Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 85.16 Billion
|
Market Size (2030)
|
USD 118.82 Billion
|
CAGR (2025-2030)
|
5.55%
|
Fastest Growing Segment
|
Cleaning
|
Largest Market
|
Indonesia
|
Market Overview
The Southeast
Asia Facility Management
Market was
valued at USD 85.16 Billion in 2024 and is expected to reach USD 118.82 Billion
by 2030 with a CAGR of 5.55% during the forecast period.
The Southeast
Asia Facility Management (FM) market is witnessing substantial growth, driven
by rapid urbanization, rising infrastructure investments, and increasing demand
for integrated service delivery across commercial, residential, and industrial
sectors. Countries such as Singapore, Indonesia, Thailand, Malaysia, Vietnam,
and the Philippines are the key contributors, each at different stages of FM
market maturity and service adoption.
Singapore leads
the region with a highly organized and technologically advanced FM sector. The
country’s focus on sustainability, energy efficiency, and smart building
technologies has positioned it at the forefront of Integrated Facility
Management (IFM) in the region. Government initiatives, such as the Building
and Construction Authority’s (BCA) Green Mark Scheme, have further fueled the
adoption of sophisticated FM services in commercial and public infrastructures.
Meanwhile, Indonesia and Thailand are also emerging as high-potential markets
due to large-scale construction projects, growing manufacturing bases, and
expanding real estate portfolios. However, unlike Singapore, these markets are
still transitioning from single-service or bundled-service models toward
integrated FM.
In Malaysia and
Vietnam, the FM industry is being propelled by infrastructure development, the
expansion of the healthcare and education sectors, and increasing awareness of
workplace hygiene and sustainability. Vietnam, in particular, is witnessing a
surge in demand for FM services due to strong growth in the industrial and
logistics sectors, coupled with rising foreign investments and urban
development. The Philippines, though relatively smaller in market size, is
seeing a gradual shift toward outsourcing of FM services, especially in IT
parks, BPO hubs, and retail spaces.
Across the
region, the FM market is becoming more service-oriented, with growing interest
in energy management, smart building automation, predictive maintenance, and
green cleaning practices. The COVID-19 pandemic also amplified the need for
high-quality hygiene, safety, and operational continuity in facilities, further
elevating the role of FM providers. As end-users increasingly seek cost
efficiency, compliance, and quality, the demand for comprehensive FM solutions
is expected to accelerate. However, challenges such as fragmented service
structures, varying regulatory environments, and shortage of skilled FM
professionals remain. Going forward, digitization, sustainability goals, and
public-private partnerships will play a pivotal role in shaping the future of
facility management in Southeast Asia.
Key Market Drivers
Rapid Urbanization and
Infrastructure Development
Southeast Asia is
undergoing fast-paced urbanization, which is significantly driving the demand
for facility management services. The region’s major cities are expanding both
vertically and horizontally to accommodate growing populations and economic activity.
- Indonesia’s urban population surpassed 158
million in 2024, making up over 56% of its total population.
- Vietnam is expected to see 42% of its
population living in urban areas by 2025, compared to 35% in 2010.
- Thailand’s urban expansion has grown by nearly
30% over the past decade, particularly around Bangkok and the Eastern
Economic Corridor (EEC).
- The Philippines’ National Capital Region
supports over 13 million residents, with more than 2,000 commercial
high-rise buildings under active maintenance contracts.
- In Malaysia, over 70% of the population
resides in urban zones, with more than 250 large-scale infrastructure
projects planned or ongoing.
As cities grow, demand
rises for professional services such as HVAC maintenance, security, janitorial
services, and space optimization. Public transport hubs, mixed-use buildings,
and smart townships all require multi-layered FM support. Rapid construction
cycles further mean that FM companies are being engaged earlier in the building
lifecycle, even during design stages. The result is increasing integration of
FM with long-term urban planning. With government initiatives targeting “smart
city” transformation across Jakarta, Kuala Lumpur, Ho Chi Minh City, and
Bangkok, facility managers are being tasked not only with operations and
maintenance, but also with contributing to sustainability, compliance, and
energy optimization goals.
