FACILITIES AND ENGINEERING SERVICES IN 2024: THE MARKET OUTLOOK AND COMMERCIAL TRENDS

Search
Close this search box.

UK Facilities Management Market Report 2024 – 2027

Executive Summary

UK Facilities Management Market a comprehensive research report delves into the United Kingdom’s facility management services market, which is highly competitive due to the presence of many organized players and global companies such as Mitie, ISS, Sodexo, CBRE, OCS Servest, Amey, Vinci, and JLL.

The UK continues to be a dominant player in the European FM market due to its maturity and sophistication, with a projected CAGR of 1.85% from 2024 to 2027, reaching a value of $52.50 billion by 2027. The sector is expected to grow due to factors such as increasing demand for non-core operation outsourcing, focus on sustainability and energy efficiency, adoption of new technologies, and the need to enhance workplace productivity.

The public sector remains the largest end-user of FM services in the UK, constituting over 60% of the market. Integrated FM/Bundled FM services form the most significant segment of the UK FM market, contributing to over 40% of the market. The Hard FM sector is expected to be the fastest-growing segment, underpinned by an increased focus on infrastructure maintenance and sustainable practices in the built environment.

The south-east of England stands as the largest region in the UK FM market, representing over 30% of the market. With a blend of large, established national players and smaller, niche players, the UK FM market exhibits high competitiveness.

The UK’s Facilities Management (FM) market is anticipated to see robust growth between 2024 and 2027, with a compound annual growth rate (CAGR) of 1.85%. The Hard FM services sector, including aspects like electrical, HVAC, and plumbing, is projected to grow from $17.3 billion in 2024 to approximately $18.7 billion by 2027, indicating a CAGR of 1.97%.

The Soft FM services sector, encompassing services like cleaning, security, and catering, is forecasted to increase from $15.4 billion in 2024 to around $16.6 billion in 2027, showing a CAGR of 1.90%. Integrated FM services, which combine both hard and soft services into a comprehensive package, are projected to grow from $16.1 billion in 2024 to nearly $17.19 billion by 2027, reflecting a CAGR of 1.65%. The Hard FM sector is expected to be the fastest-growing segment, underpinned by an increased focus on infrastructure maintenance and sustainable practices in the built environment.

As per our bottom-up analysis, the UK FM market size is around $48.8 billion with 80% data robustness on the basis of Annual Contract Value. Baachu Monitors 11,294*** contracts from both public & private sectors within its database. Public Sector TCV stands at $149.8 billion while private sector TCV stands at $71.5 billion. In ACV terms Public sector is as large as $32.1 billion while private sector is $16.7 billion.

The size of Soft FM services stands at $15.4 billion in annual contract value terms. Integrated FM market size is $16.1 billion in annual contract value. Hard FM size is $13.7 billion large in annual contract value.

The sector faces challenges including a shortage of skilled labour, increasing energy costs, and compliance with government regulations.

Opportunities lie in focusing on services promoting sustainability, energy efficiency, technology adoption, and employee wellbeing, and in developing niche services addressing specific client and market needs.

The market can also benefit from strategic business partnerships (with leading real estate managers) to provide a broader range of services and solutions.

Market expansion is also likely to be propelled by the growing consolidation through acquisition The UK’s high inflation and increasing interest rates could apply pressure on operational costs for service providers and potentially slow down investment in infrastructure and commercial developments, impacting the growth of the FM services market.

Despite these economic challenges, the market is showing resilience, demonstrating steady growth, reflecting the FM services’ essential role across various sectors. However, it’s crucial for FM service providers to focus on cost-efficient strategies and innovative solutions to mitigate the effects of economic volatility.

The report covers the FM market size, market segmentation by sector and services, market forecast by sector and services , market trends and challenges, including selected upcoming renewal opportunities in both public and private sectors supported by a 11000+ Contracts data and analysis.

