UK Facilities Management Market Report 2021
“The UK has a well-developed facilities management industry that has constantly evolved to offer an ever-increasing array of services. Technology is being increasingly used to differentiate services, reduce costs and…

UK Facilities Management Market Report 2021

£ 1,495 (Excl.Tax)


The UK Facilities Management market report identifies consumer attitudes towards facilities management, sustainability gains, continued pressure on market, and the use of technology in the UK. This market research report on UK facilities management covers the market size, market forecast, market segmentation and industry trends for the Facilities Management market in the UK. 

Current Market Landscape

The COVID-19 pandemic has had a huge impact on the facilities management sector, with some of the soft services suffering prolonged reductions in demand. There remains some long-term structural potential changes in some of these sectors.

  • There were 95 merger & acquisition (M&A) deals in the UK facilities management sector in 2020 amounting to a highly significant £4.3 billion of activity.
  • 83% of workers reported their workplaces were not doing enough to address climate change.
  • For 2021, the IFM market is valued at Source: MBD an estimated £12 billion, representing a market share of some 9%.

All sectors suffered from the initial restrictions, but some rebounded very quickly such as the mechanical & electrical (M&E) sector. For some companies serving the public sector, new opportunities such as Track and Trace and the Nightingale Hospitals offered temporary opportunities.

Future Market Trends in Facilities Management 

One of the structural issues within the industry was exposed by the previous collapse of Carillion, namely the exposure to costings and in particular that high employment dependent soft services are exposed to changes in the New Living Wage (NLW), which is set to further increase in 2022. The industry response has been a growing adoption of technology partly to reduce its manpower dependency but also to offer clients benefits that prove difficult to achieve for in-house provision.

There remains real opportunity to further progress technology adoption and meaningfully contribute to client sustainability targets, which are now to be demanded after the Treasury announcement in November 2021.

Read on to discover more details or take a look at all of our UK Leisure market research.

Quickly understand

  • The huge diversity of the COVID-19 impact, ranging from short-term market collapse to long-term implications of structural change while at the same time the pandemic created new opportunities.
  • The opportunity for facilities management companies to assist companies in their net zero targets that require short-term action as sustainability gains an increasing focus.
  • The level of M&A activity that is both a strategic tactic of companies and has substantially changed the structure of the industry.
  • The continued pressure on margins, with above-average labour cost increases in labour-intensive aspects of the sector.
  • The use of technology to deliver superior performance, offset disproportionate labour cost growth, and to provide a compelling reason to outsource, a competitive advantage to the provider and plays an important role in client retention.

Covered in this report

Brands: CBRE GWS, Compass Group, G4A / Allied Universal, ISS Facility Services, Mitie, Serco Group, Sodexo.

Expert analysis from a specialist in the field

This report, written by Terry Leggett, a leading analyst in the Leisure sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The UK has a well-developed facilities management industry that has constantly evolved to offer an ever-increasing array of services. Technology is being increasingly used to differentiate services, reduce costs and gain greater client loyalty. While COVID-19 has temporarily challenged some aspects of the market it has given rise to other short-term opportunities, while the medium-term developments are expected to centre around the increasingly important sustainability agenda.
Terry Leggett - Research AnalystTerry Leggett
Senior Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • COVID-19 temporarily devastates some sectors
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on facilities management, 2021
    • The market
    • Market size and forecast
      • Figure 2: Potential market size for facilities management, 2016-26
      • Figure 3: Market for integrated facilities management and other sub-contracted services, 2016-26
    • Segmentation by sector
      • Figure 4: Segmentation of contracted-out services, 2021 (£ billion)
    • Trends and influences
    • Companies and brands
    • A well-established sector
    • Structural change in 2020 and strong M&A activity in 2021
      • Figure 5: Facilities management M&A activity, 2016-21
    • Target markets
  3. Issues and Insights

    • Has COVID-19 changed the landscape long term?
      • Figure 6: Coronavirus business loans up to May 2021 (£ billion and number)
      • Figure 7: Analysis of major retail failures, 2011-21
    • Sustainability – the key to meaningful service differentiation
      • Figure 8: Generational differences in proportion reporting they are prepared to pay more for sustainable products, 2021
  4. Market Size and Performance

    • COVID-19 temporarily devastates some sectors
      • Figure 9: Short-, medium- and long-term impact of COVID-19 on facilities management, 2021
    • Mixed fortunes from COVID-19 for the potential market
      • Figure 10: Potential market size for facilities management, 2016-21
    • The contracted-out sector
      • Figure 11: Market for integrated facilities management and other sub-contracted services, 2016-21
  5. Market Forecast

    • Sustainable issues grow in importance
      • Figure 12: Market forecast for the potential facilities management sector, 2021-26
      • Figure 13: Market forecast for integrated facilities management and other sub-contracted services, 2021-26
    • Market drivers and assumptions
      • Figure 14: Key drivers affecting MBD’s market forecast, 2016-26
    • Forecast methodology
  6. Market Segmentation

