Facility Management Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Component (Solution and Services), By Deployment (On-Premises and Cloud), By Market Penetration (Organized & Unorganized), By Product Type (Interior and Exterior), By Organization Size (Large and Small & Midsize), By Application (Commercial, Industrial & Residential), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 51.34 Billion
CAGR (2026-2031)	12.51%
Fastest Growing Segment	Cloud
Largest Market	North America
Market Size (2031)	USD 104.14 Billion

Market Overview

The Global Facility Management Market will grow from USD 51.34 Billion in 2025 to USD 104.14 Billion by 2031 at a 12.51% CAGR. Facility Management is defined as a multidisciplinary profession that ensures the functionality, comfort, safety, and efficiency of the built environment by integrating people, places, processes, and technology. The market is primarily propelled by the rapid expansion of global real estate infrastructure and the strategic imperative for organizations to outsource non-core maintenance operations to specialized service providers. This growth is further supported by a rising corporate emphasis on workplace optimization which necessitates professional operational oversight. According to the Royal Institution of Chartered Surveyors, in 2025, the Global Commercial Property Monitor reported that tenant demand in the United States sustained a positive net balance of 23 percent which underscores the enduring requirement for professionally managed commercial assets.

However, the industry faces a significant impediment regarding acute skilled labor shortages and inflationary cost pressures that strain operational margins. Service providers increasingly struggle to recruit and retain the qualified technical personnel required to deliver complex integrated solutions while simultaneously managing rising wage and material expenses. This widening talent gap limits the capacity of firms to scale their service delivery effectively and stands as a substantial obstacle that could decelerate the broader expansion of the global facility management market.

Key Market Drivers

The Rapid Expansion of the Global Construction and Real Estate Sectors stands as a primary catalyst propelling the facility management industry. As urbanization accelerates and commercial infrastructure development rebounds in key metropolitan hubs, the aggregate square footage requiring professional maintenance and operational oversight has surged. This expansion is not limited to new developments but extends to the revitalization of existing assets, creating a sustained demand for comprehensive facility management contracts that cover everything from hard services to soft services. The resurgence in occupancy levels further amplifies this need, as organizations prioritize functional and well-maintained environments to support their workforce. According to JLL, November 2025, in the 'Global Real Estate Trends and Perspectives' report, global office leasing volume in 2025 reached its highest level in six years, signaling a robust recovery in tenant demand that directly translates into increased service opportunities for facility management providers.

Simultaneously, the Integration of Internet of Things (IoT) and Smart Building Technologies is fundamentally reshaping service delivery models from reactive to predictive. Facility managers are increasingly leveraging connected sensors and data analytics to monitor asset performance in real-time, thereby reducing downtime and extending equipment lifecycles. This digital transformation is driven by the imperative to enhance operational efficiency and occupant experience while controlling expenditures. According to Honeywell, February 2025, in the 'AI in Buildings' study, 84 percent of commercial building decision-makers plan to increase their use of artificial intelligence in the next year to optimize operations. This technological adoption helps address the market's critical focus on financial prudence; according to CBRE, in the 'Trends in Facilities Management for 2025' report, 77 percent of industry experts listed cost and value for money as the top driver for facility management purchasing decisions.

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Key Market Challenges

The Global Facility Management Market is currently restricted by an acute shortage of skilled labor and concurrent inflationary pressures. This scarcity of qualified personnel directly impedes the ability of service providers to execute essential maintenance and operational tasks efficiently. As the industry relies heavily on specialized technical expertise for integrated building systems, the lack of available talent creates a significant operational bottleneck. Firms are compelled to increase wages to compete for limited talent, which, combined with rising material costs, deeply erodes operating margins and limits the financial capacity required for business expansion.

According to the Associated General Contractors of America, in the '2025 Workforce Survey', 92 percent of firms reported struggling to hire qualified workers to meet current project demands. This pervasive workforce deficit means that even when demand for facility services is high, providers often lack the human capital to fulfill new contracts or maintain service levels. Consequently, the inability to scale workforce capabilities effectively acts as a brake on the broader growth of the market, preventing firms from capitalizing on emerging outsourcing opportunities.

Key Market Trends

The implementation of ESG-centric sustainability strategies is becoming a definitive force in the facility management sector, driven by stringent regulatory frameworks and corporate net-zero commitments. Facility managers are shifting focus from simple energy conservation to comprehensive decarbonization roadmaps that encompass scope 1, 2, and 3 emissions. This trend is accelerating as regulatory bodies in major markets enforce penalties for non-compliance, compelling building owners to prioritize retrofits and green certifications to preserve asset value. The demand for sustainable operations is directly influencing real estate strategies; according to CBRE, October 2025, in the 'European Office Occupier Sentiment Survey 2025', 60 percent of occupiers cited sustainability features as a primary driver for their lease renewal decisions, underscoring the critical link between environmental performance and tenant retention.

