Report

The Hong KongFacility Management Market is expected to register a CAGR of 4.1% during the forecast period.

Key Highlights
- Hong Kong has its prominence in outsourced markets for facility management services in terms of development and sophistication. The region's facility management industry operates with integrated contracts provided by significant vendors such as Knight Frank Hong Kong Limited EAA, G4S Facility Services Hong Kong Limited, etc., across various countries and borders, and small local players focus on single contracts and single-service solutions. However, given the dynamics occurring across the region, there are increasing opportunities to leverage facility management and corporate real estate in new ways.
- Moreover, facility management (FM) includes management methods and techniques for building management, infrastructure management for an organization, and overall harmonization of the work environment in an organization. This system standardizes services and streamlines processes for an organization.
- Over the last decade, several service vendors, such as Savills Hong Kong Limited, Dusservice Hong Kong, etc., operating in the region have been focused on expanding their presence to leverage the increasing demand for facility management, especially with the recent trend favoring outsourcing of non-core operations. Further, Hong Kong has been witnessing increased opportunities to leverage facility management and corporate real estate in innovative ways, given the dynamics across the country.
- In terms of the end-user demand, the public sector's contribution toward the facility management market in Hong Kong is primarily driven by the government's constrained budgets that lead to the continuous outsourcing of essential facility management services. While on the contrary, a few instances, such as the Hong Kong Science and Technology Parks Corporation (HKSTP), a government statutory body set up to encourage I&T in the city and around the region, are implemented.
- Considering the market for Hong Kong facility management has been subjected to moderate growth due to the rise in demand for people with improved requirements. This scenario is projected to bolster the development of the market during the forecast period. The ongoing pandemic has resulted in the steady market growth in the region. However, the pandemic has resulted in limited production, leading to a sharp decline in business inputs.
- The outbreak of COVID-19 has had a mixed business impact on facilities management firms. The restrictions on the movement of people resulted in a decline in project work and a decreased level of activity across many customer sites. Significant players in the market, such as CBRE Hong Kong, Synergis Management Services Limited, and others, were adversely affected due to the pandemic lockdown.


Hong KongFacility Management Market Trends

Implementation of Smart technologies in Retail Segment Drives the Facility Management


- The retail industry is rapidly changing, and retailers are getting smarter about G4S last-mile solutions to compete with the biggest players as an instance. Last-mile delivery is an integral component of the order fulfillment process but is often the most difficult to coordinate for a number of reasons.
- With smart technology like GPS and RFID tags to track the movement of shipments in real-time to embedding IoT-enabled sensors in packages in order to monitor their temperature and humidity, smart technology has enabled retailers to provide their customer base with the transparency and traceability they want.
- For instance, it is understood that the G4S last-mile delivery experience can have an impact on the retailer's reputation, so at G4S, one can help devise solutions for customers that make the right efforts to winnow down the last-mile delivery window in order to meet rising customer expectations.
- The value of retail sales has recovered from a huge loss which is a 24.3% year-on-year drop, while it recovered to an 8.3% year-on-year change. For the full year, the category most impacting overall retail sales growth was electrical goods, up by 19.1%, with miscellaneous consumer goods up 20.6%, jewelry and watches up by 27.3%, apparel by 22.6%, and medicines and cosmetics up by 3% (source: Census and Statistics Department).


Contribution of Industry 4.0 Technologies to Facility Management


- In the scenario of Industry 4.0, FM is evolving as a consequence of the introduction of new technologies in Hong Kong that can enhance the capabilities of roles devoted to the management of structures.
- The technologies of Digital Twin (DT), Internet of Things (IoT), Cyber-Physical Systems (CPS) and their respective specialization to industry, Industrial Internet of Things (IIoT) and Cyber-Physical Production System (CPPS), are considered to increase the effectiveness of FM.
- Companies in Hong Kong such as are being encouraged to embrace growing trends such as Industry 4.0's smart production techniques to create a more streamlined manufacturing process and a wider variety of high-end, value-added industries.
- For instance, in May 2022, two of Hong Kong's well-established food manufacturers, Lee Kum Kee (Hong Kong) Foods Limited and Leun Tai Hong Kong Fresh Liquid Eggs Limited, will set up a new smart production line as part of their industry 4.0 transformation.
- This industrialization drive is being supported financially by a number of different training schemes backed by the government's Innovation and Technology Fund. For instance, the above food manufacturing companies are implementing Industry 4.0 in projects partially financed by the city's Re-industrial Funding Scheme (RFS).


Hong KongFacility Management Industry Overview

The Hong Kong Facility Management Market is moderately consolidated with the presence of diverse firms of different sizes. This market is anticipated to encounter a number of partnerships, mergers, and acquisitions as organizations continue to invest strategically in offsetting the present slowdowns that they are experiencing. The clients in this region are employing FM services to increase the ease of their business operations. The market comprises key solutions and service providers, such as Savills Hong Kong Limited, Knight Frank Hong Kong Limited EAA, G4S Facility Services Hong Kong Limited, Urban Group, Dusservice Hong Kong, etc.


- May 2021 - Dusservice makes a security services contract for Central Plaza. Central Plaza is the third tallest building in Hong Kong, with 78 level floors. It has a parking lot and a footbridge connecting with MTR Wan Chai Station. The company provides tailor-made security guarding services and car-park management. They also provide comprehensive training, supervision, and clear instruction to assure their staff can perform security duties competently and efficiently.
- April 2022 - Real Capital Analytics (RCA), the definitive international real estate institution that specializes in the data and analysis of commercial real estate capital markets, has named Savills as the top broker in the Hong Kong market in its Top Global Investment Brokers of 2021 report, a record the firm has retained since 2014.


Additional Benefits:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support