Market Trends of Lithuania Facility Management Industry
This section covers the major market trends shaping the Lithuania Facility Management Market according to our research experts:
Single Facility Management to have a significant Market share
- Working with a single facility management service provider entails primarily delegating task management to separate entities. It also entails having a different service provider for each service the organization requires, such as cleaning, reception, and vending machines. Using the services of specialized service providers has several advantages.
- It allows customers to concentrate on their core business, while single-service providers provide adequate services to customers and help operational efficiency. Having experts handle task management will result in higher efficiency and service quality. It will also free up company employees to focus on the most critical business areas while saving resources for non-core activities.
- The outsourced FM has been successfully used in various sectors, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing, and education. The areas that FM services look after vary widely, primarily depending on their type, the size of the company, and the sector in which it operates. Some organizations will only require a single service solution provider. Such demand is driving the single FM in the country.
- When businesses choose a single service provider, they outsource their day-to-day operations to a specialist provider. They can be assured of superior service quality and efficiency by hiring the help of specialists. Using several service providers is a time-consuming activity that necessitates the management of multiple vendors and the associated hazards.
Understand The Key Trends Shaping This Market
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Commercial End-User Sector is expected to hold major share
- The commercial and retail segment is one of the significant segments contributing a good share of facility management in Lithuania. This segment is due to the rapid infrastructure development and rising demand from hotels, retail outlets, malls, and office buildings.
- In Feb 2021, Baltisches Haus, a Lithuania-based commercial real estate development and management company, announced that it would invest EUR 13.5 million in 2021. The investment will focus on completing ongoing projects and preparing for next year's projects. In 2020 the company invested EUR 9.2 million in commercial real estate.
- The country is witnessing various investment drives to boost economic, social, and territorial cohesion, supporting key EU priorities such as green and digital transition. For instance, in Feb 2022, European Commission partnered with Lithuania for EUR 6.4 billion from 2021 to 2027.
- The invasion of Russia on Ukraine in February 2022 impacted Lithuania's overall facility management market. As per data released by European Commission's blueprint network, 48,000 refugees from Ukraine have been registered in the country till 22 April 2022, and the actual number could be even higher. Lithuania is 10th in the EU in the number of refugees officially registered.
- In March 2022, the Lithuanian Economy Minister stated that the country is open to IT companies from Russia and Belarus. This comes after many companies and employees are looking to relocate from Russia and Belarus to Lithuania. This step is expected to boost the growth of the facility management market in the region.
