by Brianna Crandall — December 29, 2014—The Australian facilities management (FM) market is primarily driven by expanding construction activity, which widens the asset base that must be maintained and managed, according to new analysis from global growth consulting firm Frost & Sullivan.
With owners looking to raise asset utilization rates, the need for maintenance and refurbishment services is expected to further spur market revenues. Although the slowdown in the mining sector has dampened FM demand, F&S says the market is unlikely to be heavily impacted, as most contracts are for the medium to long term.
The new analysis, Facilities Management Market in Australia, finds that the market earned revenues of U.S.$32.01 billion in 2013, and estimates this will reach $42.15 billion in 2020. The study covers building, operations and maintenance, environmental management, information technology (IT) and telecommunications, support services, and property management.
“The resources sector boom prior to September 2011 and the strong trend towards outsourcing continue to open up significant opportunities for solution providers in the Australian FM market,” says Frost & Sullivan Energy and Environmental Research Analyst Janice Wung. “The increased priority placed on energy efficiency and retrofits is also paving the way for market development. The increasing numbers of buildings undertaking environment-friendly upgrade works will eventually lead to the review of current FM practices of these buildings and the possibility of adopting energy-efficient approaches and leveraging appropriate technologies.”
Challenges
However, financial pressure as a result of uncertain economic and market conditions, along with the continued shortage of qualified FM professionals, is expected to temper this growth, according to the report. Substantial reductions in budgets across a number of public sector agencies will also affect FM adoption.
Keys to success
In this cut-throat landscape, solution providers must leverage the rising popularity of integrated FM (IFM) and sustainable services to carve a niche for themselves, advises F&S. Tier I and II participants are likely to benefit the most from the rising popularity of IFM services.
“To cope with competitive and price pressures, FM vendors must also enhance internal efficiencies and improve their responsiveness to customers,” advises Wung. “As market participants wrestle for market share, ownership or structural changes among key FM service providers will change competitive dynamics and positively impact the market in the coming years.”
Frost & Sullivan offers complimentary access to more information on this research upon registration. The report is part of F&S’s Building Management Technologies Growth Partnership Service program.
Related F&S studies include: European Integrated Facility Management (IFM) Market, Global Building Automation Market, Building Construction Market in Asia-Pacific, and A Sustainability Perspective in the Asia-Pacific Green Buildings Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
