Healthcare Facilities Management Market

Global Healthcare Facilities Management Market Size (2024 to 2032)

The size of the global healthcare facilities management market was worth USD 267.69 billion in 2023. The global market is anticipated to grow at a CAGR of 9.04% from 2024 to 2032 and be worth USD 583.32 billion by 2032 from USD 291.89 billion in 2024. 

MARKET SCENARIO

Healthcare facility management is critical for medical facilities, as well as ensuring service demands are met effectively and rapidly to keep operations running without interruption. Proper hospitals and medical services aid in reducing patient losses by saving time, effort, and workforce. The core domains of healthcare FM are intimately connected. A comprehensive set of facilities and operations is needed to provide better healthcare to patients. Separating maintenance management from supply services management or performance management from risk management would be impractical and unethical. HFM offers the most in-depth coverage of the unique challenges of health facility design, building, and operations commodities. The healthcare sector is continually changing, from legislation to patients and everything in between. Aging demographics, technological advances, and disease patterns all impact the future of healthcare facilities.

MARKET DRIVERS

The growing demand for healthcare services is fuelling the need for healthcare facilities management services and boosting market growth.

The need for quality healthcare services is growing significantly worldwide due to the growing aging population and increasing patient population suffering from chronic diseases and this has resulted in the increasing number of healthcare facilities such as hospitals, clinics, and other healthcare institutions. The growing number of healthcare facilities is fuelling the need for effective facilities management as they act like an extended arm to the healthcare facilities and support in delivering a better quality of healthcare. Tasks such as managing equipment and systems, maintaining facilities, managing waste and energy, and ensuring compliance with regulations and safety standards are some of the major duties of service providers in healthcare facilities management.

The growing adoption of technological developments to provide improved services by healthcare facilities management providers is fuelling the market’s growth rate.

The demand for high-quality healthcare services is growing rapidly and healthcare facilities have taken improving their efficiency and delivering high-quality healthcare at an affordable cost as their priorities. The service providers of healthcare facilities management have been increasingly employing the recent technological developments in the work practices to help the healthcare facilities to achieve these priorities. For instance, the service providers of healthcare facilities management have been using healthcare asset management systems to track their equipment and inventory, monitor usage patterns, and schedule maintenance and repairs, which helps to reduce downtime and improves the availability of equipment in all needy situations.

The growing aging population worldwide is contributing to the growth of the healthcare facilities management market.

As per the data published by World Health Organization (WHO), the aging population is growing rapidly worldwide and 1 person in every 6 people is expected to be aged more than 60 years by 2030. With the growing aging population, the need for high-quality healthcare services and the number of healthcare facilities also grows, which is putting significant pressure on healthcare facilities to provide high-quality services efficiently and cost-effectively. With the growing demand for healthcare services due to the increasing aging population and rising need for healthcare facilities to provide high-quality healthcare services at reduced costs, many healthcare providers are willing to outsource their facility management functions to 3rd party providers who can bring expertise and efficiency to these complex and demanding operations. Likewise, the growing aging population is contributing to the increasing demand for healthcare facilities management services and this trend is likely to continue in the coming years and contribute to the market’s growth rate.

In addition, healthcare facilities have been facing increasing pressure to comply with the regulations and guidelines, resulting in the increasing demand for healthcare facilities management services and driving the market growth. The cost savings associated with using healthcare facilities management services to healthcare facilities is another major factor propelling the adoption of these services and boosting the market’s growth rate. The growing focus on patient safety by healthcare providers further supports the healthcare facilities management market growth as these companies ensure that healthcare facilities are safe and secure and further help deliver the required quality of care to the patients visiting the healthcare facilities. Furthermore, factors such as growing emphasis on preventative medicine, the rising popularity of outsourcing and the increasing adoption of green technology help the growth rate of the market.

