Future of Facility Management

Frost & Sullivan Asia Pacific

19 Sept 201702:10

Summary

TLDRThe future of facilities management (FM) is poised for significant transformation, with the global market projected to reach $945 billion by 2025. Innovations in areas like sustainability, energy management, and cloud services will drive efficiency. The Middle East is expected to grow fastest, while Asia-Pacific will lead the market. Key trends include business productivity, 'as-a-service' models, performance contracting, and partnerships. The integration of FM with technology like IoT and big data will enhance customer relationships and address energy savings and intelligent building concerns.

Takeaways

🌐 The global FM market is expected to reach $945 billion by 2025, indicating significant growth.
📈 The Middle East will experience the fastest growth, while the Asia-Pacific region will lead the market.
🔄 FM services are becoming commoditized, necessitating innovation and new value propositions.
📊 Eight key transformational trends will drive the future of FM: business productivity, as a service, sustainability, energy management, performance contracting, partnerships, cloud services, and selling to the CXO.
🔮 The next five years are crucial for the development of next-generation solutions in the FM market.
🚀 Integrated FM is projected to be a growth engine, with a 14% penetration of the global aftermarket by 2025.
💡 The future of FM is heavily reliant on technology, with IoT, big data, and advanced connectivity improving efficiency.
🏢 These technological advancements will address customer concerns regarding energy savings, intelligent buildings, and reducing total lifecycle costs.
🛠️ The changing workplace dynamics will lead to increased opportunities for integrated workplace change management solutions.
🤝 Diverse suppliers are expected to converge, offering visionary workplace management solutions that enhance business productivity for customers.
📚 Joining Frost & Sullivan's facilities management research program can provide insights into mega-trends and developments in the aftermarket and homes and buildings industry.

Q & A

What major transformation is expected in the aftermarket within the next five years?
-The aftermarket is expected to undergo a major transformation in the next five years, driven by innovation and new value propositions.
Which region will experience the fastest growth in the facilities management (FM) market?
-The Middle East is expected to be the fastest-growing region in the facilities management (FM) market.
Which region will lead the global FM market?
-The Asia-Pacific region will lead the global FM market.
What is the projected global FM market revenue by 2025?
-The global FM market revenue is projected to reach $945 billion by 2025.
What are the key transformational trends that will shape the future of facilities management?
-The key transformational trends include business productivity, anything-as-a-service, sustainability, energy management, performance contracting, partnerships and collaborations, cloud services, and selling to the CXO.
What role will integrated FM play in the future market?
-Integrated FM will remain a growth engine in the market and is expected to reach 14% penetration of the global aftermarket by 2025.
How will technology enable the future of facilities management?
-The future of FM will be technology-enabled, with IoT, big data, and advanced connectivity driving efficiency for service suppliers and clients.
What customer concerns will be addressed by these technological advancements?
-Technological advancements in FM will address customer concerns related to energy savings, intelligent buildings, and the reduction of total lifecycle costs.
What opportunities will arise from changes to the workplace and work environment?
-Changes to the workplace and work environment will create a boom in opportunities for integrated workplace change management solutions.
What kind of suppliers will converge in the future FM market?
-Diverse suppliers will converge, offering visionary workplace management solutions that enhance business productivity for customers.

Outlines

00:00

🌟 Future of Facilities Management: Market Growth and Transformation

The script discusses the imminent transformation in the facilities management (FM) market, driven by innovation and new value propositions. It predicts a global FM market revenue of $945 billion by 2025, with the Middle East being the fastest-growing region and Asia-Pacific leading the market. The future of FM is outlined by eight key trends: business productivity, anything as a service, sustainability, energy management, performance contracting, partnerships and collaborations, cloud services, and selling to the CXO. Integrated FM is expected to be a growth engine, reaching a 14% penetration of the global aftermarket by 2025. Technology, including IoT, big data, and advanced connectivity, will enhance efficiency for service suppliers and clients, addressing concerns about energy savings, intelligent buildings, and total lifecycle cost reduction. Workplace changes will increase opportunities for integrated workplace change management solutions. The script encourages joining Frost & Sullivan's facilities management research program for insights into the aftermarket and homes and buildings industry.

