Growth Opportunities in the Facility Management Market, Europe, 2024 2030
Technology, Sustainability, Workplace Optimization, and User Experience Drive Transformational Growth in Facility Management
09-Oct-2024
Europe
Market Research
Just as the European FM markets have largely recovered from COVID-19-related disruptions, economies have been hit by high inflation and low economic growth. High inflation is acting as a tailwind for increased prices and revenues; however, while this will continue driving revenue expansion, it is forcing up costs and pressuring FM service providers’ margins. In addition, changes in technology, the labor force, and workplaces impact FM customer bases, value propositions, and service needs, which calls for technology and service innovation, new value propositions, and better business models. Too many FM companies have been slow to innovate their technology and service business models. These companies are facing service commoditization and margin erosion, and there is a pressing need for market players to move away from the business-as-usual mindset.
This Frost & Sullivan analysis identifies the 10 growth opportunities for FM expansion as the market continues to recover and redefine itself after the pandemic. It also presents the growth outlook for the market until 2030. It examines the competition and workplace future, customer segments, service trends, service integration strategies, competitive trends, technology impact, and the market outlook by country, namely the United Kingdom, France, Germany, Italy, Spain, the Nordics, Benelux, Central and Eastern Europe (CEE), and the Rest of Europe (RoE).
Author: John Raspin
Revenue Forecast:
FM Market: Revenue Forecast, Europe, 2019–2030
Revenue CAGR, 2024–2030 = 3.9%
Scope of Analysis
- This study uses end-user contracts to calculate the facility management (FM) market’s revenue, including the outsourced FM market (excluding in-house FM services and small FM). The study refers to outsourced FM as the FM market.
- The study will present in-house and small FM market opportunities solely to quantify the FM universe (total spending on all FM services and the addressable market).
- In-house FM covers the value of services the end user delivers using its internal staff, not an external service provider.
- Small FM relates to small, single-site contracts for small businesses that local service firms will cover. We include this for completeness in the FM universe, but it is not a part of the outsourced FM market, as it has a different supply base.
Definition of Customer Sectors:
This study uses the following segmentation when analyzing the market by customer sector:
- Public Sector: Healthcare, government, education, and other public sectors (e.g., military and defense, immigration, transport, prisons, emergency services, libraries, public buildings, and heritage and culture).
- Private Sector: Professional services, financial services, industrial, and other private sectors (e.g., retail, hospitality, sport and leisure, and logistics).
Competitive Environment
Number of Competitors | 1,300 |
Competitive Factors | Costs, track record, service performance quality, energy-efficiency capabilities, sustainability performance, contractor relationships, and technology know-how |
Key End-user Industry Verticals | Commercial offices, manufacturing, healthcare, government, education, financial sector, and energy utilities |
Leading Competitors | Sodexo, ISS, Compass, Mitie, Spie, Elior, Apoven, Equans, CBRE, Dussmann, Serco, JLL, Vinci, OCS Gp, Aramark, Atalian, Wisag, Rekeep, and Coor |
Revenue Share of Top 5 Competitors | 11.5% |
Other Notable Competitors | Amey, City FM, Emcor UK, G4S, Churchill, ABM, Bidvest Noonan, Samsic, Onet, Eiffage, GSF, Sauter, Veolia, Ortec, Strabag, Assemblin Cavernor, Dr Sasse, Klüh, Kötter Services, Piepenbrock, Cushman & Wakefield, RGM, R+S Group, Rehm's Service, Camst, Siram Veolia, Axet Facility, Nazca, Miorelli, Eulen, Glece, Serveo, Optim Facility, Sol, Four FM, Heyday, Facilicom, Vebego, Simacek, and BMF Grup |
Distribution Structure | Self-delivery (most common historically) and sub-contracted (increasing acceptance with its growth in IFM) |
Notable M&As | 2024: Compass's acquisition of CH&CO (United Kingdom) 2024: Onet's acquisition of ISS's French business 2023: Elior Group’s acquisition of Derichboud Multiservices (France) 2023: CBRE's acquisition of OCS Group and Atalian’s UK, Irish, and Asian operations 2023: Apelona's merger with Genbauser (Germany) 2023: ISS's acquisition of public sector cleaning specialist Grupa Fissa (Spain) 2023: Triton's acquisition of Caverion (later merging it with Assemblin (Nordics) 2023: Sarmis Capital's acquisition of a majority stake in the BMF Grup (Hungary) |
The Impact of the Top 3 Strategic Imperatives on the European Facility Management (FM) Industry
1. Digital Transformation
- Why: The integration of digital technologies in facility management enhances operational efficiency, improves service delivery, and provides real-time data analytics for better decision-making. As organizations increasingly adopt smart building technologies, the demand for digital solutions in FM is expected to rise significantly.
