Global Healthcare FM Market To Reach $11.58 Billion by 2030: Report

The global healthcare facility management market, valued at USD 7.11 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 7.2 per cent, reaching nearly USD 11.58 billion by 2030, according to a Maximise Market Research (MMR). The report highlights the increasing reliance on advanced technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) as key drivers of this market expansion.

Healthcare facility management encompasses the maintenance, security, and operational oversight of healthcare facilities, including hospitals, clinics, surgical centres, and long-term care institutions. As healthcare continues to be a leading global industry, driven by a growing number of patients and increasing healthcare expenditures from both public and private sectors, the demand for effective facility management has intensified.

According to a study by MMR, healthcare spending in the United States alone is expected to grow at an average rate of 6.2 per cent annually from 2024 to 2030, reaching nearly USD 7.2 trillion by 2030. This rate of growth is anticipated to outpace the overall GDP growth by 1 per cent annually, with the healthcare sector's share of GDP projected to rise from 18.2 per cent in 2023 to 20.4 per cent by 2030.

The market dynamics are being shaped by several factors on both the demand and supply sides. The increasing focus on providing high-quality care in hospitals and other healthcare facilities has driven up the demand for support services, which play a crucial role in enhancing patient outcomes and overall satisfaction. The integration of telehealth and other technological advancements within healthcare organisations is also creating new opportunities for market growth.

In 2023, the acute care segment held the largest market share within the healthcare facility management sector. Acute care, which involves active but short-term treatment for severe injuries, urgent medical conditions, or post-surgery recovery, remains a critical area of focus for healthcare facilities. The high demand for efficient facility management in acute care settings underscores the importance of maintaining operational efficiency and patient safety.

Technological Integration and Smart Cities Initiative Fuel Growth

The report notes that the global facility management industry is expected to benefit significantly from government initiatives aimed at developing smart cities. As these urban centres emerge, the demand for services in large public facilities, including hospitals, airports, and universities, is expected to surge. The rapid growth of the construction industries in India and China is also expected to benefit companies operating in these regions.

Technological advancements, particularly in AI and IoT, are transforming healthcare facility management. These technologies are enabling more efficient energy management and automation of critical systems such as HVAC, security cameras, and alarms within healthcare facilities. The ability to remotely control and optimise these systems in real-time is expected to further fuel market growth.

Regional Insights: North America Leads, Asia-Pacific on the Rise

North America remains the global leader in healthcare facility management, accounting for approximately 38 per cent of the market share in 2023. The region's strong healthcare system and rapid adoption of advanced technologies have been pivotal in maintaining this leadership position. The American Cancer Society reports that over 1.8 million new cancer cases were diagnosed in the U.S. in 2023, underscoring the growing need for efficient healthcare facility management as chronic diseases and an ageing population continue to rise.

Europe follows closely, with the healthcare sector generating over 22 per cent of its revenue from facility management. The region is seeing a shift towards a decentralised healthcare delivery model, driven by financial pressures on government agencies. This shift is expected to encourage both consumers and providers to transition from cure-based to prevention-based healthcare services.

Emerging markets such as Asia-Pacific and the Middle East & Africa are also presenting significant opportunities for healthcare facility management service providers. The rapid increase in medical tourism in countries like China and India is expected to drive substantial market growth. In India, the facility management industry is undergoing a transformation, with the organised sector gradually gaining market share amid rising urbanisation.

Country Perspectives

United States: The U.S. economy's recovery has led to the launch of new services, with companies encouraging employees to return to workplaces by offering better working conditions. The American government is also leading efforts to boost corporate activity through long-term economic packages and significant infrastructure improvements.

India: The facility management industry in India is highly fragmented, but this is rapidly changing as the organised sector gains market share. With rising urbanisation, facility management businesses are becoming increasingly popular, contributing to the industry's growth.

Opportunities and Challenges 

The report identifies significant opportunities in the outsourcing of facility management services, which accounted for over 50 per cent of the market in 2022. The adoption of electronic health records and advanced medical coding systems, coupled with rising healthcare costs, are key drivers behind the outsourcing trend. However, challenges such as insufficient technology utilisation and poor optimisation techniques in smaller facilities continue to restrain market growth.

Despite these challenges, the healthcare facility management market is expected to expand significantly over the next few years, driven by technological advancements, government initiatives, and growing demand for high-quality healthcare services. The market is poised for robust growth as the healthcare sector continues to evolve and adapt to new challenges and opportunities.