HEALTHCARE FACILITIES MANAGEMENT MARKET ANALYSIS

Market Challenges And Opportunities

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 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.