- Frost Perspective: Embracing digital transformation is not just an option but a necessity for FM providers to remain competitive. Companies that invest in digital tools will likely see improved customer satisfaction and operational cost savings, positioning themselves as leaders in the evolving market landscape.
2. Sustainability Initiatives
- Why: With growing awareness of environmental issues, there is a strong push for sustainable practices within the FM industry. Organizations are seeking to reduce their carbon footprint and enhance energy efficiency, which drives the demand for green FM services and solutions.
- Frost Perspective: Sustainability is becoming a key differentiator in the FM market. Providers that prioritize eco-friendly practices and solutions will not only comply with regulations but also attract environmentally conscious clients, thereby expanding their market share and enhancing their brand reputation.
3. Workforce Management and Development
- Why: The FM industry relies heavily on skilled labor, making workforce management a critical strategic imperative. Effective training, retention strategies, and workforce optimization are essential to meet the increasing demands for high-quality service delivery.
- Frost Perspective: Investing in workforce development is crucial for FM companies to ensure they have the necessary talent to navigate the complexities of modern facility management. Organizations that focus on employee engagement and skill enhancement will likely experience lower turnover rates and improved service outcomes, ultimately leading to greater client satisfaction and loyalty.
Segmentation by Customer Sector:
FM comprises 2 main customer segments (public and private sectors), which divide into 8 customer subsectors:
Customer Segments and Subsectors:
- The Public Sector Includes:
- Healthcare (hospitals, medical facilities, hospices, and elderly care homes)
- Government (buildings for central and local government)
- Education (primary, secondary, and tertiary schools; colleges; and universities)
- Other Public Sectors (military and defense, immigration, transport, prisons, emergency services, libraries, public buildings, and heritage and culture)
The Private Sector Includes:
- Professional Services (commercial office buildings, including business parks and single-/multi-occupancy buildings in the following sectors: consultancy services, accounting and auditing, legal services, marketing and advertising, media, technology, telecommunication, estate agents, travel agencies, architects, engineering services, recruitment and employment, charities, and non-profit organizations)
- Financial Services (offices, retail sites, banks, and branches in the following sectors: investment banks, insurance, pensions, retail banking, and building societies)
- Industrial (production, manufacturing, and distribution facilities in the following sectors: life sciences, utilities, food and beverage, chemicals and petrochemicals, oil and gas, logistics and haulage, automotive, cement, iron and steel, aerospace and defense, discrete manufacturing, and process industries)
- Other Private Sectors (retail, hospitality, and sports and leisure)
Revenue Forecast:
FM Market: Revenue Forecast, Europe, 2019–2030
Revenue CAGR, 2024–2030 = 3.9%
Scope of Analysis
Segmentation by Service Type
Segmentation by Customer Sector
Segmentation by Contract Type
FM Service Spectrum by Contract Type
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the European Facility Management (FM) Industry
Key Findings and the CEO’s 360-degree Perspective
The European FM Market in Numbers
European FM Market Segmentation
European FM Market Growth by Segment
Top Predictions for the European FM Market
Conclusions
Competitive Environment
