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

The Switzerland Facility Management Market is expected to grow by registering a CAGR of 1.9% during the forecast period. Switzerland ranks 6th out of the 130 economies included in the Network Readiness Index (NRI) 2021, published by the Portulans Institute. The Network Readiness Index (NRI) reflects the impact of information and communication technology in economies around the world and with such instance the demand for faciloty management is also driving.

Key Highlights

• The increased adoption of cloud-based solutions along with growing investments by the government to streamline the operations of industries such as construction, transport, and energy is driving the adoption of facility management solutions in the country.
• Furthermore, according to the Federal Department of Foreign Affairs, approximately 74% of Swiss GDP is generated by the services sector, while 25% is generated by the industrial sector. Less than 1% of the country's GDP is attributed to the agricultural sector.
• The growth of the industrial and the service sector has positively impacted the infrastructure sector which is a major driver for the facility management services in the country. Key sectors that have attracted significant investments in Switzerland include information technology, scientific instruments, precision engineering, machine building, medical technology, and pharmaceuticals.
• The global outbreak of COVID-19 had a notable impact during its initial phase in the country as several restrictions imposed by the government slowed down the economic activities in the country. However, the lifting of majority of contaminant measures has triggered a strong rebound in the country's economic activities since the 2nd quarter of 2021. This is expected to create more opportunities as the awareness about digital technologies and effective facility management has increased.
• Although, the country offers a positive outlook for the growth of the studied market, the increased instances of data breaches and cyberattacks are among the primary factors that may restrain the growth of the market, especially the facility management software segment. For instance, in January 2022, Geneva-based International Committee of the Red Cross (ICRC) reported that it was exposed to a cyber attack, that compromised confidential information and personal information of more than 515,000 people.

Key Market TrendsThe Outsourced Facility Management to Lead the Market

• Outsourcing in facilities management involves turning over the decision-making and management of an operation to a third-party organization. For a large organization, facility management outsourcing can be an excellent way to drive down operating costs, and improve efficiency and response time. Such trends are encouraging the organizations and management teams to outsource the complete or portion of their facility management work to third-party service providers.
• For instance, SAUTER Switzerland, which offers solutions, expertise, and products for building management and room automation throughout the entire building life cycle, in December 2021, announced that it will be showing how digital solutions in buildings contribute to a positive user experience and at the same time benefit the management at a leading trade fair.
• Furthermore, the expertise these solution providers bring to the table is something the majority of in-house facility management teams strive for. For instance, in May 2021, Bouygues Energies & Services announced that it has developed a sophisticated solution by combining the access control system AEOS from Nedap Security Management with the facial recognition solution FTF, to meet the special requirements for access management on construction sites.
• The increasing demand is also driving new vendors to enter the Swiss market. For instance, in April 2021, funds advised by KLAR Partners Limited, announced the acquisition of ISS Kanal Services, a corporate carve-out from ISS Schweiz AG and Switzerland’s prominent player within underground infrastructure maintenance sector.

Commercial Segment to Drive the Demand for Facility Management Services

• The commercial segment addresses the office spaces occupied by various organizations to carry out their day-to-day operation. A commercial building may contain one or more of many types of businesses, including offices, retailers, restaurants, or manufacturing locations.
• The country is witnessing significant growth in the data center infrastructure which is among the key consumer of facility management services. For instance, in February 2022, Principal Global Investors announced it has closed its latest funding round with a USD 175 million data center investment aimed at European acquisitions. According to the company, about 40 percent of this fund will be split between Italy, Spain, and Switzerland.
• In October 2021, Centralschweizerische Kraftwerke AG (CKW) announced that a construction project is being carried out via its subsidiary CKW Fiber Services to establish a new data center in Rotkreuz.
• Similarly, in December 2021, Vantage Data Centers, which is backed by DigitalBridge, opened the first of four data centers on its growing Swiss campus sited in Zurich. According to the company, the seven-acre campus will offer 40MW of IT capacity to customers, once fully developed.
• Furthermore, the IT and R&D sector in the country is among the key area of the Swiss economy and companies like Google, Meta, IBM, and Walt Disney have located their research centers in Switzerland. This has resulted in development of office employment which has emerged as the primary driving factor behind the growth of commercial buildings in the country.

Competitive Landscape

The Switzerland Facility Management Market is moderately competitive owing to the mixed presence of local and global players. However, the growing demand for facility management services is expected to attract more players, which will intensify the competition in the market during the forecast period. Some of the major players operating in the region include Sodexo Suisse (SA), Johnson Controls, Honegger AG, and Dussman Services AG, among others.

• May 2022 - Multi Corporation announced that it is appointed property and asset manager for Mall of Switzerland. The Mall of Switzerland is a four-story shopping center with 65,000 sq m of GLA, with a 12-screen cinema, restaurants, leisure options, and a parking garage for 1,600 vehicles.
• March 2022 - Sodexo announced a new collaboration with Sensori FM. According to the company, they will collaborate with clients on the creation of strategies to reduce their carbon footprint, energy, and water, and enhance their sustainability roadmaps.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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