Report

Australia facility management market is projected to witness a CAGR of 6.60% during the forecast period 2025-2032, growing from USD 14.22 billion in 2024 to USD 23.71 billion in 2032 due to the rising demand for effective management solutions in several sectors. Services are increasingly being outsourced by organizations to enhance operational efficiency and lower their costs.
Key industries including healthcare, retail, and commercial real estate are particularly influential as they require specialized management to maintain high service standards. Technological innovations like artificial intelligence and the Internet of Things are revolutionizing the industry by facilitating smarter operations. These technologies facilitate automation, such as robotics for upkeep and improved energy management. The move towards integrated facility management models is also gaining strength, where multiple services are grouped into a single provider, making the company's operations more streamlined. Regionally, New South Wales dominates the market, owing to its strong infrastructure development and concentration of commercial activities, followed by Victoria with the modernization of public facilities. Queensland also gains prominence through growth in its real estate sector. The mix of established players and emerging companies are innovating and expanding their service offerings. Major companies are catering to the demand for facility management services by bidding for projects and forming strategic partnerships, mergers, and acquisitions to enhance their market position and deliver advanced solutions tailored to specific industry needs.
For instance, in October 2023, BGIS Australia Pty Ltd was awarded a new contract with NSW Public Works for the provision of Multi-Agency Facilities Management services.
In November 2024, Wormald Australia Pty Ltd secured an eight-year contract to operate as an on-site specialist fire service contractor for Sydney Airport. Fire safety plans at airports cater to several key areas, including regulatory compliance, reliability, and responsiveness, and developing a Health, Safety, Environment, and Quality (HSEQ) system and lifecycle cost analyses.
Growing Industries and Infrastructure Sectors Fuel the Demand
Growing industries, infrastructure, and the commercial sector in Australia are fueling the demand for facility management services. Industries such as healthcare, retail, mining, and commercial real estate sectors have grown over the years, and the need for efficient facility management has become crucial for them to sustain for a long period. Organizations are recognizing the importance of maintaining operational efficiency in the market, thus enhancing service delivery, leading to a surge in outsourced facility management solutions. Additionally, the rise in construction activities and infrastructure development requires comprehensive management services to ensure these facilities operate smoothly. This widespread demand is further augmented by cutting-edge technologies, helping organizations to opt for smarter and more efficient means of facilities. As a result, growth in the infrastructure sector and industries will drive the demand for facility management services throughout the country. Major companies are forming partnerships to deliver advanced solutions tailored to specific industry needs.
For instance, in December 2024, Urban Utilities partnered with Service Stream in a USD 50 million per year contract to maintain its water and wastewater network from July 2025. The incentivized model aims to improve efficiency, safety, and environmental outcomes while keeping costs low for 1.6 million customers.
In October 2024, ISS Facility Services Australia Limited announced the extension of its partnership with Roy Hill through a new multi-year agreement. The partnership extension supports Roy Hill's mining operation in the Pilbara region of Western Australia. In October 2024, ISS also mobilized a new long-term contract to provide fully integrated services to support a world-class residential village environment at Roy Hill. The service offerings includes exceptional food, community engagement, dedicated personnel and training, resident wellness, sustainability, and safety.
Demand for Facilities in Government Institutions Drives the Market
The demand for facilities in government institutions is broadly driving the facility management market. The government prioritizes modernizing infrastructure, enhancing public services, and having optimal facility management across departments. The Australian government's initiatives for maintaining existing buildings, ensuring compliance with regulations, and planning new developments are working as additive factors in supplementing this demand. Institutions require efficient management of their buildings, offices, and public infrastructure to ensure smooth operations and uninterrupted service delivery. As governments continue to expand their infrastructure and modernize public services, companies are catering to the demand for professional facility management solutions.
