North America Facilities Management Market: Snapshot
The North America Facilities Management Market was valued at US$198.26 bn in 2015 and is anticipated to reach US$610.21 bn by the end of forecast period, expanding at a CAGR of 13.5% therein.
The increasing emphasis of industries on process optimization and improved energy efficiency of services in business activities is the primary contributor to the growth of the North America facilities management market. In addition, an increasing focus on the development of sustainable solutions in business activities has had a high impact on the adoption of facilities management in North America. The rising adoption of automated equipment in the manufacturing and healthcare sectors has also resulted in the strong demand for technical services such as maintenance and repair, which in turn, benefits the facilities management market.
Request A Sample Of This Report:
Soft Services to Exhibit Higher Demand
Based on type of service, the demand for soft services is highest in the North America facilities management market. The hard service segment, on the other hand, is anticipated to exhibit a comparatively lower growth rate over the forecast period.
Within the hard services segment, the mechanical and electrical maintenance sub-segment is expected to exhibit a comparatively higher surge in facilities management outsourcing, resulting in healthier market growth during the forecast period. The sub-segment is projected to expand at a CAGR of 13.7% from 2016 to 2024. Within the soft services segment, the cleaning and pest control sub-segment is expected to hold a significant share in the market revenue throughout the forecast period, expanding at a CAGR of 13.0%.
Based on industry, the corporate sector is estimated to hold a leading share of 21.1% in 2016 in the North America facilities management market. The retail and commercial sector is expected to grow at a high CAGR of 14.1% from 2016 to 2024. This is primarily due to an increase in the outsourcing of non-core services such as cleaning, security, repair, and maintenance.
The U.S. accounted for more than 50% of the total North America facilities management market in 2015. The rising demand for cost reduction and performance improvement and the need for enhanced service quality in business activities have led to the growth of the facilities management market in the country. Industries in the U.S. are emphasizing on outsourcing support services to gain third-party expertise in processes and to enhance their core business activities. The increasing demand for high-quality services throughout the service application is contributing to the growing market for facilities management in the U.S.