Hard Service Facility Management Market

Hard Service Facility Management Market Overview

The global hard services facility management market size was valued at USD 584.6 billion in 2023 and is projected to grow worth USD 1,133.99 billion by 2032, exhibiting a CAGR of 4.5% during the forecast period. Asia Pacific dominated the hard services facility management market with a market share of 40% in 2023.

The Hard Service Facility Management market is highly fragmented, with local and international players having decades of industry experience. The HFM vendors are incorporating a powerful competitive strategy by leveraging their expertise. Technologies are being included in the services portfolio of HFM companies. 

The HFM Market is expected to record a CAGR of 4.5% over the next five years. The need for HFM services is rising as industrialization and development are occurring around the globe. Additionally, there is a greater need for these services due to the expansion of corporate offices, shopping centers, and retail establishments.

Hard Service Facility Management Market Trends

This section covers the major market trends shaping the Hard Service Facility Management Market.

Robust Post-COVID Demand for HFM 

• The COVID-19 pandemic has altered some aspects of our daily routines. However, it also allowed several sectors, like hard service facilities management, to help reduce the spread. In a post-covid environment, there is more awareness of several areas, including cleaning, maintenance administration, and ventilation. Facilities management services take care of these issues, ensuring that organizations continue to run smoothly, hygienically, and securely.
• Cleanliness being the basic concern, technology is crucial to reducing the spread of COVID-19 and other airborne infections. The rising attention of facility management services towards cleanliness emphasizes the necessity of using contactless solutions across several sectors. Staff and visitors would feel safer at work if contactless entrance and exit points were included, such as QR codes for access control and door activation. Contactless payments are another approach to keep consumers and staff feeling safe, for instance, in the retail sector. Such technology would improve businesses' energy efficiency while also reducing unnecessary touch.
• Facility management can assist in ensuring that air quality in buildings remains a top priority in the post-COVID era. All air movement systems and equipment must be kept in good working order. Employee productivity may be raised, and health hazards decreased in the workplace by maintaining a suitable temperature and lowering humidity. Regular HVAC system maintenance can help with this. For instance, your company could stay on top of removing indoor air pollutants to provide fresh air in the workplace by utilizing a planned maintenance routine.

Significant Use of Enterprise Asset Management (EAM) 

• Organizations may greatly benefit from enterprise asset management since it aids in planning, optimizing, executing, and tracking all maintenance tasks by priorities, tools, materials, costs, skills, and various sorts of information. The market for enterprise asset management is anticipated to expand strongly in the following years because of the technology's ability to enhance asset performance and promote industry or business expansion.
• Applications for facilities management and EAM are aimed at global companies of all sizes and sectors. From the moment that various physical assets, including buildings, equipment, vehicles, and machinery, are purchased until they are disposed of, they are managed using tools and processes made available through the enterprise asset management system.

• EAM is primarily used by businesses that want to maximize the use of their physical assets throughout their entire asset lifespan, thereby causing the demand for EAM to grow rapidly across the world. EAM helps to maximize the effectiveness and efficiency of resources throughout their lifecycles, boost productivity, and save operating expenses. The combination of software and service aids in managing the operational resources and machinery of large businesses.

  Hard Service Facility Management Market

  Size, by Product, - (USD Billion)

  Mechanical

  Electrical, Plumbing (MEP) and HVAC Maintenance Services

  Enterprise Asset Management

  Other Products

  The Market will Grow

  At the CAGR of:

  4.5%

  The Forecast Market

  Size for in USD:

  $1,133.99 Billion

  

Hard Service Facility Management Market Leaders 

1. CB Richard Ellis (CBRE.) 
2. Sodexo Facilities Management Services 
3. Jones Lang LaSalle Incorporated 
4. Johnson Controls International plc. 
5. Cushman & Wakefield
6. dexo
7. CBRE Group, Inc.
8. ISS A/S
9. Compass Group
10. Aramark
11. Jones Lang LaSalle Incorporated
12. Cushman & Wakefield plc.
13. Tenon Group
14. Johnson Controls International plc.
15. AMEC Facilitie

Hard Service Facility Management Market News

• September 2022: Sodexo India announced that it was extending its service avenues by adding employee-providing services to its portfolio. This national movement provided Sodexo with global publicity.
• August 2022: ISS AS, an international workplace experience and facilities management firm, planned to expand its India business over the next three years. Based on robust economic growth, the firm has declared ambitions to increase its employee headcount by 25 to 30% to accommodate greater activity in both the office and production-based areas.
• July 2022: Johnson Controls unveiled its innovation center in Hyderabad. In a bid to expand its footprint in India, the company had unwrapped Hyderabad's OpenBlue Innovation Center. This is crucial for developing innovation in sustainable technology for building security and the state's ambitions to position itself as a center for tech innovation and talent in India. 

