HEALTHCARE FACILITIES MANAGEMENT MARKET ANALYSIS

The global healthcare facilities management market was valued at US$ 354,138.7 Mn in 2022 and is forecast to reach a value of US$ 931,220.1 Mn by 2030 at a CAGR of 12.9% between 2023 and 2030. The global healthcare facilities management market is experiencing strong growth owing to the increase in prevalence or incidence of chronic disease and increase in demand for or adoption of healthcare facility management services/solutions. Moreover, growth in healthcare expenditures and increasing medical tourism is expected to boost growth of the market. However, factors such as lack of investment in facility management and gap between providers and payers are expected to hamper growth of the global healthcare facilities management market.

Global Healthcare Facilities Management Market: Regional Insights

Based on geography, the global healthcare facilities management market is segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market over the forecast period owing to the rise in prevalence of chronic and infectious diseases, rise in number of hospitals and increasing hospital admissions, and robust healthcare infrastructure in the region. For instance, according to the American Hospital Association’s (AHA’s) statistics published in 2022, there are around 6,093 active hospitals in the United States. Moreover, with the growing geriatric population and increasing chronic diseases in the U.S., the demand or use of healthcare facility management services or solutions is also increasing rapidly.

Europe and Asia Pacific are also expected to witness substantial growth in the global healthcare facilities management market due to the increase in number of hospitals, rise in hospitalizations, rise in burden of chronic or infectious diseases, and rise in healthcare expenditure in these regions. For instance, the Government of India is planning to introduce a credit incentive programme worth Rs. 500 billion (US$ 6.8 billion) to boost the country’s healthcare infrastructure. According to the India Brand Equity Foundation (IBEF), the Indian hospital industry accounting for 80% of the total healthcare market, and is expected to reach around US$ 132 billion by 2023.

Figure 1. Global Healthcare Facilities Management Market Share (%), by Region, 2023

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Global Healthcare Facilities Management Market Drivers:

Rise in burden of chronic diseases to augment market growth

One of the key factors expected to augment growth of the global healthcare facilities management market over the forecast period is the increase in prevalence or incidence of chronic disease, such as cardiovascular disease, cancer, diabetes, and/or age-related dementia, across the globe. Patients with chronic conditions are heavy users of the health services. According to the Centers for Disease Control and Prevention (CDC), more than 877,500 people in the U.S. die of heart disease or stroke every year, that’s one-third of all deaths. These diseases take an economic toll, as well, cost health care system US$ 216 billion per year. This in turn is expected to increase demand/use of healthcare facility management services or solutions worldwide.

Need for healthcare facility management to drive market growth

Another factor which is driving the growth of the global healthcare facilities management market is the increase in demand for or adoption of healthcare facility management services or solutions. Healthcare facilities management services or solutions are required to support the hospital’s staff. For example, cleaning services, catering, and waste management are in high demand from facilities that house individuals with chronic diseases. Chronic diseases such as heart disease, cancer, and diabetes are the leading causes of death and disability worldwide. In January 2023, The National Health Authority of India planned to release a hospital management information system for private clinics and small health facilities in the country.

Global Healthcare Facilities Management Market Opportunities:

Growth in healthcare expenditures worldwide is expected to offer significant growth opportunities for players in the global healthcare facilities management market. For instance, the past few years have seen a tremendous increase in healthcare expenditure in developed and developing countries. The healthcare sector is growing due to its strengthening coverage, services, and rise in expenditure by both public and private players. In the Economic Survey of 2022, India’s public expenditure on healthcare stood at 2.1% of GDP in 2021-22 against 1.8% in 2020-21 and 1.3% in 2019-2020. By FY22, Indian healthcare infrastructure is expected to reach US$ 349.1 billion.

Increasing medical tourism is expected to offer significant growth opportunities for players in the healthcare facilities management market. For instance, medical tourism is becoming very popular around the world as people are realizing the quality of healthcare services available abroad. It has also gained widespread acceptance over the years. In August 2022, the Government of India listed ten airports; such as Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Visakhapatnam, Kolkata, Guwahati, Kochi, and Ahmedabad, to feature special desks, a multi-lingual portal, and simplified visa norms for incoming international passengers visiting India for medical purposes.