Key Competitors
Key Competitors (continued)
Competitive Outlook for FM in Europe
Revenue Market Share
Revenue Market Share Analysis
Competitive Summary by Country
Leading FM Suppliers by Country
Summary of European FM Market Growth Outlook
Top 5 FM Developments, 2024–2030
Future FM Trends
European FM Universe—Total Addressable Market
European FM Universe—Total Addressable Market (continued)
European FM Universe—Total Addressable Market (continued)
Growth Metrics
Key Growth Metrics by Country
Key Growth Metrics by Country (continued)
Key Growth Metrics by Country (continued)
Growth Drivers
Growth Restraints
Revenue Forecast
Revenue Forecast Analysis
Revenue Forecast by Contract Type
Revenue by Country and Contract Type
Percent Revenue by Country and Contract Type
Revenue Forecast Analysis by Contract Type
Revenue by Service Type
Revenue Forecast by Service Type
Revenue by Service Type and Region
Percent Revenue by Service Type and Region
Revenue Forecast Analysis by Service Type
Revenue by Customer Sector
Revenue Forecast by Customer Sector
Revenue by Customer Sector and Region
Percent Revenue by Customer Sector and Region
Revenue Forecast Analysis by Customer Sector
Key Findings and the CEO’s 360-degree Perspective for the United Kingdom
Strategic Imperatives for the FM Market in the United Kingdom
Top FM Market Trends in the United Kingdom
Growth Metrics in the United Kingdom
Revenue Forecast by Contract Type in the United Kingdom
FM Market Segmentations in the United Kingdom
Competitive Environment in the United Kingdom
Key Findings and the CEO’s 360-degree Perspective for France
Strategic Imperatives for the FM Market in France
Top FM Market Trends in France
Growth Metrics in France
Revenue Forecast by Contract Type in France
FM Market Segmentations in France
Competitive Environment in France
Key Findings and the CEO’s 360-degree Perspective for Germany
Strategic Imperatives for the FM Market in Germany
Top FM Market Trends in Germany
Growth Metrics in Germany
Revenue Forecast by Contract Type in Germany
FM Market Segmentations in Germany
Competitive Environment in Germany
Key Findings and the CEO’s 360-degree Perspective for Italy
Strategic Imperatives for the FM Market in Italy
Top FM Market Trends in Italy
Growth Metrics in Italy
Revenue Forecast by Contract Type in Italy
FM Market Segmentations in Italy
Competitive Environment in Italy
Key Findings and the CEO’s 360-degree Perspective for Spain
Strategic Imperatives for the FM Market in Spain
Top FM Market Trends in Spain
Growth Metrics in Spain
Revenue Forecast by Contract Type in Spain
FM Market Segmentations in Spain
Competitive Environment in Spain
Key Findings and the CEO’s 360-degree Perspective for the Nordics
Strategic Imperatives for the FM Market in the Nordics
Top FM Market Trends in the Nordics
Growth Metrics in the Nordics
Revenue Forecast by Contract Type in the Nordics
FM Market Segmentations in the Nordics
Competitive Environment in the Nordics
Key Findings and the CEO’s 360-degree Perspective for the Benelux
Strategic Imperatives for the FM Market in the Benelux
Top FM Market Trends in Benelux
Growth Metrics in the Benelux
Revenue Forecast by Contract Type in the Benelux
FM Market Segmentations in the Benelux
Competitive Environment in the Benelux
Key Findings and the CEO’s 360-degree Perspective in CEE
Strategic Imperatives for the FM Market in CEE
Top FM Market Trends in CEE
Growth Metrics in CEE
Revenue Forecast by Contract Type in CEE
FM Market Segmentations in CEE
Competitive Environment (CEE)
Key Findings and the CEO’s 360-degree Perspective for the RoE
Growth Metrics in the RoE
Revenue Forecast by Contract Type in the RoE
FM Market Segmentations in the RoE
Competitive Environment in the RoE
Growth Opportunity 1: Decarbonization and Net Zero
