According to a new research report produced by MarketsandMarkets on the facility management (FM) market by solution, the market is estimated to grow from US$28.9 billion in 2016 to US$56.67 in 2021, at a compound annual growth rate (CAGR) of 14.42 per cent.
According to the report, the major forces driving the FM market are the emergence of cloud-based solutions. Cloud-based platforms allow easy process integration, effective energy utilization and real-time tracking with inherent safety and security features. The FM market is growing quickly due to the increasing number of end users that are opting for high-business performance and efficient business decisions.
The report segments the FM market by solution (asset and inventory management, workplace and relocation management, sustainability management, strategic planning and project management, real estate and lease management, maintenance management and others (space reservation and incident management). Maintenance management is expected to experience the highest CAGR between 2016 and 2021. Maintenance management solutions provide standardized tools that are powerful and consistent across the business and can be used for planning, forecasting and evaluating maintenance work related to assets, equipment, properties and any other related facilities. This is driving the market and is expected to help propel the FM market at the highest CAGR during the forecast period.
The market, by service, has been segmented into consulting, integration and deployment, and managed service. The managed service segment is expected to grow at the highest CAGR over the forecast period due to how quickly facility management solutions are adopted in both small and medium businesses and large enterprises. These require third-party assistance for integration, maintenance and management of solutions.
Finally, the FM market segments the global market on the basis of regions, including North America, Asia-Pacific, Europe, the Middle East and Africa (MEA) and Latin America. North America is expected to hold the largest share of the FM market in 2016 due to the technological advancements and early adoption of FM solutions across various verticals in this region. The Asia-Pacific market is expected to grow at the highest CAGR during the forecast period. The primary driving forces for this growth are changing work culture in organizations and rapidly deployable cloud-based solutions across various industries in this region, especially India, China and Japan.
