Indonesia Facility Management Market Research Report : Forecast (2022-2027)

Market Definition

Facility Management is a service that brings efficiency in managing a building or a facility with a professional discipline by focusing on delivering effective support services for the functionality, safety, and sustainability of buildings. The adoption of facility management has grown significantly in recent years. However, it is still in its developing phase across Indonesia. Facility Management includes several operations, including:

• Lease management
• Maintenance & operations
• Energy Management
• Occupancy & Space Management
• Emergency Management
• Business Continuity, etc. 

Market Insights

According to MarkNtel Advisors, the Indonesia Facility Management Market is projected to grow at a CAGR of around 9.60% during the forecast period, i.e., 2022-27. The market is driven primarily by the mounting need for energy efficiency to reduce Green House Gas (GHG) emissions and the dynamic trends in building designs from conventional to smart buildings. In addition, the growing number of facility management service providers that offer specialized services, coupled with the mounting government investments in sectors like transportation, construction, energy, etc., are other crucial aspects fueling the demand for facility management across Indonesia.

Covid-19 had a Two-Fold Effect on the Indonesia Facility Management Market

• With the Covid-19 pandemic in 2020, most industries across Indonesia witnessed severe effects, yet the Facility Management Market observed a two-fold effect. 
• Initially, the market observed a sudden slowdown in its value chain owing to the imposition of lockdown & stringent movement restrictions to curb the dreadful virus spread. 
• As a result, the entire delivery chain of facility management services got negatively influenced and observed significant financial losses.
• However, with the increasing focus on sanitization, the market is anticipated to witness a rapid boost in the coming years.  
• Besides, with the ease of norms, organizations that acquired Work-from-Home practices are gradually resuming their operations from the facilities. 
• Consequently, it is creating a mounting need to explore new products & practices that address Covid-19 concerns like monitoring adherence to protocols & verifying health, and creating a safe work environment, thereby soaring the demand for facility management services.