The North America facilities management market features a high degree of fragmentation with top 10 companies holding a meager 10% share in the overall market, states Transparency Market Research (TMR) in a new report. The market is served by several international and regional players wherein price wars and efforts to forge long-term service contracts renders intense competition in amongst them. To sustain competition, companies are focusing on improving service quality, reduce the time involved to complete tasks, employ advanced cleaning and maintenance services, and roll out bundled services.
As per the TMR report, the demand in the North America facilities management market is likely to translate into a revenue of US$610.21 by the end of 2024, expanding at a healthy CAGR of 13.6% between 2017 and 2024. The opportunities in the market translated into a revenue of US$248.87 bn in 2017. Of the key service types, soft services segment currently holds the dominant share in the overall market. Hard services segment, on the other hand, is anticipated to register lackluster growth over the forecast period. Among the key end users of facilities management, corporate sector is anticipated to remain attractive with a revenue of US$124.75 bn by 2024. However, retail and commercial sector is predicted to emerge lucrative expanding at the leading growth rate over the forecast period.
Request PDF Brochure: https://www.transparencymarketresearch.com/sample/sample.php?flag=B&rep_id=15122
Advantages of Saving Valuable Employees’ Time Boosts Uptake
Increasing practices of outsourcing services is primarily driving the North America facilities management market. Businesses are increasingly engaging third-party contractors to outsource facility management for a certain period of time. This helps businesses to focus on core business functions and save valuable time of resources from being used for non-core business activities. Thus, outsourcing helps reduce costs and expenses of businesses in the long run. The demand for facilities management is witnessing an upswing across several industry verticals such as healthcare, government, government, and corporate among others.
Furthermore, increasing demand for standardization of support services is boosting the adoption of facilities management services. Businesses are recognizing the importance of quality support services that makes a mark among clients, which may indirectly boost business growth. Large businesses are increasingly collaborating with world-class facilities management service providers that maintain quality standards and take onus in the event of subpar or poor service rendered.
Lack of Quality Standards Globally Limits Adoption
However, the market could suffer from several growth challenges. Nonexistence of standardization leading to lack of parameters to quantify performance and quality of services is a roadblock to the market’s growth. Quality and service standards are region specific with lack of standardization standards at global level. While different countries have recognized agencies that have set standards for standardization of services, there does not exist a single agency that monitors standardization of services globally.
Apart from this, increasing labor cost and increasing practices of developing in-house services are bottlenecks to the growth of facilities management market. Facilities management service providers are facing challenges of increasing labor costs during the tenure of long-term service contracts. Consequently, organizations are opting for short-term contracts or single contract thereby impacting the growth of facilities management market.