Healthcare Facilities Management Market

Healthcare Facilities Management Market Overview:

The global healthcare facilities management market size reached US$ 373.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 761.6 Billion by 2032, exhibiting a growth rate (CAGR) of 8.1% during 2024-2032. The growing use of artificial intelligence (AI) and data analytics to manage various operations in the healthcare sector, rising demand for advanced healthcare services, and streamlined procurement processes to enhance service quality are some of the factors propelling the market growth.

Healthcare Facilities Management Market Analysis:

• Major Market Drivers: The market is experiencing strong growth owing to the increasing demand for upholding cleanliness and safety levels in healthcare centers, rising number of healthcare facilities, and the emphasis on enhancing patient contentment.
• Key Market Trends: The growing utilization of advanced technologies such as the internet of things (IoT) and artificial intelligence (AI) for facility management, an increasing focus on sustainable and eco-friendly practices, and the incorporation of comprehensive facility management services to improve operational efficiency are some of the major trends. The shift towards outsourcing non-core activities to specialized service providers is also gaining traction.
• Geographical Trends: North America leads the market because of the presence of well-established healthcare infrastructure and stringent regulatory requirements.
• Competitive Landscape: Some of the major market players in the industry include ABM Industries Inc., Aramark Corporation, Compass Group PLC, Ecolab Inc., International Business Machines Corporation, ISS A/S, Jones Lang LaSalle Incorporated, Mitie Group plc, OCS Group limited, Oracle Corporation, Serco Group plc, and Sodexo.
• Challenges and Opportunities: Some of the challenges include the expensive nature of incorporating cutting-edge technologies and the requirement to adhere to strict regulations. Nevertheless, there are opportunities in the increasing need for integrated facility management services, the development of healthcare infrastructure in developing countries, and the rise in outsourcing facility management to third-party service providers.
   

Healthcare Facilities Management Market Trends:

Technological Advancements

Incorporating cutting-edge technologies like the internet of things (IoT), artificial intelligence (AI), and data analytics into facility management procedures is resulting in improved operational efficiency and service quality. IoT devices allow for the immediate supervision and control of facilities, guaranteeing the best possible functioning of equipment and infrastructure. AI-powered technologies make it easier to predict maintenance needs, ultimately decreasing time spent offline and cutting down on expenses. Data analysis offers valuable perspectives on facility operations, aiding in decision-making and resource distribution. Furthermore, the implementation of automated systems for duties such as cleaning, waste management, and security enhances the efficiency of operations. These technological advancements enhance the overall operation of healthcare facilities and also guarantee adherence to strict regulatory standards. In 2023, Sodexo, Worldline, and SV365 Technologies teamed up to introduce a 24/7 automated Deli at Royal Stoke University Hospital catered to frontline healthcare staff, featuring touchscreen ordering and cashless payment options for continuous access to fresh food.

Growing Demand for Advanced Healthcare Services

The increasing aging population and the frequency of chronic illnesses among the masses are driving the demand for comprehensive healthcare services. Patients and medical professionals need advanced facilities with modern technology and infrastructure to guarantee high-quality healthcare. Efficient management of healthcare facilities is required to uphold operational excellence due to the increased need for advanced services. Management of healthcare facilities includes a variety of essential services, such as maintenance, security, waste management, and environmental services, all of which are important for the smooth running of medical operations. The rising focus on patient-centered care models is catalyzing the demand for properly maintained facilities that can offer a secure, sanitary, and effective setting for improving patient results and contentment. In 2023, Sodexo selected startups ThriveMap, 1Huddle, and Memory Lane Games to participate in its Healthcare and Seniors Accelerator program, which focuses on improving healthcare facilities management with cutting-edge workforce solutions and cognitive care technologies.

Streamlined Procurement Processes

Streamlining the procurement process enables healthcare institutions to easily obtain a wide range of facility management services, including cleaning, catering, and maintenance, without the added complexity of overseeing numerous contracts and suppliers. By incorporating procurement frameworks, healthcare providers can guarantee uniformity and excellence across different services, resulting in enhanced operational effectiveness and reduced expenses. This centralization also helps to meet regulatory standards more effectively and improve the capacity to enforce standardized best practices in various facilities. Efficient procurement procedures allow healthcare organizations to concentrate on patient care rather than administrative tasks, leading to improved service delivery and patient satisfaction. For example, Sodexo's participation in the CCS RM6331 Healthcare Soft Facilities Management Services framework, finalized in 2024, allowed them to provide a wide range of soft facility management services, such as cleaning and catering to healthcare organizations in the UK public sector. This initiative was designed to simplify procurement procedures and improve the quality of services within National Health Service (NHS) trusts and other healthcare providers.

Healthcare Facilities Management Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on service type, business model, and end user.

Breakup by Service Type:

• Property Services
• Cleaning Services
• Security Services
• Catering Services
• Support Services
• Environmental Management Services
   

Support services account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the service type. This includes property services, cleaning services, security services, catering services, support services, and environmental management services. According to the report, support services represented the largest segment.

Support services account for the majority of the market share as per the healthcare facilities management market outlook. This segment covers a variety of crucial services that are vital for the efficient functioning of healthcare facilities, such as administrative assistance, coordination of supplies, patient transport, and workforce supervision. The importance of support services is driven by the crucial role they have in improving operational efficiency, lessening administrative burdens on healthcare providers, and enhancing the quality of patient care. The increased intricacy and size of healthcare facilities are driving the need for robust support services. In 2023, Oracle upgraded its enterprise resource planning (ERP) and supply chain offerings with healthcare-focused features like financial consolidation, procurement, and supply chain management, designed to reduce expenses, increase efficiency, and assist in implementing new healthcare delivery methods.

