Report Overview

An increasing complexity of facilities, rising cost of commercial real estate, and growing demand for workplace optimization are expected to drive United States Facility Management Market during the forecast period between 2024 and 2030.

United States Facility Management Market – Industry Trends & Forecast Report, 2030

United States Facility Management Market size was estimated at USD 268.15 billion in 2023. During the forecast period between 2024 and 2030, United States Facility Management Market size is projected to grow at a CAGR of 6.2% reaching a value of USD 403.17 billion by 2030. Prominent drivers of the market include the increasing demand for customized in-house and outsourced facility management solutions, fueled by the expanding number of residential and commercial buildings in major urban areas across the country. Also, the market is experiencing a boost from the rising focus on integrated facility management and infrastructure developments, particularly in large cities. Advanced technologies like the Internet of Things (IoT), artificial intelligence (AI), and robotics are playing a transformative role in enhancing operational efficiency, with tools such as robotic facility monitoring and augmented reality becoming more prevalent. Companies like ABM, which signed a multi-year agreement in March 2023 to provide housekeeping and staffing services for Tropicana Field and Al Lang Stadium, are leading this shift towards integrated, tech-enabled services.

Facility Management – Overview

Facility management refers to the professional oversight and coordination of a building's operations, infrastructure, and services to ensure optimal functionality, safety, and efficiency. It encompasses a wide range of tasks, including maintenance, repairs, cleaning, security, and space management. By integrating various services, facility management aims to create a well-maintained and efficient environment that supports the core activities of businesses or organizations. With growing complexity in building systems, many organizations choose to outsource facility management tasks to third-party providers, enabling them to focus on their primary operations while ensuring effective upkeep and operational continuity of their facilities.

United States Facility Management Market

Growth Drivers

Growing Focus on Energy Efficiency and Sustainability

United States Facility Management Market is witnessing growing emphasis on sustainability and energy efficiency. Many organizations are adopting sustainable practices not only to meet regulatory standards but also to cut operational costs and enhance their corporate reputation. Facility Management is integral to achieving these goals by improving building performance and reducing environmental impact. Key strategies include energy-efficient HVAC systems, LED lighting, and smart metering, all designed to lower energy usage and costs. Retrofitting older structures with these technologies can lead to substantial reductions in utility expenses and emissions. Certifications like LEED and ENERGY STAR have become standard for green buildings, with Facility Management professionals driving their adoption and upkeep. In addition to energy efficiency, Facility Management supports sustainability through waste reduction, water conservation, and better indoor air quality. As sustainability gains importance, it shapes strategic decisions, attracting eco-conscious investors and tenants while delivering long-term cost savings.

Challenges

Shortage of Qualified and Experienced Facility Managers

One of the key challenges in the facility management (FM) industry is the shortage of qualified and experienced professionals. With an aging workforce in skilled trades such as HVAC and electrical work, the gap is widening as experienced workers retire. Additionally, attracting younger talent to facility management roles is difficult due to perceived lack of prestige and growth opportunities. To address this, facility management companies are investing in workforce development through apprenticeship programs, vocational training, and certification courses. These initiatives aim to bridge the skills gap and ensure the availability of skilled facility managers for the future.

Impact of Escalating Geopolitical Tensions on United States Facility Management Market

Escalating geopolitical tensions among countries across regions could have a significant impact on the growth of United States Facility Management Market. Rising global conflicts may lead to supply chain disruptions, affecting the availability of critical materials and equipment needed for facility operations and maintenance. Increased energy costs due to fluctuating oil prices could strain operational budgets, forcing FM providers to adopt cost-cutting measures. Additionally, regulatory changes influenced by global dynamics may increase compliance costs. As geopolitical tensions continue to evolve, FM companies must adopt proactive risk management strategies to ensure resilience and maintain service efficiency in an uncertain environment.

United States Facility Management Market

Segmental Coverage

United States Facility Management Market – By Service Offered

By service offered, United States Facility Management Market is bifurcated into Hard Services and Soft Services segments. The hard services segment holds a higher share in United States Facility Management Market by service offered. The industry encompasses services like plumbing, drainage, cleaning, and building fabric maintenance, all related to the physical structure of buildings. The rapid expansion of the construction sector has driven global urbanization growth.

United States Facility Management Market – By Type of Facility  Management

By type of facility management, United States Facility Management Market is split into In-House Facility Management and Outsourced Facility Management segments. The outsourced facility management segment holds a higher share in United States Facility Management Market by type of facility management, as organizations increasingly outsource non-core activities to focus on core operations. Additionally, outsourced service providers' ability to offer advanced technological solutions further drives companies toward this model, contributing to overall market expansion.

United States Facility Management Market – By Application

On the basis of application, United States Facility Management Market divided into Commercial, Industrial, Residential, Institutional, and Government segments. The commercial segment holds the highest share in United States Facility Management Market by application. Commercial construction focuses on business purposes, such as new office buildings or industrial facilities, with service providers managing essential infrastructure tasks like lift maintenance, repairs, and cleaning. Smart building technology aids facilities managers in creating energy-efficient environments and managing assets. In November 2023, Matterport Inc. and Belden Inc. partnered to offer 3D digital twin-powered solutions for facilities management. The northeastern US has seen significant growth in flexible workspaces with sustainable IT infrastructure, driven by green technology adoption. United States professional cleaning services are also expanding due to the rising popularity of green cleaning technologies. In the retail sector, facilities management ensures clean, safe store environments. NEST, which manages over 60,000 retail locations in the United States and Canada, provides integrated solutions that combine financial analytics with maintenance services, contributing to increased foot traffic, even during the COVID-19 pandemic.

United States Facility Management Market – By Industry

Based on industry, United States Facility Management Market split into Organized and Unorganized segments.

Competitive Landscape

Major players operating in United States Facility Management Market include Stanley Black & Decker, Inc., Klein Tools, Ideal Industries Inc., Acme Tools Inc., Snap-on Tools, Inc., Mac Tools and Forge Company, Matco Tools Corporation, Cornwell Quality Tool Co., Apex Tools Group, and Sherman-Klove Company (SK Tools). To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2024 - CBRE Group Inc. completed its acquisition of J&J Worldwide Services in partnership with Arlington Capital Partners.

Scope of the Report

By Service Offered

• Hard Services

• Soft Services

By Type of Facility Management

• In-House Facility Management

• Outsourced Facility Management

By Application

• Commercial

• Industrial

• Residential

• Institutional

• Government

By Industry

• Organized

• Unorganized