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Facilities Management Services in Australia - Market Research Report (2014-2029)

Eniz Hudaverdi Eniz Hudaverdi Melbourne, Australia Last Updated: March 2024 ANZSIC OD5528

Revenue

$10.7bn

2024-25

$10.9bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

90,563

Businesses

113

Wages

$X.Xbn

Facilities Management Services in Australia industry analysis

Companies in the Facilities Management Services industry have struggled over recent years due to poor economic conditions caused by the pandemic. During the pandemic, restrictions reduced demand for facilities management services. Working from home trends and temporary delays to elective surgeries in the health sector reduced the need for facilities managers. But further revenue falls were limited as businesses have been more willing to outsource non-core business activities since the pandemic. Ultimately, climbing purchase costs and strong price-based competition placing downwards pressure on contract prices have dampened industry performance and profit margins. Revenue is expected to fall at an annualised 1.0% over the five years through 2023-24, to $10.7 billion. Revenue is anticipated to edge upwards by 0.7% in 2023-24.

Trends and Insights

  • Trading conditions during the COVID-19 pandemic severely reduced demand for facilities management. As staff increasingly worked from home, downstream demand plummeted.
  • Working from home trends have reduced the need for minor maintenance services. Even so, emptier buildings and workplaces have allowed clients to schedule major maintenance services.
  • A high number of government agencies are headquartered in the Australian Capital Territory. Many of these agencies require facilities management services.
  • Start-up costs can be high for new facilities management firms. New companies can face challenges in hiring and training staff as highly skilled employees can be costly.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.0 % over the past five years, to reach an estimated $10.7bn in 2024.

Trends and Insights

Dampened demand from the mining sector has started to weakened revenue

  • The mining sector has seen growth in recent years due to links to strong commodity prices and Australia’s high reputation for producing mining goods. This strong performance has benefited the Facilities Management Services industry, which is responsible for housing mining workers.
  • Additional trends and insights available with purchase
Facilities Management Services in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Government contracts will back revenue growth for facilities management firms

  • The government sector is huge, and the size and scale of the public sector means this market still has extensive scope for growth. Government contracts make up almost one-quarter of industry revenue, and both smaller and larger firms have opportunities to access this market.

Biggest companies in the Facilities Management Services in Australia

Company
Market Share (%)
2024
Revenue ($m)
2024
Downer
1,260.6
Ventia
1,171.3
Programmed
559.1

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Facilities Management Services in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Major maintenance services, Minor maintenance services and Cleaning services. Major maintenance services is the largest segment of the Facilities Management Services in Australia.

Trends and Insights

A building's age is a key driver for minor maintenance services

  • Minor maintenance services are routine and include small repairs, garden maintenance, upkeep activities and other grounds maintenance.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Facilities managers primarily provide non-core business services that allow buildings and precincts to operate effectively. These include monitoring, planning and management services such as cleaning, gardening, security and maintenance. Industry services are typically provided under contract. The industry does not include major maintenance services for infrastructure such as roads, tunnels, railway lines, bridges, dams or public utility networks.

What's included in this industry?

Major maintenance servicesMinor maintenance servicesCleaning servicesWorkplace safety servicesAccommodation servicesPest controlEnergy and environmental managementSoft facilities management

Companies

DownerVentiaProgrammed

Purchase this report to view all 7 major companies in this industry.

Related Terms

PUBLIC-PRIVATE PARTNERSHIP (PPP)ENGINEERING STRUCTURESHEATING, VENTILATION AND AIR CONDITIONING (HVAC)WORKING FROM HOME (WFH)

Industry Code

ANZSIC 2006

ANZSIC 7311 - Facilities Management Services in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Trading conditions during the COVID-19 pandemic severely reduced demand for facilities management. As staff increasingly worked from home, downstream demand plummeted.

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Working from home trends have reduced the need for minor maintenance services. Even so, emptier buildings and workplaces have allowed clients to schedule major maintenance se...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

A high number of government agencies are headquartered in the Australian Capital Territory. Many of these agencies require facilities management services.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Start-up costs can be high for new facilities management firms. New companies can face challenges in hiring and training staff as highly skilled employees can be costly.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Facilities management companies that provide services to government organisations benefit from reliable contracts. These contracts can last many years and tend to be more res...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Downer's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Ventia's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Programmed's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • Description and key data for Downer, and factors influencing its performance in the industry
  • Description and key data for Ventia, and factors influencing its performance in the industry
  • Description and key data for Programmed, and factors influencing its performance in the industry
  • Description, key data and performance trends for 4 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Enterprise and establishment numbers have expanded over recent years. Despite weaker demand for facilities managers during the pandemic, new entrants have been focusing on go...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Clients are putting pressure on facilities managers to offer contracts at low prices. Lower prices alongside higher purchase costs have been weakening profit margins.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Facilities Management Services industry in Australia in 2024?

The market size of the Facilities Management Services industry in Australia is $10.7bn in 2024.

How many businesses are there in the Facilities Management Services in Australia industry in 2024?

There are 113 businesses in the Facilities Management Services industry in Australia, which has grown at a CAGR of 2.1 % between 2019 and 2024.

Has the Facilities Management Services industry in Australia grown or declined over the past 5 years?

The market size of the Facilities Management Services industry in Australia has been declining at a CAGR of 1.0 % between 2019 and 2024.

What is the forecast growth of the Facilities Management Services industry in Australia over the next 5 years?

Over the next five years, the Facilities Management Services industry in Australia is expected to grow.

What are the biggest companies in the Facilities Management Services market in Australia?

The biggest companies operating in the Facilities Management Services market in Australia are Downer, Ventia and Programmed

What does the Facilities Management Services in Australia include?

Major maintenance services and Minor maintenance services are part of the Facilities Management Services industry.

Which companies have the highest market share in the Facilities Management Services in Australia?

The company holding the most market share in Australia is Downer.

How competitive is the Facilities Management Services industry in Australia?

The level of competition is high and increasing in the Facilities Management Services industry in Australia.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Real Estate Services in Australia
  • Correctional and Detention Services in Australia

Complementors

  • Temporary Staff Services in Australia
  • Commercial Cleaning Services in Australia

International industries

  • Combined Facilities Support Activities in the UK
  • Combined Facilities Support Activities in Ireland

View all industries in Australia

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.