Continued trend towards outsourcing and service integration will sustain growth momentum
LONDON – 16 January, 2013 – As the concept of integrated facility management (IFM) becomes increasingly understood and demanded by end users across the globe, numerous opportunities are opening up for suppliers from a variety of backgrounds.
New analysis from Frost & Sullivan (http://www.buildingtechnologies.frost.com) Global IFM Market, finds that the market earned revenues of $64.20 billion in 2011 and estimates this to reach $96.17 billion in 2017. This will mean IFM will increase its penetration of the total global outsourced FM market from around 12% in 2011 to over 15% by 2017.
"The global IFM market is in growth mode, not just in the emerging markets but also in the more mature markets," noted Frost & Sullivan Partner John Raspin. "The economic crisis has further heightened awareness about outsourcing in both private and public sectors in the more mature markets."
Despite high growth rates, revenues generated by IFM in emerging markets like India and China remain comparatively small. This is because outsourcing is considered cost intense and the concept of integrated solutions remains little understood.
Frost & Sullivan believes that the more mature markets of North America and Europe will still account for more than two thirds of global IFM revenues in 2017. The demand for further cost savings and single contact solutions will continue to drive service integration in mature markets.
These trends are reinforced when synergies with other services can be demonstrated and cost savings achieved. Besides, the demand for value-add services, such as energy management, present IFM providers who have these capabilities with the opportunity to differentiate their service offering.
"Many leading FM players have enhanced their integrated offering capabilities and will continue to do so," added Raspin. "The benefits of such a strategy become even more tangible as intensifying competition among suppliers highlights the need for greater differentiation."
Mature IFM markets are characterised by intense competition. The challenge for many FM participants, therefore, will be to reach a balance between being competitive and achieving reasonable margins.
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Global IFM Market is part of the Building Management Technologies. Frost & Sullivan's related research services include: Indian Facility Management Services Market, Australian Market for Facility Management in Remote Sites, and Facility Management for Government Institutions in Australia . All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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