Healthcare Facility Management Market Size and Share Analysis by Service (Property, Cleaning, Security, Catering, Support, Environmental Management), Business Model (Outsourced, In-House), Type (Hard Services, Soft Services, Other Services), End-User (Hospitals and Clinics, Long-Term Healthcare Facilities) – Forecast to 2030

Market Overview

The global healthcare facility management market generated revenue of $88,114.0 million in 2021, and the market size will advance at a CAGR of 8.3% during the forecast period, to reach $180,397.0 million by 2030. This will be due to the increasing expenditure on healthcare infrastructure development, booming use of new technologies, surging patient volume, rising prevalence of chronic illnesses and infections, and escalating healthcare expenses.

During the pandemic, the administration of in-patient and out-patient departments was of the utmost importance. Additionally, hygiene has been considered critical to combating the situation. As a response to COVID-19, healthcare services should give extra care to create the safest and cleanest environment possible for patients and healthcare professionals. This is why the need for facility management in medical centers has increased during these dark times, thus reflecting a positive impact of the pandemic on the market globally.

Increasing Focus on Support Services Bolstering Market Growth Potential

The demand for support services is expanding rapidly in the industry, as hospitals and medical institutions are concentrating on them in order to deliver higher-quality treatment to patients. An engaged and integrated support service team may assist healthcare facilities by eliminating the burden on healthcare professionals, thereby allowing patients to recuperate faster, as well as promoting a safer environment and improving the satisfaction of nurses, patients, and families.

The majority of the healthcare institutions are also relying heavily on IT and telecommunications service providers. Thus, the increasing implementation of telehealth and other technological systems in healthcare institutions is likely to provide additional opportunities for market participants throughout the forecast period. Moreover, healthcare IT could be influential in raising the accessibility to better-quality healthcare services. Therefore, the rapid rise of digitization in the healthcare industry is one of the key factors expected to propel the healthcare facility management market growth.

Outsourcing of Facility Management Offering Major Opportunity to Service Providers

In 2021, the outsourcing category held a market share of more than 50%. The outsourcing of in-house services is being mainly done due to the rising healthcare expenditures, complexity of sophisticated ICD-10 medical coding systems, and deployment of electronic health records. The increasing patient flow, rising need to check insurance eligibility and consult patient check-in records are creating a strong burden on hospitals, which has compelled them to outsource few facilities, including facility management.

Hospitals and other healthcare institutions outsource various non-clinical jobs, such as medical waste disposal, property management, and cleaning, in order to maintain hygienic working conditions, while focusing on patient care. Furthermore, hospitals can save a lot of money by outsourcing facility management and other non-clinical processes. Essentially, outsourcing such services assists healthcare providers in reducing administrative costs, healthcare delivery costs, and consumer costs and simplifying electronic medical record management.

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Soft Services To Witness Fastest Growth

Soft services are expected to witness the fastest growth over the forecast period attributed to an increase in the demand for security, waste disposal and recycling, pest control, outdoor area management, grounds maintenance, and sanitization services, which ensure superior standards of cleanliness, hygiene, safety, and customer service. This promotes the optimal performance and quality of service, while also encouraging proactivity.

Rampant Technological Advancements in Facility Management Space

The rapid technological improvements are one of the key trends in the healthcare facilities management market. This is predicted to give many opportunities to healthcare providers to improve equipment uptime and operational efficiency. More than half the expenditure in the healthcare sector is attributed to facility maintenance, thus creating enormous opportunities for service providers.

Since technology includes everything from life-saving gadgets to data-gathering tools, the relationship between technology and public health is diverse. Geospatial technology, for example, could provide detailed information on disease penetration within a specific region, health risk assessment by age and demography, care delivery logistics, and other social services that impact population health.

In addition, telehealth, in which mobile devices and PCs assist in connecting patients with doctors, is now being widely used. As per the GSM Association in 2022, more than 50% of the global population has access to the internet on mobile phones. This provides the opportunity to the telehealth technology to reach more patients easily. This shows that the advancement in technology plays a crucial role in the growth of the facility management market in the healthcare sector.

Integration of AI and IoT in Healthcare Facilities also Key Driver

Automation is increasingly being implemented in hospital energy management systems. For hospitals and healthcare institutions, power quality is crucial. AI and IoT aid in the optimization and flow of energy in a healthcare building. Moreover, the increasing adoption of IoT has led to the rise of many smart products, which is, in turn, propelling the growth of the healthcare facility management market. These products are immensely popular among customers and have numerous applications in the health sector.

Facility managers have various choices to explore, including the addition of smart technology that improves HVAC, door locks, security cameras, alarms, and other systems. Such technologies even enable the control of these systems via mobile devices, thereby making building management less time-consuming and remotely possible. IoT delivers a continuous, real-time stream of data, allowing for enhanced decision-making and work process optimization. Furthermore, the growing desire for outsourcing processes and the increasing focus of firms on providing personalized and value-added services, such as credibility and risk management, are assisting the market growth.

Enormous Growth Potential in North American Market

The North American region led the healthcare facilities management market in 2021, with a value of $32,645.8 million, and it is set to remain dominant over the forecast period, with a value of $68,237.9 million in 2030 and CAGR of 8.5%. This is primarily attributed to the robust healthcare infrastructure and the adoption of various advanced technologies for healthcare facility management. As a result, several new multi-specialty hospital chains have adopted services such as care management, healthcare plan formulation, channel management, and risk assessment, in order to provide best healthcare facilities possible to patients and employees.

Furthermore, the strengthening emphasis on standardized processes and improved medical record administration are propelling the region's healthcare outsourcing industry. Additionally, there are more than 6,000 hospitals in the U.S. with a direct requirement for facility management services, for proper functioning, medically and administratively.

To Increase Market Share, Companies Involved in Service Launches and Acquisitions

The market has several players acquiring similar companies and involving in service launches in order to stay ahead of their competitors. For instance:

• In April 2021, Sodexo acquired MTS Health Limited, a provider of medical equipment asset management solutions in the U.K.
• In October 2020, the National Cooperative Development Corporation (NCDC) announced the launch of the Ayushman Sahakar scheme for involving co-operatives in building healthcare facilities and infrastructure.

Top Players in Healthcare Facility Management Market are:

• ABM Industries Inc.
• Ecolab Inc.
• Sodexo
• ISS World Services A/S
• Serco Group PLC
• Jones Lang LaSalle IP
• Mitie Group plc
• Compass Group PLC

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with the revenue estimation for the period 2017–2030.

Based on Service

• Property
• Cleaning
• Security
• Catering
• Support
• Environmental Management

Based on Business Model

• Outsourced
• In-House

Based on Type

• Hard Services
• Soft Services
• Other Services

Based on End User

• Hospitals and Clinics
• Long-Term Healthcare Facilities

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • France
  • Germany
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Argentina
• Middle East and Africa
  • Saudi Arabia
  • South Africa