Free UK FM Market Summary Report
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Introduction
How much does the UK public sector really spend on facilities management (FM)? Depending on the data source, the answer might be £13 billion—or it might be £27 billion. This gap is more than just numbers; it reflects fundamentally different ways of measuring one of the government’s most critical, complex, and outsourced functions.
In December 2024, Tussell—a government contract data aggregator—published its FM Market Snapshot. Based on public procurement notices and invoice data, it reflects an implied annual spend of £13–15 billion. In contrast, Baachu, a specialist FM research consultancy, released its 2025 estimate of £27 billion, based on what is actually being delivered across the public estate.
This article examines the sources, methodologies, and relevance of both datasets—clarifying why the numbers differ, what each is good for, and why FM buyers, suppliers, and investors should understand and use both.
What Does Tussell Measure?
Tussell’s platform aggregates publicly available procurement data, focusing on contract awards, supplier invoice values, and framework usage. Its FM analysis is drawn from structured datasets using CPV/SIC codes and invoice lines submitted to government portals.
Tussell is widely used because it provides:
However, this approach has limitations. It captures only what is formally published—and what is labelled correctly. FM contracts embedded in construction, PFI, energy or workplace transformation projects may not be recognised as FM due to misclassification. Invoices from major departments such as MOJ or FCDO were still pending at the time of their latest publication.
In-house FM delivery—common in local authorities and NHS trusts—is also excluded, and contract values are not adjusted for mid-term amendments, scope changes, or performance-related uplift. For those relying on invoice-based data alone, this creates a structurally incomplete picture.
What Does Baachu Measure?
Baachu approaches the FM market differently. As a dedicated FM research consultancy, it focuses on understanding who is delivering what, where, and at what scale—regardless of how services are procured or classified.
Its £27bn estimate incorporates:
Here’s how the £27bn is constructed:
| Component | Value (£bn) | Share | Description |
| Procurement-visible FM | £14.9bn | 55% | FM contracts clearly identifiable via standard CPV codes and frameworks such as CCS RM6330 and NHS SBS |
| In-house delivery (costed) | £4.1bn | 15% | Services delivered internally—e.g. NHS estates, council engineering teams, school caretaking—captured via ERIC and local budgets |
| Embedded PFI/FM services | £4.0bn | 15% | FM bundled within PFI and long-term infrastructure contracts, often classified under construction or financial codes |
| Misclassified contracts | £2.7bn | 10% | FM delivery obscured by CPV errors or categorised under unrelated headings (e.g. IT, education, highways) |
| Modelled/estimated contracts | £1.3bn | 5% | Contracts with known delivery scope but partial or missing value data, estimated using FM benchmarks |
Baachu’s methodology is manually validated at the contract level. It goes beyond CPV codes to assess delivery intent, service lines, and buyer structure.
Subcontractor spend is not double-counted, and no artificial inflation is applied.
In short, Baachu’s dataset reflects actual FM delivery across the public sector estate—not just published procurement.
Why the Numbers Differ
The difference between Tussell’s £13–15bn and Baachu’s £27bn is not an error or disagreement—it’s a difference in scope and purpose.
Tussell answers: What has been procured, published, and invoiced? Baachu answers: What is being delivered, by whom, across which service lines?
If your lens is procurement tracking, Tussell offers clean, consistent and fast-moving data. If your goal is strategic insight, pipeline valuation, or total addressable market estimation, Baachu’s contract-level delivery perspective is more complete.
A Complementary Approach
Instead of debating which figure is right, FM professionals should ask: what do I need to know, and when?
Together, these tools offer both visibility and context—procurement records and market intelligence.
Comparative View
Criteria | Tussell (Dec 2024) | Baachu (2025) |
Market Size Estimate | £13–15bn (procurement spend) | £27bn (delivery-based estimate) |
Data Source | Invoice + CPV-coded contract data | Manually validated contracts |
Embedded FM (e.g. PFI) | Often excluded | Included where FM is delivered |
In-house Delivery | Excluded | Included where budgeted |
Classification | Automated coding | Service-line based classification |
Adjustments & Renewals | Not applied | Accounted for where disclosed |
Why the Numbers Differ
This is not a case of right vs wrong. It is about scope and purpose:
Tussell’s strength lies in tactical planning and framework visibility. Baachu provides strategic market intelligence based on actual FM activity
Addressing Confusion: Who Gets What from This?
Public Sector Buyers: Know your true FM footprint. Baachu helps benchmark against peer authorities, including in-house spend and hybrid models not captured in standard data.
FM Suppliers: Understand the total addressable market. Don’t overlook opportunities hidden within PFI, workplace, or energy-linked tenders. Use Baachu for strategic targeting.
Private Equity Investors: Assess the real FM market size and delivery landscape. Baachu reveals depth and long-term contract value beyond invoice-based rankings.
Analysts: Bridge the gap between procurement data and actual delivery. Baachu’s methodology provides clarity and confidence in long-term market trends.
Why Use Both?
Together, they provide a 360° view: what’s published vs what’s delivered.
Final Word
The UK public sector FM market is complex and multi-layered. Tussell captures the visible procurement layer. Baachu captures the full delivery picture.
If you are serious about understanding FM market opportunity—whether you are shaping policy, building a bid strategy, benchmarking your costs, or making an investment decision—using both sources is essential.
Want to go deeper?
Contact our team at hello@baachu.com. We’re here to help you with FM delivery breakdowns by region, service line, supplier, or framework—whatever clarity you need to move forward with confidence.
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.