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Philippines Facility Management Market Outlook to 2022 : Ken Research

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CEO Insights Team

CEO Insights Team

The report titled “Philippines Facility Management Market Outlook to 2022 - By Soft and Hard Facility Management Services; By Single Services, Bundled Services and Integrated Services and By Sectors (Commercial, Residential, Healthcare, Industrial and Infrastructure)” provides a comprehensive analysis on market size by revenue (2012-2017), market segmentation by soft and hard facility management services, by single services, bundled services and integrated services and by sectors, soft services facility management market segmentation by type of services (housekeeping, security, landscaping and others), hard services facility management market segmentation by type of services (electromechanical, operations and maintenance services, Fire Safety and Security Services), competition scenario, shares and company profiles of major players in the market, vendor selection process, trends and developments, issues and challenges in the facility management market and SWOT analysis of the industry. The report also includes future outlook for the market (2018-2022) including estimated market size in terms of revenue and market segmentation by soft and hard facility management services, by single services, bundled services and integrated services and by sectors.

The report is useful for facility management companies, real estate and consulting companies to align their market centric strategies according to ongoing and expected trends in the future.
Philippine Facility Management (FM) Market Overview
Market Size:

Philippines Facility Management market is still relatively nascent in the country and is in its initial growth stage. Facility management market growth was supported by business surge of multinational companies, especially in the BPO industry, along with factors like improved healthcare and increasing building efficiency in some areas in the country. The Integrated Facility management penetration is low due to preference for single and bundled services by most end users, especially local companies. However, as the number of MNCs increase in the country, the demand IFM is also expected to increase.

Market Segmentation:

Soft services dominated the market of facility management in Philippines as compared to hard services in 2017. The development in sectors such as real estate, commercial and residential owing to Build, Build, Build program has amplified the demand for soft services in the country owing to rise in need for cleaning and security services. Hard services segment has low share as many organizations tend to contact the equipment OEM for servicing, in case equipment needs to be fixed, or other maintenance is required. Single services and bundles services contributed more to the FM market and compared to integrated facility management services. Single or bundled services are generally preferred by local businesses in the country. The local businesses do not yet perceive the value they can get from IFM. On the other hand, multinational clients in Philippines prefer IFM because it is more cost efficient. In 2017, Commercial sector contributed the highest revenue share to the overall facility management industry. FM companies have been providing soft and hard services to commercial complexes over the years and the growth in this sector has created large potential for FM companies. This was followed by the residential sector, healthcare sector, industrial sector and infrastructure in terms of revenue.

The soft services facility management market has been further segmented by type of services. Cleaning services were the largest contributor to the soft services industry in 2017 followed by security and other soft services including pantry services, waste management, landscaping, courier services, reception services, mailroom and other services.

Electromechanical services have dominated the hard services market in Philippines followed by operational and maintenance services and fire safety and security systems during 2017 in terms of revenue. Electromechanical services had the highest share as entities have to incur expenditure on building temperature control, air conditioning, electricity etc. Additionally, it is more expensive to fix equipments falling under this category at the time of maintenance, which makes its revenue share even higher. Increase in the construction projects have also resulted in elevated demand of the electromechanical services.


Competitive Landscape

The Philippines Facility Management market is highly concentrated. ISS Facility Services Phils. Inc. is the market leader and has the highest market share in the Facility Management market in Philippines on the basis of revenue in 2017. This was followed by JLL (Philippines) Inc., Sodexo (On-Site Services), Atalian Global Services, Centuary Property Management Inc., Santos Knight Frank and Mansion Maintenance Company. These market players compete in the FM market in Philippines on the basis of Price of services, quality and knowledge of services, track record and past history within the industry and sectors serviced. Companies are starting to get more concerned with culture of inclusion within the FM company and the Corporate Social Responsibility activities undertaken by them and include that parameter too in their vendor selection process.

Future Outlook

The future outlook of the industry is positive owing to the growing BPO industry in the Philippines which is expected to boost the demand for both soft and hard services. Increasing demand from multinational clients is likely to drive future demand for IFM services in Philippines with commercial office buildings and industrial plants being the future penetration sectors for IFM services. The growth in construction, tourism and healthcare industries in the country will increase the demand of FM services by these industries. A number of government plans such as the Build, Build, Build (BBB) Program to accelerate infrastructure spending and develop industries in the country, increase public spending on infrastructure projects at PHP 8 to 9 trillion from 2017 to 2022, the Tax Reform for Acceleration and Inclusion (TRAIN) to fund investments and the Philippine Health Agenda 2016-2022 to achieve successful health system strengthening including focus on local infrastructure that supports system wide capacity for health workforce development are expected to further augment the demand for soft and hard FM services in the future.

Key Segments Covered

By Soft Services and Hard Services
• Soft Services
• Hard Services

By Single Services, Bundled Services and Integrated Services

• Single Services
• Bundled Services
• Integrated Facility Services

By Sectors

• Commercial sector
• Residential sector
• Healthcare sector
• Industrial sector
• Infrastructure

Philippines Soft Services Facility Management Market is further Segmented

By Type of Services

• Cleaning
• Security
• Landscaping, courier services, reception services, mailroom and other services

Philippines Hard Services Facility Management Market is further Segmented

By Type of Services

• Electromechanical Services
• Operational and Maintenance Services
• Fire Safety and Security Systems
Key Target Audience
• Existing and New Facility Management Companies
• Real Estate Consultant Companies
• Infrastructure Construction Companies
• Manned Guarding Companies
• HVAC Service Providers
• Concierge Services Companies
• On-Demand Services Companies
• Façade Access Service Providers
• Escalator and Elevator Companies
• Private Equity Ventures

Time Period Captured in the Report:

2012-2017 – Historical Period
2018-2022 – Future Forecast

Companies Covered:

Facility Management Companies:

ISS Facility Services Phils. Inc., JLL (Philippines) Inc., Sodexo (On-Site Services), Centuary Property Management Inc., Atalian Global Services, Santos Knight Frank, Philkleen Industries Corporation, Cleanmatic Manpower Services, Mansion Maintenance Co. Inc., Cushman Wakefield, Quess (Philippines) Corp, Paramount Property Management, JEC Philippines

Key Topics Covered in the Report

• Introduction on Philippines Facility Management Market
• Business Acquisition Process in Philippines Facility Management Market
• Market Size by Revenue (2012-2017)
• Overall Facility Management Market Segmentation by Soft and Hard Facility Management Services, by Single Services, Bundled Services and Integrated Services and by Sectors
• Soft Services Facility Management Market Segmentation by Type of Services
• Hard Services Facility Management Market Segmentation by Type of Services
• Competition Scenario in the Industry
• Shares and Company Profiles of Major Players in the Market
• Vendor Selection Process
• Trends and Developments in the Facility Management Market
• Issues and Challenges in the Facility Management Market
• SWOT Analysis
• Future Outlook for the Market (2018-2022)