Market Trends of Croatia Facility Management Industry
This section covers the major market trends shaping the Croatia Facility Management Market according to our research experts:
Increasing investment in Smart City Infrastructure to Drive the Growth
- A smart city refers to a city wherein the intelligent adoption of information and communications technology is used to enhance its sustainability, livability, and workability. The role of facility management becomes even more important for the efficient management of smart cities. Being a part of the EU has significantly boosted the growth of this sector in Croatia, creating a supportive environment for the growth of the studied market in the country.
- According to ITA, implementing one or more smart solution projects has already started in about 50% of Croatian cities. Along with developing Smart City concepts, the Association of Cities promotes increasing the use of EU funds for Smart City projects. For instance, the Center of Competence for Smart Cities is Croatia's largest three-year development project in information and communication solutions.
- In November 2021, it was announced that about 40% of public lighting would be reconstructed by the City of Zagreb, using a public-private partnership model in a project worth EUR 42 million. The project is a step forwards in the Croatian capital's ambitious target of the strategy of becoming a Smart City. Such developments are expected to drive the demand for facility management and maintenance services and encourage vendors to develop smart solutions.
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Healthcare Sector to Drive the Demand for Facility Management
- The Healthcare sector in Croatia has witnessed significant growth over the years. The research, development, and construction of healthcare facilities have increased significantly in the country. For instance, the EU invested more than EUR 48 million from the European Regional Development Fund to extend the Children's Hospital in the country. The project involves the purchase of research and medical equipment and the construction of a 15,000-m2 facility which is set for completion in early 2022.
- With individual medical practices prevailing on the market, the demand for facility management services such as cleaning and maintenance is expected to increase during the forecast period. For instance, in March 2022, an investment of about EUR 70 million was announced for the expansion of KBC Zagreb hospital.
- The COVID-19 pandemic significantly disrupted hospital care, as hospitals had to deal with a highly infectious virus and continue to fulfill their communities' ongoing health service needs. This greatly impacted the demand for efficient facility management across the Croatian healthcare sector. Furthermore, the widespread vaccination drive in the country is also driving the demand for facility management for efficient management of such drives.
- The total number of ICU beds in the country has witnessed an increase from the previous year; for instance, according to the Institute for Health Metrics and Evaluation, in January 2022, the number of ICU beds increased from around 210 to around 1,015 as compared to 2021. The increased number for ICU beds demand indicates the additional demand of healthcare facilities in the country which has influenced the demand for facility management services.
- Moreover, initiatives taken by the Croatian government, especially since the outbreak of the pandemic, is also creating a supportive market scenario for the growth of the studied market. For instance, the updated long-term National eHealth Strategy of the country, which was planned to be adopted in 2021, emphasizes telemedicine and includes the development of modular IT infrastructure.