Growth Opportunity 1: Decarbonization and Net Zero (continued)
Growth Opportunity 2: Customer Sector Alignment
Growth Opportunity 2: Customer Sector Alignment (continued)
Growth Opportunity 3: User Experience and Hospitality Services
Growth Opportunity 3: User Experience and Hospitality Services (continued)
Growth Opportunity 4: Supporting Customers' ESG Strategies
Growth Opportunity 4: Supporting Customers' ESG Strategies (continued)
Growth Opportunity 5: Workplace Technology and Analytics
Growth Opportunity 5: Workplace Technology and Analytics (continued)
Growth Opportunity 6: Digital Transformation and AI for FM
Growth Opportunity 6: Digital Transformation and AI for FM (continued)
Growth Opportunity 7: Remote FM Services
Growth Opportunity 7: Remote FM Services (continued)
Growth Opportunity 8: Healthy and Sustainable Buildings
Growth Opportunity 8: Healthy and Sustainable Buildings (continued)
Growth Opportunity 9: Business Productivity and Organizational Resilience
Growth Opportunity 9: Business Productivity and Organizational Resilience (continued)
Growth Opportunity 10: Service Integration and IFM
Growth Opportunity 10: Service Integration and IFM (continued)
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
List of Exhibits (continued)
List of Exhibits (continued)
Legal Disclaimer
- FM Market: Service and Contract Type Definitions, Europe, 2024
- FM Market: Value Spectrum of FM Services, Europe, 2024
- FM Market: Total Revenue by Contract Type, Europe, 2019, 2020, 2024, and 2030
- FM Market: Revenue by Contract Type, Europe, 2024
- FM Market: Revenue by Service Type, Europe, 2024
- FM Market: Revenue by Customer Type, Europe, 2024
- FM Market: Revenue Split by Region, Europe, 2024
- FM Market: CAGR by Contract Type, Europe, 2024–2030
- FM Market: CAGR by Service Type, Europe, 2024–2030
- FM Market: CAGR by Customer Type, Europe, 2024–2030
- FM Market: CAGR by Region, Europe, 2024–2030
- FM Market: Revenue Share of Top Participants, Europe, 2024
- FM Market: Competition Indicators by Country, Europe, 2024
- FM Market: Top 5 Participants by Country, Europe, 2024
- FM Market: Combined Market Share of Top 5 Participants by Country, Europe, 2024
- FM Market: Revenue Share by Service Delivery Model, Europe, 2024
- FM Market: Revenue by Service Delivery Model, Europe, 2024
- FM Market: Revenue by Service Delivery Model by Country, Europe, 2024
- FM Market: Outsourcing Penetration by Country, Europe, 2024
- FM Market: Growth Metrics, Europe, 2024
- FM Market: Key Growth Metrics by Country, Europe, 2024
- FM Market: Revenue by Country, Europe, 2024 and 2030
- FM Market: CAGR by Country, Europe, 2024–2030
- FM Market: Growth Drivers, Europe, 2025–2030
- FM Market: Growth Restraints, Europe, 2025–2030
- FM Market: Revenue Forecast, Europe, 2019–2030
- FM Market: Revenue Forecast by Contract Type, Europe, 2019–2030
- FM Market: Revenue by Country and Contract Type, Europe, 2024
- FM Market: Percent Revenue by Country and Contract Type, Europe, 2024
- FM Market: Percent Revenue by Service Type, Europe, 2024
- FM Market: Revenue and Growth Outlook by Service Type, Europe, 2024–2030
- FM Market: Revenue Forecast by Service Type, Europe, 2019–2030
- FM Market: Revenue by Service Type and Region, Europe, 2024
- FM Market: Percent Revenue by Service Type and Region, Europe, 2024
- FM Market: Percent Revenue by Customer Type, Europe, 2024
- FM Market: Revenue and Growth Outlook by Customer Type, Europe, 2024–2030
- FM Market: Revenue Forecast by Customer Sector, Europe, 2019–2030
- FM Market: Revenue by Customer Sector and Region, Europe, 2024
- FM Market: Percent Revenue by Customer Sector and Region, Europe, 2024
- FM Market: Growth Metrics, United Kingdom, 2024
- FM Market: Revenue Forecast by Contract Type, United Kingdom, 2019–2030
