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.

Market Segmentation

Based on the Type, the Indonesia Facility Management Market segments into:

• Hard
• Soft
• Risk
• Administration

Of them all, the demand for facility management for Hard Services is expected to witness rapid growth through 2027. It is because these services deal with physical assets like wiring, plumbing, elevators, lighting, heating, fire safety, building maintenance, etc., and are crucial for the safety & welfare of both employees & visitors.

In addition, the surge in the building & construction activities in Indonesia is one the most prominent reasons driving the demand for facility management for hard services. Besides, these services reduce daily roles & responsibilities and require minimal staff to organize the work atmosphere in buildings. Hence, owing to these factors, the market for Hard service type shall witness rapid growth in the coming years. 

Administration to Acquire a Significant Share of the Indonesia Facility Management Market during 2022-27

The significant demand for facility management for Administrative services is principally due to the growing prevalence of Corporate Real Estate (CRE) companies inclining toward the digitization of operations, coupled with the mounting attention on reopening facilities post the pandemic while ensuring health & safety. These companies are drawn toward preparing a well-structured plan implementing technologies & analytics like enhancing cyber security systems to yield improved results.

Furthermore, real estate companies improving their operational efficiency through occupancy & space management is another crucial aspect fueling the demand for facility management for administrative services, states MarkNtel Advisors in their research report, “Indonesia Facility Management Market Analysis, 2022.”

Market Dynamics:

Key Driver

The most prominent factor anticipated to drive the Indonesia Facility Management Market during 2022-27 is the mounting demand for energy efficiency & sustainability across organizations. This aspect would create remunerative opportunities for the market players in numerous ways like:

• Integrating workplace management into core facility management services to optimize occupancy
• Implementation of data analytics to reduce costs & enhance maintenance
• Incorporation of technologies like real-time reporting through energy management services in facilities

Growth Restraints

• Unawareness about the benefits & regulator contracts of facility management
• Reluctance in adopting facility management across price-sensitive end-users
• Socio-economic instability as the market is still developing 
• Lack of skilled labor & their training

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Indonesia Facility Management Market?
2. What is the industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Indonesia Facility Management Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Indonesia Facility Management Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Indonesia Facility Management Market study?