• March 2022: Sodexo Ireland, one of the top providers of office services, launched a new partnership with Sensori Facilities Management to support customers' efforts to manage office space and work flexibly and suitably. Sodexo's experience in workplace transformation and Sensori FM's expertise in digital intelligent building solutions are both utilized in the new FM cooperation.

  Hard Service Facility Management Market

  Share, by end user, (USD Billion)

  584.6 Billion%

  Commercial

  Institutional

  Public/Infrastructure

  Industrial

  Other End-Users

  

  1,133.99 Billion

  Total Market Size

  USD (Billion),

  4.5%

  CAGR

  -

Hard Service Facility Management Segmentation

by Type

• Mechanical
• Electrical
• Plumbing (MEP) and HVAC Maintenance Services
• Enterprise Asset Management 

By End User

• Commercial
• Institutional
• Public/Infrastructure
• Industrial

• Other End Users

  Hard Service Facility Management Market

  Size, by Product, - (USD Billion)

  The Market will Grow

  At the CAGR of:

  4.5%

  The Forecast Market

  Size for in USD:

  $1,133.99 Billion

  

MARKET DRIVERS

Emerging Real Estate Sector is Expected to Thrust the Market Growth

Emerging Real Estate Sector is Expected to Thrust the Market Growth

The government and private sectors across the globe are making large investments in the real estate buildings and public infrastructure, supporting the growth of facilities industry. According to the secondary research, in 2018, the global construction market is expected to reach at around USD 8 trillion by the end of 2030, driven by the infrastructure development across U.S., China, and India, hence driving the real estate sector globally. The increasing urbanization, particularly in Latin American and Asian countries is creating the huge demand for infrastructure projects, which in turn will boost the hard services facility management market growth. Governments in European countries are making investments in new smart city development projects. The European Union is expected to have over 300 smart cities by 2020, increasing the adoption of advanced hard services.

Inclination towards Integrated Facility Management Services Worldwide

According to the secondary research, a significant number of international market players of hard services facility management are opting for integrated services owing to the digitalization processes. Key market players namely, Sodexo, Johnson Control and CBRE provide hard facility services that are integrated with IT platforms which is useful in in BAS protocols and integrates seamlessly with the client’s IT infrastructure. Major market players plan on amalgamation of the integrated facility management (IFM) solutions in their CSR agenda. For instance, Johnson Controls have partnered with the Standard Chartered Bank, a multinational financial and banking services company, to offer facilities management, energy management, project and workplace management services across 1,300 sites in Asia Pacific.

Market Restraint 

Staff Management and High cost of Services Inhibit the Market Value

The facility executives of prominent hard services facility management market players reveal that it is a challenging task to hire hard working and efficient staff that believes in offering modern hard facility services. Also, the staff management is the most crucial activity compared to others responsibilities. Most of the companies face issue to recruit, train and motivate employees for delivery and distribution, warehouse and inventory activities and office support service. Hard facility services are less cost-effective, this is because the facilities management providers are expected to pay lease costs from their operational budget, thus restraining the market value of hard services. Hard facility services that are leased as an outdoor facility service are offered at a local market value, with initial solicitation from the area’s corporation or administration office, prompting to market inconsistency and financial loss, henceforth restrains the market growth globally.

Hard Service Facility Management Market TO (USD BN)

CAGR OF

4.5%

Hard Service Facility Management Market

1,133.99 Billion%

Conclusion

The Hard Service Facility Management (HFM) market is poised for significant growth, with a projected CAGR of 4.22% over the next five years. This growth is driven by increasing industrialization, the expansion of corporate offices, shopping centers, and retail establishments worldwide. The post-COVID environment has heightened the demand for comprehensive cleaning, maintenance, and air quality management, with technology playing a crucial role in ensuring safety and efficiency.

Enterprise Asset Management (EAM) systems are becoming essential for businesses looking to optimize their physical assets, further propelling market growth. Major players in the HFM market, such as CBRE, Sodexo, and Johnson Controls, are leveraging their extensive industry experience and integrating advanced technologies into their service portfolios to maintain a competitive edge.

The market is also benefiting from robust investments in real estate and infrastructure development, particularly in regions like the U.S., China, and India. The trend towards integrated facility management services is gaining traction, with key players incorporating IT platforms to enhance service delivery.

However, challenges such as staff management and high service costs pose significant restraints. Recruiting, training, and motivating employees, along with managing operational budgets, remain critical issues for service providers.

Overall, the HFM market is evolving rapidly, with technological advancements and strategic investments driving growth. Despite the challenges, the market's future looks promising, with increased demand for integrated and efficient facility management solutions across various sectors.