The Middle East facility management (FM) market will be fuelled by construction activities and the strong presence of multi-national firms in the next five years, a report said.

Globally, the market will touch $945.11 billion by 2025 with integrated FM (IFM) as the fastest growing segment, added new analysis titled “The Future of Facility Management” from Frost & Sullivan, a growth partnership company.

The next five years will be defining ones for the facility management (FM) market, the report said.

As services mature and commoditise, innovation through new business models, technology deployment, and more sophisticated value propositions will be critical for growth. 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 both the future workplace and workforce create robust opportunities for integrated workplace change management solutions.

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. Successful suppliers will position themselves as client advisors on business productivity in order to provide a value proposition beyond mere cost management.

The study examines eight trends transforming the FM market and envisions the industry in ten years’ time. The research offers growth projections, a vision of future competition, technology impact, emerging business models, and details the key Mega Trends shaping the market.

“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,” said 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.”

Region-wise, the fastest growing FM markets will be APAC and the Middle East even as North America and Europe continue to lead in terms of innovation. Further:

•    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.

•    The dynamic FM market in APAC will be driven by economic growth, commercial construction, and a rising culture of service outsourcing.

Markets such as the UK and the Nordics will be forerunners in workplace optimisation and business productivity as local participants innovate to overcome commoditisation of FM.

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

Overall, the global outsourced FM market will become a complex marketplace worth almost $1 trillion by 2025, with bundled and integrated services accounting for a combined 35 per cent of total revenues, the report said.- TradeArabia News Service