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US Facilities Management Market
Key Takeaways
- The estimated market size of the outsourced facility management market in the United States will increase from $176.11 billion in 2017 to reach $209.017 billion by 2020, accounting for 50.04% of the total facility management market in the United States.
- Between 2020 and 2024, the market will grow at a compound annual growth rate (CAGR) of 2.72%, reaching $232.686 billion by 2024.
- In 2021, the market will reach $214.7 billion.
Introduction
This research brief analyzes the outsourced facility management market in the United States. The number of companies operating within the market and the breakdown of these companies by company size are not publicly available. As a proxy, we pivoted the research to provide the market size in US$. We estimated the market size, market growth, and projections for the outsourced facility management market in the country. Moreover, We provided the total number of companies within the facility support services sector as helpful findings below, since this NAICS sector is the closest to the requested market (outsourced facility management services).
Our findings, triangulations, and assumptions are detailed below, while further details on the logic can be found in the Research Strategy section.
US Facility Management Market
- In 2017, the market size of the outsourced facility management market in the United States was $176.11 billion, accounting for 50.04% of the total facility management market in the United States. Calculations are detailed below.
- Total facility management market size = sum of segments' sizes = $176.11 billion + $142.93 billion + $32.9 billion = $351.94 billion
- Market share = (market size of outsourced services / total market size) x 100 = ($176.11 billion / $351.94 billion) x 100 = 50.04%
- In 2020, the facility management services market in the United States reached $417.7 billion. Assuming that the market share of the outsourced segment was the same between 2017 and 2020, we calculated the market size of the outsourced facility management market in 2020 as follows:
- 2020 Market size of the outsourced segment = (total market size x outsourced segment market share) = $417.7 billion x 50.04% = $209.017 billion
- By 2024, the facility management services market in the United States is expected to reach $465 billion (the paid report could be accessed here). Assuming that the market share of the outsourced segment would be the same between 2020 and 2024, we calculated the market size of the outsourced facility management market in 2024 as follows:
- 2024 Market size of the outsourced segment = (total market size x outsourced segment market share) = $465 billion x 50.04% = $232.686 billion
- To calculate the compound annual growth rate (CAGR) between 2020 and 2024, we relied on this CAGR calculator. The starting value is 209,017,000,000 (2020), the ending value is 232,686,000,000 (2024), and the number of periods is 4 (years). Based on these figures, the calculator states that the CAGR would be around 2.72%. Thus, the outsourced facility management market is expected to grow at a CAGR of 2.72% between 2020 and 2024.
- We calculated the market size for 2021 by putting these entries in this reverse CAGR calculator:
- Starting value is 209,017,000,000 (2020)
- CAGR is 2.72%
- The number of periods is 1 (year), calculated by subtracting 2021 from 2020.
- Based on these figures, the calculator states that the 2021 market size would be around $214,700,000,000 or $214.7 billion.
- Using the same calculator, we calculated the projected market sizes over the next three years:
- 2022: $220.54 billion
- 2023: $226.54 billion
- 2024: $232.686 billion
Helpful Findings: Facilities Support Providers
- According to the North American Industry Classification System (NAICS), providers of facility support services (NAICS code 561210) "typically provide a combination of services, such as janitorial, maintenance, trash disposal, guard and security, mail routing, reception, laundry, and related services to support operations within facilities." Based on this definition, this NAICS sector is the closest to the requested market (outsourced facility management services). In fact, the requested market falls within the NAICS code 561210, the facility support services sector.
- The total number of companies within the facility support services sector is 4,885 (row 835 in the sheet).
- NOTE: This is NOT the number of outsourced facility management companies in the United States. This actual number is not publicly available.
- According to the Small Business Association (SBA), facility support services providers that generate less than $41.5 million in annual revenue are considered small businesses.
- This downloadable sheet provides the breakdown of every NAICS code by annual sales (revenue). While this breakdown doesn't match the requested breakdown (less and more than $20 million), it provides a detailed comprehension of the revenue ranges for companies in the market.
- Under $500,000: 2,938 companies
- $500,000 - $999,999: 331 companies
- $1,000,000 - $2,499,999: 309 companies
- $2,500,000 - $4,999,999: 137 companies
- $5,000,000 - $9,999,999: 102 companies
- $10,000,000 - $99,999,999: 218 companies
- $100,000,000 - $499,999,999: 25 companies
- $500,000,000 - $999,999,999: 4 companies
- $1,000,000,000+: 5 companies
- Uncoded records: 816 companies
- About 3,817 companies generate less than $10 million, accounting for 78.14%. Thus, the majority of facility support services companies are small businesses because they generate less than $41.5 million in revenue. Calculations are outlined below.
- Number of companies generating less than $10 million = 2,938 + 331 + 309 + 137 + 102 = 3,817
- Percentage = (Number of companies generating less than $10 million / Total number of companies) x 100 = (3,817/4,885) x 100 = 78.14%
1- Number of Providers
2- Breakdown by Company Size
Research Strategy
For this research on the market size of facilities management companies in the United States, we leveraged the most reputable sources of information that were available in the public domain, including government databases, market reports, statistic portals/databases, and trusted media articles. In pursuit of this strategy, we checked government websites, such as the North American Industry Classification System (NAICS) Association. Moreover, we leveraged research websites like Business Wire and ResearchAndMarkets. We also checked consulting websites such as Statista, and media websites like Reuters and Forbes.
None of these resources provided information on the number of companies operating within the market and the breakdown of these companies by company size. We found the 2017 market size of the outsourced facility management market. We also found that the requested market falls within the NAICS code 561210, the facility support services sector. The NAICS provides the total number of companies operating within the facility support services sector. We attempted to calculate the number of outsourced facility management companies by applying the following calculation, assuming that the outsourced facility management would account for the same share in the facility support services sector in terms of US$ and number of companies:
- Number of outsourced facility management companies = (market size of the outsourced facility management market / market size of the facility support) x (number of companies operating within the facility support services sector)
However, this strategy proved to be fruitless, as the market size of the facility support market is not publicly available. Thus, we decided to pivot the research to calculate the market size of the outsourced facility management market in US$.
To perform the calculation of the market sizes from 2020 to 2024, we relied on the 2017 market size, the total facility management market sizes for 2020 and 2024, as follows:
- Calculate the market share of the outsourced facility management market in the total facility management market.
- Assume that the market share of the outsourced segment was the same between 2017 and 2020. Calculate the market size of the outsourced facility management market in 2020.
- Assume that the market share of the outsourced segment will be the same between 2020 and 2024. Calculate the market size of the outsourced facility management market in 2024.
- Calculate the compound annual growth rate (CAGR) of the outsourced segment between 2020 and 2024 using a CAGR calculator.
- Calculate market projections for 2021, 2022, and 2023 using a reverse CAGR calculator.
Calculations have been detailed in the US Facility Management Market section above.