Set to soar

South Africa’s facilities management sector is set for some wonderful growth over the next five years, which will bring about a changing landscape and business environment.

In a recent 2022 study*, BlueWeave Consulting, a strategic consulting and market research firm, estimated the South African facility management market size at US$260.25 million. During the forecast period between 2023 and 2029, it expects this to grow at a compound annual growth rate of 5.09%, reaching a value of US$350.51 million by 2029. 

“Major growth drivers for the South African facility management market include an increasing demand for professional facility management services. Businesses expanding or upgrading their facilities may seek comprehensive solutions for efficient property operation and maintenance. Also, key factors contributing to market growth include increased demand for outsourced facility management, infrastructural developments, and private-sector investments,” the study points out. It goes on to note that the facility management market faces challenges, such as commoditisation of services, price sensitivity, and shorter contract terms due to a real estate oversupply affecting rent yields.

“South Africa’s population growth, economic activity, and urbanisation present business opportunities, contingent on infrastructure and regional connectivity improvements aligned with the Africa Union’s Agenda 2063,” BlueWeave’s report continues. “The South African facility management industry operates with integrated contracts from global vendors and small local players, offering diverse capabilities that could further boost market growth.”

Where there’s growth, innovation follows … but we don’t have to wait until 2029 for the latest advances. In its piece “Innovate and Elevate: 5 Facility Management trends shaping 2024”, the TEAM Group** highlights digital developments that are reshaping the facilities management industry at this moment (we examine the top three).

The Internet of Things (IoT) and smart technology are at the forefront of facility management evolution. “In 2024, we anticipate a further integration of IoT, connecting assets, building systems, and various elements of facilities,” says the TEAM Group. “This connectivity empowers facility managers with real-time data, enabling them to monitor and control operations seamlessly. This trend enhances overall efficiency, reduces downtime, and contributes to a more sustainable and cost-effective operation.”

Artificial intelligence (AI) and automation aren’t just buzzwords – they are catalysts for transformation in facility management. “In 2024, we foresee an increased reliance on AI-powered tools for preventive and predictive maintenance. Facility management in 2024 will involve more integration of AI, machine learning, and big data analytics,” highlights the TEAM Group. “These technologies enable facilities managers to collect and analyse vast amounts of real-time data, facilitating data-driven decisions and identifying potential issues before they occur. This shift towards proactive maintenance not only improves reliability and efficiency but also minimises maintenance costs, ushering in a new era of smart, connected, and data-driven facilities.”

The trend of increased mobility in facility management is set to continue its ascent in 2024. “With the advent of mobile applications connected to facility management and computerised maintenance management systems, technicians can log reports, access user manuals, and follow maintenance plans while in the field,” continues the TEAM Group. “This increased mobility enhances real-time communication and collaboration, ensuring that facility management teams are not tethered to a desk. Whether it’s addressing urgent maintenance issues or conducting routine inspections, the ability to access information on the go is streamlining operations and fostering a more agile approach to facility management.”

The TEAM Group summarises things perfectly: “As we navigate the evolving landscape of facility management, the key lies in staying informed, adapting to emerging trends, and leveraging innovative solutions to create smarter, more efficient, and environmentally conscious facilities.”

* The BlueWeave Consulting report was published in December 2023. 

** The TEAM Group is a US-based company founded in 1982. It offers industrial cleaning, facility maintenance, and shutdown services to clients across North America, Europe, and Asia.