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

Netherlands Facility Management Market is expected to grow at a CAGR of above 2.5% over the forecast period 2022 to 2027. The facility management industry in the country operates with integrated contracts provided by significant vendors across country, and small local players focus on single contracts and single-service solutions. However, there are increasing opportunities to leverage facility management and corporate real estate in new ways, given the dynamics occurring across the country.

Key Highlights

• The growing importance on workplace management among the end users and demand for energy management services outsourcing are likely to add the growth in the facility management market in the country.
• Population aging in the Netherland is creating market opportunities for service providers with experience in the service facilities catering to an older demographic. However, the industrial and commercial sectors are expected to be the largest end markets for facility management.
• Demand from the commercial sector in terms of cost efficiency and digitalization to support effective workplace management as well as the emphasis on environmental sustainability are expected to fuel facility management growth in the country.
• Netherland is among the one country which contribute to the growth of facility management services. The paid urbanization and development of a new economic hub in eastern Europe has further spiked the demand for facility management service providers in Netherland
• The outsourcing of procurement contracts and establishment of new production facilities is further complementing the demand for facility management services. In October 2021, Axalta opened a new refinish facility in the Netherlands. The facility includes the new Dutch Axalta Refinish Academy, which is an innovative body shop environment for training refinishers. It also boasts the recently launched Daisy Wheel 3.0, which enables fully end-to-end automated color mixing for the first time and works seamlessly with Axalta’s Digital Color Management.
• Moreover, in June 2021, Ranpak Holdings, one of the global leaders of environmentally sustainable, paper-based packaging, partnered with real estate developer Boelens de Gruyter to design and build a new, highly sustainable facility in Kerkrade, Limburg, The Netherlands.
• 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.

Key Market TrendsCommercial Segment to hold significant share in the market

• The investment companies usually decide to specialize either in the residential or commercial property market. 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 in the area during the forecast period.
• According to CBRE Netherlands, inquiries for commercial spaces have increased by 52 % in less than two years. The number of businesses seeking suitable office space and already under contract is up 139 % from nine months ago.
• The increasing demand for office space in the country's two prime business locations (Amsterdam Zuidas business district and Amsterdam city center) have caused rents to go up and incentives to be limited. For this reason, some tenants prefer to move to alternative offices in and near Amsterdam that further opting for facility management services.
• The growing interest in smart buildings and other IoT technologies presents numerous opportunities for market players to implement IoT-based facility management and promote smart building growth in the Netherlands.

Increasing adoption of IT Outsourcing to Drive Market

• As it becomes difficult to conduct internally manage IT processes cost effectively the reliance of companies on outsourcing is increased. The organizations have problems to which organizations need to deal are advanced technologies such as IoT, Cloud.
• For these issues, organizations are seeking access to knowledge that is scarce. Furthermore, outsourcing provides companies flexibility in their IT operations, and the opportunity to quickly and temporarily scale up or down or work at lower cost.
• The demand for public cloud services among the companies in Netherlands is on rise. With the outsourcing for such issues the satisfaction level from the organization is on rise that further adding adoption rate for IT outsourcing.

Competitive Landscape

Nethrelands Facility Management Market is highly fragmented with the presence of multiple players in the market providing facility management services to the domestic and the international markets.

• January 2022 - Vebego announced that it is taking over the entire hectas companies in Germany, the Netherlands and Austria from the Germany based family company Vorwerk. Vebego will take over hectas in its entirety, including all employees, clients and current contracts.

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• The market estimate (ME) sheet in Excel format
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