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The North America Facility Management Services Market size is estimated to increase by USD 152.7 billion, at a CAGR of 9.27% between 2023 and 2028. One major contributor is the expansion of infrastructure development, which boosts demand for various building management solutions and services. Additionally, increasing outsourcing trends in building management are playing a significant role, as organizations seek specialized expertise and cost efficiencies through external providers. Another crucial factor is the heightened demand for safety and security measures, as businesses and institutions prioritize robust systems to protect their assets and ensure compliance with regulations. However, the market also faces challenges. Market saturation presents a hurdle, as the influx of competitors can lead to increased pricing pressures. Furthermore, there is a scarcity of skilled labor, which can impact the quality and efficiency of services. Additionally, strict regulatory requirements necessitate adherence, adding complexity to operations. Together, these drivers and challenges shape the dynamics of the market, influencing its growth trajectory.
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The commercial buildings segment will contribute a major share of the market. The segment includes office, hospitality, retail, and healthcare buildings. Due to the growing demand for a convenient, secure, and safe workplace, office buildings make up the majority of the commercial buildings segment among end-user sub-segments. As there are many office buildings in North America, especially in the US, these services have increased in the region. During the forecast period, we anticipate that a number of corporate offices, business parks, and other office buildings will be constructed in the North American region, increasing the demand for effectively managed facilities.
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The commercial buildings segment showed a gradual increase in market share with USD 139.20 billion in 2018. Soft services like security, waste management, and horticulture are typically outsourced to specialized vendors in addition to engineering and technical support. Malls, amusement parks, and shopping centers all fall under the retail category and are well known for drawing large crowds. As a result, in these buildings, the need for specialized vendor services grows. During the forecast period, these elements are anticipated to fuel the market for these services in North America.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
In the dynamic market, property managers and contractors face numerous trials and tribulations. An effective management solution ensures optimal resource allocation and operational costs while enhancing space utilization. Companies like Tempus excel by addressing the pressure on physical assets, such as pipes and air conditioning units, through innovative energy-saving initiatives. This helps in reducing energy consumption and operational costs. Skilled teams of employees play a crucial role in maintaining maintenance practices, ensuring repairs are timely and energy-saving strategies are in place. FM companies focus on improving the working environment and driving cost savings by refining maintenance practices and energy consumption strategies. By integrating these aspects, businesses enhance their operations and achieve significant cost savings, optimizing their business side and overall performance.
The rise in the demand for safety and security is a significant driver fueling the growth of the market in North America. Facility management services play a crucial role in managing and maintaining buildings, facilities, and infrastructure to ensure the safety and security of occupants and users. With the increasing security threats faced by businesses and organizations in North America, there's a growing emphasis on implementing robust security measures. As a result, businesses are turning to these services to provide comprehensive security solutions, including access control, surveillance, and security system management.
Moreover, these services encompass the upkeep and maintenance of essential elements such as HVAC systems, building infrastructure, and other critical components necessary for the secure and efficient operation of facilities. This comprehensive approach to security and facility maintenance positions facility management services as indispensable for businesses and organizations seeking to safeguard their premises and occupants. Consequently, these factors are expected to drive substantial growth in the North America facility management services market during the forecast period.
Rising demand for eco-friendly cleaning products is an emerging trend in the market. Consumers and businesses are becoming more aware of the negative effects of conventional cleaning products on the environment and public health. The demand for cleaning products made from natural, non-toxic, and biodegradable ingredients has therefore increased. Numerous facility management companies in North America are adapting to this trend by providing eco-friendly cleaning supplies and services. Additionally, they are putting into practice eco-friendly cleaning techniques that emphasize on minimizing the use of dangerous chemicals, saving energy, and reducing waste.
However, for facility management companies, using eco-friendly cleaning products can have a number of advantages. They can use it to draw in and keep clients who care about the environment and favor environmentally friendly business practices. They could lessen their impact on the environment and raise their corporate social responsibility (CSR) standing as a result. They can also avoid fines and penalties by following environmental regulations with the aid of this. Such factors are expected to drive the growth of the regional market during the forecast period.
The lack of skilled labor is a major challenge impeding the market. Maintenance and repair of building systems, cleaning and sanitation, security, and other related services are all part of these services. These jobs call for specialized training, expertise, and knowledge. Since there aren't enough skilled workers in the facility management sector, this shortage is likely to persist in the future. Some of the causes of the shortage of skilled labor include an aging workforce, the low number of young people entering the sector, and competition for talent from other sectors.
Moreover, the North American market for facility management services is affected in several ways by this labor shortage. First, since businesses must raise wages to recruit and retain skilled workers, it may result in higher labor costs. Second, because businesses have trouble finding workers with the necessary skills at the appropriate time, it can cause delays in finishing construction projects. As a result, businesses might be forced to hire less qualified workers to fill the labor shortage, which could result in a decline in the quality of services offered. These factors, therefore, may impede market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aramark - The key offerings of the company include facility management solutions such as food services, hospitality, and educational facilities.
BGIS Global Integrated Solutions - The key offerings of the company include facility management services such as healthcare facilities, data centers, courthouses, detention centers, and public performance spaces.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In the evolving market, FM companies leverage facilities management technology to enhance efficiency and address equipment malfunctions. Advanced software and CMMS platforms like Maintenance Connection facilitate asset tracking and recordkeeping tools, optimizing planned maintenance and preventive maintenance. These technologies ensure compliance with health and safety regulations, legislation, and industry standards, safeguarding occupant safety and employee health. Building automation systems and energy-efficient technologies play a crucial role in energy management, reducing energy consumption costs and supporting environmental sustainability through recycling programs. Effective facilities management plans address operational disruptions and equipment failures while implementing disaster-mitigation measures and emergency response plans. In sectors like commercial real estate, residential real estate, manufacturing, and hospitality and tourism, a skilled team adheres to best practices, enhancing staff satisfaction and ensuring smooth care and maintenance of pipes, air conditioning units, and other vital assets, thereby extending their lifespan.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.27% |
Market growth 2024-2028 |
USD 152.7 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.82 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aramark, BGIS Global Integrated Solutions, BVG India Ltd., CBRE Group Inc., Colliers International Property Consultants Inc., Compass Group Plc, Cushman and Wakefield Plc, Downer EDI Ltd., EMCOR Group Inc., Emeric Facility Services, GDI Integrated Facility Services, Global Facility Management and Construction Inc., ISS AS, Jones Lang LaSalle Inc., Knight FM, Mace Group, Quess Corp. Ltd, SMI Facility Services, Sodexo SA, and Tenon Facility Management Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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