US $ 1.2-1.3 trillion
Four service lines accounting for the market (1.1 $ trillion)
Key trends that would likely shape the global FM market:
The global FM market is constant state of flux. There are new trends and developments occurring in the market almost on a frequent basis. There are however a few trends that are likely to change the dynamics of the industry in the coming years with regards to how effective FM services are going to be delivered
A new era of outsourcing
The evolution of FM outsourcing – according to Frost & Sullivan, the global outsourced FM market is likely to touch $1 trillion. However, what is interesting to note is that outsourced partners would be expected to deliver increasingly complex services as the markets move forward.
Integration of services – Driven by an unwavering need for compliance, constancy and simplification of processes and decision-making – leading establishments/ businesses are expected consolidate advisory and transaction services, FM and project services with a single supplier and point of control
New look workplace
A multi-generational workforce – the workplace as we know it is about to change as Millennials, Gen X and Gen Y come together in a confluence that would change the dynamics of the workplace. Experts believe that by 2020, Gen Y will make up almost half of the global workforce. Given the improvements in health and lifestyle people are also expected to live and work longer. The implication for organisations is to bridge the gap between different generations of employees.
Wellness as a differentiator – Employees are beginning to demand a workplace where wellness is a centralised theme. According to CBRE, almost 80% of employees concurred that a company’s wellness offering will be decisive factor in recruitment and retention within the next ten years itself.
Collaborate to innovate – building and workplace designs that support collaboration would become an integral part of developing workplace strategy. The basic premise behind this school of thought is that collaboration enhances innovation. Along those lines, innovative catering and meal services that stimulate employee interaction and technology solutions that support cooperation across organisations would preference.
Managed workspace and co-working – Technology is the main driver behind the growing attention on managed workspace and co-working trends. Around 60% of businesses agree that such offices will play a key role in meeting accommodation needs in the near future. Employers should try and take full advantage of these trends for fostering innovation by placing employees in co-working or incubator space and use these serviced workplaces for overflow while managing capital spend.
Personalisation – Customers everywhere are demanding a more personalised experience and businesses are ready to spend considerable resources to offer it as a differentiator. Technology has been tasked with the role of an enabler. Retail portfolios in particular would be revamped as technology alters the way we shop and online channels play an increasingly significant role in the customer journey. With balance shifting between physical and virtual space, an entirely different FM skillset would be required to cater to the needs of these new environments.
AI and smart buildings
Data backed decision-making – Data and data analytics are expected to become crucial for addressing cost and performance issues in purview of the entire FM industry. Data and relevant techniques facilitate the measurement of performance – of both property and people – which assists business leaders in effective decision-making. Around three quarters of the stakeholders already quote data as the key to achieving strategic goals.
Internet of Things (IoT) – Leading experts in technology such as Gartner and IBM believe that there will be almost 25 billion connected things in use by 2020, a humongous jump from 4.9 billion in 2015. The effects are highly likely to trickle down to the real estate sector as smart buildings with lights, sensors, windows, HVAC, doors and CCTV wired in to a network will become increasingly commonplace. Business and FM leaders would be presented with an opportunity to improve end-user experience with self-serving, customised services.
I, Robot – The market for robotics might be small but it is rising. According to the International Federation of Robotics (IFR) Sales of robots used in professional cleaning had more than doubled in 2015. One of the biggest concerns in the industry is if robots would replace humans and if yes to what degree. Experts believe that future is still very far ahead although robots can help manage labour costs on specific tasks and increase efficiency through automation.
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