Growth in Smart Buildings
and Digital Facility Management
The adoption of smart
buildings and digital technologies is reshaping facility management in
Southeast Asia. As both private and public sector stakeholders pursue
efficiency and cost optimization, they are integrating digital systems to
manage building assets in real time.
- Singapore has committed to converting 80% of
its buildings to smart or green buildings by 2030.
- Over 60% of new commercial buildings in
Bangkok constructed since 2020 have been equipped with some form of
building automation.
- Vietnam’s Ministry of Construction mandated smart
infrastructure guidelines for major commercial developments in 2023.
- Indonesia’s top 10 commercial developers are
investing in smart energy monitoring systems covering over 20 million
square feet of real estate.
- Malaysia reported that more than 35% of large
facilities (e.g., malls, airports, tech parks) have adopted cloud-based or
IoT-driven FM platforms.
Digital FM tools such as
Computer-Aided Facility Management (CAFM), Building Management Systems (BMS),
and Internet of Things (IoT) sensors are enabling real-time fault detection,
predictive maintenance, and space utilization analytics. These technologies
reduce human error, extend asset lifespan, and help cut operational costs. In
Singapore and Malaysia, FM firms are now using digital twins to simulate
facility performance and train AI algorithms for maintenance scheduling. The
adoption of these technologies also aligns with regional sustainability goals,
as smart FM enables continuous tracking of energy, water, and waste metrics. As
digital literacy and infrastructure improve, more middle-market properties
across Vietnam and the Philippines are expected to adopt digital FM tools in
the coming years.
Rising Focus on
Sustainability and Green Building Certifications
Environmental consciousness
and sustainability regulations are playing a vital role in shaping FM
operations across Southeast Asia. Governments and building owners are
emphasizing energy efficiency and sustainability certifications, pushing FM
providers to integrate green practices into their services.
- Singapore aims to certify 80% of all buildings
under its Green Mark Scheme by 2030.
- In Malaysia, over 25% of commercial office
space in Kuala Lumpur is certified under GreenRE or LEED.
- Thailand's Energy Conservation Promotion Fund
supported 400+ green retrofitting projects between 2020 and 2024.
- Vietnam saw a 60% increase in the number of
LEED-registered buildings between 2018 and 2024.
- The Philippines' government complex in Quezon
City adopted smart FM systems to reduce energy use by 18% annually.
This sustainability push is
increasing demand for energy audits, waste management, HVAC optimization, and
renewable energy integration. FM firms are now expected to provide not just
operational maintenance but also energy savings guarantees and ESG reporting.
In Malaysia and Thailand, facilities over 10,000 square meters are required to
report annual energy use, creating new service opportunities for FM
specialists. Further, building owners who achieve green certifications gain
advantages in leasing, tenant attraction, and brand perception—making
professional FM services indispensable. As green regulation tightens,
especially for state-funded infrastructure, FM will play an increasingly
strategic role in environmental compliance and lifecycle cost management.
Expansion of Data Centers
and Mission-Critical Facilities
The digital economy’s
growth is fueling data center construction across Southeast Asia, creating a
new segment of high-value FM demand. Data centers require precision, 24/7
availability, and zero tolerance for operational downtime, making specialized
FM essential.
- Singapore hosts over 70 operational data
centers, with major expansions by hyperscalers like Google and Microsoft.
- Malaysia’s Johor state alone has attracted
over USD 1.5 billion in data center investments in the past 2 years.
- The Philippines saw a 40% increase in rack
capacity between 2022 and 2024.
- Indonesia added over 80 MW of new data center
capacity in 2023, driven by domestic cloud demand.
- Vietnam is developing more than 12
hyperscale-ready facilities, primarily in Ho Chi Minh City and Hanoi.
Facility management
services in these facilities include not just electrical and mechanical support
but also thermal management, advanced security protocols, remote monitoring,
and compliance with global standards like ISO 27001 and Uptime Institute Tiers.
