Report

South Korea facility management market is projected to witness a CAGR of 4.74% during the forecast period 2025-2032, growing from USD 15.83 billion in 2024 to USD 22.93 billion in 2032. The South Korean market for facility management is steadily increasing, driven by complex building and infrastructure management and the need for specialized expertise. Ongoing urbanization and the complexity of modern workspaces also support this trend, as organizations leverage technology to meet better-changing demands and enhance overall workplace environments. Gyeonggi Province emerges as a dominating region due to its industrial prominence and extensive real estate developments, while Seoul remains a critical hub for commercial facility management demand. The commercial market is the leader in the demand for soft services, including cleaning and security. A key subsegment within hard services is mechanical, electrical, and plumbing (MEP) maintenance, which encompasses essential systems such as HVAC, plumbing, and electrical infrastructure; the demand for these services is growing rapidly. By ensuring that these core systems operate effectively, organizations can enhance overall performance and compliance with safety regulations, ultimately supporting a productive work environment and fueling the facility management market. Organizations are shifting their focus to create an easier work environment and, therefore, seek the best services along these lines. The market is moderately competitive, with notable players seeking opportunities through strategic partnerships and technological development. Collaborations between South Korean local companies and multinational businesses drive innovative solutions and provide wider market scope. The ongoing evolution of both business needs and sustainability goals drives the solutions for facilities management. There has been rapid evolution with the integration of advanced technologies such as AI, IoT, and digital twins to enhance operational efficiency and sustainability.
For instance, in May 2024, Korea Airports Corporation announced that it had acquired a patent related to a 'digital twin-based integrated facility management method and device' for the first time in Korea. Digital twin refers to a technology that enables real-time interaction by expressing objects or systems that exist in the real world with the same digital data model on a computer. Using BIM technology, Gimpo Airport is realized as a digital twin.
Corporate and Commercial Market Drives the Demand
The corporate and commercial building sectors are driving the South Korean facility management market, as they require advanced, integrated solutions to manage increasingly complex infrastructures. These sectors prefer outsourcing facility management services to enhance operational efficiency, reduce costs, and focus on core business activities. Construction projects and real estate developments, especially in urban areas, have increased the demand for professional facility management services. Companies use smart building systems and energy management solutions to optimize building performance and sustainability. Also, local firms and global players are collaborating and launching more integrated facility management services to enhance service offerings that ensure seamless operations for commercial spaces while meeting evolving regulatory and environmental standards. This has made corporate-driven facility management a key driver of market growth. The market is becoming increasingly competitive, with companies leveraging integrated solutions to enhance efficiency and cost-effectiveness.
For instance, in June 2024, Cushman & Wakefield Korea Ltd., the local arm of the global commercial real estate services firm, is launching a more integrated facility management service next month to better meet the growing demand from corporate clients. The service, called Integrated Facilities Management or IFM, ranges from janitorial, cleaning, and food management to disaster prevention and data centers. According to the company, clients can save up to 15-20 percent on maintenance costs by outsourcing the IFM service as C&W capitalizes on an economy of scale. Currently, C&W is the only real estate consulting firm that offers such a service.
Technological Advancements Fuel the Demand
Technological advancement is significantly driving demand in the South Korean facility management market. Artificial intelligence and the Internet of Things are fostering the better delivery of facilities, evolving traditional processes into smart operations, and enabling better operational efficiency through predictability, analytics, and real-time monitoring. As companies increasingly prioritize smart building technologies, the need for integrated facility management solutions encompassing every required service has surged. These innovations are used as proactive maintenance initiatives involving optimum energy consumption and improved experiences for occupants. More importantly, companies are integrating technologies to streamline operating frameworks and develop next-generation facility management systems efforts toward sustainability.
