Czech Republic Facility Management Market Size (2024 - 2029)

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.