The FM firms involved must be certified and skilled in managing
mission-critical environments. Furthermore, this segment encourages the
development of command centers, AI-based maintenance platforms, and smart
cooling systems. Data center FM contracts are typically longer in duration and
higher in value than traditional commercial real estate contracts, making them
a strong growth area for FM companies expanding their technical capabilities.
Rising Adoption of
Outsourced and Integrated FM Services
As operational complexity
increases, businesses across Southeast Asia are outsourcing non-core activities
like facility management to specialized providers. Integrated Facility
Management (IFM)—which combines hard services (mechanical, electrical) and soft
services (cleaning, security)—is gaining ground across sectors.
- In Thailand, over 55% of large commercial
buildings now use IFM contracts instead of multiple vendors.
- Singapore’s public sector FM contracts have
moved 75% of tenders to IFM models since 2022.
- Over 40% of real estate companies in Malaysia
shifted from in-house FM to outsourced vendors in the last 5 years.
- Vietnam’s industrial parks in Binh Duong and
Dong Nai require bundled FM services to maintain regulatory and
operational compliance.
- The Philippines’ IT parks and BPO hubs are
outsourcing cleaning, landscaping, and MEP services to third-party
providers for cost savings of up to 18%.
The appeal of IFM lies in
centralized accountability, cost transparency, and ease of contract management.
Rather than dealing with five separate vendors, clients engage one firm
responsible for everything from air conditioning to pest control. FM providers
also bring benchmarking, analytics, and performance tracking capabilities that
in-house teams may lack. This model is being rapidly adopted in sectors like
education, healthcare, retail, and manufacturing. Additionally, real estate
asset managers are choosing IFM to align service levels across portfolios in
different cities. As competitive pressure rises and building owners focus on
tenant experience, the IFM model is emerging as a standard in Southeast Asia’s
commercial property landscape.

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Key Market Challenges
Fragmented Market Structure
and Informal Competition
One of the persistent
challenges in the Southeast Asia FM market is its fragmented and unorganized
structure. Many countries in the region still have a high reliance on informal
or unregistered service providers. These small-scale players operate with low
cost and limited compliance, making it difficult for professional FM companies
to compete on price.
Most local FM
markets—especially in Indonesia, Vietnam, and the Philippines—have a
significant proportion of unregulated firms offering single-service FM at
significantly lower costs. These firms often lack standardized processes,
safety certifications, and proper workforce training. As a result, larger or
global FM providers are undercut and face pressure to reduce margins to remain
competitive.
This fragmentation also
limits the scalability of integrated or bundled services, as clients continue
to prefer hiring separate vendors for cleaning, security, HVAC, and landscaping
services due to perceived cost benefits. The absence of strong industry associations
and regulatory bodies in several countries further complicates this scenario.
In Thailand and Malaysia, although IFM is gaining ground, the lack of uniform
certification frameworks means service quality remains inconsistent.
Moreover, tendering
processes in public contracts often prioritize lowest price over quality, which
favors informal operators. As a result, well-structured FM providers with high
operational costs—due to compliance, digital platforms, training, and insurance—struggle
to maintain profitability. This structural fragmentation delays industry
maturation, hinders innovation adoption, and increases operational
inefficiencies.
Addressing this challenge
requires regulatory tightening, formalization incentives, standardization of FM
practices, and capacity-building programs that uplift small vendors into a
formal framework. A stronger focus on quality, safety, and long-term cost
efficiency—rather than just upfront pricing—will be necessary to unify the
market structure.
Shortage of Skilled
Facility Management Professionals
Another major bottleneck in
the Southeast Asian FM market is the acute shortage of trained and certified
facility management professionals. The sector’s growth has outpaced workforce
development, creating a skills gap in technical, digital, and managerial roles.
Across markets such as
Vietnam, Indonesia, and the Philippines, FM job roles are still considered
low-prestige or blue-collar in nature. As a result, attracting qualified talent
is difficult. Many FM employees are sourced from unrelated industries with limited
training, leading to service inconsistency, frequent on-the-job accidents, and
equipment mismanagement.
