Integrated Facilities Management (IFM) Market Outlook

The Procurement Resource global integrated facilities management industry report offers a detailed analysis of key segments, drivers, and restraints. The report also provides the competitive landscape, integrated facilities management market trends and other essential market aspects.

The global integrated facilities management market size was worth USD 55.1 billion in 2021. Along with that the market is anticipated to advance at a CAGR of around 13.36%. during the forecast period of 2022-2027 to attain a value of USD 116.5 billion by 2027.

By exploring new ways and searching for innovative solutions, the IFM sector has bounced back to establish services for working remotely and in the workplace keeping the social distancing in mind. The increasing penetration of technology and integration of newer advances are furthering the market growth which is ultimately impacting the integrated facilities management market price.

North America is the significant demand indicator in industry report as it is the highest category spender by region.

Industry Definition and Segmentation

Integrated facilities management (IFM) refers to combining all the facilities management efforts and technologies under one cohesive team. IFM team can be divided into hard facilities management which involves components of building fabric and soft facilities management such as providing security, cleaning, and waste management services.

This facilities management services primarily comprises contracts, vendor collaborations, space management, and real estate planning. It provides efficient services combined in a single agreement that gives their clients one point of contact for customer service, improved coordination between various facilities management services vendors, and combined costs to bring everything within the budget.

The integrated facilities management market comprises segments by solutions (facility property management, building information modeling, integrated workplace management system, facility operations, and security management, and others), services (deployment and integration, consulting and training, support and maintenance, auditing and quality assessment and others), deployment (on-premises and cloud) and region (North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa).

The integrated facilities management market in North America is projected to have the largest market share globally.

North America – the United States and Canada, Europe, Asia Pacific, and the Middle East and Africa - Regions are Driving the Integrated Facilities Management Market Growth.

The increasing trend of getting digitised, with the rising adoption of the Internet of Things (IoT) and cloud-based software, are at present the major drives leading to the integrated facilities management market development. To reduce the dependency of the managers on human resources and enhance their operational effectiveness, they are using more advanced technologies such as cloud computing and augmented reality (AR) for managing a building.

As per the integrated facilities management market forecast cloud-based solutions are the major driver in the growth of the industry globally. This is mainly because they help numerous organisations to decrease operating costs, security of crucial data, swift recovery of servers, and easy accessibility of information from anywhere through a secure login. Additionally, the arrival of IFM is proving to be a growth-stimulating factor.

While ensuring the accessibility of all important devices needed for maximum efficiency, facility management services are also employed to easily manage home-based, on-the-go, after-hours and employees, and outsourced services.

Furthermore, facility management services perform a key role to create a safe workplace specially to deal with pandemic concerns in 2020-2021, reduce energy costs, and asset tracking. Besides, the execution of the promising government policies promoting infrastructural automation, paired with the growing adoption of the software-as-a-service (SaaS) deployment model, is expected to drive the market further. This is resulting in the integrated facilities management market demand.

Due to the lack of understanding and embracing of the benefits of technologies the advantages of the IFM sector are still to be recognised completely by various businesses. There are still many companies that have not used cloud computing solutions and the IoT network and are still in the process of transitioning.

The second concern is related to the lack of standardisation mainly in multiple building facilities. However, with the implementation of various government policies and the urge to adopt modernism organisations are increasingly sorting to outsource their facility management tasks and are gauging their operational patterns to maximise value creation.

Category Management Studies

Organisations are adopting the IFM approach by taking steps like researching the existing processes, communicating with the stakeholders, benchmarking the goals, and finally integrating the technology. Since taking IFM services means making fundamental changes in the operations of the business and modifying plenty of moving parts, its execution requires vast research.

The companies study the present state of facilities management to determine the IFM standards. There is clear communication on the transitioning plans so that the entire organisation understands the changes. This can be done with the help of surveys, focus groups, and open meetings to encourage questions and suggestions.

The IFM company identifies and explains the return on investment and justifies the changes in the processes and responsibilities to their clients. Integrated technology like IoT and other latest software capabilities, help the IFM clients to expand their businesses.

Expansion in the Infrastructure Industry is Anticipated to Further Drive the Integrated Facilities Management Market

Nations across the globe are focused on investing in infrastructure. Governments have begun to finance greatly in building railways, ports, airports, and several other sectors. To work this up a lot of alliances have been made with various private contractors and service providers that help in maintaining the infrastructure clean and green.

Besides, many governments coming into agreements with various global players to complete and connect their domestic infrastructure and across borders. One of the examples is that over the next 11 years, the Saudi Arabian government has raised USD 36 billion for transportation infrastructure, focussing primarily on railways, airports, ports, and roads.

The financing is done by the government and several private organisations. The Ministry of Energy in Saudi Arabia said that the country plans to invest USD 425 billion in its infrastructure and industrial programmes over the next ten years. Hence, the development of the infrastructure globally is anticipated to drive the IFM market as it provides abundant prospects for pursuing contracts from the private sector.

The regionwise integrated facilities management market share can be divided into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa.

Integrated Facilities Management Key Players

• International Business Machines Corporation (IBM)
• Oracle Corporation
• Trimble Inc.
• CA Technologies
• SAP SE
• Fortive
• MRI Software
• Maintenance Connection
• Facilities Management Express

Integrated Facilities Management Market Landscape

Even though the global integrated facilities management industry was impacted by the COVID-19 pandemic, however, facilities executives and managers have strived to explore innovative prospects to establish services for working remotely and in the workplace keeping the social distancing in mind.

Based on the services provided by the IFM sector, the hard facility management market is projected to grow extensively due to the expansion of the infrastructure industry globally. These services include cleaning, plumbing, drainage, etc. such services are related to the physical part of the building. Also, worldwide rapid urbanisation leading to the growth of the building and construction sector is the major factor for the rise of the hard services sub-segment.

Likewise, because of the increasing investments in waste management services, energy management, wastewater management, and other green energy management sectors, the soft services sub-segment under the service type is expected to grow at a higher rate. Furthermore, nations across the globe are focused on investing in infrastructure.

Governments have begun to finance greatly in building railways, ports, airports, and several other sectors resulting in alliances with various private contractors and service providers that help in maintaining the infrastructure neat and green.

Key Initiatives by Integrated Facilities Management Companies

• In July 2021, ServiceChannel a leading provider of SaaS-based multi-site solutions was acquired by Fortive. Fortive’s offering of Facility and Asset Lifecycle workflow solutions was expanded, along with Accruent and Gordian.
• In April 2021, MRI Software acquired Manhattan Real Estate and Workplace Solutions from Trimble.
• In June 2020, SAP affiliated with Honeywell to build a collaborative cloud-based solution that would help enhance developing performance. This cloud-based solution will be based on Honeywell Forge enterprise performance management solution and SAP Cloud Platform, facilitating customers to take advantage of building performance optimisation, including decreased carbon footprint and lesser energy costs, accompanied by a better-quality occupant experience.