At Baachu, we adopt a unique and meticulous approach to research, enabling us to provide an in-depth analysis of the UK Facility Management (FM) market. With a database of over 11,000 contracts, our research delves into real contracts and their value, allowing us to estimate the market size split across 11+ FM sectors and 10+ FM services. Our comprehensive report offers a detailed overview of the UK FM market, equipping you with the insights needed to make informed decisions.

Comprehensive Analysis: Our report goes beyond surface-level analysis, diving into the annual value of tenders issued and awarded in the FM industry, encompassing both government and private sectors. We provide a breakdown by market sector, including Health, Central Government, Local Government, Universities, Schools, Colleges, Office & Commercial Buildings, Pharma, Manufacturing, Retail, and Leisure. Additionally, our report segments the market by service, covering Hard FM, Soft FM, Integrated FM, and Specialized Services. This thorough analysis enables you to understand the current landscape and identify attractive growth opportunities.

Insights and Forecast: Understanding the trajectory of the FM market is crucial for strategic planning. Our report not only presents the current state of the market but also provides insights into facilities management statistics, market trends, and forecasts. We forecast the Facilities Management Market to grow by 1.8% percent, offering you valuable foresight and a competitive edge in the evolving UK FM market.

Unlocking Growth Potential: Baachu’s analysis extends beyond numbers and statistics. We identify the most attractive growth opportunities in the UK Facilities Management Market until 2027, mapping out the pathways for success. With our industry expertise and market insights, we help you navigate the dynamic FM landscape and guide your strategic decision-making.

Baachu’s comprehensive report on the UK Facility Management Market delivers unparalleled insights and analysis. Our research covers Facility Management Market Size, Share Analysis, Statistics, Market Trends, and Forecast, providing you with a deep understanding of the industry. As the FM market continues to expand, partnering with Baachu ensures that you stay ahead of the curve in the UK FM market.

Table of Contents

Key issues covered in this Report

  • Facility Management in UK – Market overview
  • Facility Management Market Segmentation in UK
  • Facility Management Sector definition
  • Facility Management definitions – Hard and Soft FM Service Types

Key Trends in the FM Industry 

  • Key Trends in the FM Industry
  • Challenges Ahead in FM Industry

 

 
Many research companies define and forecast UK Market Size based on their own economic models
  • Baachu – $48 Billion with 80% Data Robustness (excluding PFI, Projects & Additional Services)
UK FM Market – Contracts Monitored by Baachu since 2018 UK FM Market – Baachu Market Estimates
  • As per Baachu Bottom up analysis the UK Market Size is around $48.8 billion (USD) based on annual contract value
  • The estimate is based on 11,294 FM contracts from both Public & Private sector which we at Baachu monitor.
  •  We track 30+ publicly available sources to track “who is running what FM contract and when does it expire”. Wherever the information is not publicly available, we use median inputs as hypothesis for plugging gaps on Contract value and Contract Term.
UK FM Market – Public & Private Dissection. Based on Baachu Contracts
  • Outsourced FM Market in UK – Public and Private
UK FM Market – Service Type Split. Based on Baachu Contracts
  • Outsourced FM Market – By Service Type (Soft, Hard, Integrated, Framework)
Outsourced FM Market: Public Sector
  • Outsourced Public FM Market in UK – By Service
Outsourced FM Market: Private Sector
  • Outsourced Private FM Market in UK – By Service
UK FM Market – Sectoral Split. Based on Baachu Contracts
  • Outsourced FM Market – By Sector
Which Sector Procured Hard FM? Based on Baachu Contracts
  • UK FM Market by Stream – Hard FM
Which Sector Procured Soft FM? Based on Baachu Contracts
  • UK FM Market by Stream – Soft FM
Which Sector procured Integrated FM? Based on Baachu Contracts
  • UK FM Market by Stream – Integrated FM
Specialised Hard & Soft Service Breakdown. Based on Baachu Contracts
  • UK FM Market Service Classification for Hard & Soft FM
Upcoming Opportunities 2024-27 – Based on Baachu Contracts Upcoming Opportunities 2024-27 – Sectoral Analysis. Based on Contract Values Upcoming Opportunities 2024-27- Sectoral Analysis. Based on Volume of Contracts

Top 20 FM Companies

  • The Top 20 (in no particular order) * Constitute 36% of the overall Market Size in terms of Total Contract Value.

