PUBLISHER: TechSci Research | PRODUCT CODE: 1953816
PUBLISHER: TechSci Research | PRODUCT CODE: 1953816
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The Global Facility Management Market is projected to expand from USD 51.34 Billion in 2025 to USD 104.14 Billion by 2031, registering a CAGR of 12.51%. Facility Management is characterized as a multidisciplinary field that coordinates people, locations, processes, and technology to guarantee the functionality, comfort, safety, and efficiency of the built environment. This market growth is primarily driven by the rapid development of global real estate infrastructure and the strategic necessity for organizations to outsource non-core maintenance tasks to specialized providers. Additionally, a growing corporate focus on workplace optimization requires professional operational oversight. Reflecting this demand, the Royal Institution of Chartered Surveyors' Global Commercial Property Monitor reported that tenant demand in the United States maintained a positive net balance of 23 percent in 2025, highlighting the sustained need for professionally managed commercial assets.
| Market Overview | |
|---|---|
| Forecast Period | 2027-2031 |
| Market Size 2025 | USD 51.34 Billion |
| Market Size 2031 | USD 104.14 Billion |
| CAGR 2026-2031 | 12.51% |
| Fastest Growing Segment | Cloud |
| Largest Market | North America |
However, the industry faces significant hurdles due to severe skilled labor shortages and inflationary pressures that squeeze operational margins. Service providers encounter increasing difficulties in recruiting and retaining the qualified technical personnel needed to provide complex integrated solutions, all while managing rising costs for wages and materials. This expanding talent gap restricts the ability of firms to effectively scale their service delivery and represents a major obstacle that could slow the overall expansion of the global facility management market.
Market Driver
The rapid expansion of the global construction and real estate sectors acts as a primary catalyst for the facility management industry. As urbanization accelerates and commercial infrastructure development recovers in major metropolitan centers, there is a substantial increase in the aggregate square footage that requires professional maintenance and operational supervision. This growth spans both new developments and the revitalization of existing assets, generating sustained demand for comprehensive facility management contracts that encompass both hard and soft services. A resurgence in occupancy levels further boosts this need, as organizations strive to provide functional and well-maintained environments for their workforce. According to JLL's 'Global Real Estate Trends and Perspectives' report from November 2025, global office leasing volume reached a six-year high in 2025, indicating a strong recovery in tenant demand that translates into increased service opportunities for providers.
Concurrent with this growth, the integration of the Internet of Things (IoT) and smart building technologies is transforming service delivery from reactive to predictive models. Facility managers are increasingly utilizing connected sensors and data analytics to track asset performance in real-time, which helps reduce downtime and extend equipment lifecycles. This digital shift is driven by the need to improve operational efficiency and occupant experiences while keeping expenditures in check. According to Honeywell's 'AI in Buildings' study from February 2025, 84 percent of commercial building decision-makers intend to increase their use of artificial intelligence in the coming year to optimize operations. This technological adoption addresses the market's focus on financial prudence, as confirmed by the CBRE 'Trends in Facilities Management for 2025' report, where 77 percent of industry experts identified cost and value for money as the top factors influencing purchasing decisions.
Market Challenge
The Global Facility Management Market is currently hindered by an acute shortage of skilled labor alongside simultaneous inflationary pressures. This scarcity of qualified personnel directly impedes the ability of service providers to efficiently execute essential maintenance and operational tasks. Because the industry relies heavily on specialized technical expertise for integrated building systems, the lack of available talent creates a significant operational bottleneck. Firms are forced to increase wages to compete for limited talent, which, combined with rising material costs, deeply erodes operating margins and restricts the financial capacity needed for business expansion.
Highlighting the severity of this issue, the Associated General Contractors of America's '2025 Workforce Survey' revealed that 92 percent of firms struggled to hire qualified workers to meet current project demands. This pervasive workforce deficit means that even when demand for facility services is high, providers often lack the human capital required to fulfill new contracts or maintain service levels. Consequently, the inability to effectively scale workforce capabilities serves as a restraint on the broader growth of the market, preventing firms from fully capitalizing on emerging outsourcing opportunities.
Market Trends
The adoption of ESG-centric sustainability strategies is becoming a defining force in the facility management sector, propelled by strict regulatory frameworks and corporate net-zero commitments. Facility managers are shifting their focus from simple energy conservation to comprehensive decarbonization roadmaps that address scope 1, 2, and 3 emissions. This trend is accelerating as regulatory bodies in major markets enforce penalties for non-compliance, compelling building owners to prioritize retrofits and green certifications to preserve asset value. This demand for sustainable operations directly influences real estate strategies; according to the CBRE 'European Office Occupier Sentiment Survey 2025' from October 2025, 60 percent of occupiers cited sustainability features as a primary driver for their lease renewal decisions, emphasizing the critical link between environmental performance and tenant retention.
Simultaneously, the market is experiencing a shift toward Integrated Facility Management (IFM) models, where organizations consolidate fragmented service contracts into unified, outcome-based agreements. This structural change allows enterprises to streamline governance, leverage economies of scale, and eliminate the inefficiencies associated with managing multiple siloed vendors. By bundling hard and soft services under a single strategic partner, companies achieve greater operational transparency and ensure consistent service standards across diverse portfolios. This movement toward consolidation is reflected in the success of major industry players; for instance, ISS A/S reported an organic growth of 6.3 percent in its February 2025 'Annual Report 2024', a performance largely attributed to the successful extension and expansion of global key account contracts utilizing this integrated delivery model.
Report Scope
In this report, the Global Facility Management Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in the Global Facility Management Market.
Global Facility Management Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: