North America Facility Management Market Report and Forecast 2024-2032

North America Facility Management Market Size

The North America facility management market reached approximately USD 352.22 billion in 2023. The market is projected to grow at a CAGR of 6.2% between 2024 and 2032, reaching a value of around USD 610.39 billion by 2032.

North America Facility Management Market Outlook

• Facility management services play a key role in improving business efficiency, enabling businesses to focus on core areas by taking care of non-core activities.

• As per the North America facility management market dynamics and trends, facility management providers are increasingly prioritising sustainability, with a specific focus on incorporating eco-friendly building practices.

• The integration of the Internet of Things (IoT) in facility management has been a significant factor propelling market growth.

North America Facility Management Market Growth

Facility management (FM) is a specialised field that encompasses a wide range of responsibilities and services aimed at effectively managing an organisation's physical surroundings. It involves overseeing and maintaining buildings, infrastructure, personnel, and procedures to ensure the functionality, security, and convenience of the constructed environment in which the organisation operates.

One of the primary goals of facility management is to maximise resource utilisation. This involves efficiently managing an organisation's physical assets, such as buildings, equipment, and technology, to ensure they are utilised to their full potential. Facility management professionals are responsible for developing and implementing strategies to optimise the use of resources, minimise waste, and reduce costs, which can contribute to the growth of the North America facility management market.

In addition to resource management, facility management also plays a crucial role in supporting an organisation's primary business goals by taking care of non-core competencies. Facility management professionals work closely with other departments and stakeholders to understand their needs and requirements. They then develop and implement plans to provide the necessary infrastructure, services, and support to enable businesses achieve their objectives.

Key Trends and Recent Developments

Integration of the IoT in building infrastructure; use of data analytics and artificial intelligence; increased focus on sustainability, and the growing demand for healthcare facilities management services are a major trend in North America facility management market.

North America Facility Management Market Trends

The market has experienced substantial growth due to the growing focus of businesses on improving their core competencies and the integration of the Internet of Things (IoT). This integration of the IoT supports the utilisation of smart building technologies, which help improve energy efficiency, optimise space usage, and enable predictive maintenance. Within buildings, IoT devices such as smart sensors and meters are strategically placed to monitor energy consumption patterns. By utilising IoT technology, automation, and intelligent controls, it is possible to dynamically regulate lighting, heating, ventilation, and air conditioning (HVAC) systems. This enables organisations to achieve optimal energy efficiency without compromising on the comfort of occupants.

The facility management sector is increasingly prioritising sustainability, placing a strong emphasis on the adoption of green building practices. This involves implementing energy-efficient technologies, reducing waste, and implementing environmentally friendly practices in order to obtain and uphold green building certifications, which can boost the North America facility management market value.

As the demand for environmentally friendly and sustainable office infrastructure continues to rise, facility management providers are broadening their range of services to meet these requirements. Furthermore, green building certifications, such as LEED (Leadership in Energy and Environmental Design), BREEAM (Building Research Establishment Environmental Assessment Method), or ENERGY STAR, are becoming increasingly important, influencing the North America market. These certifications serve as a widely recognised standard for sustainable building practices and showcase a dedication to environmental responsibility, exerting a positive influence on the market.

Industry Outlook

As per the North America facility management industry analysis, there are around 360,000 real estate brokerage firms in the US as of 2023. According to the National Association of REALTORS data, 4,090,000 existing homes were sold in 2023. As per the U.S. Energy Information Administration's Commercial Buildings Energy Consumption Survey (CBECS), there were around 5.9 million commercial buildings in the US in 2018. As per the 2022 American Community Survey, there were around 125.7 million occupied housing units in the USA. This rise in the buildings and real estate sector is expected to create an increased demand for facility management services.

Planon Corporation announced that it has established a strategic partnership with Gilbane Building Company in 2023 to offer its services to the facility management and real estate sectors. This partnership will allow the organisations involved in the construction projects to implement space allocation and end-to-end maintenance plans, among others. Real estate firms and partners can leverage the services of both the companies for development of smart building projects, which can contribute to the overall growth of the North America facility management industry.

Factors Contributing to the Growth of the Facility Management Market of North America

• Implementation of IoT, AI, and smart building technologies to enhance operational efficiency.

• Increasing preference for outsourcing facility management services to focus on core business activities aids North America facility management demand growth.

• Growing demand for sustainable and eco-friendly facility management practices.

• Stringent regulatory requirements necessitate professional facility management services.

• Rising emphasis on workplace safety, health, and productivity boosts the demand for facility management services.

Challenges Faced by Providers in the North America Facility Management Market

• Balancing cost-efficiency with high-quality service delivery can negatively impact the North America facility management demand forecast.

• Difficulty in finding and retaining skilled facility management professionals.

• Challenges in integrating advanced technologies with existing systems.

