Healthcare Facilities Management Market

Healthcare Facilities Management Market Size and Share Analysis:

The global healthcare facilities management market size was valued at USD 407.51 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 779.96 Billion by 2033, exhibiting a CAGR of 7.27% during 2025-2033. North America currently dominates the market, holding a significant market share of over 34.4% in 2024. The growing use of artificial intelligence (AI) and data analytics to manage various operations in the healthcare sector, the rising demand for advanced healthcare services, and streamlined procurement processes to enhance service quality are some of the factors propelling the market growth.

The healthcare facilities management market is propelled by the growing demand for efficient management of healthcare infrastructure to ensure hygiene, safety, and operational efficiency. Rising healthcare expenditure and increasing numbers of hospitals, clinics, and diagnostic centers contribute significantly to the healthcare facilities management market growth. Strict regulatory standards for infection control and waste management further boost the need for professional facilities management services. Advancements in technology, such as IoT and automation, enhance operational efficiency while outsourcing non-core services like cleaning, maintenance, and waste disposal allows healthcare providers to focus on patient care. Moreover, the growing focus on green building practices and sustainable solutions in healthcare facilities fuels the adoption of advanced management services globally.

The healthcare facilities management market in the United States is influenced by several factors, including the increasing demand for healthcare services because of an aging population and rising chronic diseases. Stringent healthcare regulations require high cleanliness, safety, and maintenance standards, fueling the need for professional facilities management services. Incorporating advanced technologies like IoT for predictive maintenance and energy-efficient solutions enhances operational efficiency. Additionally, hospitals and healthcare providers are focusing on improving patient experience and outcomes, driving investments in infrastructure and facility upgrades. For instance, in August 2024, a foremost supplier of language solutions for the healthcare sector, AMN Healthcare Language Services (AMN LS) announced the launch of Strategic Partnership Solutions (SPS), its newest product designed to revolutionize language access initiatives in healthcare institutions by offering organizations comprehensive language services and strategic assistance. Through partnerships with healthcare providers, SPS intends to assume operational duty as an internal language service department for health systems and organizations. Outsourcing non-core services like cleaning, security, and waste management allow healthcare providers to focus on primary care, further expanding the market. Growing sustainability efforts in healthcare buildings also support market growth.

Healthcare Facilities Management Market Trends:

Technological Advancements

Integrating new technologies such as IoT devices and AI programs in facility management procedures improves efficiency and service performance. IoT devices help monitor and control facilities to ensure all equipment and infrastructure operate at peak performance. AI-powered technologies make it easier to predict maintenance needs, ultimately decreasing time spent offline and cutting down on expenses. Data analysis offers valuable perspectives on facility operations, aiding in decision-making and resource distribution. Furthermore, the implementation of automated systems for duties such as cleaning, waste management, and security enhances the efficiency of operations. It has been reported that the deployment of IoT in healthcare could save as much as USD 63 Billion globally. These technological advancements enhance the overall operation of healthcare facilities and guarantee adherence to strict regulatory standards. In 2023, Sodexo, Worldline, and SV365 Technologies collaborated to open a 24/7 automated Deli at Royal Stoke University Hospital catered to provide frontline healthcare workers with constant access to fresh food. The deli offers touchscreen ordering and cashless payment options.

Growing Demand for Advanced Healthcare Services

The increasing aging population and the frequency of chronic illnesses among the masses drive the demand for comprehensive healthcare services representing one of the major healthcare facilities management market trends. According to the UNFPA data, the global share of people aged 65 and over has nearly doubled from 5.5% in 1974 to 10.3% in 2024. Patients and medical professionals need advanced facilities with modern technology and infrastructure to guarantee high-quality healthcare. Efficient management of healthcare facilities is required to uphold operational excellence due to the increased need for advanced services. Management of healthcare facilities includes a variety of essential services, such as maintenance, security, waste management, and environmental services, all of which are important for the smooth running of medical operations. The rising focus on patient-centered care models is catalyzing the demand for properly maintained facilities that can offer a secure, sanitary, and effective setting for improving patient results and contentment. In 2023, Sodexo selected startups ThriveMap, 1Huddle, and Memory Lane Games to participate in its Healthcare and Seniors Accelerator program, which focuses on improving healthcare facilities management with cutting-edge workforce solutions and cognitive care technologies.