The situation is
exacerbated by the growing digitalization of the FM sector. Modern FM roles
require competency in IoT systems, energy analytics, building management
software, and sustainability reporting. However, most technical schools and
vocational institutes in Southeast Asia do not offer FM-specific courses or
certifications. Even in more advanced markets like Singapore and Malaysia,
there is a gap in mid-level technical roles such as energy auditors, CAFM
administrators, and predictive maintenance technicians.
Language barriers, lack of
certifications, and outdated training further limit the ability of FM companies
to deploy skilled personnel across borders. The high turnover rate—often above 30%
annually in some countries—creates additional training burdens and
operational risks.
This talent gap leads to
poor client satisfaction, lower contract renewal rates, and difficulty in
scaling services across sectors like healthcare and data centers, which require
precision and compliance. To solve this, governments and private institutions
must invest in FM training centers, certifications, and skill recognition
programs. Multinational FM firms may also need to develop in-house academies or
local partnerships to train future-ready workforces across Southeast Asia.
Lack of Standardization and
Regulatory Clarity
Facility Management in
Southeast Asia suffers from inconsistent standards and vague regulations,
making compliance difficult and operations unpredictable. The absence of
unified guidelines across countries creates inefficiencies in contract
execution, reporting, and client expectations.
Unlike Europe or the U.S.,
where FM practices are regulated under ISO standards (such as ISO 41001), most
Southeast Asian countries either lack FM-specific frameworks or have fragmented
ones. In Indonesia and Vietnam, FM regulations are often embedded within
general construction or health & safety acts, without clear delineation for
service standards, documentation, or performance metrics.
This lack of
standardization leads to varied interpretations of service levels—e.g., what
constitutes "deep cleaning," or how frequently HVAC systems should be
serviced. In Malaysia, FM is partly regulated under building codes but lacks
specific benchmarking criteria for sustainability, energy usage, or staff
certifications. The Philippines faces similar confusion, especially in public
infrastructure, where procurement lacks clear FM service definitions, leading
to subpar performance and disputes.
In cross-border operations,
global FM providers struggle to maintain consistency when operating in
countries with vastly different regulatory frameworks. This challenge is even
more significant for sectors such as healthcare and airports, where adherence
to specific maintenance and hygiene protocols is mandatory but poorly enforced.
As a result, FM companies
must invest in creating their own internal SOPs, audits, and quality
frameworks—raising operational costs. It also exposes them to potential
liability in the absence of enforceable national guidelines. Regulatory clarity
and industry-wide standards are critical to ensure service consistency, reduce
contract ambiguity, and elevate the industry’s credibility.
Resistance to Outsourcing
and Integrated FM Adoption
While outsourcing and
Integrated Facility Management (IFM) models are gaining popularity, there
remains considerable resistance in many Southeast Asian markets—especially
among small to mid-sized enterprises and government institutions.
Many clients in the region
still operate under a legacy model of hiring multiple single-service providers.
They perceive IFM as complex, costly, or risky. In Vietnam and the Philippines,
for example, many facility owners prefer to keep control over in-house staff or
work directly with individual vendors for services like cleaning, security, and
HVAC.
This resistance is driven
by several factors: fear of job loss among existing staff, reluctance to share
operational control, and limited awareness of IFM benefits. In some cases,
previous negative experiences with outsourcing—such as service disruptions or
hidden costs—have made clients wary of bundled contracts.
Government departments,
despite being large property owners, often follow bureaucratic procurement
models that are not designed for multi-service outsourcing. Their tender
structures do not support bundled FM contracts, making it difficult for
providers to propose cost-effective IFM solutions.
Even when outsourcing
occurs, contracts tend to be short-term and heavily price-driven, discouraging
innovation and investment from FM companies. The lack of trust and strategic
alignment between clients and FM firms further inhibits long-term relationships.
Changing this mindset
requires market education on total lifecycle cost savings, better case studies
from mature markets, and more flexible service models tailored to client
comfort levels. FM companies must also build consultative sales teams that can
help clients gradually transition from siloed services to fully integrated
solutions.
