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:
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.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||Atalian Global Services, Colliers Facility Management Services, ISS Facility Services Inc., JLL Inc., Leads Property Services Indonesia, Maple Leaf Services Indonesia, Shield-On Service Tbk PT, PT Spektra Solusindo, PT Sodexo Motivation Solutions Indonesia, CBRE Indonesia|
|Unit Denominations||USD Million/Billion|
Covid-19 had a Two-Fold Effect on the Indonesia Facility Management Market
Based on the Type, the Indonesia Facility Management Market segments into:
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.”
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:
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Indonesia Facility Management Market is projected to grow at a CAGR of around 9.60% during 2022-27.
A. Administrative Facility Management is expected to maintain significant market share during the forecast period and emerge as an area of opportunity for the leading players in the Indonesia Facility Management Market.
A. Rising demand for energy efficiency & sustainability by incorporating technologies like real-time updates across organizations is the most prominent factor likely to drive the Indonesia Facility Management Market during 2022-27 and generate lucrative growth opportunities for the leading players.
A. The growing need for facility management to explore new products & practices and, in turn, address Covid-19 concerns like protocols & verifying health, sanitization, etc., for a safe work environment is anticipated to fuel the demand for facility management services post the pandemic.