Market Size of Soft Facility Management Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.20 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Soft Facility Management Market Analysis
Revenue from the soft facility management market is expected to grow at a CAGR of 5.2% over the next five years. Key soft facility management companies, such as CBRE Group Inc., Jones Lang LaSalle IP Inc., Cushman & Wakefield PLC, Emeric Facility Services, and Sodexo Inc., are innovating consistently by making significant R&D investments.
- Increasing demand for outsourced facility management, infrastructural developments, and investments in the private sector are some of the key drivers responsible for market growth. For instance, Saudi Arabia is one of the most prominent countries in the region concerning infrastructural development. According to the IMF, the country's GDP amounted to USD 833.54 billion last year and is expected to cross USD 1,072.44 billion by the end of the forecast period. Soft Facility management services are also expected to grow significantly as infrastructure development projects contribute to their economic growth.
- Healthcare industries are also expanding their operations worldwide, which might create opportunities for the SFM market. For instance, in April this year, Gabri Labs, a pharmaceutical technologies company, will open a facility in Dubai Science Park to locally produce medical devices. Gabri Lab's new facility will allow it to produce an initial volume of 12 million units per year, with further expansions planned by next year. The institutional development will positively impact the growth of the soft facility management services market.
- According to the Saudi Arabian Royal Commission of Riyadh City report, Saudi Arabia announced that it plans to host 7,000 new businesses. With the influx of businesses, the region is expected to see a boost in demand for SFM services. The increasing number of commercial establishments and technology integration are expected to drive the market growth.
- Key players offer soft facility management services and contribute to significant growth in the market. For instance, Sodexo offers soft services such as cleaning, catering, vending, etc. The company's services saw a significant slump due to the COVID-19 pandemic. Post-COVID-19, the demand for cleaning and catering has been expected to create new opportunities for the SFM market.
Soft Facility Management Industry Segmentation
Soft facility management (SFM) services involve the management of building upkeep, utilities, waste services, maintenance operations, security, etc.
The study of the SFM market is segmented by type (office support and landscaping services, cleaning services, catering services, security services, and other SFM services), by end user (commercial, institutional, public/infrastructure, industrial, and other end users), and by geography.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | |
| Office Support and Landscaping Services | |
| Cleaning Services | |
| Catering Services | |
| Security Services | |
| Other Soft FM Services |
| By End User | |
| Commercial | |
| Institutional | |
| Public/Infrastructure | |
| Industrial | |
| Other End Users |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
Soft Facility Management Market Size Summary
The soft facility management market is poised for steady growth, driven by increasing demand for outsourced services, infrastructural developments, and private sector investments. Key players in the industry, such as CBRE Group Inc., Jones Lang LaSalle IP Inc., Cushman & Wakefield PLC, Emeric Facility Services, and Sodexo Inc., are actively investing in research and development to innovate and expand their service offerings. The market is experiencing a surge in demand due to megaprojects and infrastructural developments, particularly in regions like Saudi Arabia, which is witnessing significant economic growth and urbanization. The healthcare sector's expansion also presents new opportunities for soft facility management services, as seen in the establishment of new facilities and hospitals that require comprehensive management services.
The market landscape is characterized by a moderate level of fragmentation, with major players forming strategic partnerships and expanding their service portfolios to enhance operational efficiency and customer satisfaction. The COVID-19 pandemic has accelerated the demand for soft services, such as cleaning and sanitization, as businesses prioritize hygiene and safety. Technological advancements, including automation and robotics, are further shaping the market dynamics, offering innovative solutions for maintenance and security. Government initiatives, particularly in the Middle East and Africa, are fostering the development of smart cities and advanced infrastructure, which is expected to drive the demand for soft facility management services in the coming years.
Soft 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 Force Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Assessment of the Impact of COVID-19 on the Facility Management Industry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Office Support and Landscaping Services
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2.1.2 Cleaning Services
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2.1.3 Catering Services
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2.1.4 Security Services
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2.1.5 Other Soft FM Services
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2.2 By End User
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2.2.1 Commercial
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2.2.2 Institutional
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2.2.3 Public/Infrastructure
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2.2.4 Industrial
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2.2.5 Other End Users
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2.3 By Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 Latin America
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2.3.5 Middle East and Africa
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Soft Facility Management Market Size FAQs
What is the current Soft Facility Management Market size?
The Soft Facility Management Market is projected to register a CAGR of 5.20% during the forecast period (2024-2029)
Who are the key players in Soft Facility Management Market?
Jones Lang LaSalle Ip Inc., Cushman & Wakefield PLC, Emeric Facility Services, Sodexo Inc. and CBRE Group Inc. are the major companies operating in the Soft Facility Management Market.