Technological Gaps and
Uneven Digital Readiness
Despite the increasing role
of technology in modern facility management, many FM providers and clients in
Southeast Asia lack the infrastructure or capability to adopt digital tools.
This creates a technological divide that limits service quality, operational
efficiency, and scalability.
While countries like
Singapore and Malaysia are at the forefront of smart FM adoption—using IoT
sensors, CAFM software, and digital twins—other markets like Indonesia, the
Philippines, and Vietnam lag behind. In these countries, many FM processes are
still manual or spreadsheet-based, limiting data accuracy, reporting speed, and
responsiveness.
Cost is a significant
barrier, particularly for smaller FM firms that cannot afford to implement
advanced platforms or train staff. In rural or tier-2 cities, limited internet
connectivity and lack of cloud infrastructure make digital FM impractical. Moreover,
the majority of FM workforce lacks digital literacy, making it difficult to
transition to smart platforms even when they are deployed.
The lack of standardized
digital tools also causes interoperability issues. Different clients and FM
companies use different software, making integration and benchmarking across
portfolios extremely challenging.
This digital gap reduces
transparency, slows decision-making, and increases human error. It also
prevents FM firms from offering value-added services like predictive
maintenance, sustainability analytics, and performance dashboards—key
differentiators in mature markets.
Bridging this divide will
require subsidized access to FM software, government support for digital
infrastructure, and investment in workforce upskilling. FM firms should also
focus on modular tech platforms that are scalable based on client size and digital
maturity.
Key Market Trends
Growth of Integrated
Facilities Management (IFM) in Industrial and Retail Sectors
Integrated Facilities
Management (IFM) is gaining momentum in Southeast Asia’s industrial parks,
logistics hubs, and large retail spaces. These sectors require seamless
coordination of multiple services—security, HVAC, MEP, cleaning, and
landscaping—across wide geographical areas and diverse asset types.
In countries like Vietnam
and Indonesia, the rapid expansion of manufacturing clusters has led to the
creation of sprawling industrial zones where centralized FM control is more
efficient than fragmented vendor management. For instance, in Vietnam’s VSIP
industrial parks, over 70% of tenants now rely on bundled FM services managed
through a single provider.
Similarly, retail property
developers are turning to IFM to reduce costs, improve footfall experiences,
and enhance brand value. Thailand’s top five retail groups have all
transitioned their shopping mall portfolios to IFM contracts in the last five
years. These arrangements reduce duplication, streamline communication, and
improve overall operational transparency.
The IFM trend is also
driven by rising technology use, such as centralized dashboards, mobile
maintenance applications, and cloud-based ticketing systems. Clients are now
demanding value-added services like energy audits, pest analytics, and
real-time visitor tracking—services that are easier to deliver under an
integrated model.
As Southeast Asian
businesses aim to reduce administrative overhead and align operations with
global benchmarks, IFM adoption will accelerate. The trend is not only reducing
costs but also raising service quality and strategic alignment between FM
providers and end users.
Integration of
Sustainability Metrics into FM Service Delivery
Sustainability is no longer
an option but a core component of facility management strategy across Southeast
Asia. Green building compliance, net-zero goals, and environmental performance
reporting are being integrated directly into FM scope of work.
For instance, FM contracts
now increasingly include responsibilities such as managing energy KPIs, water
usage targets, and waste diversion goals. Singapore’s Green Mark certification
requires ongoing performance data submissions, for which FM companies are
accountable. In Malaysia, over 30% of green-certified buildings have FM
partners responsible for achieving energy-use intensity (EUI) benchmarks.
This trend is being driven
by both regulation and investor pressure. ESG mandates are pushing developers,
REITs, and corporates to reduce operational carbon footprints. FM companies are
now investing in sustainability managers, energy modeling software, and green
procurement practices.
In Thailand and Vietnam,
sustainability-linked performance metrics are being tied to incentive-based
contracts. For example, FM providers that help reduce energy consumption by 10%
compared to the previous year may receive financial bonuses.
