Healthcare Facilities Management Market

The global Healthcare Facilities Management Market is valued at USD 6.5 Billion in 2022 and is projected to reach a value of USD 11 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 6.9% between 2023 and 2030.

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The demand for high-quality healthcare services, increasing government regulations and policies, and the requirement to maximize operational efficiency all contribute to the significant expansion of the worldwide Healthcare Facilities Management market. According to a Honeywell report from 2022 titled "Rethinking Healthcare Facilities as Integrated Entities," a survey of healthcare facility managers in the US, China, and Germany, 61% of participants were prepared to spend more money on preventative maintenance systems than the pre-pandemic period, and 27% said they were likely to purchase real-time tracking of people and assets to improve operational efficiency. Predictive maintenance (30%), less downtime (29%), and better indoor air quality (28%) were the three improvements that respondents felt would be most helpful to the users of their facilities. Healthcare facilities are increasingly turning towards smart building technology to improve operational savings, according to Honeywell's "Rethinking Healthcare Facilities as Integrated Entities" research. Most respondents (56%) indicated that these technologies would enhance staff efficiency and building operations. In comparison, 52% were keen to employ technology to manage multiple building systems through a single platform with data and insights.

• Increasing focus on cost reduction and operational efficiency by healthcare drives the Healthcare Facilities Management market
• In 2022, from the service type segment, the soft services category has captured a 44.52% revenue share
• The hospitals and clinics segment has captured a revenue share of around 48.42% in 2022
• North America dominated the overall market in 2022 with a share of over 43.9%

Top Market Trends

1. Many healthcare facilities outsource non-core cleaning, maintenance, and security functions to specialized facilities management companies. By doing this, healthcare companies may efficiently manage support services while concentrating on their main and clinical tasks. Several hospitals outsource their housekeeping services to professional facilities management companies. These companies provide trained staff and specialized cleaning equipment and follow standardized protocols to maintain cleanliness and infection control.
2. To improve patient care and optimize their operations, healthcare facilities are increasingly implementing smart technology solutions. Monitoring and managing facilities more effectively include using IoT devices, automation, machine learning, and artificial intelligence.
3. There is a growing trend towards integrating various facilities management functions, such as maintenance, security, housekeeping, and equipment management, under a single service provider. This integrated approach improves coordination, reduces costs, and improves overall facility performance.
4. Healthcare facilities are investing in advanced security systems to protect patients, staff, and sensitive data. This includes using biometric access controls, video surveillance, visitor management systems, and cybersecurity solutions to safeguard against physical and digital threats.
5. In the wake of the pandemic, healthcare facilities are emphasizing infection control measures more. This includes implementing enhanced cleaning protocols, ensuring proper ventilation systems, and adopting new technologies like UV disinfection devices.
6. Healthcare facilities leverage data analytics tools to monitor facility performance, predict maintenance needs, optimize energy consumption, and ensure equipment uptime. This proactive approach helps reduce downtime, minimize costs, and improve overall efficiency.
7. Healthcare facilities are increasingly prioritizing patient comfort and satisfaction when designing their facilities. This includes creating welcoming environments, incorporating healing gardens, enhancing wayfinding systems, and improving overall accessibility.

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• Competitor Benchmarking
• Market Trends Heatmap
• Custom Research Queries
• Market Sentiment Analysis
• Demographic and Geographic Insights

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Economic Insights

The rising need for effective and affordable healthcare services is one of the main factors influencing market expansion. Automation and implementation of the digital solutions have increased overall efficiency in healthcare settings, improved patient care, and decreased operating expenses. However, some economic limitations prevent the Healthcare Facilities Management sector from expanding. The significant upfront cost of implementing advanced management systems and infrastructure is a big barrier. This investment can be a significant barrier for small healthcare facilities or those in low-income regions. The cost of maintaining and upgrading healthcare facilities and equipment can also act as a restraint. These expenses can be substantial, particularly for facilities facing financial constraints or operating in areas with limited resources.

