Healthcare Facility Management Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Healthcare Facility Management Market Trends & Growth Drivers

Technological Advancements in Facility Management Are Key Trends

• 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 Is Major 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 , 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.

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.

Healthcare Facility Management Market Analysis

Service Analysis

The cleaning category holds the largest share in the market, of 35%, in 2024. This is because medical facilities generate a large volume of hazardous waste every day, such as blood and tissue products, microbial cultures, and used sensors, leads, and medical devices for disposal. Medical facilities work under stringent guidelines for hygiene and patient safety, especially since the COVID-19 pandemic rose concerns regarding hospital-acquired infections (HAI). Every day, 1 in 31 people admitted to hospitals across the U.S. contract an HAI. This makes the safe collection and removal of medical waste vital at hospitals, especially those where patients with deadly infections, such as anthrax, meningitis, tuberculosis, plague, and leprosy, are quarantined and treated.

The security category is expected to witness the highest CAGR during the forecast period, of 8.9%. The methods used to cure someone of a disease can also be used to inflict temporary or permanent physical or psychological damage to another and, worse, even for murder. Further, child kidnappings are a common occurrence in developing countries, which makes proper security measures vital for hospitals. Additionally, even healthcare workers and the facilities themselves suffer violent crimes every year. As per Physicians for Human Rights, in 2022, 1,989 cases of crimes against healthcare facilities workers and 232 resulting healthcare worker deaths were reported around the world, with the situation having especially worsened since the COVID-19 pandemic. Hence, apart from manned security, biometric access control systems are necessary at medical facilities.

Below are the services studied in the report:

• Property
• Cleaning (Largest Category)
• Security (Fastest-Growing Category)
• Catering
• Support
• Environmental Management
• Others

Business Model Analysis

In 2024, the outsourcing category dominates the market with 65% share, and it will also witness the higher CAGR, over the forecast period. 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.

The following business models are analyzed in the report:

• Outsourced (Larger and Faster-Growing Category)
• In-House

Type Analysis

Soft services are expected to witness the fastest growth over the forecast period, with 9.0% CAGR, after holding the largest share, in 2024. This is 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.

The report offers insights for the following types of services:

• Hard Services
• Soft Services (Largest and Fastest-Growing Category)
• Others

End User Analysis

Hospitals and clinics hold the dominant share, of 60%, in 2024, and they will also grow the fastest during this decade. This is because they host a huge number of patients every day due to the high incidence of all kinds of acute and chronic diseases. Clinical interventions on them generates massive volumes of waste, in the form of disposable sensors and devices, blood, tissues, and other bodily fluids, microbial cultures, used cotton balls, vomit-filled bags, and many other things. As a result, healthcare facilities need to be cleaned everyday and areas with a high footfall, such as receptions, emergency rooms, operating rooms, patient rooms, radiology wards, diagnostic laboratories, and cafeterias cleaned several times a day.

The report offers insights for these end users:

• Hospitals and Clinics (Largest and Fastest-Growing Category)
• Long-Term Healthcare Facilities
• Others

Geographical Analysis

• The North American region leads the healthcare facilities management market in 2024, with a value of over USD 49 billion, and it is set to remain dominant over the forecast period.
• 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.
• APAC is the fastest-growing market, with a CAGR of 9.2%, due to its burgeoning healthcare industry.
• As it is the most-populated region in the world, the healthcare burden here continues to rise.
• Moreover, poorer hygiene than developed countries make locals highly susceptible to infections.
• Similarly, the rates of cancer, heart diseases, neurological disorders, and all kinds of other conditions is rising unabated.
• The region also has the largest geriatric population on earth, and it regularly needs medical care.
• Therefore, countries in the region are taking initiatives to bolster their healthcare infrastructure, including building new hospitals, arming them with cutting-edge diagnostic and therapeutic technologies, hiring more staff, making care accessible to the masses via smooth insurance reimbursements, and enhancing population health surveys.
• Hence, as more clinical settings come up in the region, the demand for all kinds of facility management services, from daily cleaning and waste management to specialized sterilization, MEP work, and support, will continue to increase.

The following regions and countries have been analyzed:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • France (Largest Country Market)
  • Germany (Fastest-Growing Country Market)
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Category)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa (Fastest-Growing Country Market)
  • Rest of MEA

Healthcare Facility Management Market Share

The market is fragmented due to the presence of a large number of companies providing a range of services. As there are different aspects to this market, such as property management, cleaning, support, and MEP and equipment maintenance, so there are different companies in the market. Moreover, the players generally specialize in one kind of service and seldom provide comprehensive packages to healthcare centers. Thus, since different companies have dominance in different aspects of healthcare facility management, no one company enjoys a clean monopoly. Additionally, for medical equipment, there are both OEMs and ISOs offering regular MRO services. Similarly, in regard to cleaning, different hospital areas require varying degrees of effort, which diverse companies have expertise in.

Healthcare Facility Management Industry News

• In February 2024, Sodexo extended its food and facility management contract with AstraZeneca, for its U.K., Denmark, Sweden, Norway, and Finland offices and manufacturing sites, for five more years.
• In April 2024, ISS World Services A/S divested its French operations to Onet SA.
•  In January 2024, Compass Group PLC announced plans to acquire hospitality and food services company CH&CO, to enable it to expand its footprint in Ireland and the U.K.