Healthcare Facilities Management Market Set to Reach $837.4 Billion by 2034, Growing at 9.89% CAGR
The global healthcare facilities management (FM) market is on track for substantial growth, with its size forecasted to expand from USD 326.1 billion in 2024 to approximately USD 837.4 billion by 2034. This represents a strong compound annual growth rate (CAGR) of 9.89% between 2025 and 2034. As healthcare infrastructure continues to evolve and expand, effective facilities management will be crucial in ensuring the safe, efficient, and sustainable operation of healthcare facilities worldwide.
Key Market Insights and Trends
- North America is projected to continue leading the global healthcare facilities management market, holding a significant share of the market due to its robust healthcare infrastructure and the integration of advanced technologies in healthcare facilities. The U.S., in particular, is witnessing rapid expansion in its healthcare services due to increasing healthcare spending, an aging population, and the growing prevalence of chronic diseases.
- Asia Pacific, the fastest-growing region, is seeing a surge in demand for healthcare facilities management services. This is driven by the rapid rise of medical tourism, particularly in countries like China and India, along with an increasing focus on healthcare infrastructure development.
- The healthcare FM market is split into hard services and soft services. Hard services (45.3% revenue share in 2024) include maintenance of mechanical and electrical systems, plumbing, fire protection, and other technical systems essential for the smooth operation of healthcare facilities. Soft services, which represent the majority share (54.7% in 2024), cover areas such as cleaning, pest control, security, catering, laundry, and waste management. The soft services segment is expected to maintain a strong growth trajectory, driven by heightened awareness around infection control and patient well-being.
- Hospitals and clinics make up the largest segment of the healthcare FM market, accounting for about 48% of the total market share in 2024. The complexity and size of hospitals and clinics require an extensive range of FM services, from maintenance to catering, cleaning, and security.
- Long-term healthcare facilities are also seeing growing demand for FM services, driven by the aging population and the increasing need for specialized care.
Growth Drivers and Opportunities
- Technological Advancements: The implementation of technologies such as Internet of Things (IoT) and Building Automation Systems (BAS) is revolutionizing healthcare facilities management. IoT integration allows real-time monitoring of critical systems like HVAC, lighting, and security, improving operational efficiency and reducing costs.
- Increased Healthcare Spending: Global healthcare spending has witnessed significant growth in recent years. In the U.S., for example, healthcare expenditures increased from USD 3.5 trillion in 2017 to around USD 3.8 trillion in 2019. As healthcare systems expand to meet the rising demand, the need for comprehensive facilities management services will continue to grow.
- Regulatory Compliance and Safety Standards: Healthcare facilities are subject to strict regulations covering everything from fire safety and environmental impact to infection control and emergency preparedness. Compliance with these regulations is a major driver of the facilities management market, as healthcare providers need to ensure they meet legal and safety standards.
- Telehealth and Remote Monitoring: The rise of telehealth and remote monitoring services presents new opportunities for healthcare FM service providers. Remote monitoring helps healthcare facilities track patients' health in real-time, allowing for early interventions that reduce hospital readmissions. Integrating remote health data into healthcare management systems streamlines operations and enhances patient satisfaction.
Challenges and Restraints
Despite the strong growth outlook, the healthcare FM market faces several challenges:
- Cybersecurity Risks: With the growing digitalization of healthcare, the security of patient data is a significant concern. Healthcare facilities are prime targets for cyberattacks, such as ransomware, which can disrupt operations and compromise patient care.
- Technical Expertise: A lack of skilled professionals in healthcare facilities management, particularly in emerging markets, can hinder the growth of the sector. To overcome this, service providers are focusing on training and development programs to enhance technical capabilities.
The healthcare facilities management market is highly competitive and fragmented, with numerous players offering diverse services. Notable companies in the sector include:
- ABM Industries Inc
- ISS World Services A/S
- Jones Lang LaSalle
- Medxcel Facility Management
- Mitie Group plc
- Sodexo
- Aramark Corporation
These companies are investing in cutting-edge technologies and seeking to offer more cost-effective, value-added services to expand their market share.
The healthcare facilities management market is poised for substantial growth in the coming years, fueled by technological advancements, rising healthcare spending, and increasing demand for comprehensive service solutions. As healthcare systems become more complex, the role of FM service providers will continue to evolve, driving the need for specialized, high-quality management services that ensure patient safety, operational efficiency, and regulatory compliance.
As the market grows, the focus will remain on integrating technology with service delivery, expanding into emerging markets, and overcoming challenges related to cybersecurity and workforce expertise. For healthcare facility managers, embracing these trends will be crucial in remaining competitive and driving sustainable growth.
