Healthcare Facility Management Market Expected to Reach $427.13 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Healthcare Facility Management Market," The healthcare facility management market size was valued at $208.80 billion in 2021, and is estimated to reach $427.13 billion by 2031, growing at a CAGR of 7.4% from 2022 to 2031.

Healthcare facilities management is vital for medical facilities and it helps maintain healthcare facilities development, security, and operations. The main functions of healthcare facilities management include finding and maintaining vendor contracts, repair, maintenance and building improvement, and workplace cleaning and décor. In healthcare facility management services, the facility managers oversee areas such as nursing, finance, and patient records in hospital, outpatient clinics, and medical practices. They also manage public health programs, scientific research, and pharmaceutical & medical equipment manufacturing. There are different types of technological systems which provide healthcare facilities such as ultraviolet light disinfection systems. This system contributes to reducing bacterial transmission and surgical site infections. Thus, presence of these technological services boosts the growth of the market.

Growing need for patient’s safety is one of the major factors, which boosts the healthcare facility management market growth. In addition, the medical device sector has opened new approaches and collaborations in the industry to respond to the urgent needs of the pandemic. For instance, in September 2021, 3M has partnered with Smile Foundation to support the primary healthcare needs of the underprivileged population by deploying four mobile healthcare units at different rural locations. With this partnership, the focus is to reduce the burden on public health infrastructure caused by COVID-19 by providing more than 150,000 treatments. This initiative will also help in understanding the current scenario of the healthcare infrastructure in rural areas and create awareness among people to improve behavior toward hygiene, and social distancing. Hence, such initiatives taken by key players are expected to drive the growth of the healthcare management industry.

In addition, for instance, in July 2021, The Consortium of Accredited Healthcare Organizations launched Awareness Compliance Excellence Program as a quality improvement initiative in association with 3M. The Central Sterile Supply Department is one of the critical avenues that helps to healthcare facilities attain the goal. Central Sterile Supply Department is an in house department within hospital which is responsible for supply of clean and sterile instruments used in hospitals for various procedures.  The Consortium of Accredited Healthcare Organizations will aim to raise the competency of CCSD setup across all the hospitals in India. Thus, launch of new healthcare facility programs by various organizations escalating the growth of the market.

Increase in government support for creating awareness among people about the availability of healthcare facilities, and surge in demand for effective prevention treatment are some of the major healthcare facility management market trends. In addition, key players, such as ABM Industries Inc., Armark Corporation, CBRE Group, Inc. and Johnson Controls International provide the healthcare facility management services and contribute toward the market growth. However, high cost of healthcare facility management services and dearth of skilled professionals are some key challenges that hinder the growth of the market. On the contrary, increase in number of healthcare facilities creates an opportunity for the service providers to tap and capitalize on the market.

The healthcare facility management (HFM) market is studied across the service type, end user, and region. By service type, the market is divided into hard services and soft services.  The hard services segment is further divided into plumbing air conditioning maintenance, fire protection, mechanical and electrical maintenance, and others. The soft services segment is divided into cleaning services, catering services, security services, waste management, and other.

By service type, the soft services segment dominated the global market in 2021 and is anticipated to remain dominant during the forecast period. This is attributed to rise in awareness among people about maintenance of healthcare facilities. In addition, the hard services segment is expected to register higher CAGR during the forecast period owing to developments in building and construction sector and increase investments in waste management.

By end user, it is categorized into hospitals & clinics, long term care facilities, and others. The long term care facilities segment acquired the largest share in 2021, and is expected to remain dominant throughout the forecast period. This is attributed to the increase in number of number chronic disease patients such as diabetes and cancer and surge in number of hospital admissions.  

By region, the healthcare facilities industry is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America accounted for the largest share of the global healthcare facility management market in 2021, and is expected to remain dominant throughout the forecast period. This was attributed to the presence of giant healthcare service provider companies in the countries such as the U.S. In addition, increase in frequency of major healthcare service companies and their R&D activities drive the demand for healthcare facility management in the region during the forecast period.

KEY FINDINGS OF THE STUDY

• By service type, the soft services segment was the highest contributor to the market in 2021.
• By end user, the hospitals and clinics segment dominate the growth of the market.
• North America accounted for a majority of the healthcare facility management market share in 2021, and is anticipated to remain dominant during the forecast period.