Market Trends of Luxembourg Facility Management Industry
This section covers the major market trends shaping the Luxembourg Facility Management Market according to our research experts:
IoT Allows Facility Management Teams to Drive for Efficiency, Sustainability, and Cost Savings
- IoT will continue to grow in importance, where IoT or the Internet of Things will be seen to generate performance data alerting FMs to potential breakdowns in the country. FMs can monitor and control the devices from anywhere. For instance, G4S's technology solutions like SmartFM can lead to improvement in overall facility performance, the efficiency of assets, cost and energy savings, and increased productivity.
- Advances in IoT and connected objects that are coming in the future will enable more secure and accurate building management and maintenance. In simpler terms, the facility managers will be able to benefit from real-time information feedback to the system, analyze data, but also to control the equipment in a building with web-based automation.
- Furthermore, 5G will connect objects and equipment together and make them communicate with each other. The facility manager can then have a single management system controlled via a central platform maintained on a single site and linked to external apps via APIs. A connected device can also include many sensors and meters, each of which can be separately engaged or disabled over the network. According to OECD (Organisation for Economic Co-operation and Development), fixed broadband subscriptions in Luxembourg will reach 37.57 connections per 100 inhabitants by 2020.
- In addition, the facility manager will be notified in real-time of maintenance and repair needs, as well as security processes and reporting. The building's operation will also be described in greater detail. Also, better system documentation will lessen conflicts among owners, tenants, and facility managers. In this way, IoT and the advent of 5G are expected to revolutionize facility management in the country.
Understand The Key Trends Shaping This Market
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Commoditization of Facility Management is witnessing increasing demand in the country
- Despite the tremendous income potential of outsourced FM, services are becoming more commoditized across the country, and organic growth is difficult to come by. Service integration and advanced advisory services focusing on productivity, user experience, and sustainability will become the norm in the business. According to CBRE Group, technology is fueling interest in managed workspace and co-working, with 60% of occupiers believing serviced offices will play a part in managing their accommodation needs in the next three years.
- Co-working will entail numerous different organizations, businesses, and individuals sharing space, similar to managed workspace, where space and facilities are provided by a third party. The co-working revolution, as it has been labeled, reflects a growing demand among professionals and creatives for autonomy, a lack of hierarchy, flexibility, and community.
- Corporate real estate and facilities management are becoming increasingly vital to business success. Its trend is driven by changes in the built environment, which includes commercial, educational, industrial, recreational, residential, retail, and transportation infrastructure. It also helps businesses succeed by focusing on consistency, continuous improvement, and dependability through time, cost, and quality management. To improve corporate performance, facilities management in each sector of the built environment must be studied.
- An efficient facility management solution optimizes productivity through the use of specific productivity-focused tools and functions. These solutions are suitable for all types of organizations, from entry-level employees to top-level management.
- However, Facilities management is ripe for disruption in the country. For instance, in terms of digital maturity and penetration of technology, it lags behind other tasks such as production equipment maintenance. Although technology is available for facilities management, a lack of digital skills inside the department, other leadership priorities, and an emphasis on constant cost-cutting have all stymied adoption. These considerations have made the facilities management outsourcing industry appealing to prominent suppliers who were already involved in this role, either directly or indirectly. In order to gain a larger share of the market, several incumbents have developed an integrated facilities management offering.
