Market Trends of Romania Facility Management Industry
This section covers the major market trends shaping the Romania Facility Management Market according to our research experts:
Commercial Segment Holds the Major Market Share
- According to the National Bank of Romania, in 2020, exports of services of FDI enterprises for Romania stood at EUR 12,610 million, while imports totaled EUR 6,882 million. The highest exports of services values were recorded by telecommunications, computer and information services (EUR 4,522 million), other business services (EUR 4,056 million), and transportation (EUR 2,057 million). This reflects Romania being one of the IT hubs in the European region to maintain new projects; FM services will also be required to maintain these projects, which is one of the significant drivers for the rise of the FM industry in the region.
- Several review boards list the Romanian IT market among the best software development and design outsourcing markets. And the country has the most significant number of certified IT specialists in Europe. Due to the above reasons, outsourcing software development to Romania makes a lot of business sense to Western companies that greatly value quality which further requires logistics to maintain the ongoing and future projects, which can be fulfilled by the rising demand for FM services in the region.
- The economy in Romania was among the fastest-growing in the European Union in 2021. Over the past few years, Romania has become one of the significant destinations for businesses. Due to its IT sector development, the country cultivated a crop of IT professionals. This has attracted many Businesses and governments that now want to take advantage of Romania's flourishing tech hub and establish physical offices in the region, which will promote new manufacturing projects like new offices for overseas players, which will also require FM services to maintain these new projects.
- Romania has been ranked among the top 20 countries regarding software development. Romania's IT industry has been bolstered due to its tech-related activities, contributing about 6% of its GDP.
- Romania's IT market has been growing steadily. One of the fastest growing markets in Central Europe is forecasted to grow at a rate of 3.1% over 2017-2021 as per the ITA (International trade association), reaching a value of RON 9.9 billion (USD 2.47 billion) in 2021.
- Many companies in North America and Western Europe have already outsourced their IT services to Romania, outsourcing good long-term business decisions. For Instance, 7, Mile Advisors is seeing additional organic expansion and M&A activity across Romania.
Understand The Key Trends Shaping This Market
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Foreign Direct Investment Holds the Key to Drive the Market Growth
- In Jan 2021, Bucharest recently won the EU cyber center race. Romania has built up a reputation for cybersecurity by strengthening national capabilities. The city will host about 30 officials to start and up to 80, later on to fund and oversee research projects on cybersecurity.
- The e-commerce sector in Romania has increased significantly by 30% compared to 2019, and 20% to 30% is expected for the year 2021 as per ITA (International Trade Association ).
- From a territorial point of view, FDI went mainly to the BUCHAREST - ILFOV region FDI stock of EUR 56,092 million. The region has been witnessing significant growth in its facility management services. The increased FDI will help the sector host new projects to help the FM industry grow in the region.
- In 2021, the adoption of Internet communication solutions grew due to online schooling and teleworking. While maintaining these facilities, FM services play a crucial role. Romania has also experienced increasing trends in its E-commerce sector, which requires more logistics and FM services companies to fulfill the requirement.
- The main industrial sectors benefiting from foreign direct investment were manufacturing (EUR 849 million), where the largest recipients were transport equipment (EUR 336 million), manufacture of computers, electronics, and optical. Electrical products (EUR 296 million) in maintaining these sites to produce effective and reliable FM services is a requirement that will bolster or attract more FDI in Romania.
