North America Facility Management (FM) Growth Opportunities

North America Facility Management (FM) Growth Opportunities

The North American FM market has the highest maturity compared to other regions. The United States is the world’s biggest FM market in outsourced FM revenues. Mature end users and participants and attractive opportunities from sizable end-user sectors (e.g., commercial, public) have contributed to the outsourcing culture and the substantial market.

Frost & Sullivan expects fierce competition from having many market players, intensified by the participation of traditionally non-FM providers, to hinder FM development. Like other regions, end users with conservative thinking are reluctant to outsource critical services, dampening integrated approach adoption and outsourcing. Lastly, the market struggles with the low margins of certain service offerings, particularly soft services and single-service engagements. Retaining healthy margins remains a challenge for many service providers.

With the inflation rate forecast to decline in 2023, the North American FM market offers good opportunities. Potential from less typical end-user sectors, such as industrial, healthcare, aviation, and retail, will likely drive the region’s FM development. High awareness of technology, sustainability, and energy management aspects, supported by above-global average service integration and acceptance of sophisticated solutions that reflect market maturity, will likely drive market growth during the forecast period. In addition, Frost & Sullivan observed that mature regional end users seek to improve operational and cost efficiencies, which will likely support service integration adoption and broader outsourcing scope. However, challenges related to the US-China trade war, the Russia-Ukraine conflict, and the lingering effects of the COVID-19 pandemic add to the FM market uncertainty.

In this report, Frost & Sullivan studies the North American FM market, covering market drivers, restraints, forecasts, trends, and the competitive landscape. The study also analyzes the two countries covered, the United States and Canada. The study period is 2020–2028, with 2022 as the base year. We offer insights and four growth opportunities stakeholders can explore during this period.