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Facility Management Market – New Revenue Pockets
In the facility management market, public sector, utilities and aerospace & defense segments together are expected to account for largest market share in the forecasted period, from 2014 to 2019. New infrastructural developments and upcoming facilities in these sub-segments would drive heavy investments for IT based facility management solutions. Solutions in these sub-segments are primarily used for site selection, space management, asset management, and property (real estate) management.
Manufacturing and retail sectors are the other two leading verticals which will have higher revenue contribution. Both of these sectors maintain huge inventories in several forms such as raw material, underproduction, finished products, and in-transit inventories. To store these inventories, these verticals require warehouses and such other facilities. IT based facility management solutions help to manage those properties (owned or leased), infrastructure, space, and other resources. As these two sub-segments grow the demand for facility management solutions will also increase and hence the revenue would generate from these two sub-segments at high growth rate.
In terms of geographic regions, North America is the largest revenue generating region across the globe. The primary factor responsible for this high contribution is the developed economies in this region. U.S. is the largest contributor in this region. Since manufacturing and service industries in the region are mature as compared to other regions, the infrastructural development growth is also high which leads to higher demand for IT based facility management solutions. That is why the adoption was observed at an early stage in NA and the investments are also heavier than any other region. Having high economic growths, countries in this region have big budgets for IT spending. All these factors lead this region to be the highest revenue generating region.
Europe is the second largest contributor in terms of the revenue. Being home to some of the developed economies such as U.K., Germany, France, Italy, and Russia the overall environment for this market to grow is friendly.
Asia Pacific is not a big market so far but opportunities in this region are enormous. This region is comprised of economically sound countries such as Japan, Australia and countries such as China, India, and Indonesia which have emerged as outsourcing hub for manufacturing and service industry. It creates new possibilities in this region and pushes it towards high growth in terms of adoption and revenue generation for facility management market.
Middle-East and Asia is a smaller market in terms of revenue but the growth rate is significantly high than other regions. The primary reason behind this high growth rate is the infrastructural development.
Facility Management Market by Solutions (CAFM, IWMS, CMMS, BIM, IWMS) & Services - Worldwide Market Forecasts and Analysis (2014-2019)
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