back to all industries

Facilities Management Industry

The UK Facilities Management (FM) market is poised for significant growth, with a projected Compound Annual Growth Rate (CAGR) of 4.28% between 2022 and 2027, leading to an increase of £14.82 billion in market size.

4.28%

The UK Facility Management Market size is estimated to grow at a CAGR of 4.28% between 2022 and 2027 (Tech Navio, 2023).

25%

Up to 25% of total expenditure for many UK organisations is attributed to buildings and facilities management services (CBRE, 2023).

30%

The south-east of England stands as the largest region in the UK FM market, representing over 30% of the market (Baachu, 2023).

1.2B

Between Q3 2023 and Q2 2025, the United Kingdom central government awarded contracts worth approximately 1.2 billion British pounds to facility management companies (Statista, 2024).

The UK Facilities Management (FM) market continues to exhibit promising growth prospects, with a projected Compound Annual Growth Rate (CAGR) of 4.28% between 2022 and 2027. During this period, the market size is anticipated to witness a substantial increase of £14.82 billion. This growth trajectory is fuelled by various factors, including the escalating demand for cloud-based facilities management solutions, the rising need for smart facilities, and an increasing emphasis on outsourcing building management services (Tech Navio, 2023)

Amidst these developments, the UK FM market remains dynamic and competitive. With a mature and sophisticated industry landscape, the UK is positioned as a dominant player in Europe. Key drivers propelling market expansion include the adoption of advanced technologies, such as cloud-based solutions, which offer enhanced efficiency, scalability, and cost-effectiveness for managing facilities across diverse sectors.

Furthermore, the growing trend towards smart facilities, driven by the integration of IoT devices and automation, presents significant opportunities for FM service providers. Smart technologies enable real-time monitoring, predictive maintenance, and optimisation of facility operations, thereby improving overall efficiency and occupant satisfaction.

Industry Challenges

Budgetary Constraints: A Barrier to Growth
Rising Labor Costs: A Strain on Operations
Training Expenses: Balancing Skill Development
Maintenance Costs: Managing Asset Lifecycles
Profitability Pressures: Financial Impacts of Challenges

(Tech Navio, 2023)

In parallel, there is a notable shift towards outsourcing building management services as organisations seek to focus on core competencies while leveraging specialised expertise for facility operations. This trend underscores the importance of strategic partnerships and collaboration within the industry ecosystem.

Despite the positive outlook, the UK FM market faces challenges, including the shortage of skilled labour and the need to navigate evolving regulatory frameworks. However, proactive measures to address these challenges, combined with innovative approaches to service delivery, are expected to sustain market growth and resilience.

In conclusion, the UK FM market presents lucrative opportunities for stakeholders, driven by technological advancements, shifting consumer preferences, and evolving business models. By embracing innovation and strategic partnerships, industry players can capitalise on these opportunities and contribute to the continued growth and development of the sector (Baachu, 2023).

Industry Opportunities

Leveraging Cloud-Based Solutions for Facilities Management in the UK
Capitalising on the Trend of Green Cleaning Products in the UK
Facilities Management Industry
Focus on Regulatory Compliance and ESG Initiatives
Mergers and Acquisitions (M&A)

(Tech Navio, 2023; Grant Thorton, 2023)