Relative Positioning of Leading UK FM Service Providers

  • CBRE
  • Mitie
  • ISS
  • Sodexo
  • Atalian Servest
  • OCS Group
  • EMCOR
  • Atalian Servest 
  • OCS
  • Vinci 
  • G4S Group
  • Outsourced FM Market in UK – Market Outlook and Forecast – By Services
  • By Type – UK Facility Management Market, Revenue in USD Billion, 2024-2027
  • Outsourced FM Market in UK – Hard FM Forecast Commentary
  • Outsourced FM Market in UK – Hard FM Forecast
  • Outsourced FM Market in UK – Soft FM Forecast Commentary
  • Outsourced FM Market in UK – Soft FM Forecast
  • Outsourced FM Market in UK – Integrated FM Forecast
  • Outsourced FM Market in UK – Market Outlook and Forecast By Sector
  • UK Facility Management Market, Revenue in USD Billion, by End-user, 2024-2027
  • Outsourced FM Market in UK – Commercial Forecast Commentary
  • UK Facility Management Market, Revenue in USD Billion, Commercial, 2024-2027
  • Outsourced FM Market in UK – Institutional Forecast Commentary
  • UK Facility Management Market, Revenue in USD Billion, Institutional, 2024-2027
  • Outsourced FM Market in UK – Public/Infrastructure Forecast Commentary
  • UK Facility Management Market, Revenue in USD Billion, Public/Infrastructure, 2024- 2027
  • Outsourced FM Market in UK – Industrial Forecast Commentary
  • UK Facility Management Market, Revenue in USD Billion, Industrial, 2024-2027
  • UK Manufacturing Industry Market Overview
  • Trends & Challenges in the Manufacturing industry
  • UK Distribution Industry Market Overview
  • Trends & Challenges in the Distribution industry
  • UK Life science / Bio Pharma Market Overview
  • Trends & Challenges in the Life science / Bio Pharma industry
  • UK Retail Industry Market Overview
  • Trends & Challenges in the Retail industry
  • UK Logistics Industry Market Overview
  • Trends & Challenges in the Logistics industry
  • UK High-Tech Industry Market Overview
  • Trends & Challenges in the High Tech industry
  • Outsourced FM Market in UK – Others – Leisure and Related Sectors Forecast Commentary
  • UK Facility Management Market, Revenue in USD Billion, Other, 2024-2027
  • Call to Action for UK FM Service Providers –
  • Looking for detailed report on the UK Facilities Services Market?
  • FM Spend % compared to Turnover
  • Baachu advocates an appropriate mix of secondary and primary research to meet Client objectives.
  • We translates market insights (market dynamics, competition, varying consumer demands, and regulations) into actionable business insights.
  • Following phases are practiced at Mordor for efficient delivery of various syndicated and consulting assignments.

Primary Research

Secondary Research

  • At Baachu, We Define Our Business By The People We Serve, NOT The Product Or Service
    We Sell
  • Transform Your FM Business with Baachu’s Comprehensive Suite of Services
  • Baachu aligns your Sales & Marketing Around the Buyer
  • Interested in More Market Insights – Find the right membership for you (& your business)
  • Interested in More Market Insights – Find the right membership for you (& your business)
  • Get on with AI and Create Proposals 3X Faster
  • Overall Outsourced Market for Public & Private
  • Soft, Hard and Integrated Market Segregation
  • Market sector Segmentation
  • Separate slicing for Public & Private for all above parameters
  • Top suppliers in each category
  • Forecast purely based on Contract renewals
  • Sectoral analysis of the business volumes
  • Expected Top Deals

Critical Topics Examined

 

  • Discover the fastest growing service delivery models in the UK FM market
  • Explore the impact of Covid19 and Brexit on the future of the FM industry
  • Gain insight into the evolving competitive landscape and key players in the market
  • Identify the fastest growing customer segments and emerging growth opportunities
  • Analyze which services will see growth and which will be challenged in a maturing market
  • Learn how suppliers are responding to the need for dynamic value propositions
  • Understand the impact of technology and new business models on the future of FM in the UK
  • Uncover the top most attractive renewal growth opportunities for FM in the UK and position your business for success.