- FM Market: Revenue by Contract Type, United Kingdom, 2024
- FM Market: Revenue by Service Type, United Kingdom, 2024
- FM Market: Revenue by Customer Sector, United Kingdom, 2024
- FM Market: Growth Metrics, France, 2024
- FM Market: Revenue Forecast by Contract Type, France, 2019–2030
- FM Market: Revenue by Contract Type, France, 2024
- FM Market: Revenue by Service Type, France, 2024
- FM Market: Revenue by Customer Sector, France, 2024
- FM Market: Growth Metrics, Germany, 2024
- FM Market: Revenue Forecast by Contract Type, Germany, 2019–2030
- FM Market: Revenue by Contract Type, Germany, 2024
- FM Market: Revenue by Service Type, Germany, 2024
- FM Market: Revenue by Customer Sector, Germany, 2024
- FM Market: Growth Metrics, Italy, 2024
- FM Market: Revenue Forecast by Contract Type, Italy, 2019–2030
- FM Market: Revenue by Contract Type, Italy, 2024
- FM Market: Revenue by Service Type, Italy, 2024
- FM Market: Revenue by Customer Sector, Italy, 2024
- FM Market: Growth Metrics, Spain, 2024
- FM Market: Revenue Forecast by Contract Type, Spain, 2019–2030
- FM Market: Revenue by Contract Type, Spain, 2024
- FM Market: Revenue by Service Type, Spain, 2024
- FM Market: Revenue by Customer Sector, Spain, 2024
- FM Market: Growth Metrics, Nordics, 2024
- FM Market: Revenue Forecast by Contract Type, Nordics, 2019–2030
- FM Market: Revenue by Contract Type, Nordics, 2024
- FM Market: Revenue by Service Type, Nordics, 2024
- FM Market: Revenue by Customer Sector, Nordics, 2024
- FM Market: Growth Metrics, Benelux, 2024
- FM Market: Revenue Forecast by Contract Type, Benelux, 2019–2030
- FM Market: Revenue by Contract Type, Benelux, 2024
- FM Market: Revenue by Service Type, Benelux, 2024
- FM Market: Revenue by Customer Sector, Benelux, 2024
- FM Market: Growth Metrics, CEE, 2024
- FM Market: Revenue Forecast by Contract Type, CEE, 2019–2030
- FM Market: Revenue by Contract Type, CEE, 2024
- FM Market: Revenue by Service Type, CEE, 2024
- FM Market: Revenue by Customer Sector, CEE, 2024
- FM Market: Growth Metrics, RoE, 2024
- FM Market: Revenue Forecast by Contract Type, RoE, 2019–2030
- FM Market: Revenue by Contract Type, RoE, 2024
- FM Market: Revenue by Service Type, RoE, 2024
- FM Market: Revenue by Customer Sector, RoE, 2024
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A tailored session with you where we identify the:- Strategic Imperatives
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Impacting your company's future growth potential.
Deliverable Type | Market Research |
---|---|
Author | John Raspin |
Industries | Environment |
No Index | No |
Is Prebook | No |
Keyword 1 | Facility Management Europe |
Keyword 2 | Digital Fm Solutions |
Keyword 3 | European Fm Market |
List of Charts and Figures | FM Market: Service and Contract Type Definitions, Europe, 2024~ FM Market: Value Spectrum of FM Services, Europe, 2024~ FM Market: Total Revenue by Contract Type, Europe, 2019, 2020, 2024, and 2030~ FM Market: Revenue by Contract Type, Europe, 2024~ FM Market: Revenue by Service Type, Europe, 2024~ FM Market: Revenue by Customer Type, Europe, 2024~ FM Market: Revenue Split by Region, Europe, 2024~ FM Market: CAGR by Contract Type, Europe, 2024–2030~ FM Market: CAGR by Service Type, Europe, 2024–2030~ FM Market: CAGR by Customer Type, Europe, 2024–2030~ FM Market: CAGR by Region, Europe, 2024–2030~ FM Market: Revenue Share of Top Participants, Europe, 2024~ FM Market: Competition Indicators by Country, Europe, 2024~ FM Market: Top 5 Participants by Country, Europe, 2024~ FM Market: Combined Market Share of Top 5 Participants by Country, Europe, 2024~ FM Market: Revenue Share by Service Delivery Model, Europe, 2024~ FM Market: Revenue by Service Delivery Model, Europe, 