Global service providers are increasingly looking for opportunities to collaborate with regional players as the demand for FM services in Southeast Asia is on a strong growth trend.
In a new market report, insights firm Frost & Sullivan notes that the Southeast Asian integrated facilities management market has outpaced the global market average, driven in particular by the strength of energy-efficient services, an interest in end-to-end portfolios and regulatory assistance to service providers. The report projects a compound annual market growth rate of 9.6% between 2015 and 2021.
“The changing trends in building designs, from conventional buildings to smart buildings, have given a huge boost to the uptake of IFM solutions. For instance, the Innovating to Zero mega trend is encouraging the construction of zero energy buildings, which bodes well for the IFM market,” said Energy & Environment Industry Analyst Janice Wung. “The growing emphasis on smart buildings is significantly impacting the SEA IFM market, especially in the developed markets of Singapore and Malaysia.”
Frost & Sullivan sees serious interest coming from global providers such as JLL, CBRE, ISS and OCS.
However, the firm’s report cites a range of potential obstacles in the market. While on the one hand there is abundant revenue opportunity, on the other, there are challenges of socio-economic instability, non-compliance with regulations and low awareness of IFM technology among facility owners. The sluggish growth of the construction market and IFM service providers’ reluctance to expand their reach beyond select customer groups are further restraining market growth, it says.
“Despite the roadblocks, IFM service providers are hopeful of a positive market sentiment, as governments start implementing initiatives to stabilise the economic and political environment in the region,” Wung said. “Market participants, for their part, could introduce training camps and awareness programmes to boost end-user familiarity with the solutions. Additionally, they need to offer a comprehensive service portfolio, as well as niche facility solutions, to emphasise their customer centricity and gain valuable market share.”
This article first appeared in i-FMon 30 March 2017.