APAC region to be world’s largest FM market by 2025: Frost & Sullivan

by Editor
0 comment

The Asia-Pacific (APAC) region, along with the Middle East, will be the fastest growing facility management market around the world in the next five years, according to research consultancy, Frost & Sullivan.

In Frost & Sullivan’s The Future of Facility Management report, it states that the “dynamic FM market in APAC will be driven by economic growth, commercial construction, and a rising culture of service outsourcing.”

The rapid growth forecast in the coming years will make the APAC region the largest overall FM market in the world by 2025, the report adds.

On a global scale, Frost & Sullivan states that the next five years will be defining for the FM market, with innovation through new business models, technology deployment and more sophisticated value propositions to be critical as services mature and commoditise. It forecasts the global market will be worth US$945.11 billion ($1,264.79 billion) by 2025, with integrated FM the fastest growing segment.

Enabling technologies, such as Internet of Things (IoT), big data and advanced connectivity, will drive efficiency for both service suppliers and clients, while changes to future workplaces and workforces will create robust opportunities for integrated workplace change management solutions, according to Frost & Sullivan.

In addition, partnerships, collaboration and mergers and acquisitions (M&As) will increase to facilitate service integration, convergence with energy management, delivery of business productivity, smart technology and internationalisation of contracts, the consultancy continues.

[quote style=’1′ cite=”]The dynamic FM market in APAC will be driven by economic growth, commercial construction, and a rising culture of service outsourcing.[/quote]

The analysis finds that successful suppliers will position themselves as client advisors on business productivity in order to provide a value proposition beyond mere cost management.

“Increasing price competition that erodes market share and profits compel FM service providers to focus on the retention and growth of existing customers by leveraging technology,” says Frost & Sullivan energy & environment partner John Raspin.

“Anything as a Service (or XaaS) business models will allow first-movers to own and re-define customer relationships.”

In other regions, the research reveals that Europe will exhibit the highest rate of M&A activity, North America will see service integration enhance efficiency and margins as single-service markets stagnate, and growth in the Middle East will be fuelled by construction activities and strong presence of multi-national firms.

“Demanding and complex regulations will encourage top companies to outsource compliance to capable FM providers and sustainability service firms. This will enable the FM market to also be a driver for sustainability management,” adds Raspin.

Overall, the report anticipates that the global outsourced FM market will become a complex marketplace, with bundled and integrated services accounting for a combined 35 percent of total revenues.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More