KBS - Facilities Management - Market Insight

MARKET INSIGHT

The UK facilities management (FM) sector is experiencing a phase of consolidation, innovation and steady, strategic evolution.

The outsourced FM market is now valued somewhere between £60 and £70bn, depending on the scope, with forecasts pointing to a compound annual growth rate (CAGR) of roughly 2.7–3.0% over the next few years. Underlying demand remains strong, especially for ‘hard services’ (e.g. mechanical, electrical, plumbing and compliance-driven maintenance) which continue to make up the majority of service delivery. However, ‘soft services’ (workplace experience, hygiene, cleaning, occupant wellbeing) are gaining traction as organisations rethink their premises in light of hybrid-working, ESG obligations and evolving employee expectations. Crucially, the sector is embracing technology — from IoT sensors and remote monitoring to predictive maintenance and smart-building systems — enabling more efficient, data-driven operations, lower energy consumption and compliance with tighter sustainability and regulatory standards. For businesses in real estate, property services or any organisation with a substantial estate footprint, this is a good time to revisit FM strategy — outsourcing is no longer only about keeping the lights on, but about optimising cost, compliance, workplace quality and environmental impact.

Revenue Combined Facilities Support Activities in the UK Total value (£) and annual change from 2013 - 2031. Includes 5-year outlook.

25

15%

Forecasted

2026 Annual Revenue (£bn) 18.9 2026 Change 0.3%

20

10%

15

5%

10

0%

5

-5%

0

-10%

2014

2016

2018

2020

2022

2024

2026

2028

2030

Category

Change (%)

Annual Revenue (£bn)

Source: IBISWorld