Are you an analyst researching about an FM company – A typical UK FM Market Question ?

 

We have many analyst members who use our research insights for their deep dive on work. Recently a asset management research analyst, was comparing her research to our report on the UK FM Market to see if a membership would be worth it. 

 

In her research of a leading FM provider, she found their revenue was XXbn in 2020 – she was wondering why in our Baachu Rain FM report we have listed the provider holds X% of the UK FM Market and she asked for our insights as to what the X% market share means that would help her decisions 

 

Our market sizing is based on our proprietary database of publicly available list of Facilities Management (FM) public and private contracts awarded in the UK market. 

 

We estimate that we cover 85% of UK market as not all contract data is publicly available, which means we have 8,600+ contracts that add up total contract value (TCV) of £117 Bn (as of Jan 2021). 

 

For calculating market shares, we adopt the following approach – For say a service provider has ‘A’ number of contracts with varied contract values ranging from £1 Mn to £100 Mn, we sum the provider’s every single total contract value (TCV) and compare it to the TCV of all the contracts we have on the database. 

 

From our database, we estimate the provider has B% market share = 

so their contract size order book, lets say Y £bn = B% * £117bn spread over multiple years

 

Their annual revenue is an in-year revenue that is based on movement of how many new business wins, losses, renewals, account growth they make within that calendar year.