The report titled “Australia Facility Management Market Outlook to 2023 - By Single, Bundled And Integrated Services, By Soft (Cleaning, Security and Other Services) and Hard Services (Electromechanical, Operations and Maintenance, Fire And Safety), By End User Sectors” provides a comprehensive analysis on the Facility Management Industry of Australia.
The report covers various aspects including introduction on Australia Facility Management market, business acquisition process vendor selection process, trends and developments, issues and challenges, SWOT analysis, competitive landscape and government regulations. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.
Australia Facility Management market is at a matured stage. Australia Facility Management market in terms of revenue has increased at a positive CAGR during the period FY’2013-FY’2018.
This growth was supported by public sector outsourcing, cost control measures, greater demand from many end user sectors, adoption of sustainable practices and technological advances, along with rising demand for commercial and residential spaces in the country, wherein market players catered to the needs of the clients for both hard and soft services. The customers in the market are highly price sensitive.
The Integrated Facility management market is relatively at a growing stage in the country and its popularity is increasing due to greater outsourcing of services and an aim to achieve cost and operational efficiency, for both clients and vendors.
Facility management services are used by both local companies and MNCs in the country. However, the local companies usually prefer single or bundled services due to their small scale of operations whereas the MNCs prefer integrated facility management (IFM) services in Australia.
Australia Facility Management Market Segmentation
By Soft Services and Hard Services: Soft services dominated the market of facility management in Australia in terms of generating revenue in FY’2018. The development in sectors such as real estate, greater demand for retail & commercial spaces, higher ageing population and an increase in commercial activities has amplified the demand for soft services in the country owing to rise in need for cleaning and security services.
By Type of Services: Bundled services contributed a major share in terms of generating revenues for the industry in FY’2018. Bundled services are largely demanded by retail and commercial private sectors. This was followed by Single and integrated services.
By End User Sectors: Commercial sector contributed the highest revenue share in the overall facility management industry in Australia in the FY’2018. This was followed by the residential sector, retail, industrial, infrastructure and other sectors respectively. Infrastructure sector was largely driven by government expenditure on maintaining and developing roadways, rails and airports.
By Personnel Type: The facility management market in Australia in FY’2018 was dominated by services which were outsourced to the other companies in the market. It accounted more than half share in total revenue in the FM market, the remaining share accounted by in-house personnel.
By Soft Services (Housekeeping, Security, Landscaping and others): Cleaning services was the largest contributor to the soft services industry in FY’2018 followed by Security Services and other soft services including property services, mail delivery services and other services. Growth in residential, commercial and retail spaces had spiked the demand for cleaning services in the country.
By Hard Services (Electromechanical services, Operations and Maintenance Services, Fire Safety and Security Systems): Electromechanical services (including HVAC) have dominated the hard services market in Australia followed by operational and maintenance services and fire safety and security systems during FY’2018 in terms of revenue.
Electromechanical services had the highest share resulting from implementation of better technology and a greater focus on indoor thermal comfort by improving air movement mechanisms in air conditioned and naturally ventilated buildings.
The Australian Facility Management services market is highly fragmented. Spotless Group is the market leader and has the highest market share in the Facility Management market in Australia on the basis of revenue in FY’2018.
This was followed by Programmed Maintenance, Serco, Broadspectrum, ISS Australia and others. These market players compete in the FM market in Australia on the basis of price of services, quality and knowledge of services, track record and past history within the industry and sectors serviced, skilled workforce, and established client relationships.
Australia Facility Management Future Outlook
In future, it is anticipated that Australia facility management market in terms of revenue will increase at a positive CAGR during the period FY’2018 – FY’2023. In Australia, it is expected that the demand for both soft and hard services will be further augmented largely due to growth in the Government outsourcing through Public Private Partnerships (PPP).
Moreover, increasing demand from multinational clients is likely to drive future demand for Integrated Facility Management (IFM) services in Australia with commercial office buildings and infrastructure sector being the future penetration sectors for IFM services.
The growth in supply/ new projects pipeline in Residential, retail, commercial and infrastructure sectors in the country will further increase the demand of FM services.