Increase in Health Expenditure and the Drive Toward Operational Efficiency Present Growth Opportunities for the FM Industry
As hospitals look to improve operational efficiency in the provision of services, digital solutions become vital in delivering facilities management (FM) solutions. In addition, as hospitals look for more environmentally viable solutions, FM providers become an important part of energy- and environmentally-efficient management of hospitals.
Increasing regulations (in terms of the provision of services in hospitals) will continue to drive growth in the outsourcing of FM services. In particular, the private sector as a whole has seen growth in the overall number of hospitals, as well as new beds, creating potential growth opportunities for FM companies.
A key driver of the growth in the FM market is the overall increase in health expenditure (driven by migration, chronic diseases and an ageing population), leading to the expansion of the asset base and an increase in the number of medical practitioners. However, there are several restraints to market growth. These include increased instances of soft FM being kept in-house, knowledge gaps and inadequate provision of services to rural and remote regions, as well as FM protocols, practices and delivery challenges.
The FM market for healthcare has been fairly competitive, with a number of dominant competitors. Compliance, expertise and track record, existing business relationships/contracts, as well as qualified and skilled staff are the key factors providing a competitive advantage. Over the long term, the emergence of digital/smart hospitals will increase the demand for technology-driven FM services which will leverage Building Information Modelling (BIM), patient and visitor analytics and digital tools for catering, as well as Internet of Things (IoT)-specific solutions.
Research Highlights
This research service provides an insight into the drivers for the growth of the FM market in the Australian healthcare sector, the restraints to growth, the forecast expenditure on FM, trends by outsourced versus in-house FM, integrated FM versus other FM (single and bundled services), hard versus soft FM, competitive trends and future shifts impacting the management of healthcare facilities.
The study period is from 2015 to 2024, with the base year as 2018 and the forecast period as 2019 to 2024.
Key Issues Addressed
- Is the market growing? How long will it continue to grow, and at what rate?
- What are the trends affecting industry decision-making in outsourcing and what are the strategies of competitors in meeting these trends?
- What are the trends in terms of integrated FM versus other FM, as well as hard versus soft FM?
- Are the services offered today meeting customer needs or is additional development needed?
- What technological shifts will change the way healthcare facilities are managed in the future?
- What influence will the imperative to reduce environmental impact have on the future of healthcare facilities?
