Market Size of North America Hard Facility Management Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.68 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
North America Hard Facility Management Market Analysis
The North American hard facility management (FM) market was valued at USD 217.11 billion the previous year and is expected to register a CAGR of 3.68%, reaching USD 273.22 billion by the next five years.
- The market is defined based on the revenue generated from the services, including HVAC maintenance, lift and escalator maintenance, mechanical, electrical, and plumbing (MEP) services, decoration and refurbishment, fire safety system maintenance, drainage, building management systems (BMS), total energy management, emergency generation and uninterruptible power supply (UPS) system, and project management.
- The growing GDP in the United States indicates significant growth in the overall commercial, manufacturing, industrial, and others, contributing to the market growth rate during the forecast period. The growth is majorly attributed to the growing infrastructural development in the country alongside the ever-increasing awareness among the people. The growing construction sector in the region is post-pandemic, and industrial site growth is analyzed to bolster the demand for Hard facility management services in the country significantly.
- Almost all industries were impacted by COVID-19, with new industrial and commercial buildings witnessing a major reduction. Even without a recovery impact, the construction industry survived the pandemic and experienced notable development in 2021. However, in 2022, construction has grown significantly. Facility management services in the commercial sector include facility management services in the buildings of convenience stores, multichannel retailers, IT and telecommunication offices, corporate offices of finance and insurance companies, etc.
- This growth in construction activities is significantly boosting the demand for facility management services in the region. The US engineering and construction sector is growing significantly with increasing investment. The increase in new construction indicates that the construction sector is continuing to withstand the storm of increased inflation rates. As a result, there would be a rapid need for hard facility management services across the country.
- For instance, Biotics Research Corporation, a nutritional supplement maker, plans to spend USD 9 million to build an 88,000-square-foot warehouse, laboratory, and office facility in the United States and expects to complete it by 2023. Similarly, in 2021, Darigold announced the plan to spend USD 500 million to build a 400,000-square-foot processing facility in the United States by the end of 2023. Such projects are expected to drive the demand for MEP services, fire safety, and other services, thereby boosting the demand for hard facility management services in the country.
- With the country outlining real estate owners and developers to optimize their real estate assets, the demand for facility management services is on the rise. However, with a lack of skilled workforce and the cost of hiring rising, the market players are engaging in partnerships and acquisitions to pool talent and deliver long-term contractual obligations. Also, many players providing some facility management services have led to a contested market space with un-differentiated services, thus creating pressure on margins. Further, pressure on margins, declining pay scales, restrictions on work permits, and the cost of nationalization are significantly challenging the facility management vendors.
North America Hard Facility Management Industry Segmentation
Hard facility management (HFM) services involve managing the people, technology, systems, and equipment that make up a company's physical structure.
The North American hard facility management market is segmented by type (MEP (mechanical, electrical, and plumbing), HVAC maintenance services, enterprise asset management, and other HFM services)) by end users (commercial, institutional, public/infrastructure, industrial, and other end-users), and geography (United States and Canada)
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Country | ||||||||||||||
| ||||||||||||||
|
North America Hard Facility Management Market Size Summary
The North American hard facility management market is poised for steady growth, driven by increasing infrastructural development and a robust construction sector. This market encompasses a wide range of services, including HVAC maintenance, MEP services, and fire safety system maintenance, which are essential for maintaining and optimizing commercial and industrial facilities. The post-pandemic recovery has seen a resurgence in construction activities, particularly in the United States, where significant investments in new commercial and industrial projects are underway. This surge in construction is expected to bolster the demand for hard facility management services, as businesses seek to optimize their real estate assets and ensure efficient operations. The market is characterized by a fragmented landscape with major players like Sodexo, Johnson Controls International, and Carrier Global Corporation, who are actively engaging in strategic partnerships and acquisitions to enhance their service offerings and maintain a competitive edge.
The demand for hard facility management services is further fueled by the need for energy efficiency and sustainability, particularly in HVAC systems, which are crucial given the diverse climate conditions across North America. The integration of advanced technologies, such as IoT sensors and smart controls, presents opportunities for innovation and optimization, aligning with the growing emphasis on green building certifications and sustainability goals. However, the market faces challenges, including a shortage of skilled workforce and rising hiring costs, which have led to increased competition and pressure on profit margins. Despite these challenges, the market continues to expand, supported by the ongoing digitalization in the public sector and the establishment of new corporate offices by global IT companies in regions like Canada. This dynamic environment underscores the critical role of hard facility management services in supporting the operational efficiency and sustainability of facilities across North America.
North America Hard Facility Management Market Size - Table of Contents
-
1. MARKET INSIGHTS
-
1.1 Market Overview
-
1.2 Industry Attractiveness - Porter's Five Forces Analysis
-
1.2.1 Bargaining Power of Suppliers
-
1.2.2 Bargaining Power of Consumers
-
1.2.3 Threat of New Entrants
-
1.2.4 Threat of Substitute Products
-
1.2.5 Intensity of Competitive Rivalry
-
-
1.3 Impact of COVID-19 on the North America Hard Facility Management (FM) Market
-
-
2. MARKET SEGMENTATION
-
2.1 By Country
-
2.1.1 United States
-
2.1.1.1 By Type
-
2.1.1.1.1 MEP (Mechanical, Electrical, Plumbing), and HVAC Maintenance services
-
2.1.1.1.2 Enterprise Asset Management
-
2.1.1.1.3 Other Hard FM Services
-
-
2.1.1.2 By End User
-
2.1.1.2.1 Commercial
-
2.1.1.2.2 Institutional
-
2.1.1.2.3 Public/Infrastructure
-
2.1.1.2.4 Industrial
-
2.1.1.2.5 Other End Users
-
-
-
2.1.2 Canada
-
2.1.2.1 By Type
-
2.1.2.1.1 MEP (Mechanical, Electrical, Plumbing), and HVAC Maintenance services
-
2.1.2.1.2 Enterprise Asset Management
-
2.1.2.1.3 Other Hard FM Services
-
-
2.1.2.2 By End User
-
2.1.2.2.1 Commercial
-
2.1.2.2.2 Institutional
-
2.1.2.2.3 Public/Infrastructure
-
2.1.2.2.4 Industrial
-
2.1.2.2.5 Other End Users
-
-
-
-
North America Hard Facility Management Market Size FAQs
What is the current North America Hard Facility Management Market size?
The North America Hard Facility Management Market is projected to register a CAGR of 3.68% during the forecast period (2024-2029)
Who are the key players in North America Hard Facility Management Market?
Sodexo, Johnson Controls International PLC, Carrier Global Corporation, Jacobs Solutions Inc. and AECOM are the major companies operating in the North America Hard Facility Management Market.
