- Stringent regulatory environment vital for the market's success
KUALA LUMPUR, Malaysia, Feb. 28, 2013 /PRNewswire/ -- Higher foreign investments in Southeast Asia and greater awareness about building management have given a thrust to the integrated facilities management (IFM) market in the region, with Malaysia and Singapore leading from the front. The strong regulatory support, along with market initiatives to educate end users about the benefits of IFM, will enhance awareness about outsourcing FM.
New analysis from Frost & Sullivan (http://www.buildingtechnologies.frost.com), Strategic Analysis of IFM Market in Southeast Asia, finds that the market earned revenues of US$781.9 million in 2012 and estimates this to reach US$1.13 billion in 2018.
As the IFM concept grows in popularity in Southeast Asia, regulatory bodies will realize the importance of regulating FM practices. IFM companies will be compelled to improve their standard of service to meet regulations and guidelines and in turn, prompt facility owners outsource FM to specialist IFM companies. A well-regulated market will help keep costs down and make IFM affordable to most facility owners.
Apart from improved regulations and guidelines, the growing demand from the rising number of multinational companies (MNCs) setting up operations in the region will also stimulate the IFM market.
"MNCs influence the local market by enhancing awareness about IFM's environmental benefits and ability to save costs," said Frost & Sullivan Energy & Environmental Research Associate Janice Wung. "As these MNCs offer regional or global contracts to domestic, specialized FM service providers, business opportunities for IFM companies in this region are bound to increase."
However, many large multinational IFM companies are hesitant to enter developing markets due to uncertain profits. They find it safer to focus on developed nations, where there is a considerable understanding and application of IFM.
Additionally, in developing market, facility owners are reluctant to change their current methods of facility maintenance. The head-on competition from FM service providers, including service providers offering single services, hinders the IFM market.
In this scenario, IFM service providers will do well to differentiate themselves from FM companies. IFM fully integrates all sub-disciplines of FM under one umbrella using IT. As the new generation of Southeast Asians is technologically and digitally savvy, IFM is likely to find much higher adoption in future.
"Further, the accelerated development of new commercial and residential space has created a huge market for IFM, as these buildings are likely to employ more advanced facilities management systems," noted Wung. "The completion of new projects will coincide with the escalating popularity of IFM in the local market, brightening the prospects of domestic participants."
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Strategic Analysis of IFM Market in Southeast Asia
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