Croatia Facility Management Market Size (2024 - 2029)

Croatia Facility Management Market Analysis

The Croatia Facility Management Market is expected to grow by registering a CAGR of 2.1% during the forecast period (2022-2027). The growing propensity to adopt specialized solutions and services across various high-growth sectors in the country, such as construction, manufacturing, and IT, is creating significant demand for facility management solutions.

• Croatia has been a member of the European Member since 2013. Becoming a member of the European Union has significantly boosted the country's growth, with several EU grant funds helping the country carry out developmental activities. For instance, in September 2021, under its Recovery and Resilience Facility program, the European Commission disbursed EUR 818 million to Croatia in a pre-financing payment. The increasing number of developmental activities led by such fundings across the country is creating a supportive atmosphere for the growth of the facility management market.
• According to data provided by the National Bureau of Statistics, in May 2021, a 15.9% increase in the volume of construction work carried out was reported in Croatia; the reported increase is in comparison to the construction work carried out in the country in May 2020. Furthermore, yearly, the volume of construction work for buildings increased by 18%, while 13% was reported in construction work for other structures. The increase in construction activities, especially in the commercial sector, is driving the country's demand for facility management services.
• Furthermore, the growth of the IT sector in the country has significantly increased the demand for commercial buildings, which is a major consumer for facility management services. Microsoft Croatia, Siemens, Ericsson Nikola Tesla, Atos IT Solutions and Services, Danieli Systec, and Constellation Software Group (IN2) are some of the international corporations in the country.
• Moreover, the country lags behind most EU countries in digital technology adoption. For instance, the country ranks 41st out of the 130 economies included in the Network Readiness Index (NRI) 2021, a leading global index reflecting the impact of information and communication technology in economies worldwide. Such trends may limit the growth of the studied market during the forecast period.
• The impact of COVID-19 in Croatia was significant during the initial phase as the national lockdown significantly slowed down the economy. Furthermore, the limited activity in the commercial buildings due to restrictions imposed by the government significantly reduced the demand for facility management services in the country. However, the country has framed a recovery and resilience plan wherein it will receive a grant of EUR 6.3 billion to support its climate objectives and digital transition.

Croatia Facility Management Industry Segmentation

The study tracks the facility management (FM) industry-related trends in Croatia by analyzing the industry turnover accrued through end-user contracts by the service providers. The study tracks the revenues accrued from services offered for building operation and maintenance (mechanical and electrical services, heating and ventilation, plumbing, building services control and management systems, building fabric portable application testing, fire protection systems, fire alarm, and detection systems), environmental management (energy management services, waste management, recycling services), IT and Telecommunication (establishment and maintenance of IT systems, introduction of software packages), support services (cleaning, catering, vending, courier services, laundry services, post room staffing and management, reception staffing, security) and property management (space planning and design, asset management, property acquisitions and disposals, relocation management). The report offers a comprehensive study analysis of the Croatian Facility Management Market segmented by Type of FM, Offering Type, and End-User.