Market Size of Australia Facility Management Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 8.13 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Australia Facility Management Market Analysis
The Australia Facility Management Market is expected to grow at a CAGR of 8.13 % during the forecast period 2022-2027. Facility management consists of a wide range of solutions and services to influence enterprises' efficiency and productivity. Conforming with the industry standards and certifications, the new management system establishes a benchmark for driving effective facility management principles across Australia.
- ISO 41001 is an international standard for a facility management system. It offers a framework to implement, develop, and maintain the ideal benchmark of effective facilities management across industry sectors worldwide. Therefore, a Facility Management Standard that sets apart the industry by adopting global best practices and policies has offered a win-win situation for FM organizations and customers in this country.
- The Australian facility management market is at a mature stage. The public sector outsourcing supports the growth of the market, greater demand for end-user sectors, cost control measures, rising demand for commercial and residential spaces, and the adoption of sustainable and green practices and technological advancements. The customers in the market are highly price-sensitive, and market players provide solutions for both hard and soft services to the clients.
- The integrated facility management market is relatively at a growing stage. Its demand is increasing in the country due to greater outsourcing of services and an aim to achieve operational and cost efficiency for both vendors and clients. Facility management services are used by both MNCs and local companies in the country. However, because of their small scale of operations, local companies prefer single and bundled services, whereas MNCs prefer integrated facility management services in the country.
- Facility Management Services across Sydney, Melbourne, Perth, and Brisbane depict a growing sector. With the rising infrastructure development projects across Australia for economic growth, facility management services are also required to a considerable extent.
- The Government is backing regional industries with an investment of USD 7.1 billion in the 2022-23 Budget to drive economic development. Under the Energy Security and Regional Development Plan, the Government will transform key regions into next-generation export hubs. With investment in new and existing infrastructure projects across the region, the Government's ten-year infrastructure investment pipeline will increase from USD 100 billion to USD 120 billion.
- Furthermore, the COVID-19 outbreak has acted as a catalyst for change and has reiterated the need to pay attention to how facilities are managed and services are delivered. Moreover, at the time of COVID-19, the market has observed a significant surge in soft services like cleaning and disinfection services, creating significant market opportunities.
Australia Facility Management Industry Segmentation
Facility management confines multiple disciplines to ensure functionality, comfort, safety, and efficiency of any building by integrating people, place, process, and technology. While Hard services include physical and structural services like fire alarm system lifts, among others, soft services include cleaning, landscaping, security, and similar human-sourced services, providing a solution to end-users such as Commercial Buildings, Retail, Government, Public Entities, etc.
The Australia Facility Management Market is Segmented by Type of Facility Management ( In-house FM Service, Outsourced FM Service (Single FM, Bundled FM, Integrated FM)), by Offering Type ( Hard FM, Soft FM), and by End-User (Commercial, Institutional, Public/ Infrastructure, Industrial).
By Type of Facility Management | |||||
Inhouse Facility Management | |||||
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By Offering Type | |
Hard FM | |
Soft FM |
By End User | |
Commercial | |
Institutional | |
Public/Infrastructure | |
Industrial | |
Other End Users |
Australia Facility Management Market Size Summary
The Australian facility management market is experiencing a robust growth trajectory, driven by a combination of factors including public sector outsourcing, increased demand for commercial and residential spaces, and the adoption of sustainable practices. The market is characterized by a mature stage with a significant emphasis on integrated facility management (IFM) services, which are gaining traction due to their ability to streamline operations and enhance cost efficiency. The implementation of international standards like ISO 41001 has set a benchmark for effective facility management, aligning with global best practices and offering a competitive edge to both service providers and clients. The market's growth is further supported by government investments in infrastructure development, which are aimed at transforming key regions into export hubs and driving economic development.
The commercial sector, in particular, is witnessing a surge in demand for facility management services, fueled by the expansion of office spaces, malls, and commercial centers. The rise of the IT sector and advancements in telecommunications, such as the rollout of 5G, are creating new opportunities for facility management services in Australia. The market is highly fragmented and competitive, with numerous players vying for market share, leading to potential mergers, acquisitions, and partnerships. Companies are increasingly focusing on optimizing energy utilization and improving service efficiency through intelligent building technologies. The COVID-19 pandemic has also highlighted the importance of facility management, with a notable increase in demand for soft services like cleaning and disinfection, creating new market opportunities.
Australia Facility Management Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power Of Suppliers
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1.2.2 Bargaining Power Of Buyers
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1.2.3 Threat Of New Entrants
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1.2.4 Threat Of Substitutes
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1.2.5 Intensity Of Competitive Rivalry
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1.3 Impact Of COVID-19 On The Market
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2. MARKET SEGMENTATION
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2.1 By Type of Facility Management
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2.1.1 Inhouse Facility Management
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2.1.2 Outsourced Facility Management
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2.1.2.1 Single FM
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2.1.2.2 Bundled FM
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2.1.2.3 Integrated FM
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2.2 By Offering Type
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2.2.1 Hard FM
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2.2.2 Soft FM
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2.3 By End User
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2.3.1 Commercial
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2.3.2 Institutional
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2.3.3 Public/Infrastructure
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2.3.4 Industrial
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2.3.5 Other End Users
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Australia Facility Management Market Size FAQs
What is the current Australia Facility Management Market size?
The Australia Facility Management Market is projected to register a CAGR of 8.13% during the forecast period (2024-2029)
Who are the key players in Australia Facility Management Market?
CBRE Group, Ventia, ISS Australia, Sodexo Facilities Management Services and JLL Limited are the major companies operating in the Australia Facility Management Market.