Healthcare Facilities Management Market Size (2024 - 2029)

Healthcare Facility Management Market Analysis

The Healthcare Facilities Management Market size is estimated at USD 441.76 billion in 2024, and is expected to reach USD 737.37 billion by 2029, growing at a CAGR of 10.79% during the forecast period (2024-2029).

The COVID-19 pandemic extensively widened the growth of the healthcare facilities market globally. With the rise in the number of COVID-19 patients, the increase in the number of diagnostics and treatments for COVID-19 was witnessed, resulting in the production of vast amounts of medical waste. According to the data published by WHO in February 2022, tonnes of extra medical waste from the response to the COVID-19 pandemic put tremendous strain on healthcare waste management systems worldwide. Moreover, to maintain sustainable healthcare facilities management systems even during the post-pandemic situation, the need for the market is expected to be on the rise, thereby boosting the growth of the studied market over the coming five years.

The healthcare facilities management market is predicted to witness rapid growth due to rising global healthcare expenditures, along with an increase in chronic diseases and medical tourism in emerging countries.

Healthcare has become one of the leading sectors, owing to the increasing number of patients and rising healthcare expenditure by the public and private players in healthcare systems. According to OECD Health Statistics released in July 2021, the preliminary healthcare spending estimates for a group of 16 countries suggested that per capita health expenditure increased by around 4.9% on average. Also, as per the data published by the Centers for Medicare and Medicaid Services (CMS), in the United States, national healthcare spending is projected to grow at an average rate of 5.5% per year during 2018-2027, reaching nearly USD 6.0 trillion by 2027. Healthcare spending is projected to grow 0.8% faster than the GDP per year over 2018-2027. As a result, the healthcare share of GDP is expected to rise to 19.4% by 2027. Thus, there has been exceptional growth in healthcare expenditures that have led to the development of various facilities in hospitals or clinics for the well-being of patients. This factor is expected to augment the market's growth.

Also, the increase in chronic diseases is expected to contribute to the market's growth. For instance, per the data published by the European Cancer Information system in 2020, the estimated incidence of non-melanoma skin cancer is expected to reach 3,244,076 by 2040. The burden of cancer cases is expected to be the admission of many people in hospitals for long-term care, thus boosting the demand for catering, porterage, cleaning, and other associated services, thereby contributing to the market's growth.

Thus, the aforementioned factors are expected to fuel the growth of the healthcare facilities management market over the forecast period. However, the gap between providers and payers and the lack of investment in facilities management in low-income countries are restraining the market's growth.

Healthcare Facility Management Industry Segmentation

Healthcare facilities management is a professional management authority that generally focuses on delivering services and support systems to different healthcare organizations. 

The Healthcare Facilities Management Market is segmented By Product Type (Waste Management, Security Services, Catering Services, Cleaning Services, Technical Support Services, and Other Products), By End-user (Hospitals and Clinics, Long-term Healthcare Facilities, and Other End-users), and Geography (North America, Europe, Asia-Pacific, Middle East, and Africa, and South America). The market report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value (in USD billion) for the above segments.