Streamlined Procurement Processes

When healthcare institutions simplify their procurement steps, they gain instant access to multiple facility services including cleaning, catering, and maintenance without the burden of working with many vendors and deals. Healthcare providers reduce operational costs while improving results by using standardized procurement practices. This centralization also helps to meet regulatory standards more effectively and improve the capacity to enforce standardized best practices in various facilities. Efficient procurement procedures allow healthcare organizations to concentrate on patient care rather than administrative tasks, contributing to increased service delivery and patient satisfaction. For example, Sodexo's participation in the CCS RM6331 Healthcare Soft Facilities Management Services framework, finalized in 2024, allowed them to provide a wide range of soft facility management services, such as cleaning and catering to healthcare organizations in the UK public sector. This initiative was designed to simplify procurement procedures and improve the quality of services within National Health Service (NHS) trusts and other healthcare providers. 

Healthcare Facilities Management Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global healthcare facilities management market, along with forecasts at the global, regional, and country levels from 2025-2033. The market has been categorized based on service type, business model, and end user.

Analysis by Service Type:

• Property Services
• Cleaning Services
• Security Services
• Catering Services
• Support Services
• Environmental Management Services

Support services account for the majority of the global healthcare facilities management market share. This segment holds various essential services that are essential for the smooth operation of the healthcare facilities such as administration services, coordinating of the materials, transport of the patients, as well as supervising the workforce. Support services are important because they aid in the improvement of operational efficiency, eliminate administrative burdens on healthcare providers, and improve a patient’s quality of care. Because of the increasing complexity and size of healthcare facilities, robust support services are required. In 2023, Oracle upgraded its enterprise resource planning (ERP) and supply chain offerings with healthcare-focused features like financial consolidation, procurement, and supply chain management, designed to reduce expenses, increase efficiency, and assist in implementing new healthcare delivery methods.

Analysis by Business Model:

• Outsourced
• In-House

Outsourced holds the biggest market share according to the healthcare facilities management industry outlook. This segment includes healthcare establishments that contract or outsource non-essential jobs to third-party service providers such as cleaning, security, and support service providers. The critical skills, economic necessity, and the possibility to concentrate on main medical services are driving the move toward outsourcing. However, healthcare service providers can rely on the services of professional facility management companies to guarantee the best quality of service, compliance with strict regulations, and integration of new technologies and the latest industry best practices. Healthcare facilities can be more flexible and scalable through outsourcing, without incurring the costs and responsibility of managing large in-house teams to meet changing needs. In a healthcare environment that is gradually complicated and resource-constrained, this business model is especially attractive. As per industry reports, in 2024, government hospitals in Maharashtra signed contracts with private companies to outsource advanced diagnostic and treatment services. This project is intended to enhance healthcare access in distant regions by utilizing the knowledge and resources of the private sector within public hospital facilities.

Analysis by End User:

• Hospitals and Clinics
• Long-term Healthcare Facilities
• Others

Hospitals and clinics leads the market with around 48.0% of the healthcare facilities management market share in 2024. Because of their large infrastructure and continuous patient flow, hospitals and clinics make up a major share of the market. The management services are necessary for these establishments to run smoothly by ensuring cleanliness, as well as safety measures, waste management, and patient assistance services. Because of the need to ensure a secure and welcoming environment for patients and employees in hospitals, and clinics, along with to keep hold of distinguished prescribing conditions and extol operational proficiency, there is some need for solid administration in hospitals and clinics.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, North America accounted for the largest market share of over 34.4%. North America leads the market due to its strong healthcare infrastructure and stringent regulatory standards. The healthcare facilities management market demand is greatly influenced by the presence of sophisticated medical facilities, rising investments in healthcare services, and emphasis on maintaining optimal patient care environments. Factors, such as the growing number of healthcare facilities, the requirement of adhering to strict safety and hygiene standards, and the increasing use of advanced technologies, including IoT and AI, for effective building management are strengthening the market growth. Furthermore, there is a higher participation of important industry leaders and a shift towards delegating non-essential services to expert management companies. In 2024, Aramark introduced a new service that links patients in hospitals with distant clinical dietitians through Teladoc Health's telemedicine technology. This successful pilot initiative at the University Medical Center in Texas can overcome obstacles, such as geographic location and technology access, to provide vital medical nutrition therapy.