Simultaneously, the market is witnessing a convergence toward Integrated Facility Management (IFM) models, where organizations consolidate fragmented service contracts into unified, outcome-based agreements. This structural shift allows enterprises to streamline governance, leverage economies of scale, and eliminate the inefficiencies associated with managing multiple siloed vendors. By bundling hard and soft services under a single strategic partner, companies are achieving greater operational transparency and ensuring consistent service standards across diverse portfolios. This movement toward consolidation is reflected in the performance of major industry players; according to ISS A/S, February 2025, in the 'Annual Report 2024', the company delivered an organic growth of 6.3 percent, a performance largely attributed to the successful extension and expansion of global key account contracts that utilize this integrated delivery model.

Segmental Insights

The Cloud deployment segment represents the fastest-growing category within the Global Facility Management Market, driven by a widespread shift toward digital operational models. Organizations are increasingly adopting cloud-based solutions to eliminate the substantial capital expenditure associated with installing and maintaining on-premise hardware. This model offers enhanced scalability and flexibility, allowing businesses to adjust resources according to demand without physical infrastructure constraints. Furthermore, the seamless integration of cloud platforms with Internet of Things devices facilitates real-time remote monitoring of assets across multiple locations, ensuring efficient data accessibility and supporting the rapid expansion of this segment.

Regional Insights

North America leads the Global Facility Management Market, supported by a highly developed commercial real estate infrastructure and the widespread acceptance of integrated facility management solutions. This dominance is largely attributed to the region's extensive adoption of smart technologies, such as the Internet of Things and predictive analytics, which drive operational efficiency. Furthermore, strict environmental regulations regarding energy conservation necessitate advanced facility oversight. The presence of established institutions like the International Facility Management Association plays a critical role in professionalizing the sector, setting rigorous standards that elevate service quality and market maturity across the region.

Recent Developments

• In October 2025, CBRE announced a strategic partnership with Ecolab, a global leader in water solutions, to enhance water efficiency and quality within commercial real estate portfolios. This collaboration enabled the real estate firm's clients to access proprietary water management technologies and expertise, integrating them directly with existing facility management services. The initiative aimed to assist property owners in reducing operational costs and achieving sustainability goals by optimizing water usage across data centers, life sciences facilities, and manufacturing plants. The Chief Sustainability Officer emphasized that addressing water scarcity had become a critical component of their environmental strategy for managing large-scale assets.
• In October 2024, JLL launched a new artificial intelligence platform, JLL Falcon, designed to integrate proprietary data with generative AI models for the commercial real estate sector. The platform was developed to provide revenue-generating insights and cost-saving opportunities for facility managers and real estate owners by analyzing vast amounts of operational data. The Chief Technology Officer stated that the solution would power the next generation of the company’s AI assistants and streamline complex tasks such as image recognition and data modeling. This launch represented a significant step in the firm's strategy to accelerate the adoption of advanced technology in facility management operations.
• In October 2024, Mitie Group plc acquired Argus Fire, a UK-based fire systems engineering business, for a total consideration of £38 million. This strategic move was intended to bolster the company's position in the fire and security market by adding deep technical capabilities in the design, installation, and maintenance of active fire protection systems. The acquisition complemented the firm's existing portfolio and offered opportunities to cross-sell services to its extensive customer base. The Managing Director of Business Services noted that the deal aligned with the growing demand for intelligent building solutions and regulatory compliance in safety systems.
• In August 2024, ISS A/S officially signed a major seven-year contract with the United Kingdom’s Department for Work and Pensions to provide integrated facility management services. The agreement, which included options for extension, was valued at approximately £135 million annually and covered more than 800 sites throughout the country. Under this arrangement, the company committed to delivering cleaning, catering, technical services, and workplace experience solutions to support government operations. The Group CEO expressed that the partnership would leverage their public sector expertise to create safe and productive workspaces while delivering social value to communities across the UK.

Key Market Players

• CBRE Group, Inc.
• Sodexo S.A.
• ISS A/S
• Jones Lang LaSalle (JLL) Incorporated
• Compass Group PLC
• Aramark Corporation
• Mitie Group PLC
• Cushman & Wakefield PLC
• ABM Industries Inc.
• G4S Limited

By Component	By Deployment	By Market Penetration	By Product Type	By Organization Size	By Application	By Region
Solution and Services	On-Premises and Cloud	Organized & Unorganized	Interior and Exterior	Large and Small & Midsize	Commercial Industrial & Residential	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Facility Management Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Facility Management Market , By Component:

• Solution and Services

• Facility Management Market , By Deployment:

• On-Premises and Cloud

• Facility Management Market , By Market Penetration:

• Organized & Unorganized

• Facility Management Market , By Product Type:

• Interior and Exterior

• Facility Management Market , By Organization Size:

• Large and Small & Midsize

• Facility Management Market , By Application:

• Commercial
• Industrial & Residential

• Facility Management Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE