China Facility Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

China Facility Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The China Facility Management Market is expected to grow by registering a CAGR of 9.1% during the forecast period (2022-2027). The growth of commercial and industrial infrastructure in the country is expected to be the major driver for the facility management services in the country.

• Driven by the continued urbanization, outsourcing penetration, and floor area growth, the facility management market is expected to reach a major height, according to China Shine, a facility management service provider in China.
• Property owners and managers in China are increasingly looking for more comprehensive and high-quality property management services, with improving living conditions and rising disposable income in China. According to the National Bureau of Statistics of China, the median per capita disposable income of residents in China was CNY 29,975 in 2021.
• The facility management services in the country are high in demand across the industrial sector that has witnessed significant growth in the last few decades. For instance, according to the National Bureau of Statistics of China, the country's total industrial production grew by 5% in March 2022, compared to the same period of the previous year.
• Moreover, compared to other developed and developing countries, outsourcing penetration is low in China, which is among the key factors restraining the growth of the studied market in the country.
• China is among the leading countries with the highest impact of the pandemic as some of the first few COVID cases were identified in the country itself. Although the country has done a remarkable job of containing the virus, the pandemic has significantly impacted the country's economy. For instance, according to the National Bureau of Statistics in China, the purchasing manager's index for the manufacturing sector stood at 50.8 in April, reporting a decrease of 1.2% from March.
• The industrial, manufacturing, and institutional sectors that are major consumers of facility management services were the highly impacted sectors in the country during the initial phase. However, with the condition moving towards normal, the facility management market is expected to witness an upward trend in demand in the country.

• The construction industry in China has witnessed a significant rise in the past two decades. The growth of the construction sector in the country is primarily attributed to the industrial and commercial building sectors, which are among the major pillars of the country's economy. For instance, according to the National Bureau of Statistics of China, with 32.6%, the industrial sector is the largest shareholder of the country's economy.
• Facility management plays an important role during the construction and the post-construction process of the commercial and industrial facilities, as proper and regular maintenance of the buildings helps the property stay up and running and have less downtime, which is quite essential for commercial and industrial buildings.
• In January 2022, Chinas's Ministry of Housing and Urban-Rural Development reported that the construction industry in the country would grow at the same rate as the general economy and will maintain its 6% contribution to the national GDP. The government has been taking several initiatives to support the continued growth of the construction sector.
• For instance, in January 2022, the government of China unveiled a new five-year development plan for the country’s construction industry. Such instances are expected to create more opportunities for the growth of the facility management market in the country.

• Over a decade, the healthcare sector in China has undergone a major overhaul as the country seems poised to emulate the spending trajectory of other western countries. With the country's population aging rapidly, the healthcare sector is expected to witness an upward growth trend during the forecast period.
• Within the healthcare environment, facilities management services play a critical role, directly impacting the patient experience and provisioning the efficiency of clinical care. Several vendors operating in the market are increasingly focusing on this sector. For instance, Sodexo offers a broad range of healthcare facility management services, such as operating room cleaning and instrument sterilization, along with support services for disability, rehabilitation, psychiatric, and end-of-life setting- whether in a hospital or at home.
• The increasing healthcare spending both by the government and the people in the country is further creating a supportive environment for the growth of the studied market. For instance, According to the Ministry of Finance of the Peoples Republic of China, out of the national general public budget expenditure of CNY 24,632.2 billion, health expenditure was CNY 1,920.5 billion in 2021.
• The growing investments in new healthcare facilities, especially since the pandemic outbreak, are also expected to create demand for facility management services. For instance, in November 2021, the design for a proposed 500-bed hospital in Jiaxing Kaiyi in China’s Zhejiang province was unveiled by the global design and consulting firm B+H Architects.

The Facility Management Market is becoming highly competitive due to several local and global players. To increase their market presence, the vendors operating in the market are increasing their investments in new product development and expansion activities. Some major players operating in the market include Leadec Industrial Services (Shanghai) Co., Ltd., Sodexo China, CBRE Inc., and ESG Holdings Limited, among others.

• March 2022 - Widad Business Group Sdn Bhd (WBG), a construction and integrated facilities management company, announced its collaboration with China-based SANY Group to set up a joint industrialized building system (IBS) manufacturing facility in Kedah.
• February 2022 - Shentong Bombardier (Shanghai) Rail Transit Vehicle Maintenance Co., Alstom’s Chinese joint venture, announced that it had been awarded a contract from Shanghai Shentong Metro Group Co., Ltd. (Shanghai Metro) to provide full lifecycle maintenance service for 204 Movia metro cars on Shanghai’s Line 12 phase 2 and phase 3 project.

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