Recycling programs, solar
panel cleaning, rainwater harvesting system maintenance, and composting waste
management are now routine parts of FM duties. Clients increasingly expect
dashboards showing real-time environmental performance data.
This trend is making FM
firms more strategic, moving them from a cost center to a value generator.
Those that can embed sustainability into daily operations will enjoy stronger
client loyalty and increased opportunities in premium segments like smart cities,
healthcare, and technology campuses.
Widespread Adoption of
Smart Technologies and Predictive Maintenance
Smart technologies are
redefining FM operations in Southeast Asia by introducing automation,
analytics, and proactive asset management. Facilities are moving away from
reactive maintenance models to predictive and condition-based maintenance,
driven by real-time data from sensors and IoT devices.
In Singapore, over 80% of
large commercial buildings utilize some form of Building Management Systems
(BMS), with growing integration of energy analytics and AI-based fault
detection. Malaysia’s top 10 FM companies have invested in Computer-Aided
Facility Management (CAFM) platforms to digitize service workflows and automate
reporting.
Predictive maintenance
involves using equipment condition data—such as vibration, temperature, or
pressure readings—to forecast failures before they occur. This not only reduces
downtime but also extends asset lifespan and improves safety. Industrial estates
in Indonesia and Thailand have started embedding smart meters and sensors in
HVAC, lighting, and elevator systems to trigger automated maintenance alerts.
Furthermore, mobile
workforce apps are gaining ground, allowing FM technicians to receive and
resolve work orders in real time, scan QR-coded assets, and update job statuses
with photos and timestamps. This increases transparency and reduces
administrative lag.
Smart washroom systems,
people counting devices, and thermal cameras are also enhancing FM in public
spaces, enabling data-driven decisions on cleaning frequency, security
deployment, and ventilation control.
As clients demand
transparency, speed, and efficiency, FM providers will need to continuously
integrate new technologies. Those that can scale digital tools across
multi-site portfolios will establish themselves as market leaders.
Increasing Demand for FM
Services in Healthcare and Data Center Segments
The healthcare and data
center industries are emerging as high-demand verticals for facility management
in Southeast Asia. These sectors have complex operational environments,
critical infrastructure, and stringent compliance requirements—creating
opportunities for specialized FM services.
In healthcare, hospitals,
clinics, and diagnostic labs require 24/7 FM support across biomedical
equipment maintenance, air filtration, sterile cleaning, and patient safety
compliance. In Thailand and the Philippines, over 40 new hospitals have been
commissioned since 2021, with most opting for partial or full FM outsourcing to
meet Joint Commission and local health standards.
Meanwhile, the explosion in
digital services and cloud computing is spurring rapid data center development.
Indonesia, Malaysia, and Vietnam have witnessed over 100 MW of new capacity
added in the past 2 years. These facilities require precision FM involving
uptime assurance, climate control, fire suppression systems, and advanced
surveillance.
FM in data centers is
particularly demanding—requiring zero downtime, redundant systems, and
certified personnel. The role of FM providers extends to compliance management
with ISO, Uptime Institute Tier levels, and environmental benchmarks.
Singapore, being a data hub, has created dedicated FM teams with digital twin
capabilities for virtual maintenance planning.
Both healthcare and data
centers offer long-term contracts, premium pricing, and lower client churn,
making them attractive sectors for FM companies seeking to upgrade service
portfolios. As these industries expand regionally, FM players with
sector-specific expertise and compliance readiness will gain significant
competitive advantage.
Segmental Insights
Service Insights
Property segment dominates in the Southeast Asia Facility Management
market in 2024 primarily due to rapid urbanization, an expanding real estate portfolio,
and the growing sophistication of infrastructure across both public and private
sectors. This dominance is evident in commercial buildings, residential
complexes, retail spaces, industrial parks, and mixed-use developments.
Southeast Asia
is witnessing a surge in construction activity, particularly in countries like
Vietnam, Indonesia, Malaysia, and the Philippines. As of 2024, more than 60% of
new urban development projects in the region fall under commercial or
residential real estate, all of which require consistent FM services like
maintenance, security, energy management, landscaping, and tenant services.
