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Baskar Sundaram

The Public Sector in the Facilities Management (FM) market in the UK was estimated at £58.4 Bn, accounting for 49.9% of the total FM market in the country.

In the Public Sector, the soft FM services contributed £21.4 Bn, accounting for 36.8% of the market share; followed by Integrated FM (26.2%) and Hard FM (22.4%).

Soft FM and Integrated FM services together account for more than half (~63%) of the public FM market in the UK.

Other Support Services include back office processing, finance & accounting services, consulting, schemes and programmes, vehicle/fleet management, interpretation and translation services among others.

The public sector is expected to offer opportunities worth c.£3.5 Bn over the next four years (2020-23) with 100 contracts in the £1 Mn – 5 Mn range and >100 contracts in the £5 Mn – 50 Mn range. A total 226 contracts are expected to come up for renewal in the public sector in the over the next four years (2020-23).

UK FM Market – Public Sector

Source: Baachu RAIN Database dated 15 Dec 2020

Market Sectors (UK)

  • Within the Public Sector, the Central Governmentis the largest procurer of FM services accounting for almost a third (~31%) of the FM market in the UK, followed by Local Government (~22%) and Healthcare (~9%)
  • The Central and Local Governmentstogether offer the biggest opportunity to FM providers in the Public domain as they account for more than half the market (~53%) of the Public FM Market in the country

UK Public FM Market – Sectors

Total UK Public FM Market = ~£58.4 Bn

Others include Housing, Transport, and Leisure (Museum, Libraries) etc.

Source: Baachu RAIN Database dated 15 Dec 2020

Competitive Landscape

  • Interserveis the largest FM service provider in the UK FM Public Sector, accounting for ~6% of the total market share with a TCV of ~£3.4 Bn, followed by Engie (~£1.8 Bn) and Mitie (~£1.8 Bn)
  • Within the sector, Interserveis the largest player (with a TCV of £1.7 Bn) to serve Central Government, the largest public sector FM services procurer, followed by Mitie (~£593 Mn) and Sodexo (~£550 Mn)

UK Public FM Market – Key Players

Total UK Public FM Market = ~£58.4 Bn

Source: Baachu RAIN Database dated 15 Dec 2020

  • The liquidation of Carillion in Jan 2018 impacted the UK FM Market, however, most of the contracts were awarded to other FM Providers. Hence, its contracts were considered to calculate the market size
  • Others also includes contracts that were awarded to multiple vendors
  • Mitie has acquired Interserve’s FM division in Dec. 2020; the impact has not been included in current analysis
  • The UK FM market, though highly competitive and developed, is undergoing major transformation due to COVID-19, innovation and new FM delivery models which could change the FM landscape. Learn more through our detailed study on the UK FM Market covering top players, competitive analysis, market breakdown, market drivers, challenges, trends, growth forecasts and COVID-19 impact, as well as a 2-hour Market Insight Workshop by our CEO - Baskar Sundaram.

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