Facility Management Software Market

Facility Management Software Market Size

The global Facility Management Software Market size was valued at USD 1.79 billion in 2022 and is projected to reach USD 3.59 billion by 2030, growing at a CAGR of 9.29% from 2023 to 2030. The increasing deployment of Computer Aided Facilities Management (CAFM) and Integrated Workplace Management Systems (IWMS) solutions is driving market growth. Currently, companies completely rely on these solutions to drive operational performance and reduce costs.

Facility management software plays a vital role in enabling businesses of all sizes to streamline their operations, foster growth, and enhance efficiency, thereby helping them achieve their organizational goals. However, several factors are restraining the facility management software market growth such as high costs and the legacy of advanced technologies. Other challenges include employment management, maintenance, and lack of facility information availability.

Analyst’s Review 

The trend of outsourcing facility management services is experiencing a surge in popularity, prompting companies to reassess their operating models to optimize value creation before engaging third-party providers. Typically, the evaluation process involves reviewing the optimal combination of insourcing and outsourcing, taking into consideration factors such as cost, capability, and coverage. This trend has played a pivotal role in propelling the growth of the facility management market, driven by the escalating demand for outsourced facility management services. The primary drivers behind this demand are the imperative of reducing operating costs and the pursuit of high-quality workplace experiences. In-house facility management teams often entail substantial upfront costs and pose challenges in managing a wide array of services, further underscoring the appeal of outsourcing. Companies are under pressure to provide value to their customers, which prompts innovation and expansion of core services, often reducing their non-core facility management budget. All these aforementioned factors are propelling the facility management software market growth.

Market Definition

Facility management software empowers organizations to effectively manage their property repairs and maintenance program through web-based tools. Consequently, it can save time and money by efficiently managing its assets, buildings, and occupants. FM organizations benefit from the ability to centrally track comprehensive information regarding their properties and equipment, efficiently manage repairs and maintenance activities to ensure optimal asset condition, optimize resource scheduling and streamline work order processes, and enhance customer service and the work request process. These capabilities contribute to improved operational efficiency and effective asset management within the organization. Utilizing facility management extensions achieves strategic insights into maintenance costs and resource allocation, makes the most of physical space, and drives efficiencies that reduce costs and enhance communication with internal stakeholders and constituents.

The software provides a range of digital tools that enable multi-facility managers to streamline maintenance and repair tasks, including commercial contractor sourcing and compliance, maintenance scheduling, invoicing, and data analytics. Cloud-based solutions offer the added benefit of real-time data analysis and enhanced security, enabling businesses to identify patterns and manage costs effectively while improving communication with both internal stakeholders and service providers.

The software offers a range of features to facilitate a variety of tasks, including work order fulfillment, preventive maintenance scheduling, data analytics, contractor management and sourcing, proposal management, supply management, and a few others. Its purpose is to provide support for facility managers, ensuring that they can carry out their responsibilities more efficiently.

Market Dynamics

The increasing adoption of cloud-based solutions for facility management is driving the facility management software market. Cloud-based facility management software offers several advantages over traditional desktop software, including device compatibility, accessibility from any location, tiered permissions, and increased security. It also provides a range of features such as remotely managing assets, facilities, and inhabitants, preventive maintenance scheduling, data analytics, proposal management, contractor sourcing and management, and repair & maintenance management. In addition, cloud-based facility management software can be customized to meet the specific needs of organizations. There are several cloud-based facility management software applications available on the market, including Buildium and Yardi Breeze. Overall, facility management software serves as a valuable resource for organizations seeking to optimize their facility management processes. Providing comprehensive tools and functionalities enables efficient management of facilities, enhances decision-making, and promotes operational excellence, thereby driving overall organizational efficiency and effectiveness.

The concerns about legacy Enterprise Resource Planning (ERP) solutions hamper facility management software market growth. The integration of facility management solutions with ERP systems is essential for large businesses, as it allows for the seamless alignment of processes and data exchange within the facility's digital architecture, enabling comprehensive management of resources, assets, and operations. However, this integration process can be complicated as it involves multiple stages, and legacy ERP platforms are not sufficient on their own to meet customer requirements. Moreover, companies exhibit reluctance to transition to Integrated Workplace Management Systems (IWMS) or Computer-Aided Facility Management (CAFM) software, primarily due to the intricate nature of features inherent in most enterprise software solutions. This complexity poses challenges to seamless integration, further impeding the adoption of such solutions.

Segmentation Analysis

The global facility management software market is segmented based on offering, deployment, vertical, and geography.