MARKET RESTRAINTS

Budget constraints of many healthcare organizations to afford healthcare facilities management services primarily hamper the market growth. Poor awareness regarding the potential benefits of healthcare management services among healthcare organizations is another significant obstacle to the market’s growth rate. Resistance to change by healthcare organizations towards healthcare facilities management services, especially if they have been still using traditional methods is anticipated to impact the market growth negatively. The stringent regulatory environment for healthcare facilities management services, the scarcity of skilled professionals, the lack of necessary technology infrastructure in healthcare facilities and security concerns associated with using healthcare facilities management services are further inhibiting the growth rate of the market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Healthcare Facilities Management Market By Product

Based on the product, the Waste Management segment is expected to grow at a Healthy Rate during the Forecast Period in the global healthcare facilities management market. Healthcare facilities produce a large amount of hazardous and non-hazardous waste daily. These wastes are produced due to human and animal disease diagnosis and treatment. In addition, in 2020, the UN Secretary-General issued a "global call to action" to emphasize the importance of and prioritize action on the water, sanitation, healthcare waste management, hygiene, and environmental cleaning infrastructure and services in all healthcare facilities, including primary, secondary, and tertiary facilities in both the private and public sectors.

Healthcare Facilities Management Market By End-User

Based on the end-user, due to the growing number of patients and increased healthcare expenditures by both public and private participants in healthcare systems, Long-term Healthcare Facilities have become one of the main segments. As a result, there has been a significant increase in healthcare spending, which has resulted in the creation of different facilities in hospitals or clinics for the well-being of patients, and therefore this element is exaggerated. Furthermore, innovative technologies like the Internet of Things (IoT) provide the attractive potential for facility management service providers to improve customer experience in healthcare institutions. Therefore, the healthcare industry has much potential for integrated facility management (IFM) business models and novel technology like IoT in facility management services.

REGIONAL ANALYSIS

Based on region, North America is expected to dominate the healthcare facilities management market during the forecast period, owing to its strong healthcare infrastructure and the development of new technologies for healthcare facilities management, which are projected to drive its growth. In the North American region, the overall state of the healthcare infrastructure varies greatly. Regional hospitals have a strong market position; some have created a basic healthcare facility management system. The growing elderly population and prevalence of chronic diseases in the area propel the healthcare facilities management market forward. Medical waste production in the United States has decreased due to the cancellation or delay of elective procedures and a decrease in hospitalizations. As a result, COVID-19 is predicted to significantly influence the region's waste management due to the treatment of COVID-19 patients alone.

Because hospitals are increasingly outsourcing non-core medical services to professional facilities management groups, the market in the Asia Pacific is likely to grow faster than in other regions. By 2026, the Chinese healthcare facility management market is estimated to grow at a CAGR of 16.9% over the forecast period. Hospitals, nursing homes, and other healthcare providers should save money by outsourcing facilities management services and focusing on their primary business. The healthcare facility management market is growing in the Asia Pacific due to increased healthcare industry outsourcing of facility management services. In addition, the fast growth of medical tourism in emerging economies such as China and India provides attractive investment opportunities for businesses. According to the Organization for Economic Cooperation and Development's (OECD) Health at a Glance, China's health spending per capita in 2019 amounted to over 20% of the OECD average.

KEY MARKET PARTICIPANTS

A few of the noteworthy companies operating in the global healthcare facilities management market covered in this report are ABM Industries Inc., Medical Facilities Management, Ecolab Inc., Aramark Corporation, Vanguard Resources Inc., ISS World Services A/S, Serco Group plc, Mitie Group plc, Sodexo, OCS Group, and Siegel-Gallagher Management Company, Inc.

DETAILED SEGMENTATION OF THE GLOBAL HEALTHCARE FACILITIES MANAGEMENT MARKET INCLUDED IN THIS REPORT

This research report on the global healthcare facilities management market has been segmented and sub-segmented based on the product, end-user, and region.

By Product

• Waste Management
• Security Services
• Catering Services
• Cleaning Services
• Technical Support Services
• Other Products

By End-User

• Hospitals and Clinics
• Long-term Healthcare Facilities
• Other End Users

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa