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

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

The Denmark facility management market is expected to grow at a CAGR of above 1.4% during the forecast period of 2022 - 2027. The government-led construction boom and the surging emphasis on green building practices are increasing Denmark's demand for facility management.

· Facility management (FM) consists of multiple disciplines to influence the efficiency and productivity of organizations. The new management system standard constitutes a benchmark for developing and driving effective strategic, tactical, and operational FM principles across Denmark.

· Facility Management Services across Denmark tend to become mature. With infrastructure development projects rising across the country for economic growth, allied FM services are also required. Hence, a Facility Management Standard that sets apart the industry by adapting global best practices and policies offered a win-win situation for FM organizations and customers in this country.

· Services in the FM industry have been commoditized to a great extent. Also, end users are very price sensitive, and contracts are thus aimed at shorter terms. A real estate over-supply has been creating pressure on rent yields, thus leading the customers to cut costs on FM services.

· As the construction industry gathers the benefits of digital transformation, a long-term approach to innovation has defined the sectoral growth over the forecast period. Building infrastructure management and allied technological tools have been gaining momentum across construction, with multiple projects lined up for completion in the country.

· The Denmark government has been attempting to tighten many regulations about commercial activities in recent years. These laws are in place to protect both service providers and clients. The government has been tightening rules to close corporate restrictions loopholes.

· The outbreak of COVID-19 has had a mixed business impact on facilities management firms, as the restrictions on the movement of people have resulted in a decline in project work and a reduced level of activity across many customer sites. Major players in the market, such as Mitie, CBRE Group, and others, were adversely affected due to the pandemic lockdown.

· Working with a single facility management service provider primarily delegates task management to separate entities. It also entails having a different service provider for each service the organization requires, such as one for cleaning, one for reception, and one for vending machines. Using the services of specialized service providers has several advantages.​

· It allows customers to concentrate on their core business, while single-service providers provide effective customer services and help operational efficiency. Experts handling task management will result in much higher efficiency and service quality. It will also free up company employees to focus on the most important business areas while saving resources for non-core activities.​

· The outsourced FM has been successfully used in various sectors, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing, and education. The areas that FM services look after vary widely, primarily depending on its type, the size of the company, and the sector in which it operates. Some organizations will only require a single service solution provider. Such demand is driving the single FM in the country.

· When businesses choose a single service provider, they outsource their day-to-day operations to a specialist provider. They can be assured of superior service quality and efficiency by hiring the help of specialists. Using several service providers is a time-consuming activity that necessitates the management of multiple vendors and the associated hazards.​ It helps create significant opportunities for the market vendors to expand single FM services in the country.

· In Denmark, FM vendors have been largely concentrating on improving their service offerings and establishing themselves as a single-point option for end-to-end FM services. Single service provision is relatively straightforward; a purchasing organization procures a single FM service from a supplier under a single service contract.

· The commercial sector is one of the prominent segments that contributes a good share of facility management in Denmark.

· Denmark accounts for most of the development projects undertaken in the country’s commercial sector. However, under the project Denmark Forward, the Danish government has put forward a new plan to spend around DKK 160 billion on infrastructure.

· The investments from the Danish government across a range of infrastructure and related commercial projects are also increasing the demand for facility management services in the commercial sector.

· Moreover, the commercial sector covers office buildings occupied by business services, such as corporate offices of manufacturers, IT and telecommunication, finance and insurance, property, and other service providers. The rise in the IT sector across Denmark will allow more expansion in the commercial sector along with facility management services.

· Telecom players focus on 5G deployments in Denmark, creating significant opportunities for the region’s facilities management sector. For instance, in Feb 2022, Telenor Denmark announced that it plans to upgrade another 1400 masts to 5G throughout 2022, commence the deployment of a 5G standalone network, and shut down its 3G network and interconnect its masts and core network through fiber.

The Denmark Facility Management is moderately fragmented with the presence of several players of different sizes. This market is expected to experience several mergers, acquisitions, and partnerships as companies continue to invest in strategically offsetting the present slowdowns they are experiencing.

· June 2021 - Caverion and PostNord entered a long-term facility management partnership in the Nordic region. PostNord provides communications and logistics solutions, whereas Caverion offers technical maintenance and customer center services at over 100 locations in Sweden, Denmark, and Finland.

· June 2021 - CBRE Group, Inc. has acquired Intego A/S, Denmark's technical facility services provider. Intego A/S has over 850 employees in 16 locations, providing hard facilities management technical services over several sectors with particular expertise in automation, electrical, and mechanical solutions. After the acquisition, Intego A/S would operate as part of CBRE's existing Global Workplace Solutions (GWS) business in Denmark, adding integrated facilities management and specialist technical capabilities for international and local clients.

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