IoT and Big Data will drive facility management revenues recovery: Frost & Sullivan
July 23, 2020
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July 23, 2020 – Frost & Sullivan’s “Growth Opportunities in the Global Facility Management Market, Forecast to 2025” projects that revenues from the global facility management sector will reach $925 billion by 2025, up from $837 billion in 2019—despite seeing a significant drop in 2020 due to the pandemic.
The return to pre-COVID-19 levels of growth is expected to be driven by technological innovations, such as internet of things (IoT), Big Data and advanced connectivity, plus new service offerings enabled by the digital transformation of the facility management market and the accelerated deployment of digital technology due to the pandemic.
“The COVID-19 crisis will accelerate the rollout of technology and the highest impact will be seen in customer-centric business models based on guaranteed outcomes, typically enabled by IoT,” said Frost & Sullivan’s John Raspin.
“The [facility management] market will continue to move quickly toward service integration, while sophisticated advisory services focused on enhancing business productivity and merger and acquisition activity will continue apace,” added Raspin. “This shift from a cost focus to total client advisory services, outcome selling, and value creation will underpin the key transformations in the facility management market in the next six years.”
For additional revenue opportunities, Frost & Sullivan believes facility management companies should:
• Deliver training, technology and cybersecurity for digital tools that enable smoother remote working.
• Deploy risk-sharing and vested outsourcing business models to drive closer collaboration with customers.
• Develop solutions for indoor air quality monitoring (benchmarking, sampling, continuous real-time analysis) to support back-to-work strategies in all types of workplaces.
• Accelerate investment in augmented reality (AR) and machine learning (ML) to gain insights across the organization to increase competitive advantage and enable substantial cost savings over the long term.
• Explore options for the acquisition of technical facility management skills and energy services in high-growth industrial and commercial applications.
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