The market generated revenues of $2,251.8 million with an annual growth rate of 4.5 percent in 2009.
New analysis from Frost & Sullivan (buildingtechnologies.frost.com), IFM Market in Hong Kong, estimates the revenues to reach $3,099.7 million in 2016.
Multinational companies, especially international banks, have started to outsource their facilities management (FM) functions completely to IFM service providers. Janitorial and mechanical and electrical (M&E) are the main services that are outsourced, indicating that the market has significant growth potential.
The Government and regulatory bodies in the IFM market are highly involved in advocating energy efficiency in the building industry. Hence, FM companies have opportunities to provide energy-saving services.
"The market growth rate is expected to increase steadily by 2016 due to the stability of Hong Kong's economy, which is growing between 5 and 6 per cent, annually," notes Frost & Sullivan Associate Janice Wung. "In addition, the high availability of experienced FM professionals in the market suggests growth."
The highly competitive Hong Kong IFM market drives the participants, even major ones, to adopt a competitive pricing strategy to remain in business.
"FM service companies in Hong Kong are currently under extreme pressure to cut costs," explains Wung. "Additionally, the economic downturn forced companies to reduce FM budget."
The market experienced only a slight dip in 2009, due to its strong presence in Hong Kong and the increasing economic integration with China. However, growth has been restricted due to the competitive pricing strategy and the lack of loyalty among skilled employees.
The FM market in Hong Kong is characterised by linked organisations, which hinders rapid market improvements. To compound matters, a number of low-cost Chinese service providers have entered the market in the recent past. Most of them, however, are bundled or single service providers and do not pose any direct threat to IFM companies.
The market may get respite from some of these challenges through the efforts of the IFMA HK Chapter. It oversees the IFM market in Hong Kong and is one of the most established FM associations in Asia Pacific. Its initiatives in increasing awareness on outsourcing the IFM services have paid off with the market beginning to move into the maturity stage.
If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at djeremiah[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.
IFM Market in Hong Kong is part of the Building Management Technologies Growth Partnership Services programme, which also includes research in the following markets: IFM Market in Australia and New Zealand, Integrated Facilities Management in Vietnam, Green Integrated Facilities Management (GIFM) Services - Strategic Analysis of the Asia Pacific Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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IFM Market in Hong Kong / P4B5
Jessie Loh, Corporate Communications – Asia Pacific
P: +65 6890 0942 / E: jessie.loh[.]frost.com.