Don’t miss out on this comprehensive report that provides unparalleled insights into the UK FM market. With data-driven analysis and expert industry knowledge, this report will give you the edge you need to stay ahead of the competition and make informed business decisions.

Comparison between Baachu and Other Reports

Product overviewBaachuMintelFrost & Sullivan
UK Facility Management Market OverviewPricingPricingPricing
Key Trends and ChallengesPricingPricingPricing
11000+ Contracts monitoredPricingXX
Overall Market EstimatePricingPricingPricing
Public Sector Dissection (6+ sub sectors detailed)PricingXX
Private Sector Dissection (5+ sub sectors detailed)PricingXX
Market Segmentation – TFM Forecast,  Trends and ChallengesPricingXX
Hard FM Forecast, Trends and ChallengesPricingXX
Soft FM Forecast, Trends and ChallengesPricingXX
Market Segmentation – By SectorPricingXPricing
Commercial Sector Market Breakdown, Forecast, Trends and ChallengesPricingXX
Institutional Sector Market Breakdown, Forecast, Trends and ChallengesPricingXX
Public and Infrastructure Market Breakdown, Forecast, Trends and ChallengesPricingXX
Industrial Forecast, Market Breakdown, Forecast, Trends and ChallengesPricingXX
Bottom up Analysis of 11+ Sectors (11000+ Contracts)PricingXX
Facility Management future opportunities 2024-2027PricingXX
Competitive LandscapePricingPricingX
List of top 20 companiesPricingPricingPricing
Company profiles on Top 10 CompaniesPricingOnly 5Only 5
Detailed Facility Management Market Outlook and Forecast by Sector (Public and Private) and Services (Hard, Soft, TFM)PricingXX
Report DateJune 202420202023
Report Fee £995 £1495$4950

Get in Touch for Your Customised FM Market Report and Insights

We fully understand that your needs and requirements are unique, and we’re here to assist you every step of the way. We genuinely encourage you to reach out to us at hello@baachu.com and share your specific needs. Upon receiving your message, our team of experts, armed with years of industry knowledge and keen insights, will immediately get in touch. They are excited to engage in a discussion with you, clearly understanding your perspective, unraveling any complexities, and finally, curating a solution that fits your requirements perfectly.


At Baachu, our authenticity is driven by the personal and professional experiences that shape our journey in the FM market. These insights are what we bring to the table in every conversation we have, adding that extra layer of authenticity to our interactions. We are not just here to provide services; we are here to be your strategic partners, understanding your pain points, and crafting solutions that bring real value to you.


So, let’s embark on this journey together, and let us provide you with the knowledge and insights you need to make a decisive and effective decision. Because at Baachu, we believe in empowering you every step of the way.

About The Author

Baskar Sundaram
MANAGING DIRECTOR & GLOBAL HEAD OF STRATEGY

Baskar founded Baachu Rain in 2016 and directs the firm’s research strategy across all practice areas. He also leads the Facilities Management and Justice practice on an interim basis. Baskar has over fifteen years of experience in strategy consulting and research. He previously worked for Serco PLC. Baskar holds a MSc in Electrical Engineering from Imperial College London.

UK Facilities Management

Other Popular Reports

Join 2000 of your peers. Subscribe to Baachu Insights Newsletter

Stay up to date on the latest industry news, research, blogs, events, and webinars.
>

Free UK FM Market Summary Report June 2024

Gain the edge in the UK Facility Management industry with our concise report. Arm yourself with cutting-edge market insights and data-driven forecasts.

Master the UK FM Market with a single click.