This property-centric growth fuels continuous demand for both single and
integrated FM services.
Additionally,
the shift toward green building certifications—such as Singapore’s Green Mark
and Malaysia’s GBI—has amplified the role of FM in maintaining energy
performance and compliance. Real estate developers are increasingly outsourcing
FM to meet sustainability targets, which further strengthens the property
segment’s contribution.
High-rise
condominiums and gated communities across Bangkok, Ho Chi Minh City, and
Jakarta are now relying on professional FM services to handle critical aspects
like fire safety systems, water management, and lift maintenance. In parallel, retail
properties, such as mega malls and hypermarkets, continue to demand
high-frequency, high-quality FM to ensure customer satisfaction and asset
uptime.
Moreover, the
property segment tends to engage FM providers through long-term contracts (3–5
years), ensuring recurring revenue for the industry. With over 70% of
outsourced FM contracts tied to property assets in the region, this vertical
remains the central pillar of the market.
The convergence
of rising real estate development, increased outsourcing behavior, and the
demand for value-added FM services ensures that the property segment will
continue to dominate the FM landscape in Southeast Asia through 2024 and beyond.
Type Insights
Soft Services segment dominated the Southeast Asia Facility Management
market in 2024 due to its essential role across diverse property types and
lower entry barriers. Services like cleaning, landscaping, security, and pest
control are in constant demand across commercial, residential, and
institutional properties. With heightened hygiene awareness post-COVID-19 and
the expansion of retail and office spaces, routine services like janitorial and
disinfection gained priority. Additionally, these services are often outsourced
more readily than technical services, especially by small and mid-sized
property owners, driving higher contract volumes and making Soft Services the
most widely utilized segment in the FM market.

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Country Insights
Largest Country
Indonesia dominates the Southeast Asia Facility Management
market in 2024 due to its large population, rapid urban development, expanding
infrastructure, and growing demand for outsourced building services. As the
region’s largest economy and most populous nation—with over 275 million people—Indonesia
presents vast opportunities for FM service providers across both public and
private sectors.
A key driver of
Indonesia’s dominance is its urbanization boom. Major cities like Jakarta,
Surabaya, and Bandung are witnessing a surge in residential, commercial, and
mixed-use real estate projects. According to recent development statistics, over
50% of Indonesia’s population now resides in urban areas, with new malls,
offices, apartments, and industrial parks requiring a full suite of FM services
ranging from cleaning and security to HVAC maintenance and energy management.
Indonesia also
has one of the largest industrial and logistics footprints in Southeast Asia.
With over 15 major industrial estates and increasing foreign investment in
manufacturing, integrated facility management is becoming a critical
operational requirement. This has led to a surge in demand for bundled FM
contracts in sectors such as automotive, textiles, and electronics.
Moreover,
government-driven infrastructure initiatives under the National Medium-Term
Development Plan (RPJMN) have increased construction of hospitals, airports,
and public buildings—creating a steady stream of FM opportunities. Indonesia’s
government and public institutions are increasingly outsourcing non-core
operations like facilities maintenance, particularly in education and transport
sectors.
The rise of
modern business practices and multinational facility management players
entering the Indonesian market has also professionalized service delivery and
broadened adoption. Coupled with growing awareness about sustainability,
hygiene, and workplace efficiency, Indonesian businesses are more willing to
invest in comprehensive FM services.
Emerging Country
Singapore is the emerging country in the Southeast
Asia Facility Management market in the coming period due to its strong focus on smart
buildings, sustainability, and regulatory-driven outsourcing. As a regional hub
for commercial real estate, healthcare, and data centers, Singapore is rapidly
adopting Integrated Facilities Management (IFM) and technology-driven solutions
like IoT and predictive maintenance. Government initiatives such as Green Mark
certification and smart nation goals are pushing FM providers to innovate.
Additionally, a shortage of skilled in-house manpower has led to increased
outsourcing across both public and private sectors, positioning Singapore as a
high-value, innovation-led FM market in the coming years.
