International. Several technological innovations have created a growing demand for smart facility management solutions. This has resulted in increased adoption of IoT and Industry 4.0 in the facilities management market.
The IoT network consists of sensors, actuators, and thermostats that interconnect over the Internet and collect and evaluate data to reduce the energy needed to perform tasks. IoT technology is also used for predictive maintenance that reduces operating costs and increases productivity. Lighting, cooling, security and security alarms, and firefighting systems are some of the functions that can be automated via IoT.
Since IoT improves productivity and ensures the energy efficiency of buildings, the arrival of IoT to facilities management will drive the growth of the market during the forecast period. Analysts have forecast that the facility management market will record a CAGR of more than 12% by 2023.
Market Overview
Increased demand for cloud-based facility management solutions.
There has been a growing demand for cloud-based solutions in the facilities management market. Cloud-based solutions offer secure means to host critical data. These solutions also improve security and collaboration between teams present in various locations around the world. This reduces operating costs for organizations.
Cloud-based solutions enable rapid data recovery, as backups are stored on a private or shared cloud host platform, which can be accessed from anywhere in the world via secure logins. These benefits will increase the adoption of cloud-based facilities management solutions and drive market growth.
Increased budgetary constraints
Small organizations, especially in emerging economies, are forced to resort to low-quality facilities management services due to their budget constraints. The profitability of the company is affected by the high cost of operation and maintenance of these low-quality facility management solutions. In addition, rising labor costs and the replacement and maintenance of obsolete assets add to the company's operating and maintenance costs. These factors are affecting the growth prospects of the facilities management market during the forecast period.
Competitive landscape
The market seems to be fragmented and with the presence of several companies, the competitive environment is quite intense. Factors such as the growing demand for cloud-based facilities management solutions will provide considerable growth opportunities for facilities management companies.
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