Global Healthcare Facilities Management Market Trends:

Rise in focus on facility management is a recent trend

Healthcare facilities management is expected to grow at a rapid pace over the forecast period due to rapid privatization of medical care in developing countries, as well as increasing trend towards outsourcing facilities management services/solutions. The healthcare sector is capitalizing on the growing consumer desire for quick, convenient healthcare services available round the clock. This is one area where facilities management providers can offer their services or solutions. This trend is expected to continue during the forecast period.

Need for waste management is another trend

The management of healthcare waste requires increased attention and diligence to avoid adverse health outcomes associated with poor practice, including exposure to infectious agents and toxic substances. The waste may compromise patient care quality, spread infectious diseases, and may increase environmental pollution. Such high medical waste is expected to contribute to the demand for waste management services or solutions, thereby contributing to the growth of the market. This trend is also expected to continue over the forecast period.

Global Healthcare Facilities Management Market Restraints:

Lack of investment in facility management to hinder market growth

One of the key factors expected to hamper growth of the global healthcare facilities management market is the lack of investment in facility management, especially in low-income countries. Many low-income and/or emerging economies spend very little or less on their healthcare expenditures as a proportion to their GDP. In such cases, there is little impetus to seek out facilities management service providers that usually charge high fees for their services. However, several countries across the globe are increasingly investing in the healthcare industry.

Gap between providers and payers to hamper market growth

Another factor which is hampering growth of the global healthcare facilities management market is the gap between providers and payers. There are many other reasons why payers and providers are rarely on common ground regarding contractual agreements. Healthcare facilities management impacts the health and well-being of individual patients and employees at healthcare organizations. However, there exist significant gaps in communication between payers and providers, which acts as a significant market restraint.

Figure 2. Global Healthcare Facilities Management Market Share (%), by Product Type, 2023

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Global Healthcare Facilities Management Market Segmentation:

The global healthcare facilities management market report is segmented into Product Type, End User, and Geography.

Based on Product Type, the market is segmented into Waste Management, Security Services, Catering Services, Cleaning Services, Technical Support Services, and Other Product Types. Out of which, Waste Management Segment is expected to dominate the global healthcare facilities management market over the forecast period and this is attributed to the rise in need for healthcare waste management across the world.

Cleaning Services Segment is also expected to witness significant growth in the near future and this is due to the increase in demand for cleaning services worldwide. Cleaning services form an essential component of healthcare facilities management.

Based on End User, the market is segmented into Hospitals and Clinics, Long-term Healthcare Facilities, and Other End Users. Out of which, Hospitals and Clinics Segment is expected to dominate the market during the forecast period and this is attributed to the increase in number of hospitals and clinics across the globe.

Long-term Healthcare Facilities Segment is also expected to witness significant growth in the near future and this is due to the growth in healthcare expenditures. Long-term healthcare facilities seek the services of facilities management companies because they need help in various areas such as security, cleaning, and catering, among others.

Global Healthcare Facilities Management Market: Key Developments

In February 2022, ATALIAN reported renewing its contract with the Institut Gustave Roussy. For the past five years, ATALIAN has supported the Gustave Roussy Institute’s cleaning and related services (bio cleaning, blanking, distribution of patient meals, and more).

In January 2022, Aramark and Patient Engagement Advisors (PEA) entered into a partnership to enable the company to better serve an evolving healthcare industry by adding post-discharge care services to its other capabilities, including food service, and help reduce costly readmissions.

In September 2021, ISS A/S acquired Rönesans Facility Management Company. ISS will provide Facility Management (FM) services (cleaning, security, food, pest control, landscaping, reception, patient transport, laundry services, and waste management) in a Public-Private-Partnership at four newly-built hospitals (Adana, Elazığ, Bursa, and Yozgat) in Turkey until 2045.

Global Healthcare Facilities Management Market: Key Companies Insights

The global healthcare facilities management market is highly competitive. This is attributed to the increase in demand or adoption of healthcare facility management services or solutions, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global 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.

*Definition: Healthcare facilities management is the maintenance and oversight of a healthcare facilities' development, maintenance, security, and operations. It is vital for medical facilities and to ensure service requests are provided efficiently to maintain operations without intermission.