Greece Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Greece Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Greece Facility Management Market is expected to register a CAGR of 1.72% over the forecast period (2022-2027). The growing trend towards commoditization of FM is expected to drive the Greece market for facility management services. Along with this, increasing investments in infrastructure developments are expected to drive the market.

Key Highlights

• New government policies, such as Greece 2.0 National Recovery and Resilience Plan (NRRP), new investments from private players and government as well as funding from the organizations such as European Union, increasing investments in infrastructure projects, and growing industry sectors such as manufacturing and commercial end-user industry are some of the major drivers for the facility management market in the country.
• The growth of the Greece facility management service is attributed to the increasing demand for customized solutions for in-house and outsourced facility management. Moreover, the rising number of commercial buildings in major cities (such as Athens, Thessaloniki, and Patras) is further pushing the demand for facility management services across the country. Rapid infrastructure development and the rising focus on integrated facility management services are anticipated to influence the market studied positively.
• The market for facility management in Greece has a number of vendors that are offering single, bundled, and integrated facility management services. As there are government-backed infrastructure projects planned in the country, there is a strong need for FM services, leading to commoditization.
• The companies in the country are focusing on investing in commercial infrastructure instead of residential due to higher cash flow potential, better returns on investments, and growth of the retail sector post-pandemic. Thus, the commercial infrastructure investments consequently boost the facility management services.
• An ever-growing competition among the market players of facility management in the country is putting pressure on the pricing of solutions and services provided in the market. Moreover, the growing trend of commoditization in the country’s facility management industry has been supporting this price competition.
• The outbreak of COVID-19 has had a mixed business impact on facilities management firms. The restrictions on the movement of people resulted in a decline in project work and a decreased level of activity across many customer sites. Significant players in the market, such as Premium Property Operations, Manifest Facility Management, and others, were adversely affected due to the pandemic lockdown.

Key Market TrendsSingle FM of the Outsourced Facility Management Type to Hold Significant Market Share

• The rising installation costs of internal facility management teams and the challenging nature of overseeing a broad range of services are driving the surge in demand for outsourcing. Companies are under intense pressure to provide value to their clients, forcing them to continuously innovate and expand their core offerings to provide better customer services. As a result of increased expectations from both clients and staff, companies frequently reduce their non-core facilities management expenditure. These elements are anticipated to make outsourcing a desirable option. Outsourced FM offers Single, Bundle, and Integrated FMs.
• 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 their type, the size of the company, and the sector in which it operates. This is not a one size fits all approach. Some organizations will only require a single service solution provider, whereas other big organizations will look for a bundled services offering or complete facilities management solution.
• End-users in the country are shifting towards outsourced facility management services to gain expertise, allow staffing flexibility, and save time and cost. Therefore, outsourcing to certified third-party vendors has positively impacted the company’s operational expenses.
• SMEs are the primary end users of single FM services in the country. According to the European Commission data, the country had 694,346 SMEs, of which 45,401 were small, and 4,681 were medium-sized. SMEs in the manufacturing sector represents nearly 8.4% market share, which is one of the major end-users of single FM services in the country.

Commercial Buildings Segment to hold significant share in the market

• In Greece, investment companies such as Knight Frank Greece usually decide to specialize either in the residential or commercial property market. As commercial investments suggest higher cash flow potential and often provide better returns on investment, the commercial buildings segment offers lucrative opportunities, making them an attractive form of investment in the region, consequently boosting the Facility Management Market's growth during the forecast period.
• The expansion of the IT sector in the country will allow for more expansion in the commercial industry and facility management services. Intel Capital, Index Ventures, Accel, Andreessen Horowitz, Kleiner Perkins, Sequoia, BainCapital, and DFJ Greycroft have recently invested in three Greek startups. Major industry players such as Microsoft, Apple, Splunk, Amazon, Samsung, Teradata, Daimler, Citrix, Vmware, DellEMC, and Salesforce have acquired Greek startups.
• The Information and Communications Technology sector is one of the most promising in the Greek economy, driven mainly by the demand for automation and digitalization in the Greek public and private sectors. According to recent data by the Federation of Hellenic Information Technology & Communications (SEPE), the value of the ICT market in Greece is expected to reach EURO 5,676 billion.
• Moreover, the ICT sector in Greece offers several possibilities for investment in high-end, value-added facility management services with a global reach. The availability of skilled labor, the existing, strong IT and telecom infrastructure, and the outstanding living and working conditions have boosted the demand for facility management services in the ICT sector. Facility management offers several types of hard or soft benefits, which includes utilities, HVAC, and air quality are broad functions of facilities management.
• Furthermore, businesses look for significant cost reductions to focus on other core business activities. That can be achieved by outsourcing the task of maintaining their facility to a professional and experienced facility management company to save on utility costs in the long run.

Competitive Landscape

The Greece facility management market comprises both local and international players possessing significant years of industry experience. Facility management companies are incorporating technologies into their services, which are adding strength to their service portfolio. Smaller and new vendors in the market studied are expected to focus on maintaining cost-benefit over major vendors, further intensifying the competition in the country.

• April 2022 - Manifest Facility Management collaborated with Endeavor Greece, taking over the entire cleaning services of the new head offices at Vasilissis Sofias, Athens. The company also collaborated with Alpha Bank and took over the Integrated Facility Services for the network of branches and central buildings in the regions of Attica and North Greece in July 2022.

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• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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