by Brianna Crandall — January 21, 2013—As the concept of integrated facilities management (IFM) becomes increasingly understood and demanded by end users across the globe, numerous opportunities are opening up for suppliers from a variety of backgrounds, according to new analysis by Frost & Sullivan’s Building Management Technologies Research and Consulting practice, Global IFM Market: High Growth in Emerging Markets but Highest Revenues Remain in the West.
Frost & Sullivan says that the continued trend towards outsourcing and service integration will sustain growth momentum. The company found that the market earned revenues of $64.20 billion in 2011, and estimates that it will reach $96.17 billion in 2017. This means that integrated FM (IFM) will increase its penetration of the total global outsourced FM market from around 12% in 2011 to over 15% by 2017.
“The global IFM market is in growth mode, not just in the emerging markets but also in the more mature markets,” noted Frost & Sullivan Partner John Raspin. “The economic crisis has further heightened awareness about outsourcing in both private and public sectors in the more mature markets.”
Despite high growth rates, revenues generated by IFM in emerging markets like India and China remain comparatively small, according to the company. This is because outsourcing is considered cost intense, and the concept of integrated solutions remains little understood.
Frost & Sullivan believes that the more mature markets of North America and Europe will still account for more than two thirds of global IFM revenues in 2017. The demand for further cost savings and single contact solutions will continue to drive service integration in mature markets.
These trends are reinforced when synergies with other services can be demonstrated and cost savings achieved. Besides, the demand for value-add services, such as energy management, present IFM providers who have these capabilities with the opportunity to differentiate their service offering.
“Many leading FM players have enhanced their integrated offering capabilities and will continue to do so,” added Raspin. “The benefits of such a strategy become even more tangible as intensifying competition among suppliers highlights the need for greater differentiation.”
Mature IFM markets are characterized by intense competition, notes Frost & Sullivan. The challenge for many FM participants, therefore, will be to reach a balance between being competitive and achieving reasonable margins.
For more information on this study, please send an e-mail with contact details to Chiara Carella, Corporate Communications, at chiara.carella@frost.com.