    • The packages
      • Figure 15: Segmentation of the potential market for facilities management, by type of contract, 2016-21
    • Segmentation by sector
      • Figure 16: Segmentation of contracted-out services, 2021 (£ billion)
    • Mechanical and electrical contracting
    • Overview
      • Figure 17: Market size and COVID-19 impact forecast for the M&E contracting sector, 2016-26
      • Figure 18: Segmentation of M&E contracting market, by type of work, 2016-26
      • Figure 19: Segmentation of the M&E contracting market, by type of demand, 2016-26
    • Private Finance Initiative
      • Figure 20: PFI/PF2 unitary charges, 2016-26
      • Figure 21: Capital value of outstanding PFI/PF2 contracts as at March 2018
    • Landscaping and gardening
      • Figure 22: Market size for landscaping & gardening addressable by facilities management companies, 2016-26
    • Office services
      • Figure 23: Percentage of employed population in a work from home status, 2011-20
      • Figure 24: Market size of office services. 2016-26
    • Cleaning
      • Figure 25: Market size for cleaning services, 2016-26
    • Building fabric maintenance
      • Figure 26: Market size for building fabric maintenance services, 2016-26
    • Catering
      • Figure 27: Market size for catering services, 2016-26
    • Security
      • Figure 28: Market size for security services, 2016-26
    • Other services
      • Figure 29: Market size for other services, 2016-26
  7. Market Drivers

    • The sustainability agenda
    • Repair & maintenance
    • Private non-residential
      • Figure 30: Private non-residential R&M expenditure, 2016-26
    • Public non-residential
      • Figure 31: Public non-residential R&M expenditure, 2016-26
    • Distribution of workplaces
      • Figure 32: Number of PAYE/VAT registered business establishments, by sector, 2016-21 (000s)
      • Figure 33: Number of PAYE/VAT registered business establishments with a turnover over £2 million, by industry and turnover, 2021
      • Figure 34: Number of people mainly working from home, 2015-19
      • Figure 35: Home working, by occupation, 2020
    • Employment costs
    • National Minimum Wage and National Living Wage
      • Figure 36: Development of the NMW and NLW, 1999-2021 (£s per hour rate)
    • Apprenticeship Levy
    • Workplace pensions
      • Figure 37: Composition and progression of workplace pension contributions, 2012-20 (% of earnings)
    • The Coronavirus Job Retention Scheme
      • Figure 38: Number of furloughed employments, 2020-21
      • Figure 39: Coronavirus Job Retention Scheme Claims, at August 2020 and August 2021
  8. Competitive Strategies

    • Technology for a competitive advantage
    • Sustainability for a competitive advantage
    • Choosing your service
    • M&A activity
    • Selecting the market
  9. Industry Structure

    • Difficult to define industry boundaries
      • Figure 40: Development of the facilities management sector, 2016-21
      • Figure 41: Employment structure of facilities management sites
      • Figure 42: Turnover analysis of the facilities management sector, 2021
    • M&A – a critical growth strategy
    • Major 2020 deals
    • Activity increases in 2021
      • Figure 43: Facilities management M&A activity, 2016-21
    • Private equity appetite evident
      • Figure 44: Segmentation of facilities management M&A activity, by source of finance, 2016-21
    • So many attractions
      • Figure 45: Facilities management M&A activity, by sub-sector, 2020
  10. Company Profiles

    • CBRE GWS
    • Activity
    • Performance
      • Figure 46: Revenues of CBRE GWS, by quarter, 2019-21
      • Figure 47: Segmentation of CBRE GWS global revenues by sector, Q2 and Q3 2020
      • Figure 48: Financial performance of CBRE GWS in the UK, 2015-19 (£ million)
    • Strategy
    • Compass Group
    • Activity
      • Figure 49: Turnover segmentation of Compass Group, 2020
    • Performance
      • Figure 50: Financial performance of Compass Group, 2016-20 (£ million)
      • Figure 51: Turnover segmentation of Compass Group in Europe, 2020
    • Strategy
    • G4S/Allied Universal
    • Activity
    • Performance
      • Figure 52: Financial performance of G4S, 2016-20 (£ million)
      • Figure 53: Geographic segmentation of G4S revenues, 2020 (£ million)
      • Figure 54: Customer segmentation of G4S revenues, 2018-20 (£ million)
    • Strategy
    • ISS Facility Services
    • Activity
      • Figure 55: Geographic segmentation of ISS revenues, 2020
    • Performance
      • Figure 56: Financial performance of ISS Facilities Management, 2015-19 (£ million)
      • Figure 57: Turnover segmentation of ISS Facilities Management, 2020 (£ million)
    • Strategy
    • Mitie
    • Activity
    • Performance
      • Figure 58: Financial performance of Mitie, 2017-21 (£ million)
      • Figure 59: Turnover segmentation of Mitie, 2021 (£ million)
    • Strategy
    • Serco Group
    • Activity
    • Performance
      • Figure 60: Financial performance of Serco Group, 2016-20 (£ million)
      • Figure 61: Geographic segmentation of Serco Group Revenues, 2020 (£ million)
      • Figure 62: Service turnover analysis of Serco Group, 2020 (£ million)
    • Strategy
    • Sodexo
    • Activity
    • Performance
      • Figure 63: Financial performance of Sodexo, 2016-20 (£ million)
      • Figure 64: Segmentation of Sodexo revenues, 2021 (€ million)
    • Strategy
  11. Appendix – Data Sources, Abbreviations and Supporting Information

  12. Appendix – Central Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 65: Forecast market for facilities management, 2021-26 (£ billion)
    • Market drivers and assumptions
      • Figure 66: Key drivers affecting MBD’s market forecast, 2021-26
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.


Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.


Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.


Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.


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