Healthcare Facilities Management Market Regional Takeaways:

United States Healthcare Facilities Management Market Analysis

In 2024, the United States accounted for the largest market share of over 86.40% in North America. There is a rise in the demand for efficient, sustainable, and technology-integrated healthcare infrastructure. The aging population in the U.S., coupled with rising incidences of chronic diseases, is spurring the need for advanced healthcare facilities. As per the Population Reference Bureau, the number of Americans aged 65 and older is anticipated to reach 82 Million by 2050. This demographic shift necessitates the construction and maintenance of specialized healthcare facilities, including long-term care centers and rehabilitation hospitals. In line with this, stringent regulations and accreditation requirements from agencies like The Joint Commission and the Centers for Medicare & Medicaid Services (CMS) compel healthcare facilities to maintain high standards of safety, cleanliness, and operational efficiency. Compliance with these standards drives investments in professional facility management services. Apart from this, the integration of technologies, such as Internet of Things (IoT), artificial intelligence (AI), and energy-efficient systems, in healthcare facilities management is a significant growth driver. These technologies help optimize resources, monitor infrastructure performance, and ensure compliance, contributing to operational efficiency and cost savings. Furthermore, rising environmental concerns and the push toward green building certifications like Leadership in Energy and Environmental Design (LEED) are encouraging healthcare providers to adopt sustainable practices. Facilities management companies play a key role in achieving energy efficiency, waste management, and water conservation goals, aligning with both regulatory requirements and societal expectations.

Asia Pacific Healthcare Facilities Management Market Analysis

The Asia Pacific healthcare facilities management market is influenced by various major drivers that reflect the region’s rapid economic growth, demographic changes, and increasing healthcare demands. Governing agencies and private entities in the region are heavily investing in expanding healthcare infrastructure to meet the needs of growing populations. Countries, such as India and China are experiencing significant healthcare spending. This investment drives the demand for efficient facilities management services to ensure the smooth operation of these expanding healthcare systems. According to the Ministry of Health and Family Welfare, India has a total of 1,69,615 sub-centers (SCS), 31,882 primary health centers (PHCS), 6,359 community health centers (CHCS), 1,340 sub-divisional/district hospitals (SDHS), 714 district hospitals (DHS), and 362 medical colleges (MCS) serving both rural and urban areas, as of March 31, 2023. Apart from this, the aging population in the region, particularly in countries like Japan, South Korea, and China, are facing high prevalence of chronic diseases, such as diabetes and cardiovascular disorders. This demographic shift necessitates specialized healthcare facilities, such as eldercare centers and long-term care hospitals, boosting the demand for professional facilities management services. Besides this, healthcare providers are increasingly adopting green building practices and energy-efficient systems to meet environmental sustainability goals. 

Europe Healthcare Facilities Management Market Analysis

The market is influenced by numerous key factors, reflecting the region's commitment to advanced healthcare systems, sustainability, and technological integration. Europe’s aging population is a significant driver of the healthcare facilities management market. This is increasing the demand for long-term care facilities, nursing homes, and specialized hospitals, requiring professional management to maintain high operational standards and patient safety. In addition, governing agencies in the region are focusing on increasing the number of hospitals in the region to offer enhanced care to patients. Also, the rising incidence of chronic diseases is further enhancing the demand for healthcare facility management in the region. For instance, in 2021, cancer accounted for 30.7% of all deaths in the Spanish region of Comunidad Foral de Navarra – the highest regional share in the EU. Besides this, infrastructure. The European Green Deal and initiatives like the Energy Efficiency Directive European countries are leaders in adopting green building practices and sustainability standards in healthcare are spurring the adoption of energy-efficient systems and waste management practices in healthcare facilities. This is forcing the need for specialized facilities management services to guarantee compliance with stringent environmental regulations. Furthermore, healthcare facilities in Europe must comply with rigorous regulations from agencies like the European Medicines Agency (EMA) and national health authorities. These regulations emphasize hygiene, patient safety, and operational efficiency, increasing the reliance on professional facilities management companies that ensure adherence to these standards. 

Latin America Healthcare Facilities Management Market Analysis

Governing authorities and private sectors in countries like Brazil and Mexico are heavily investing in healthcare infrastructure to address growing population demands. New hospitals, clinics, and specialty centers require professional facilities management to ensure operational efficiency and patient safety. In line with this, the increasing burden of chronic diseases, such as diabetes and cardiovascular conditions, is creating a demand for specialized healthcare facilities. As per the IDF, people with diabetes are expected to reach 23,223.6 in Brazil in 2045. This necessitates efficient facilities management to support high-quality care delivery. Post-pandemic, healthcare facilities are prioritizing stringent hygiene and infection control measures. This is increasing the demand for advanced cleaning, waste management, and maintenance services. Furthermore, there is a rise in the adoption of advanced technologies because of their ability to enhance facilities management efficiency. 

