Facilities Management Market : Technological Growth Map Over Time To Understand the Industry Growth Rate

The North America facilities management market is extremely fragmented and the top 10 players accounted for less than 10% of the market in 2015. Some of the prominent facilities management providers actively involved in the market are Bilfinger HSG Facility Management GmbH, Cofely, Compass Group PLC, Cresa, LLC, Ecolab USA Inc., GDI Integrated Facility Services, G4S plc, ISS World Services A/S, Mitie Group PLC and Sodexo, Inc.

Transparency Market Research notes that the degree of competition in the facilities management market is high, with a strong presence of regional as well as global service providers. These providers have been facing severe price competition, all the while ensuring high quality of service offerings.

The North America facilities management market was valued to be US$198.26 bn in 2015 and is anticipated to reach US$610.21 bn by the end of forecast period, expanding at a CAGR of 13.5% therein.

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Based on type of service, the demand for soft services is highest in the North America facilities management market and the hard service segment is projected to exhibit a comparatively lower growth rate over the forecast period. On the basis of industry, the corporate sector is estimated to hold a leading share of 21.1% in 2016 in the North America facilities management market.

The retail and commercial sector is expected to grow at a high CAGR of 14.1% from 2016 to 2024. The U.S. held the leading share in the North America market, accounting for 57.4% in 2016. Canada holds close to one-third of the market and is anticipated to witness increased growth during the forecast period, registering a 14.1% CAGR.

Outsourcing support services helps organizations focus on their business strategies and core functions, thereby gaining an advantage over competitors. It also helps organizations reexamine and improve their business plans and save time as well as money. The trend of outsourcing support services has gained much popularity across industries in recent years and this is one of the key factors expected to boost the adoption of facilities management in North America.

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The adoption of outsourced services is expected to have a medium impact in the short and medium term of the forecast period and is linked to the penetration of outsourced facilities management services in Asia Pacific, North America, and Europe.

However, this factor is anticipated to have a high impact in the long term due to the increasing adoption of facilities management services and the rise in third-party contracts for facilities management outsourcing.

On the down side, increasing labor costs, the nonexistence of standards to measure performance as well as quality of services, and the high cost of in-house service implementation threaten to hamper the growth of the North America facilities management market.

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