What is the most successful model for FM services in Europe today? This Frost & Sullivan report explores industry trends

by Brianna Crandall — December 4, 2017 — Integrated facilities management (IFM) continues to represent the fastest-growing segment of the European facilities management (FM) industry, according to a new report from global growth partnership company Frost & Sullivan. The European FM industry is expected to continue to move toward service integration and sophisticated advisory services focused on business productivity.

Blue infographic for Frost & Sullivan European FM report

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While European clients are demanding added value and innovative solutions, with areas such as workplace management, sustainability, data analytics, and energy management all growing in popularity, multinational companies are likely to be challenged by national FM vendors moving into integrated FM and heightened merger and acquisition activities.

John Raspin, partner at Frost & Sullivan, stated:

The European IFM market is yet to see full consolidation. However, this will change in the next few years as firms add to their service capabilities by building hard FM skills and moving towards more integrated offerings.

To survive and thrive in this highly competitive market, Frost & Sullivan says IFM companies need to embrace key market trends, including:

  • Cloud-hosted analytics to drive remote management for technical services and preventive maintenance;
  • New business models such as anything-as-a-Service (XaaS) models to utilize technology to shift from CAPEX to OPEX;
  • Social and demographics changes such as technology, labor force, and workforce change management to increase value creation; and
  • Industry megatrends such as Industrial Internet of Things (IoT), artificial intelligence (AI), augmented reality, and intelligent robots to transform IFM services across Europe in terms of service delivery options and customer behavior.

Raspin noted:

Commercial multinationals have long taken the lead in reaping the benefits of IFM. With lessons learnt from the commercial market, industrial multinationals are expected to increase their presence in this market whilst also bringing new, challenging demands for vendors.

Part of Frost & Sullivan’s Homes and Buildings Growth Partnership Service program, Frost & Sullivan’s report, European Integrated Facilities Management Market, provides a full competitive analysis, including market share, of the European market as a whole and at a regional level.

The research includes market revenue and growth forecast to 2022 as well as analysis by country, service type, delivery model, vertical end-user market, and contract type. European regions assessed include the United Kingdom, Germany, France, Italy, Spain, Benelux, Scandinavia, and the Alpine region.