Market Segmentation

The global Healthcare Facilities Management market can be categorized on the following:

The global Healthcare Facilities Management market can be categorized into Service Type, End User, Region. The Healthcare Facilities Management market can be categorized into Hard Services, Soft Services based on Service Type. The Healthcare Facilities Management market can be categorized into Hospitals & Clinics, Long Term Care Facilities, Other End Users based on End User. The Healthcare Facilities Management market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

Based on the Service Type

Soft Services are Essential for Keeping Healthcare Facilities Safe for Both Employees and Patients

The soft service segment has emerged as a dominant force in the Healthcare Facilities Management market. Soft services encompass non-technical support functions such as cleaning, catering, laundry, and security. These services are essential for keeping healthcare facilities safe for employees and patients. The increasing focus on patient satisfaction and optimal care delivery has led healthcare organizations to outsource their facility management operations to specialized soft service providers. These providers offer expertise in delivering high-quality services that adhere to strict healthcare regulations, ensuring a clean and well-maintained facility. As a result, the soft service segment has witnessed significant growth, contributing to its dominance in the Healthcare Facilities Management market.

Based on End-User

Hospital and Clinic Administrators are Increasingly Investing in Advanced Facility Management Solutions

Hospitals and clinics have dominated the Healthcare Facilities Management market. As the primary medical treatment and care facilities, hospitals and clinics require comprehensive management of their infrastructure, equipment, and support services. They encompass specialized areas, including surgical departments, outpatient clinics, critical care units, and diagnostic facilities, each with specific management needs. Effective facility management ensures smooth operations, patient safety, and regulatory compliance. Hospital and clinic administrators are increasingly investing in advanced facility management solutions provided by specialized vendors to streamline operations and enhance efficiency. With the continuous growth in the healthcare industry, hospitals and clinics are expected to maintain their stronghold in the Healthcare Facilities Management market.

Based on Region

IoT, AI, and Cloud Computing have Revolutionized the Management of Healthcare Facilities in North America.

North America is the largest region in the Healthcare Facilities Management market, primarily due to its advanced healthcare infrastructure and increasing investment in Healthcare Facilities Management services. The Joint Commission, a U.S. healthcare accreditation organization, sets standards for patient safety and quality of care. Healthcare facilities employ management strategies to maintain compliance with these standards, ensuring patient safety and minimizing risks. The region is witnessing significant development in the market as healthcare providers strive to streamline their operations and enhance patient outcomes. For instance, the adoption of advanced technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and cloud computing has revolutionized the management of healthcare facilities in North America. These technologies enable real-time monitoring of critical parameters, improve asset management, optimize energy consumption, and enhance patient experience. Furthermore, the region's focus on infection control and regulatory compliance has led to rigorous hygiene protocols and efficient waste management practices, ensuring the well-being and safety of patients and staff. The importance of North America in this market can be attributed to its strong healthcare infrastructure, innovative advancements, and commitment to providing the highest quality healthcare services.

Competitive Landscape

Companies such as Johnson Controls, Aramark, Medxcel, Compass Group, and Sodexo are some of the major players in this market. These companies provide various services, including facility maintenance, housekeeping, waste management, and energy management, among others. Technological advancements, such as implementing IoT and cloud-based solutions, have intensified competition in this market. The growing emphasis on improving patient satisfaction and reducing operational costs has increased demand for efficient and cost-effective Healthcare Facilities Management solutions, thereby driving competition among market players.

The key players in the global Healthcare Facilities Management market include - 3M Company (U.S.), CBRE Group Inc. (U.S.), Johnson Controls (U.S.), Accruent (U.S.), Jones Lang LaSalle Inc. (U.S.), ABM Industries Inc. (U.S.), Medxcel (U.S.), Sodexo (France), Armark Corp. (U.S.), ISS (Denmark) among others.

Recent Market Developments

• In October 2022, ISS A/S acquired the facility management company Livit FM Services AG in Switzerland from its parent, Livit AG. The integration of the acquired company is expected to be completed in the first quarter of 2023.
• In September 2022, Sodexo announced the signing of a new contract strengthening its alliance with Ardent Health Services, a business specializing in healthcare in the United States. More than 1,500 Sodexo personnel will deliver food, nutrition, and environmental services at more than 50 Ardent facilities across six states due to this strengthened cooperation. Previously, four Ardent facilities received patient nutrition and environmental services from Sodexo.
• In May 2022, ABM extended its partnership with ELEVATE with a strategy to accelerate growth through industry-leading use of technology and analytics and investments in the client and team member experience.

Segmentation of the Global Healthcare Facilities Management Market