Middle East and Africa Healthcare Facilities Management Market Analysis

The healthcare facilities management market in the Middle East and Africa is propelled by several crucial factors that align with the region’s healthcare development priorities and infrastructural expansion. With more than 600 Million people in Africa lacking access to basic healthcare services, there is an urgent need to expand healthcare infrastructure. This gap presents an opportunity for the growth of healthcare facilities, driving the demand for efficient facility management to ensure optimal functionality, safety, and patient comfort. The rising awareness among individuals about infection control and hygiene standards is pushing healthcare facilities to adopt advanced cleaning, waste management, and maintenance services. In line with this, the integration of IoT, AI, and automation in modern healthcare facilities is driving the need for expert management services to optimize performance, ensure compliance, and reduce costs. Furthermore, the region’s growing population, coupled with a high prevalence of lifestyle-related chronic diseases, is increasing the demand for specialized healthcare facilities. The United Nations estimates that the number of people in the Middle East who are 60 years of age or older will triple by 2050, making it the region with the highest rate of aging in the world.

Leading Healthcare Facilities Management Companies:

The healthcare facilities management market is highly competitive, with key players offering a wide range of services, including cleaning, maintenance, security, waste management, and energy efficiency solutions. Prominent companies like Sodexo, ABM Industries, ISS World, and Compass Group dominate the market, leveraging advanced technologies such as IoT and automation for predictive maintenance and operational efficiency. Increasing outsourcing of non-core services by healthcare providers intensifies competition. Players focus on sustainable practices and customized solutions to meet stringent regulatory standards and enhance patient satisfaction. Regional and niche providers compete by offering cost-effective, specialized services. The market is driven by innovation, regulatory compliance, and rising healthcare infrastructure investments.

The report provides a comprehensive analysis of the leading companies in the leading healthcare facilities management market with detailed profiles of all major companies, including:

• ABM Industries Inc.
• Aramark Corporation
• Compass Group PLC
• Ecolab Inc.
• International Business Machines Corporation
• ISS A/S
• Jones Lang LaSalle Incorporated
• Mitie Group plc
• OCS Group Limited
• Oracle Corporation
• Serco Group plc
• Sodexo.

Latest News and Developments:

• November 2024: WM announced the completion of its acquisition of Stericycle, Inc. This acquisition offers a supplementary business platform in safe information destruction services and medical waste, two industries with promising short- and long-term growth trends. Without the commitment of the company's integration teams, led by Rafa Carrasco, who will also serve as the head of the WM Healthcare Solutions division, which consists of the safe information destruction and regulated medical waste businesses, this accomplishment would not have been possible. 
• April 2024: Sodexo awarded a new USD 47.5 Million-a-year Royal Stoke contract for providing services to two Stoke-on-Trent hospitals. As part of a private funding effort, Sodexo Health and Care offers Haywood Hospital, Royal Stoke University Hospital, and retail and ‘soft’ facilities management services. University Hospitals of North Midlands has recently awarded the company a new 10-year contract that covers both locations. Approximately 1,000 Sodexo employees work in departments like portering, patient catering, retail, security, help desk, waste management, and pest control at the two hospitals. 
• January 2024: Sodexo, a global leader in food and facilities management for hospitals and healthcare organizations, teamed up with The Leapfrog Group, an independent national watchdog organization of employers and other purchasers focused on healthcare safety. Sodexo is dedicated to patient safety and works to continuously improve the standards for secure care settings in the organizations they work with.
• September 2023: Oracle introduced new workforce management capabilities within Oracle Fusion Cloud Human Capital Management (HCM) to help healthcare organizations adapt to changing labor markets, meet volatile customer demand, and better attract and retain workers. The new capabilities, Oracle Workforce Scheduling and Oracle Workforce Labor Optimization, connect business and electronic health record (EHR) data on a single cloud platform to help healthcare organizations navigate advanced scheduling and labor needs. 

Healthcare Facilities Management Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the healthcare facilities management market from 2019-2033.
• The healthcare facilities management market research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the healthcare facilities management industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.