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French FM market to reach US$110.42bn in value by 2024, says TMR
According to a new research report published by TMR, the opportunity in the market for facilities management in France, which stood at US$48.02bn in 2015, is likely to expand at an impressive Compound Annual Growth Rate of 9.80% during the period from 2016 to 2024 and reach a whopping sum of US$110.4bn by the end of the period for forecast.
The demand for security services has been higher than other FM services in France. Researchers expect the trend to continue over the forecast period with the revenue from this segment crossing US$16.6bn by 2024.
The increasing adoption of outsourced services and the augmenting demand for standardisation of these services are projected to act as the key driving factor behind the growth of the market for facilities management in France over the next few years.
In France, FM services are predominantly utilised in the business services and IT; pharmaceuticals; healthcare; industry and manufacturing; hotel, leisure, and entertainment; food and beverages; public administration; energy and resources; retail and wholesale, and the transportation and logistics sectors. Among these, the demand for FM services has been greater in the business services and IT sector than others.
Researchers predict the business services and IT industry to continue to maintain a high demand for these services at a 10.60% CAGR between 2016 and 2024. The growing emphasis on sustainable environment among enterprises and the rising importance of technological advancements in medical and healthcare industries are likely to boost the uptake of FM services in the business services and IT sector in France over the next few years.
"The market for facilities management services in France is being highly influenced by the rising trend of business outsourcing to a third party," says an analyst at TMR. "As the awareness regarding the benefits of outsourcing, such as the reduction in the costs and expenses over a long term, is increasing, a number of organisations in this country are outsourcing their operations, specifically the management of their facilities, to third parties, which eventually, is leading to a significant rise in the France market for facilities management."
In addition, the growing demand for standardisation of services is likely to fuel the need for FM services substantially in France over the forecast period. However, the recent rise in labour costs and the implementation of in-house services may limit the adoption of these services to some extent in the years to come, reports the study.
Further, the intense rivalry between key players, namely, Atalian Global Services, ISS World Services, Cresa, Sodexo, and Mace, points towards a highly competitive landscape of the facilities management market in France.
Currently, the leading FM service vendors in this country are providing singular services and integrated service solutions to end-use companies. However, in a bid to sustain the competition, they are focusing on expanding their portfolios by introducing innovative and technologically advanced facilities management solutions in the near future, notes the study.
The study, 'Facilities Management Market - France Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 - 2024', is available from:
1st December 2016