Global FM Market to Register CAGR of 12% By 2023

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The “Global Facilities Management Market 2019-2023” report has revealed that by 2023, the FM market will register a compound annual growth rate of 12%.

A number of tech advancements have pushed up a demand for smart FM solutions, paving the way for IoT services to be adopted across the board. It is well-known that IoT adoptions can collect and evaluate data, laying a foundation for predictive maintenance and thereby reducing operational costs and increasing FM productivity.

According to the report, “Since IoT improves productivity and ensures energy efficiency of buildings, the advent of IoT in facilities management will drive market growth during the forecast period.”

The report’s market overview identifies two key drivers:

  1. An increasing demand for cloud-based facility management solutions

As cloud-based solutions can safely host critical data, global collaboration across multiple sites becomes far more achievable and cost-efficient. Likewise, thanks to cloud-based backups, quicker “disaster recovery” of data is within reach.

2. A rise in budgetary constrains

Budget limitations can force small companies to settle for low-quality FM solutions. These low-quality services have “high operation and maintenance costs.” What’s more is that the replacement and upkeep of such services – combined with rising labour costs, can hold small organisations back further.

Predicting FM market trends

Facilities Show caught up with a couple of suppliers last week to identify what trends they see on the FM horizon.

Danny Cross, Country Business Marketer at Vaclensa said: “I think Robotics in all forms is going to become more commonplace, but technology is advancing to ensure a more proactive approach to customer’s needs. Vaclensa has always had a goal of delivering preventative maintenance and reducing costs for our customers and we are looking forward to our own technological innovations which will help us achieve more of this.”

Cecily Batten, Campaign Marketing Manager at Express Vending, said: “I think they’ll be a massive emphasis on new CSR initiatives and reduction of single-use plastics. We’ve already had several customers request the promotion of reusable or biodegradable coffee cups. We’ve even seen some companies offering reverse vending schemes, where automated machines will utilise advanced technology to identify, sort, collect and process used beverage containers. In addition, the war on talent and the increasingly competitive landscape for recruiting and retaining talented employees will lead to larger investment by businesses to keep their staff engaged at work. Whether that’s providing better refreshment facilities, improving wellness initiatives, or benefits for staff at work, businesses will make changes to suit the needs of their employees to ultimately improve engagement and retention levels.”