North America Hard Facility Management Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

North America Hard Facility Management Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The North American Hard Facility Management Market is expected to record a CAGR of 3.5% over the next five years. North America is one of the global leaders in HFM Markets globally. This was mainly driven by expanding infrastructure facilities and stronger regional economic growth.

Key Highlights

• The region's construction market is expanding favorably because of the rising population, fast urbanization, and increased building construction. For instance, the U.S. Census Bureau projects that the region's population would increase manyfold over the next few years. The demand for HVAC systems and services is growing in the nation owing to the growing population and increased governmental efforts to construct buildings for schools, colleges, and other institutions.
• In the upcoming years, the North American HMF market is expected to have a significant market share globally on the back of increased investment and research and development on HFM activities. Also, the rise in significant key regional players would drive growth. Moreover, for the upcoming period, the market is anticipated to be supported by rising investments made by notable providers in product capabilities.
• North America has a very robust EAM demand. This growth is influenced by a well-developed IT infrastructure, government expenditures in cutting-edge technology, and a rising emphasis on asset management to stay in line with the regulations and compliance among enterprises. Also, the growing North American enterprises are currently emphasizing asset usage, predictive utilization, and supply chain management security (SCM) in aid to streamline their business operations.
• However, the global semiconductor (chip) shortage has made it difficult for many industries, including EAM service providers. Especially in North America, Asset management companies that employ semiconductors in their products or services have experienced significant issues due to the scarcity of chips. Smartphones and tablets require updated chips for service optimization, and the shortage in this region is causing some disruptions in their services.
• The COVID-19 pandemic significantly influenced the HFM sector of North America, which resulted in a substantial change in the operations, strategies, and performance of facility managers within organizations. There is a growing demand for transformation, innovative ideas, and original planning methods as the industry progressively moves toward the post-COVID era. With the opening of office premises in the region, attention shifts to hygiene-related policies, and the need for safety and cleanliness at work increases.

North America Hard Facility Management Market Trends

High HVAC Service Demand In the United States

• The need for HVAC maintenance, repair, replacement, installation, and consulting services is relatively strong in the United States. The rising popularity of smart HVAC systems is now driving up demand for the maintenance and repair services that go along with them in the United States HVAC services industry. Also, the increased emphasis on HVAC services is attributable to the focus on energy efficiency in the United States in the last few years.
• The American Institute of Architects (AIA) published standards for planning, developing, and renovating new healthcare facilities. These were related to the regulations pertaining to the healthcare facilities that many meets ensure to meet certain air-quality standards for each zone or area, such as operating rooms, laboratories, diagnostic areas, patient-care areas, and support departments, including ventilation rates, temperature levels, humidity levels, pressure relationships, and minimum air changes per hour. This rapidly increased the HFM services, where companies across the United States emphasized these services for being at par with federal regulatory authorities.
• Notably, to address the problem of global warming and higher power consumption, the U.S. government started rewarding and providing subsidies for companies that align with the power consumption regulations.
• It is possible to fight higher carbon emissions and power commission with intelligent HVAC Systems. US businesses have moved toward implementing a smarter HVAC infrastructure to regularly enable energy efficiency, raising the demand for HVAC facility services.
• Moreover, offices and other institutions across the United States are opening because of post-pandemic relaxations. According to CDC and other health agencies, air filtration can be used as a strategy to lessen the risk of COVID-19 transfer indoors via the air. So, there is an increased demand for regular maintenance of HVAC filters to reduce airborne pollutants, such as viruses, in a building or restricted area. The HVAC systems in the large building are complex, and HVAC filters require upgrading and maintenance within a regular time. This involves technology experts regularly intervening in the systems.
• According to the US Department of Energy, in the United States energy efficiency sector last year, ENERGY STAR appliances, goods, and services had the greatest employment levels with 549,543 workers. The conventional heating, ventilation, and air conditioning industry followed closely behind, employing 549,3800 people.

Rise in Infrastructural Activities in the Region

• The US engineering and construction sector recorded a significant growth of 8% in construction spending last year, which helped the industry start this year on a promising note. Funds entering the market from the Infrastructure Investment Board are anticipated to boost the non-residential construction category in the region. The increase in new construction indicates that the construction sector is continuing to withstand the storm of increased inflation rates. As a result, there would be a rapid need for construction and facility services across the country.
• Developed nations like the United States and Canada aim to upgrade their current infrastructure with time. Although the construction sector in the region paused for a while owing to the adverse effect of the COVID-19 pandemic, commercial construction is growing steadily. Some of North America's massive investment projects for commercial and leisure buildings started early this year in places like Pennsylvania, Washington, British Columbia, etc. There would be a rise in demand for plumbing and fittings on the back of more rising regional constructions.
• As we enter the second year of the recovery in 2022, the construction growth is expected to significantly assist the country's growth strategy. The Infrastructure Investment and Jobs Act (IIJA), which includes investments in health care, public safety, and other public infrastructure, is anticipated to benefit engineering and equipment services and accelerate the non-residential market recovery.
• Notably, post-pandemic office opening would require urgent requirement of office space remodeling. According to research conducted by the United States design company Leo A Daly, more office occupiers would need flexible workplaces in the coming months and years. According to the report, the pandemic has prompted businesses to change their workplace layouts to accommodate a rise in scattered employment operations, including working from home. Instead of fixed cubicles, portable and lightweight dividers are more required. Also, to achieve the greatest possible social distance, it would be crucial for designers and engineers to visualize people would move around the structure.
• According to FMI corporation research, the value of the new buildings built in the United States last year was approximately USD 1.6 trillion; by 2025, it is expected to exceed USD 2 trillion. Over the past few years, construction investment has been gradually increasing. Notably, non-residential constructions are expected to increase in the upcoming years.

North America Hard Facility Management Industry Overview

The North American HFM)is highly fragmented, with local and international players having decades of industry experience. ​The HFM vendors are incorporating technologies into their services, strengthening their service portfolios. The major players are Sodexo, Inc., Johnson Controls International, Carrier Global Corporation, Jacobs Solutions Inc., and AECOM.

• In July 2022, Jacobs Engineering Group Inc. announced that it had obtained a contract from the National Aeronautics and Space Administration (NASA) to supply engineering and scientific goods, technical services, and associated services to the organization's Johnson Space Center in Houston and other NASA sites.
• In June 2022, Sodexo Inc. launched a new application for mobile phone users called daily for its customers across the United States. Customers at Sodexo may now use services, including mobile and kiosk ordering, digital wallet, personalization, scan-and-go capabilities, and nationwide delivery.

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