Description
The Facilities Management (FM) market in Australia has relatively high outsourcing rate due to the number of mature end-user sectors. However, due to its market nature and cost pressure, the split between in-house and outsourced FM is unlikely to change during the forecast period. During the forecast period, the market is expected to be fueled by demand from healthcare and education sectors, largely attributed to the expected increase in FM expenditure in these sectors. The shift in focus onto other sectors has cushioned the negative impact contributed by the mining sector’s slowdown to the FM market in Australia.
In addition to the market growth analysis, the study highlights the key driving forces for the FM market. The growing needs among certain end-user sectors, cost controlling measure from established service providers, and continued outsourcing by public sector drive market demand for the maturing FM market in Australia. However, the declining demand from mining sector, challenges among service providers to stay up-to-date, and budget limitation and cost pressure are the deterring factors for market development.
Market consolidation trend at the global and regional scale is observed in the domestic market as well. Key market participants are on the look out to acquire smaller specialized firms to expand presence and strengthen service offerings. The constant high outsourcing from public sector, together with public-private partnership trend in the sector, has sparked interest of established service providers due to the lucrative nature and long contract terms.
Research Scope
The market trends are analyzed for a study period of 2014 to 2023, with the base year being 2016. FM is the key focus area in this study. FM customer segmentation includes the healthcare, energy & resources, defense, government, education, leisure, sport, and entertainment, retail, general industry, transportation and infrastructure, and commercial office buildings sectors. Companies mentioned in the FM market's competitive landscape include Spotless Group Holdings Limited, ISS Facility Services Australia Limited, Broadspectrum Limited, Programmed Maintenance Services Limited, Serco Group Pty Limited, and Jones Lang LaSalle Australia Pty Limited. Individual vertical segment market revenues are also analyzed in this study.
Key Questions this Study will Answer
• Is the market growing, how long will it continue to grow, and at what rate?
• Are the existing competitors structured correctly to meet customer needs?
• How will the structure of the market change with time? Is the market ripe for acquisitions?
• Are the products/services offered today meeting customer needs or is additional development needed?
• Are the vendors in the space ready to go it alone, or do they need partnerships to take their businesses to the next level?
• What are the trends affecting industry decision making in outsourcing and what are the competitors’ strategies in meeting these trends?
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