Mindmap

Keywords

💡Facilities Management (FM)

Facilities Management (FM) refers to the professional discipline of managing and maintaining buildings and infrastructure, ensuring that systems such as heating, cooling, lighting, and security are functioning properly. In the video, FM is presented as an industry undergoing transformation, with a growing need for innovation and integrated services, making it central to the future of work environments.

💡Aftermarket

The aftermarket refers to the secondary market where services and products are sold after the initial sale. In this context, it relates to the continued service and maintenance of facilities. The video suggests that the aftermarket will undergo major changes, driven by technology and new service models, leading to a projected market revenue of $945 billion by 2025.

💡Commoditizing

Commoditizing refers to the process by which a service or product becomes indistinguishable from others and competes primarily on price rather than unique value. In the video, it’s mentioned that FM services are commoditizing in many parts of the world, meaning there’s a need for innovation to create distinct, value-added services rather than competing solely on price.

💡Integrated FM

Integrated FM refers to the combination of various facility management services into a unified, efficient system. This could include maintenance, security, cleaning, and energy management all under one contract. The video highlights that integrated FM will be a key growth engine for the industry, projected to reach 14% penetration of the global aftermarket by 2025.

💡Sustainability

Sustainability in the context of FM refers to practices and services that focus on reducing environmental impact, such as energy-efficient buildings and reducing waste. The video emphasizes sustainability as one of the transformational trends, driving customer demand for FM solutions that help in energy savings and lowering the total lifecycle costs of buildings.

💡Energy Management

Energy Management is the strategic use of technology and practices to monitor and control energy usage in a building. This concept is a major trend in the FM industry, as highlighted in the video, where it is seen as essential for improving building efficiency, cutting costs, and addressing customer concerns related to energy savings and intelligent building systems.

💡Cloud Services

Cloud services refer to the use of remote servers hosted on the internet to store, manage, and process data. In FM, cloud services enable advanced data management, helping companies track building performance, optimize operations, and make real-time decisions. The video points out cloud services as one of the key technological enablers of the future FM landscape.

💡Business Productivity

Business productivity in the FM context refers to the efficiency and performance improvements that facilities management solutions can bring to an organization. The video mentions business productivity as a major trend, suggesting that next-generation FM solutions will focus on enhancing the overall productivity of client businesses by reducing operational costs and improving work environments.

💡IoT (Internet of Things)

The Internet of Things (IoT) refers to the network of physical devices connected to the internet, collecting and sharing data. In the context of FM, IoT technologies are used to monitor building systems like HVAC, lighting, and security, allowing for smarter, more efficient facility operations. The video highlights IoT as one of the driving forces behind the transformation of FM services.

💡CXO

CXO refers to top-level executives such as CEOs, CFOs, and CIOs. The video mentions selling to the CXO as an important trend, indicating that facilities management services are increasingly targeting these high-level decision-makers who are responsible for the strategic direction of a company, especially concerning cost efficiencies and workplace management.

Highlights

The future of facilities management (FM) will see major transformation in the next five years.

FM services are becoming commoditized, necessitating innovation and new value propositions.

By 2025, the global FM market revenue is projected to reach $945 billion.

The Middle East is anticipated to be the fastest-growing region in FM services.

Asia-Pacific is expected to lead the global FM market.

Eight key transformational trends will drive the future of FM.

Business productivity and 'anything as a service' are among the trends shaping the future of FM.

Sustainability and energy management are critical trends in the FM industry.

Performance contracting and partnerships will play a significant role in the future of FM.

Cloud services and selling to the CXO are identified as key trends.

The next five years will be pivotal for next-generation solutions in the FM market.

Integrated FM is expected to reach 14% penetration of the global aftermarket by 2025.

Technology, including IoT, big data, and advanced connectivity, will enable the future of smart facilities management.

Customer concerns regarding energy savings, intelligent buildings, and lifecycle costs will be addressed by technological advancements.

Changes in the workplace will lead to a boom in integrated workplace change management solutions.

Diverse suppliers will converge to provide visionary workplace management solutions.

Join Frost & Sullivan's facilities management research program for insights on the aftermarket and buildings industry.