2011 european facility management - opportunities in a 98 billion euro market
TRANSCRIPT
2011 European Facility Management 2011 European Facility Management
Opportunities in a 98 Billion Euro MarketOpportunities in a 98 Billion Euro Market
Michael Meyer, Industry Analyst
30th November 2011
Today’s Presenter
Michael Meyer, Industry Analyst
Frost & Sullivan
2
Michael Meyer is an Industry Analyst with the Frost & Sullivan Europe Energy &
Environment Practice. He focuses on monitoring and analyzing emerging
trends, technologies and market dynamics in the Building Technologies markets
in Europe.
Michael has authored various research on the European Facility Management
Markets and completed several consulting assignments for some of the main
players in the industry.
Focus Points
Market Segmentation by End-user Contract Type
Definition of the Total FM Market
3
Focus Points
Competitive Landscape
Conclusions
Trends, Dynamics, and further Segmentations
Market Overview Definition of integrated, bundled, and single services markets
Support Services
Property
ManagementBuilding O&M
Integrated IFM Services :
Combination of services across two
(or more) different services spheres
(e.g. Cleaning and Plumbing)
Bundled Services: Combination
of services within a distinct
service sphere (e.g. Cleaning and
Security)
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IT &
Telecommunic
ations
Environmental
Management
Single Services (e.g. Waste
Management, IT helpdesk, etc.)
Revenues are counted by end-user contract!
Market Segmentation by End-user Contract Type Market
5
� Total Outsourced FM Market is 98.61 € Bn
� Single services is by far the largest market in Europe (60.56 € Bn)
� The outsourcing rate is 47.6%.
� The In-house market still accounts for the largest opportunity (108.76 €Bn)
47.6% Outsourcing Rate
Countries include: UK, Germany, France, Italy, Spain, Benelux, Scandinavia, Alpine
Market Growth
� Total additional opportunity to
2016 of 6.14 € Billion
� Fast growing markets for
integrated and bundled services
� Slight decline for single services
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� Slight decline for single services
due to:
• Continuing price pressure
• Exclusion of revenues from sub-
contracting
• Service Integration (through
‘contract migration’)
Market Drivers & Restraints
Need to save Costs
Energy Efficiency/ Value Add
Budget Constraints
A DRIVER to IFM while a RESTRAINT to single service
markets
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Poor Experience
Fierce Competition
Trend towards Integration
Social Regulations
Explanation of Market Dynamics
Perceived Value to the Client
FM(SingleService)
I-FMBundledServices
Degree of Outsourcing
Risk Sharing
Mutual Gain
8M347-19
Source: Frost & Sullivan
Total Contract Value/ Profit Margin
Mutual Gain
Lifetime value of client
Number of Contracts
Possible Cost Reduction (up to 25-30%)
Geographical Split
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By End-User Vertical
Offices
15.0%
Education
9.2%
Government
6.9%
Other Public
Sector
6.8%
Percent Revenue Breakdown by End-User VerticalTotal Facility Management Market: Europe, 2010
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
IFM Bundled ServicesSingle Services
% R
ev
en
ue
Offices
10
Industrial
20.7%
Retail
13.4%Hospitality &
Leisure
10.6%
Other Private
5.5%
Healthcare
12.0%
9.2% IFM Bundled ServicesSingle Services
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
IFM Bundled ServicesSingle Services %
Re
ve
nu
e
Healthcare
By Service Type
50.0
60.0
70.0
80.0
90.0
100.0
% R
ev
en
ue
Revenues (2010): 52.8 € Billion
Revenues (2010): 13.1 € Billion
Catering
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0.0
10.0
20.0
30.0
40.0
50.0
Support Services (incl. Cleaning, Security, etc.)Catering M&EOther (incl. Environmental, IT, etc.)
% R
ev
en
ue
Revenues (2010): 22.5 € Billion
Revenues (2010): 10.1 € Billion
Support Services
M & E Environmental, etc.
46.5% Share of
Bundled/ IFM
Tier 1 IFM
Carillion, BBFM, Johnson Controls, Coor, GDF
Suez (Cofely), Vinci FM (Faceo), ISS, Sodexo,
Compass , plus another 10-15 suppliers
across Europe
Tier 1 Bundled Services
ISS, Compass, Sodexo, Mitie, Manutencoop,
Dussmann, plus another 20-25 providers across
Competitive Analysis: Market Participants
Bundled Services
IFM
Total Facility Management Market: Competitive Landscape and the route to IFM (Europe), 2011
12M347-19
Europe
Start-Up
Single-Service Providers
Bundled Services
Source: Frost & Sullivan
Tier 1 Single Services
ISS, Compass, Sodexo, Eulen, WISAG, Ferroser,
plus another around 40 suppliers across Europe
The European FM market has more than 70 players with revenues in excess of 100 € Million. Their aggregated market share is less than 40%.
Conclusions
The FM Market has its own dynamics and ways of counting. Sub-contracting and cost saving effects from integration are important additional parameters
The in-house FM market still accounts for more than 50% of the total FM revenue opportunity, hinting at vast potential for market participants
Providers of integrated service concepts will continue to experience the highest growth rates
Source: Frost & Sullivan.
The share of IFM varies significantly by end-user vertical as well as by service type offering, significant long term potential exists in the public sector
Despite ongoing consolidation, the European FM will continue to experience a high degree of fragmentation
growth rates
The UK is most advanced in the adoption of integrated services concepts, however the substantial gap to other European markets will narrow
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For Additional Information
Chiara Carella
Head of Corporate Communications
Europe, Israel, Africa
+44 (0) 207 343 8314
Michael Meyer
Industry Analyst
Environment and Building Technologies
+44 (0)20 7915 7826
17
John Raspin
DirectorEnergy and Environment +44 (0)20 7915 7814
Gerry Hill
Sales Manager
Environment and Building Technologies
0044 (0)207 915 7846