For instance, in February 2024, SK Energy Co., Ltd. announced signing a strategic business agreement with PTC Korea to build and operate a smart plant. PTC is a global software company that provides platforms and solutions for digital innovation, such as IoT and AR. Through this agreement, the two companies decided to further enhance SK Energy's self-developed next-generation facility management system OCEAN-H (Optimized & Connected Enterprise Asset Network Hub) by applying PTC Korea's software technology.
Soft Services Acquire the Highest Market Share
Soft services acquire a significant market share of the South Korean facility management market. Increasing demand for operational efficiency and enhancing the quality of the work environment is pushing the demand for these services in cleaning, security, and waste management. With organizations focusing on core business activities, outsourcing soft services has become a strategic priority to leverage specialized expertise while optimizing costs. The increasing demand for advanced technologies and smart building solutions amplifies this need further as businesses seek to integrate these facility services seamlessly. However, increased awareness and strict regulatory compliance are pushing healthcare centers to employ cleaning and service facilities to enhance soft services for a healthier and more efficient work environment; thus, they are floating the tenders for the same.
For instance, in 2024, Hwaseong City Western Public Health Center, HWASEONG-SI, GYEONGGI-Do floated a tender for 2025 Facility Management and Cleaning Services for Western Public Health Center, Etc. Soft services thus remain a core aspect of the changing facility management landscape in South Korea.
Gyeonggi Dominates the Market
Gyeonggi is a dominant region in the South Korean facility management market, strategically positioned as a major industrial and economic hub. Rapid urbanization and significant regional real estate developments have created a substantial demand for facility management services to support the growing number of commercial and residential properties. The influx of multinational companies into Gyeonggi has created a huge demand for standardized and efficient facility management practices of integrating advanced technologies, such as IoT and AI, within buildings enhances their operational efficiency. Also, initiatives towards providing better facilities are influencing market dynamics; Gyeonggi assumes a pivotal role in shaping the future contours of South Korea's facility management. Institutions are taking the initiative to enhance the operational efficiency and service quality of the buildings and facilities, which serve as a hub for cultural activities and community engagement in Gyeonggi Province, South Korea.
For instance, in November 2024, Gyeonggi Cultural Foundation South Korea released a tender for 2025 Gyeonggi Sangsang Campus Facility Management Contracting Service in Services.
Future Market Scenario (2025-2032F)
� Integrating advanced technologies such as artificial intelligence (AI) and the Internet of Things (IoT) is expected to revolutionize facility management practices, enabling smarter building solutions and data-driven decision-making. This trend will likely enhance service delivery and operational efficiency across various sectors.
� As environmental regulations tighten, a growing demand for sustainable facility management solutions will prompt manufacturers to develop energy-efficient models that align with sustainability goals.
� Continued urbanization will drive the demand for facilities to facilitate hard and soft services in densely populated areas.
� A rise in the demand for retrofitting and modernizing buildings to comply with safety standards and improve energy efficiency will fuel the demand for facilities.
Key Players Landscape and Outlook
Companies increasingly outsource facility management services to improve operational efficiency, ensure compliance with regulatory standards, and focus on core business activities. Government initiatives in sustainability and energy efficiency further propel market dynamics. The competitive landscape of the South Korean facility management market is characterized by a mix of established local and international players, each striving to enhance their service offerings and market presence. Key companies such as Sodexo Group, Hyundai GBFMS Co., Ltd., and Cushman & Wakefield Korea Ltd., strategic partnerships, technological innovations, and comprehensive service portfolios to capture market share. The focus on integrated facility management solutions drives competition, as firms aim to provide value-added services that cater to clients' evolving needs. Additionally, the market is witnessing mergers and acquisitions as companies seek to expand their capabilities and geographic reach. This dynamic environment fosters innovation and ensures facility management services align with industry trends and client expectations.
In January 2025, DB Robotics Co., Ltd., a prominent player in industrial and extreme environment robotics, entered into a strategic partnership with SK Shieldus through a memorandum of understanding (MOU). This collaboration focuses on developing cutting-edge security and facility management solutions by combining DB Robotics' technological expertise with SK Shieldus Co., Ltd.