By Offering

Based on the offering, the facility management software market is bifurcated into solution and services. The solution segment held the largest market share with a market share of 57.24% in 2022. Facility management software solutions are widely used across various industries to streamline maintenance and asset management processes. Several vendors, including eFACiLiTY, Brightly Asset Essentials, QuickFMS, Hippo CMMS, Facilio, AkitaBox, and IBM Tririga, offer innovative facility management software solutions that cater to the needs of different industries. Facilities management software solutions are specifically designed to ensure the smooth, safe, and sustainable operation of buildings and infrastructure, effectively reducing costs and ensuring regulatory compliance across diverse industries. These solutions enable efficient management of facilities, encompassing maintenance, security, resource allocation, and environmental sustainability, thereby optimizing operational performance and enhancing overall organizational effectiveness. For instance, in January 2023, Planon acquired the majority share of Ubigreen to enrich Planon’s energy & sustainability management software offerings with strategic capabilities and further solidify its ecosystem of digital solutions for managing sustainable smart buildings.

By Deployment

Based on the deployment, the facility management software market is divided into cloud-based and on-premises. The cloud-based segment accumulated the largest market share of 56.96% in 2022. It allows for easier remote management of facilities, real-time tracking, and increased security. Moreover, increased emphasis on sustainability, adoption of IoT technology and big data analytics, and the growth of mobile applications and technologies are driving the market growth. For instance, in April 2023, Spacewell launched a cloud-based solution, Spacewell Maintenance, assisting organizations of all scales, ranging from small enterprises to large corporations, in streamlining their maintenance operations, cutting down on expenses, and maintaining regulatory compliance.

By Vertical

By vertical, the facility management software market is categorized into IT and telecommunications, banking, financial services, and insurance (BFSI), government and public administration, healthcare, education, and others. The banking, financial services, and insurance (BFSI) held the largest market share of 23.53% in 2022 owing to cost-effective ways to manage facility maintenance and operations. Many banks are using cloud-based facility management software to manage the branch locations and keep the facilities running smoothly. There are several benefits associated with banks including property administration, asset management, work order administration, and a few others. For instance, in February 2021, the Reserve Bank of India (RBI) created regulations within a six-month period that will require banks to take specific steps regarding the management of locker facilities.

Facility Management Software Market Regional Analysis

Based on regional analysis, the global facility management software market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America is anticipated to dominate the market share with a CAGR of 8.49% in 2022 due to the rising healthcare and telecommunication sectors. Furthermore, the presence of a significant number of companies developing facility management software in the United States and Canada is further driving market growth. This trend is projected to persist as innovative technologies like IoT, AI, big data, and robotic automation continue to be increasingly adopted.  The region is expected to witness a surge in demand for facility management software, owing to the significant presence of IT service providers engaged in research and development activities. This presence contributes to the development and innovation of advanced software solutions, thereby driving the adoption and utilization of facility management software across various industries in the region.  Moreover, the region is highly dominated due to the presence of major players in Computerized Maintenance Management Systems (CMMS).

Competitive Landscape

The global facility management software industry study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization.

List of Key Companies in Facility Management Software Market

• Frontu
• Accruent
• Oracle
• Planon
• FM:Systems
• Trimble
• Schneider Electric
• Jones Lang LaSalle IP, Inc.
• UpKeep Technologies, Inc.
• IBM Corporation
• MRI Software, LLC
• SAP SE
• iOFFICE, Inc.
• eFACiLiTY

Key Industry Developments 

• April 2023 (Launch): FM:Systems launched FMS:Marketplace which enables facility managers, real estate, and security professionals to achieve heightened levels of productivity and efficiency.
• September 2022 (Alliance): iOffice + SpaceIQ collaborated and launched BIM viewer which is equipped with digital twin technologies. This advanced solution enables customers to effortlessly connect with facilities and asset data, facilitating the transformation and optimization of performance. With the BIM viewer, users gain enhanced visibility into their facilities, streamlining decision-making processes and unlocking new levels of efficiency in facility management operations.
• October 2021 (Partnership): Planon and OrthoGraph partnered to provide operators and owners with direct access to sustainable digital twin technology, enabling efficient facility management, and digitalization in both back-office and on-site operations.

The Global Facility Management Software Market is segmented as:

By Offering

• Solution
• Services

By Deployment

• Cloud-based
• On-Premises

By Vertical

• Banking, Financial Services, and Insurance (BFSI)
• IT & Telecommunications
• Government and Public Administration
• Education
• Healthcare
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America