Due to the changing needs of business operations over the last few years, organisations and businesses have started prioritising facility management (FM) services to enhance sustainability, resilience, and agility in businesses. Yet, the trinity of technology, people and processes remain at the core of effective FM services. A 2022 industry report by Global Market Insights stated that the FM market size was valued at 1 trillion USD in 2022. JLL's latest Facility Management Outsourcing report estimates that the global market for FM will be worth 1.9 trillion USD by 2024. 

Furthermore, there are many other factors that have served as a significant boost to the sector, for example, technology has been a game-changer for the industry. Innovations like automation, artificial intelligence (AI), virtual reality (VR) and other smart technologies are leading to enormous development in the industry. Dr Karima Hamani, Assistant Professor and Facilities Management Programme Lead at Heriot-Watt University Dubai shares her views on how the industry is prepared to evolve and grow in 2023.

Regional outlook

According to TechSci’s Middle East facility management market report released earlier this year, the Middle East’s FM sector is poised to grow at a CAGR of 8.13 per cent and reach 103.77 billion USD by 2027. The integration of FM in various industries like tourism, real estate and banking has been leading the global transformation across economies. P&S Intelligence’s market report states that the UAE’s FM market size is expected to reach 36,575 million USD by 2030. The increased inflow of tourists due to mega events like Dubai Expo 2020 has significantly contributed to the growing demand for robust FM services in the last two years. FM has played a vital role in creating a positive environment for visitors fulfilling the goal of providing an exceptional customer experience during these events. 

Furthermore, the demand for FM services has increased due to the continuous growth of real estate developments and ongoing multiple residential and commercial projects in the region. Several projects across the UAE like Expo 2020 Dubai site — District 2020, Deira Islands Mall and mega trade shows like The Big 5, and Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) will continue to drive the demand in the FM sector. Notably, the government’s focus on diversifying the economy to non-oil sectors, tourism infrastructure development and the promising outlook for the regional construction sector will spur the UAE FM market. The UAE construction sector has an estimated value of 90 billion USD. Owing to the growing tourism sector, demand in the banking, financial and insurance sector (BFSI), investment in the entertainment sector and increased government investment in healthcare and education projects, the UAE will lead the sector and propel the growth of the Middle East FM market. 

Technological integration in facility-managed services

The pandemic has reinforced the importance of technological integration in FM services. Businesses will have to continue to understand the areas that may need automation and thus manage resources effectively and engage them in strategic work within the ecosystem. When integrated into FM services, technology can streamline workflow and drive high-impact results. AI-based systems can provide information like maintenance schedules, and work requests which can result in increased productivity. Predictive analysis and data-driven decisions can help increase a business’s cost efficiency by enabling them to rely on preventive and predictive maintenance. This will further help them maximise the usage of a facility and resources to achieve business efficiency and continuity.

With the ongoing advancements and the need for accuracy in information, data analytics is gaining popularity and businesses will continue harnessing the potential of data analytics for making strategic decisions.  For instance, the energy consumption data of similar buildings can be compared for accurate performance measurement and benchmarking. Similarly, accurate data about the occupancy at a workplace or the number of visitors in a mall can help FM managers manage the operations and spaces efficiently and prepare for future demands.   

The inclusion of building technologies has altered all the facets of the FM sector and the way it has been operating over the last few years. Smart FM utilises data, automation and advanced technologies like Building Information Modelling (BMI), sensors, smart thermostats, biometric security systems, cloud computing and virtual reality to optimise the efficiency of the buildings and benefit the facility users and employees. For instance, a digital visitor registration service can be a hassle-free experience for the visitors and with the data being updated on the cloud, the accessibility becomes seamless for the facility managers.  

Emphasising green and sustainable facilities 

Adopting sustainable practices in FM can lead to optimal use of resources and saving costs. The sector has increasingly realised the power of incorporating sustainability in various aspects of operations and management. The UAE is already equipped with building efficiency parameters and processes. For instance, ‘Estidama’ green building rating system in Abu Dhabi regulates the construction and operations of buildings. It uses the ‘Pearl Rating System’ to measure the sustainability quotient of residential projects and communities throughout their life cycle. Al Sa’fat rating system in Dubai plays the same role towards sustainability integration and building performance. 

Since green buildings have unique technological systems, facility managers are required to possess relevant knowledge and skills to operate proper FM activities to increase the potential of green buildings. Understanding the various energy ratings and certifications can help the facility manager to procure energy-efficient systems for the building. Facility managers can create a sustainable ecosystem by identifying recyclable waste and ensuring that it gets recycled and installing energy management and monitoring systems to optimise energy usage in buildings. Installation of a robust structure for waste management, and regular audits to map the amount of waste generated can also help the FM service providers to handle it efficiently. 

The FM industry is evolving significantly and with a renewed focus on improved customer experience. While witnessing disruptions, the FM industry must focus on honing the skills to harness the potential of these advancements. Progressive companies will continue to invest in upskilling their workforce and equipping them with the right technology and systems to achieve sustainable growth and seize the increasing opportunities in the growing FM market.

About the author:
Dr Karima Hamani is the Assistant Professor and Facilities Management Programme Lead at Heriot-Watt University Dubai.