Organisations are increasingly using facility management solutions to actively monitor office premises and develop an optimal working environment

The facilities management (FM) market revenue is anticipated to exceed US$2tn by 2027, as reported in a research study by Global Market Insights Inc.

The report stated that increase in urbanisation and the rising popularity of cloud-based FM solutions is driving market growth.

“Cloud-based facilities management solutions reduce the operating cost of organisations and provide enhanced security. They include several key features such as faster disaster recovery, secure hosting of critical data, and others. Various companies are combining their operational efficiencies to develop advanced facility management solutions,” the report said.

The outsourced segment is anticipated to grow at a CAGR of above ten per cent from 2021 to 2027 due to a growing demand for personalised services and an increasing focus on core competencies of business organisations. 

“With the expansion of businesses, it gets tougher for organisations to manage the core and non-core business activities together. An increase in competition enables organisations to outsource their facility management services. It helps businesses maximise their return on investment and establish long-term competitive advantages in the market.”

The contract management segment is expected to capture over 20 per cent of the market share by 2027. “Growth is attributed to the growing demand for agile contact management and increasing complexity due to a variety of sales and licensing models. Contract management techniques involve the use of various software that automates the process of managing contracts and helps businesses to improve functional efficiency. It helps business organisations track their suppliers and assess their performance based on the criteria mentioned in the contracts,” the report said.

The government and public sector is forecast to register a growth rate of nearly ten per cent from 2021 to 2027. 

“The government and public sector organizations are responsible for maintaining the safety, security, and cleanliness of their assets including public grounds, land and buildings, vessels and aircraft,  historical monuments, etc. Furthermore, supportive government initiatives for the adoption of facility management solutions are providing significant growth opportunities to the market,” the report said.

FM companies are also focusing on developing strategic partnerships to develop advanced and integrated facility management solutions. 

Organisations are also increasingly using facility management solutions to actively monitor office premises and develop an optimal working environment. 

Also, increasing investments in IoT technology due to the growing use of sensor-based devices and software are anticipated to support market growth, the report stated.