Breakup by Business Model:

• Outsourced
• In-House
   

Outsourced holds the largest share of the industry

A detailed breakup and analysis of the market based on the business model have also been provided in the report. This includes outsourced and in-house. According to the report, outsourced accounted for the largest market share.

Outsourced holds the biggest market share according to the healthcare facilities management industry outlook. This segment includes healthcare establishments hiring third-party service providers to handle different non-essential tasks like maintenance, cleaning, security, and support services. The shift toward outsourcing is motivated by the requirement for specific skills, cost-effectiveness, and the capacity to concentrate on primary healthcare services. By utilizing the services of professional facilities management companies, healthcare providers can guarantee top-notch service quality, meet strict regulatory standards, and adopt cutting-edge technologies and industry best practices. Outsourcing provides flexibility and scalability to healthcare facilities, enabling them to respond to evolving demands without the need to oversee large in-house teams. This business model is especially appealing in a healthcare environment that is becoming more complex and resource-constrained. In 2024, government hospitals in Maharashtra signed contracts with private companies to outsource advanced diagnostic and treatment services. This project is intended to enhance healthcare access in distant regions by utilizing the knowledge and resources of the private sector within public hospital facilities.

Breakup by End User:

• Hospitals and Clinics
• Long-term Healthcare Facilities
• Others
   

The report has provided a detailed breakup and analysis of the market based on the end user. This includes hospitals and clinics, long-term healthcare facilities, and others.

Hospitals and clinics make up a large portion of the market because of their sizable infrastructure and frequent patient traffic. These establishments need thorough management services to guarantee the seamless running of daily activities, including upkeep of cleanliness and safety measures, waste management, security, and patient assistance services. The need for effective facility management in hospitals and clinics is driven by the requirement to ensure a secure and pleasant environment for patients and staff, adhere to strict healthcare regulations, and improve operational efficiency.

Long-term healthcare facilities, such as nursing homes, rehabilitation centers, and assisted living facilities, make up an important part of the market. These establishments serve patients in need of long-term care and, therefore, have specific management requirements like special cleaning, medical equipment maintenance, and environmental management for a safe and healthy living space. Maintaining effective facility management in this sector is crucial to meet health regulations, improving the quality of life of patients, and sustaining operational efficiency in the facilities.

Others comprise a variety of healthcare facilities, including outpatient care centers, medical laboratories, and diagnostic centers. These establishments need customized management services to meet their unique operational requirements, such as maintenance of equipment, waste management, and maintaining a clean environment. The increasing specialized healthcare offerings and a greater emphasis on prevention are supporting the healthcare facilities management market growth. Effective management of facilities in these establishments is essential for upholding top-notch patient care, aiding in specialized medical procedures, and meeting regulatory requirements.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for healthcare facilities management.

North America leads the market due to its strong healthcare infrastructure and stringent regulatory standards. The healthcare facilities management market demand is greatly influenced by the presence of sophisticated medical facilities, rising investments in healthcare services, and emphasis on maintaining optimal patient care environments. Factors, such as the growing number of healthcare facilities, the requirement of adhering to strict safety and hygiene standards, and the increasing use of advanced technologies, including IoT and AI, for effective building management are strengthening the market growth. Furthermore, there is a higher participation of important industry leaders and a shift towards delegating non-essential services to expert management companies. In 2024, Aramark introduced a new service that links patients in hospitals with distant clinical dietitians through Teladoc Health's telemedicine technology. This successful pilot initiative at University Medical Center in Texas can overcome obstacles, such as geographic location and technology access, in order to provide vital medical nutrition therapy.

Competitive Landscape:

• The healthcare facilities management market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the industry include ABM Industries Inc., Aramark Corporation, Compass Group PLC, Ecolab Inc., International Business Machines Corporation, ISS A/S, Jones Lang LaSalle Incorporated, Mitie Group plc, OCS Group limited, Oracle Corporation, Serco Group plc, Sodexo., etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Top healthcare facilities management companies are prioritizing strategic efforts to reinforce their market position and improve service offerings. This involves mergers and acquisitions (M&A) to expand their geographic footprint and incorporate cutting-edge technologies, such as IoT, AI, and data analytics, to enhance operational efficiency and service provision. They are also dedicating resources to improving workforce skills through training programs and implementing sustainable practices to align with regulations and user demands. Through forming strategic partnerships and alliances, these organizations seek to provide complete and personalized facility management solutions, ultimately leading to expansion and sustaining a competitive advantage in the industry. In 2024, Sodexo collaborated with The Leapfrog Group to improve patient safety by implementing programs like Protecta for preventing infections. This partnership intended to enhance healthcare quality by promoting openness and utilizing insights obtained from data analysis.

Healthcare Facilities Management Market News:

• June 2024: Aramark Corporation collaborated with Pringle Robotics to introduce self-operating floor cleaning robots in its client locations, such as the Kay Bailey Hutchison Convention Center in Texas, improving effectiveness and cleanliness standards. This effort was a result of Aramark's dedication to incorporating cutting-edge technologies in facility management.
• September 2024: Oracle Corporation broadened its healthcare services by adding more advanced workforce management features to Oracle Fusion Cloud HCM. This is in order to improve staffing efficiency and enhance employee involvement through personalized scheduling and dynamic shift management.
• March 2024: Sodexo Health & Care renewed its contract with Royal Stoke University Hospital and Haywood Hospital for another decade, worth £38 million per year. The agreement included extensive facilities management, catering, and retail services, further solidifying a partnership that had already lasted more than ten years.

Healthcare Facilities Management Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and healthcare facilities management market dynamics from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides healthcare facilities management market insights into the current positions of key players.