For instance, in June 2023, Ventia Pty Ltd was awarded a contract by Australia's Department of Defence. The new Defence Maintenance Contract introduces a refreshed approach to Defence Maintenance Support Services and is projected to generate approximately USD 393 million in revenue over the next five years, with the potential for an additional five-year extension. In this regard, the facility management industry is experiencing immense growth as the importance of managing government facilities continues to rise.
Soft Services Dominate the Market
Soft services dominate the facility management segment in the Australian markets. These soft services include cleaning, security, catering, pest control, and landscaping, which are vital to enhancing workplace productivity and customer satisfaction. Organizations are focusing more on soft services to ensure that their spaces are safe, hygienic, and welcoming for employees and visitors. The growing focus on maintenance and well-being required businesses to align with global standards and improve operational efficiency in certain industries, such as hospitality, schools, and institutions, which have further elevated the demand for these services. With advancements in technology and emphasis on quality service delivery, soft services continue to play a pivotal role in shaping the facility management industry, making them indispensable to modern business operations.
For instance, in January 2024, ISS Facility Services Australia Limited renewed its partnership with Griffith University, reinforcing its position as a leader in facilities management within the education sector. The ISS renewed the agreement, effective from July 2024. This long-term contract expands the current scope of services to include internal and external cleaning, hygiene services, waste removal and transfer, and consumables supply.
New South Wales Acquires the Highest Market Share
New South Wales dominates the Australian facility management market, leading with the largest market share. The leading drivers behind this include increasing demand for outsourced services, advancements in smart technologies, and a growing commitment to sustainability. New South Wales is a strategically positioned region, embracing innovative practices and ensuring compliance with environmental regulations, which has boosted its reputation in the industry. The region's focus on enhancing service delivery and customer satisfaction further boosts the facility management market. Maintaining a diverse portfolio of assets in the facilities management industry is crucial for delivering effective services that meet community needs. Companies are increasingly delivering services to manage both hard and soft facilities, ensuring operational excellence across various public and commercial properties.
For instance, in October 2023, Ventia Pty Ltd provided facilities management services for the City of Sydney's 251 facility assets and secured a two-year contract extension, extending the agreement till 21 January 2026. Under this contract, Ventia is responsible for delivering both hard and soft facilities management services, including maintenance and cleaning, across a variety of community and commercial facilities. These include community centers, libraries, leisure facilities, depots, public toilets, and iconic buildings such as Sydney Town Hall, Customs House, and the Ian Thorpe Aquatic Centre. The contract also covers the maintenance of over 100 public art installations.
Future Market Scenario (2025 � 2032F)
� The Australian facility management market is expected to see significant growth driven by the adoption of advanced technologies like IoT and AI. These innovations will enhance operational efficiency, enabling real-time monitoring and predictive maintenance across various facilities.
� A growing emphasis on sustainability will shape future market dynamics, with businesses prioritizing eco-friendly practices. Regulatory changes aimed at achieving net-zero emissions will further propel the demand for sustainable facility management services.
� The shift toward integrated facility management services will continue as organizations seek to streamline operations and reduce costs. This trend will encourage the bundling of services under single contracts, enhancing efficiency and accountability.
� As companies increasingly recognize the benefits of outsourcing facility management, demand for external service providers will grow. This trend is expected to drive market expansion, particularly among large enterprises looking to optimize operational processes and focus on core business activities.
Key Players Landscape and Outlook
The competitive landscape of the facility management industry is highly dynamic, with a mix of global players and regional firms competing for market share. Leading companies are offering comprehensive services and adopting advanced technologies. The industry is witnessing a growing demand for integrated solutions that go beyond traditional maintenance and cleaning, focusing on sustainability, energy efficiency, and smart building management. As businesses increasingly prioritize operational excellence and enhanced user experiences, service providers are innovating to stay competitive. This has led to intensified competition as firms differentiate themselves through value-added services, digital transformation, and tailored solutions to meet diverse client needs.
For instance, in July 2024, Evolve FM Pty Ltd. became Australia's first 100% Indigenous-owned facilities management company as minority owner JLL sold its stake in the company to our majority owner.