November 7, 2024
Healthcare Facilities Management Market

Healthcare Facilities Management Market Driven By Growing Healthcare Spending And Infrastructure Modernization Needs

Healthcare facilities management refers to various integrated support services essential for smooth functionalities, maintenance, and upkeep of healthcare infrastructure and equipment. This includes facility operation and maintenance services, cleaning, equipment maintenance, security, and laundry services among others which enhance the operational efficiency of healthcare facilities. The healthcare system is evolving rapidly with an increasing need for modern medical infrastructure and growing healthcare spending globally. This has boosted the demand for specialized facilities management services from healthcare providers to effectively manage their infrastructure and clinical support functions.

The global Healthcare Facilities Management Market is estimated to be valued at US$ 398,396.4 Mn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends influencing the growth of the healthcare facilities management market includes increasing focus on outsourcing of non-core services. Healthcare providers are increasingly adopting outsourcing model to benefit from expertise and economies of scale offered by facilities management companies. This allows providers to focus on their core competencies of delivering quality patient care. The market is also witnessing a trend of growing integration of advanced technologies including IoT, AI, and analytics solutions in facilities management. This is enhancing operational efficiencies, asset life cycle optimization and driving predictive maintenance of critical healthcare infrastructure and equipment.

Porter’s Analysis

Threat of new entrants: The healthcare facilities management market requires significant capital investments and strict regulatory compliances which make it difficult for new players to enter the market. However, some small players are able to enter regional markets with specialized services.

Bargaining power of buyers: Individual buyers have moderate bargaining power due to the availability of several facilities management service providers. However, large hospital networks and healthcare providers have strong bargaining power to negotiate on prices and customized service offerings.

Bargaining power of suppliers: The market has a moderate bargaining power of suppliers since facilities management requires inputs from multiple suppliers and service providers. However, some niche product and service providers wield pricing power.

Threat of new substitutes: There is a low threat of substitution as facilities management services provide an integrated solution for non-core operations and maintain critical infrastructure and equipment.

Competitive rivalry: The market has high competitive rivalry due to the presence of several international and regional players offering similar service portfolios. Players compete based on quality, reputation, innovative service offerings, and prices.

Key Takeaways

The global Healthcare Facilities Management Market Growth is expected to witness high growth over the forecast period owing to increasing demand for outsourced non-core services in the healthcare industry. North America dominates the market currently due to the presence of several leading facilities management service providers and advanced healthcare infrastructure in countries like the US and Canada.

Regional analysis

North America is expected to continue dominating the global healthcare facilities management market during the forecast period. This can be attributed to the large number of hospitals, clinics, and other medical facilities in countries like the US and Canada. Additionally, the region is an early adopter of outsourcing non-core operations like facilities management. Europe is also a major market due to the strong healthcare infrastructure and increasing adoption of FM services across Western and Northern European countries. Asia Pacific is anticipated to offer lucrative growth opportunities owing to infrastructure development and demand for integrated FM solutions in major countries like China, India, Japan, and Australia.

Key players
Key players operating in the healthcare facilities management market are Cushman & Wakefield, Tenon Group, Apollo Sindoori, Compass Group PLC, Sodexo, Serco Group PLC, OCS Group, Jones Lang LaSalle, ISS World Services AS, Ecolab Inc., ABM Industries Inc., Aramark Corporation, Vanguard Resources Inc., and Medxcel Facilities Management, among others. Key players are focusing on partnerships, acquisitions, and launching innovative service offerings to expand their presence and gain a competitive edge in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

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