Philippines Facility Management Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Philippines Facility Management Market Analysis

The Philippines Facility Management Market size is expected to grow from USD 3.65 billion in 2023 to USD 4.95 billion by 2028, at a CAGR of 6.31% during the forecast period (2023-2028).

The market sizing estimates reflect the revenue generated by the market vendors of the country from their FM services, including both hard and soft services used by various end-user segments, such as commercial, institutional, public/infrastructure, and industrial segments, which are managed by both in-house and outsourced team of the vendors operating in the Philippine market.

• The market's growth is supported by the infrastructural development in the country and the governmental support in building projects in the public-private partnership model because the country's newly developed infrastructure would require FM services for managing and maintaining the facilities.
• For instance, according to the country's National Economic and Development Authority, in January 2023, more than 3,600 infrastructure projects costing a combined USD 372 billion have been planned to be completed by 2028. In addition, the country has planned to add a total of 206 projects worth USD 159 billion, out of which 136 are related to physical connectivity, nine to digital connectivity, 42 to water resources, eight to health, and two to power and energy, and so on.
• Additionally, the country has governmental support for infrastructural development through private financing models, creating an opportunity for the soft and hard FM market. For instance, in March 2023, the administration of Filipino President Ferdinand Marcos Jr. approved 123 new projects as part of a major USD 163 billion infrastructure development plan that Manila would complete in the following few years.
• However, the lack of awareness of FM services and their benefits among the country's industrial sector of all sizes and types is the major challenge for the market's growth in the Philippines. For instance, a major portion of end users and small and medium-sized businesses continue to avoid FM because they are either unaware of or possibly skeptical of such long-term benefits, even though most multinational corporations operating in the country are aware of them.
• The COVID-19 pandemic initially restricted the growth of FM services in the Philippines. The country was compelled to cease public transportation operations due to the social distancing and lockdown guidelines. Those who relied on public transportation for daily mobility experienced reduced access to crucial facilities due to such disruptions, which impacted the business of the market vendors having soft and hard service contracts with the public transportation companies.
• The organization's priorities in the cleaning services after the COVID-19 pandemic and the country's government initiatives supporting the work-from-office trend in the country are jointly creating an opportunity for FM services in the post-pandemic time in the Philippines.

Philippines Facility Management Market Trends

Soft FM Offerings Segment is Expected to Hold Significant Market Share

Philippines Facility Management Industry Segmentation

Facility management can be defined as a professional service provided by market vendors to handle the non-core operations of various businesses, such as cleaning, maintenance, etc. By hiring an FM service provider, these businesses can focus more effectively on their core operations, which is essential for business growth. FM services are created to meet the needs of businesses, and the vendors in the nation make money through service contract agreements, which include services in manufacturing facilities, public buildings, and infrastructures.

The Philippine facility management market is defined based on the revenues generated from the services used by various end-users, such as commercial, institutional, public/infrastructure, industrial, and other end-users across the country. The analysis is based on the market insights captured through secondary research and the primaries. The report also covers the major factors impacting the market's growth in terms of drivers and restraints. The scope of the study has been segmented based on the FM type (in-house facility management and outsourced facility management). Outsourced facility management is sub-segmented into single, bundled, and integrated FM. The market is also segmented by offering (hard FM and soft FM) and end-user industry (commercial, institutional, public/infrastructure, industrial, and other end-user industries). The market sizes and forecasts are provided in terms of value in USD billion for all the segments.