Market Size of Czech Republic Facility Management Industry
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Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR | 2.46 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
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Czech Republic Facility Management Market Analysis
The Czech Republic facility management market is expected to register a CAGR of 2.46% over the forecast period 2022 to 2027. The Czech Republic is supposed to be one of the biggest outsourced markets for facility management services in terms of maturity and sophistication.
- As per the BTI index, in the 2022 forecast, the country ranked 41st in the World Bank's Doing Business Report (compared to 27th in 2017 and 35th in 2019). The situation varies by field of business - obtaining a construction permit is most difficult, requiring 21 procedures and 246 days. The new Building Act Adopted in June 2021 should improve the situation, which will drive the market conditions in favor of the future acquisition and start-ups in the FM industry.
- The Czech Republic is one of the most open economies globally and a sought-after destination for foreign investors. One crucial factor in planning and assessing FDI is the possible security impact. The Act on the Examination of Foreign Investments, intended to help the state better protect key Czech companies from unwanted takeovers by risky foreign investors, was prepared over a long period time and adopted by the lower chamber in January 2021, which will favor the local Fm industry players to come forward and with extra funding from foreign investors will bolster the entire FM industry in the market.
- Digitalization is the crucial factor in driving market growth in the future, with companies and businesses innovating new ways to create eco-friendly structures with all the applications and facilities like HVAC, automated car parking, and cleaning. These requirements will require technological innovation while planning the building structure.
- The FM Industry in the Czech Republic has been experiencing a shift toward adopting new technologies. With this comes challenges like successfully integrating technology with humans in an effective and cost-efficient way and interpreting data in meaningful structures which could be easily interpreted by people working in the industry. Along with the pressure of following the new regulatory framework adapted recently by the government for Building construction in the region, also the ongoing Ukraine-Russia war has impacted the supply chain of the FM industry.
- The outbreak of COVID-19 has had a mixed business impact on facilities management firms. The restrictions on the movement of people resulted in a decline in project work and a decreased level of activity across many customer sites. Significant players in the market, such as Diversey holding Ltd, CBRE Group, Optimal facilities management, and others, were adversely affected due to the pandemic lockdown. The acceptance and availability of new technologies - raises the expectation that significant disruptions will bring significant productivity improvements to industries such as facility management.
Czech Republic Facility Management Industry Segmentation
FMs contribute to the business's bottom line through their responsibility for maintaining what is often an organization's most significant and most valuable assets, such as property, equipment, buildings, and other environments that house personnel, productivity, inventory, and other elements of the operation. The Czech Republic facility management market is segmented by type of facility management, offering, and end-user.
By Facility Management Type | |||||
In-House Facility Management | |||||
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By Offerings | |
Hard FM | |
Soft FM |
By End-User | |
Commercial | |
Institutional | |
Public/Infrastructure | |
Industrial | |
Other End-Users |
Czech Republic Facility Management Market Size Summary
The Czech Republic facility management market is poised for growth, driven by its status as a mature and sophisticated outsourced market. The country's open economy and attractiveness to foreign investors are bolstered by regulatory measures like the Act on the Examination of Foreign Investments, which aims to protect key local companies. This regulatory environment, coupled with the adoption of the new Building Act, is expected to enhance market conditions and encourage foreign investment in the facility management sector. Digitalization plays a pivotal role in the market's evolution, with businesses increasingly adopting technologies to create eco-friendly structures equipped with advanced systems such as HVAC and automated parking. However, challenges remain in integrating these technologies effectively and navigating the regulatory landscape, particularly in light of the ongoing Ukraine-Russia conflict and its impact on supply chains.
The Czech Republic's industrial sector is experiencing significant development, supported by government initiatives like the Liner Act, which accelerates infrastructure projects. This growth presents opportunities for facility management companies to provide essential services in areas such as logistics, water management, and technical support. The market is characterized by a high demand for leasing spaces, with a notable increase in industrial space take-up driven by logistics and manufacturing companies. Major transactions, such as Hines' acquisition of logistics assets, highlight the region's appeal to global players. The competitive landscape features key service providers like CBRE Group, Dalkia, and Johnson Controls, with ongoing partnerships and acquisitions expected to shape the market's future. Despite the mixed impact of COVID-19, the market is anticipated to recover and continue its trajectory of growth, supported by strategic investments and technological advancements.
Czech Republic 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 - Porters Five Force Analysis
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1.2.1 Threat of New Entrants
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Bargaining Power of Suppliers
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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 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Facility Management Type
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2.1.1 In-House Facility Management
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2.1.2 Outsourced Facility Management
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2.1.2.1 Single FM
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2.1.2.2 Bundled FM
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2.1.2.3 Integrated FM
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2.2 By Offerings
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2.2.1 Hard FM
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2.2.2 Soft FM
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2.3 By End-User
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2.3.1 Commercial
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2.3.2 Institutional
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2.3.3 Public/Infrastructure
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2.3.4 Industrial
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2.3.5 Other End-Users
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Czech Republic Facility Management Market Size FAQs
What is the current Czech Republic Facility Management Market size?
The Czech Republic Facility Management Market is projected to register a CAGR of 2.46% during the forecast period (2024-2029)
Who are the key players in Czech Republic Facility Management Market?
Johnson Controls, Dalkia (EDF Group), Skanska a.s., OPTIMAL Engineering spol. s r.o and Diversey Holdings, Ltd. are the major companies operating in the Czech Republic Facility Management Market.