by Brianna Crandall — May 8, 2017 — Indicating the increasing value of strategic FM to companies and highlighting the continuing quest to reduce FM spending, a new market report from Technavio indicates that the global facilities management consultancy services market was valued at almost USD14 billion in 2016 and is expected to surpass $17 billion by 2021.
Procurement market intelligence analysts announced their latest market research report on FM consultancy services for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the FM consultancy services market during the forecast period. Some of the top vendors listed in this industry analysis include Cushman & Wakefield, CBRE, JLL, ISS, and Deloitte.
In terms of geographical analysis, Europe led the global FM consultancy services market by accounting for 31% of the overall market share, followed by North America with a market share of 24%.
According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence:
The global market is currently witnessing an increase in the benchmarking capabilities of facilities management spending. Businesses are partnering with consultancy firms to formulate an appropriate operational strategy that includes quantitative factors that can be mapped against similar organizations and organizational standards. This enables facility managers to control the spending and performance.
The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Demand for value-added services
Businesses across the globe are exploring unconventional methods of cost reduction for their FM services. To meet this demand, FM services are increasingly structuring organizational policy to include non-traditional methods such as evaluating the impact of social, environmental, and economic aspects as these will reduce costs. Furthermore, consulting firms are also assisting businesses in selecting FM service providers that deliver a uniform set of services that can be implemented across several geographical regions.
Digital and business model disruptions
Innovations related to technology and sustainability in the FM industry are spurring the emergence of business models that can enable businesses to extend the life cycle of their facilities. Technological innovations such as building information modeling (BIM), smart buildings, Internet of Things (IoT), and automated systems are causing significant disruptions in the market. Businesses are increasingly partnering with consulting firms as they can help garner a better understanding of such innovations and identify technologies or models that are best suited for their operating model.
Interdepartmental integration of organizational functions
Businesses are exploiting the increased availability of facility data to enhance their efficiency. For instance, one of the major challenges that organizations face is space management. Consulting companies along with facilities managers and the human resources (HR) department make use of the facility-related data for space management.
A more detailed analysis is available in the procurement market intelligence report titled Global Facilities Management Consultancy Services – Procurement Market Intelligence Report 2017-2021, available for purchase from the Technavio Web site. The company offers a free sample of this report as well as report customization, and points to the SpendEdge Web site for more information on procurement market intelligence.