2024~ FM Market: Revenue by Service Delivery Model by Country, Europe, 2024~ FM Market: Outsourcing Penetration by Country, Europe, 2024~ FM Market: Growth Metrics, Europe, 2024~ FM Market: Key Growth Metrics by Country, Europe, 2024~ FM Market: Revenue by Country, Europe, 2024 and 2030~ FM Market: CAGR by Country, Europe, 2024–2030~ FM Market: Growth Drivers, Europe, 2025–2030~ FM Market: Growth Restraints, Europe, 2025–2030~ FM Market: Revenue Forecast, Europe, 2019–2030~ FM Market: Revenue Forecast by Contract Type, Europe, 2019–2030~ FM Market: Revenue by Country and Contract Type, Europe, 2024~ FM Market: Percent Revenue by Country and Contract Type, Europe, 2024~ FM Market: Percent Revenue by Service Type, Europe, 2024~ FM Market: Revenue and Growth Outlook by Service Type, Europe, 2024–2030~ FM Market: Revenue Forecast by Service Type, Europe, 2019–2030~ FM Market: Revenue by Service Type and Region, Europe, 2024~ FM Market: Percent Revenue by Service Type and Region, Europe, 2024~ FM Market: Percent Revenue by Customer Type, Europe, 2024~ FM Market: Revenue and Growth Outlook by Customer Type, Europe, 2024–2030~ FM Market: Revenue Forecast by Customer Sector, Europe, 2019–2030~ FM Market: Revenue by Customer Sector and Region, Europe, 2024~ FM Market: Percent Revenue by Customer Sector and Region, Europe, 2024~ FM Market: Growth Metrics, United Kingdom, 2024~ FM Market: Revenue Forecast by Contract Type, United Kingdom, 2019–2030~ FM Market: Revenue by Contract Type, United Kingdom, 2024~ FM Market: Revenue by Service Type, United Kingdom, 2024~ FM Market: Revenue by Customer Sector, United Kingdom, 2024~ FM Market: Growth Metrics, France, 2024~ FM Market: Revenue Forecast by Contract Type, France, 2019–2030~ FM Market: Revenue by Contract Type, France, 2024~ FM Market: Revenue by Service Type, France, 2024~ FM Market: Revenue by Customer Sector, France, 2024~ FM Market: Growth Metrics, Germany, 2024~ FM Market: Revenue Forecast by Contract Type, Germany, 2019–2030~ FM Market: Revenue by Contract Type, Germany, 2024~ FM Market: Revenue by Service Type, Germany, 2024~ FM Market: Revenue by Customer Sector, Germany, 2024~ FM Market: Growth Metrics, Italy, 2024~ FM Market: Revenue Forecast by Contract Type, Italy, 2019–2030~ FM Market: Revenue by Contract Type, Italy, 2024~ FM Market: Revenue by Service Type, Italy, 2024~ FM Market: Revenue by Customer Sector, Italy, 2024~ FM Market: Growth Metrics, Spain, 2024~ FM Market: Revenue Forecast by Contract Type, Spain, 2019–2030~ FM Market: Revenue by Contract Type, Spain, 2024~ FM Market: Revenue by Service Type, Spain, 2024~ FM Market: Revenue by Customer Sector, Spain, 2024~ FM Market: Growth Metrics, Nordics, 2024~ FM Market: Revenue Forecast by Contract Type, Nordics, 2019–2030~ FM Market: Revenue by Contract Type, Nordics, 2024~ FM Market: Revenue by Service Type, Nordics, 2024~ FM Market: Revenue by Customer Sector, Nordics, 2024~ FM Market: Growth Metrics, Benelux, 2024~ FM Market: Revenue Forecast by Contract Type, Benelux, 2019–2030~ FM Market: Revenue by Contract Type, Benelux, 2024~ FM Market: Revenue by Service Type, Benelux, 2024~ FM Market: Revenue by Customer Sector, Benelux, 2024~ FM Market: Growth Metrics, CEE, 2024~ FM Market: Revenue Forecast by Contract Type, CEE, 2019–2030~ FM Market: Revenue by Contract Type, CEE, 2024~ FM Market: Revenue by Service Type, CEE, 2024~ FM Market: Revenue by Customer Sector, CEE, 2024~ FM Market: Growth Metrics, RoE, 2024~ FM Market: Revenue Forecast by Contract Type, RoE, 2019–2030~ FM Market: Revenue by Contract Type, RoE, 2024~ FM Market: Revenue by Service Type, RoE, 2024~ FM Market: Revenue by Customer Sector, RoE, 2024~ |
Podcast | No |
Predecessor | MG8B-01-00-00-00 |
WIP Number | MH5F-01-00-00-00 |