Recent Developments
- In May 2025, DailyCo, a
leading Indonesian F&B operator, acquired Waku, a catering and canteen
management firm, to strengthen its institutional food services portfolio. Waku
serves over 10 million meals annually to 658 clients across 20 cities, offering
a 15,000-item menu. With 88% YoY revenue growth and solid profitability, Waku
also secured a major contract with the Ministry of Religious Affairs to provide
packaged meals for Hajj pilgrims, positioning DailyCo as a key player in the
sector.
- In June 2025, Indonesia’s
Ministry of Industry emphasized expanding international partnerships to elevate
the F&B sector's GDP contribution. The sector grew 5.82% in Q3 2024,
surpassing the national GDP growth of 4.95%. It accounted for 40.17% of the
non-oil and gas processing industry’s GDP. Strong domestic demand, rising
exports, and steady investment inflows are reinforcing the sector’s role as a
backbone of national economic development and job creation, according to
Industry Minister Agus Gumiwang Kartasasmita.
- In August 2023, Malaysia Aviation Group (MAG) announced the termination of its
long-standing in-flight catering partnership with Brahim’s Holdings in August
2023, following extended negotiations. Brahim’s issued a formal discontinuation
notice on June 30, with a mutual agreement to extend services until August 31.
MAG plans to internalize its catering operations post-separation, marking a
strategic shift toward operational control and greater flexibility within its
non-airline business segments.
- In October 2024, Malaysia Aviation Group (MAG) appointed Sagar Sanjay Dighe as CEO of MAG
Catering Operations (MCAT), effective November 1, 2024. Reporting to the CEO of
Aviation Services, Dighe is tasked with driving strategic growth across MCAT’s
business. With prior leadership experience at SATS Food India, where he oversaw
major expansion projects including a modern frozen food plant, Dighe’s
appointment aligns with MAG’s aim to expand and professionalize its non-airline
business verticals, especially in aviation catering.
- In June 2025, Vietnam Air
Catering Services Company (VACS), a Vietnam Airlines subsidiary, initiated an
in-flight meal production facility at Long Thanh International Airport. With an
initial output of 20,000 meals per day, scalable to 40,000, VACS targets both
national and international carriers. Parallelly, Vietnam Airlines Engineering
Company (VAECO) began construction of a USD 44 million aircraft maintenance
complex, featuring capacity for two wide-body and two narrow-body aircraft,
with 250,000 maintenance hours annually, supporting 120–150 aircraft visits per
year.
Key
Market Players
- Aden Group
- CBRE
Group, Inc.
- Jones
Lang LaSalle
- Sodexo
S.A.
- Group
Atalian
- Johnson
Controls International
- Siemens
AG
- Fujitsu
Limited
- Honeywell
International
- Nouvel
Facilities Pvt Ltd
By Service
|
By Type
|
By Industry
|
By End User
|
By Country
|
- Property
- Cleaning
- Security
- Support
- Catering
- Others
|
- Hard
Services
- Soft
Services
|
|
- Commercial
- Residential
- Industrial
- Public
Sector
|
- Vietnam
- Thailand
- Singapore
- Philippines
- Malaysia
- Indonesia
- Rest of
Southeast Asia
|
Report Scope:
In this report, the Southeast Asia Facility
Management Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- Southeast Asia Facility
Management Market, By Service:
o Property
o Cleaning
o Security
o Support
o Catering
o Others
- Southeast Asia Facility
Management Market, By Type:
o Hard Services
o Soft Services
- Southeast Asia Facility
Management Market, By Industry:
o Organized
o Unorganized
- Southeast Asia Facility
Management Market, By End User:
o Commercial
o Residential
o Industrial
o Public Sector
- Southeast Asia Facility Management
Market, By Country:
o Vietnam
o Thailand
o Singapore
o Philippines
o Malaysia
o Indonesia
o Rest of Southeast Asia
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Southeast Asia Facility Management Market.
Available Customizations:
Southeast Asia Facility Management Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Southeast Asia Facility Management Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]