• Intense competition from numerous local and international facility management firms.

• Continuously evolving client expectations and demands for customized solutions.

Key Growth Opportunities in the North America Facility Management Market

• Adoption of smart building technologies to improve facility operations and energy efficiency can increase the North America facility management market opportunities.

• Increasing demand for facility management services in healthcare, education, and logistics sectors.

• Offering green building certifications and sustainable facility management solutions.

• Leveraging big data and analytics to provide actionable insights for facility optimization.

• Providing comprehensive, integrated facility management services to meet diverse client needs.

Market Competition in the North America Facility Management Market Share and their Strategic Initiatives

Cushman & Wakefield Plc

• Technology Integration: Implementing advanced technology solutions, such as IoT and AI, to optimize facility operations and improve service delivery boosts North America facility management demand. 

• Sustainability Focus: Emphasizing sustainable practices and green building certifications to meet client demands for environmentally friendly operations.

• Client-Centric Services: Enhancing client experience through customized facility management solutions tailored to specific industry needs.

CBRE, Inc.

• Data-Driven Insights: Utilizing big data and analytics to provide actionable insights for facility optimization and cost reduction boosts North America facility management market revenue. 

• Global Platform: Leveraging its global platform to offer consistent and scalable facility management services across multiple regions.

• Workplace Strategy: Developing innovative workplace strategies to enhance employee productivity and well-being.

Jones Lang LaSalle IP, Inc. (JLL)

• Smart Building Solutions: Investing in smart building technologies to enhance operational efficiency and tenant experience can increase demand of North America facility management market. 

• Integrated Facility Management: Providing integrated facility management services that encompass maintenance, security, and energy management.

• Sustainability Initiatives: Promoting sustainability through energy efficiency programs and LEED-certified building operations.

FacilityONE Technologies LLC

• Innovative Software Solutions: Developing innovative facility management software to streamline operations and improve asset management.

• Mobile Accessibility: Enhancing mobile accessibility of its platforms to allow for real-time facility management and maintenance tracking can boost facility management market share in North America. 

• Customer Support: Offering robust customer support and training programs to ensure effective use of its software solutions.

AHI Facility Services, Inc.

• Quality Assurance: Implementing rigorous quality assurance programs to maintain high standards of service delivery.

• Expansion of Services: Expanding service offerings to include specialized cleaning, maintenance, and facility support services which increases North America facility management industry revenue.

• Employee Training: Investing in employee training and development to enhance service quality and operational efficiency.

ISS A/S

• Integrated Facility Services: Offering integrated facility services to provide comprehensive solutions that meet all client needs.

• Sustainability Focus: Committing to sustainability through energy-saving initiatives and environmentally friendly service practices.

• Technology Adoption: Adopting advanced technologies to improve service delivery, such as using robotics and automation in cleaning and maintenance tasks.

North America Facility Management Industry Segmentations

“North America Facility Management Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Outsourced facility management is further divided by type into single FM, bundle FM, and integrated FM.

The demand for outsourced facility management is high due to its cost-effectiveness

Within the North America facility management market, there is a growing trend towards outsourcing facility management services due to its multiple benefits, including flexibility and cost-effectiveness. One of the key advantages of outsourcing facility management is the ability to achieve cost efficiencies. Specialised service providers often have the advantage of economies of scale, access to advanced technologies, and expertise in efficient processes, which allows them to deliver services at a lower cost.

Moreover, many organisations prefer to focus on their core business functions and strategic objectives. By outsourcing facility management, they are able to delegate non-core tasks such as maintenance, cleaning, and security to specialised providers, enabling them to concentrate on their primary areas of expertise.

Competitive Landscape

The market players are focusing on service improvement and integrating sustainable solutions to gain a competitive edge in the market

Other players in the market are Jones Lang LaSalle IP, Inc., Express Facility Management, AHI Facility Services, Inc., ISS A/S, Shine Facility Services, LLC, and Guardian Service Industries, Inc., among others.

North America Facility Management Market Regional Analysis

The market share is predominantly held by the United States, primarily due to various factors that contribute to the country's dynamic and extensive facility management sector. With the world's largest economy, the United States stands out for its technical expertise, improved business infrastructure, and robustness. The country's economic landscape encompasses a wide range of industries, including technology, finance, healthcare, manufacturing, and more, which necessitates a comprehensive and sophisticated approach to facility management and enhances North America facility management market development.

Furthermore, the United States is at the forefront of facility management due to its increasing adoption of cutting-edge technologies such as IoT, AI, data analytics, and smart building solutions. This positions the country as a leader in the field.

Key Highlights of the Report

North America Facility Management Market Report Snapshots

North America Facility Management Market Size

North America Facility Management Market Growth

North America Facility Management Market Trends

North America Facility Management Companies

North America Facility Management Market Regional Analysis