense, real estate, and others.

Real estate industry is expected to grow significantly in the coming years with increasing number of educational centers, logistics and transportation, etc. Further, government initiatives to build smart cities would be a contributing factor escalating the market demand for soft services facilities management.

The education, healthcare, government, and military & defense segments are expected to grow at a considerable rate owing to governmental pressures to align business processes with the regulatory norms, integrate technological solutions to ease the business activities, and environment- friendly.

REGIONAL ANALYSIS

Geographically, the global market of soft services facilities management is segmented across five major regions, namely North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

Asia-Pacific market of soft services facilities management holds the largest share owing to the major manufacturers operating in the region, rising outsourcing businesses, availability of comprehensive solutions, etc. Additionally, high infrastructure development rate has triggered a quick rise across a few industry verticals such as BFSI, healthcare, manufacturing, and retail. Also, there is a huge presence of organized and un-organized players offering facilities management services to various end-users, further contributing to the growth of the market.

Middle East and Africa and Latin America soft services facilities management markets are expected to grow at a significant rate in the forecast period owing to the fast-paced construction of commercial infrastructure across the transport, hospitality, entertainment, and healthcare industries. Besides, government initiatives to invest in infrastructure development are also creating opportunities for soft services facilities management market players.

North America and Europe market of soft services facilities management  are considered to be the maturity stage. This is attributed to the growing number of facilities management outsourcing businesses and the presence of service providers operating in these regions. Also, the involvement of foreign direct investment across IT & telecom, real estate, healthcare industries are few major aspects that are influencing the facilities management solutions in the coming years. Additionally, higher adoption of breakthrough technologies in these regions is creating a positive impact in the field of facilities management and significantly improving the overall processes accurately and efficiently.

KEY INDUSTRY PLAYERS

Leading Players are Focusing on Investing in Real Estate Sector to Enhance Their Service Businesses

CBRE Group Inc. is aggressively investing in real estate business as a part of its development services business strategy. For instance, the company committed to investing USD 53.7 million to fund future co-investments in its global investment management business.

Further, according to the soft services facilities management market analysis, companies are adopting various marketing strategies such as mergers & acquisitions, collaboration, and joint ventures to deepen their roots in this market. For instance, In January 2017, CA Technologies acquired Autonomic Holding GmbH for USD 673.6 million in order to add new cloud-enabled automation services and expands its portfolio across the Europe.

List of Key Companies Profiled:

• Sodexo


• CBRE Group Inc.


• ISS A/S


• Compass Group


• Aramark


• Jones Lang LaSalle Incorporated


• Cushman & Wakefield plc.


• Tenon Group


• Johnson Controls International plc.


• AMEC Facilities

KEY INDUSTRY DEVELOPMENTS:

• October, 2019: - Lincolnshire Management invested in Powerhouse and two outsourced business services companies in order to provide outsourced refresh, remodel, and maintenance facilities services.


• December, 2017: - ATALIAN global services Inc. acquired Suburban Integrated Facilities in order to expand its facilities management business in the US.

REPORT COVERAGE

The soft services facilities management market report provides detailed information regarding various insights to the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the soft services facilities management trends and estimations to illustrate the forthcoming investment pockets. The study is quantitatively analyzed from 2019 to 2026 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.

Report Scope and Segmentation