Turnover for external facility services (real estate services) increased by 3.5% in Germany in 2022 and amounts to 59 billion euros. A renewed growth of 8.2% is forecast for next year, according to a study by Interconnection Consulting.

The geomarketing study by Interconnection analyses the data of the facility services industry on the basis of existing space and surveyed average sales per service type at the county level (analysis of 402 counties). The strongest dynamics in the market for external facility services can be seen in the south and west of Germany.  In the district of Munich, the study forecasts an increase of 13.4% for 2023. Other districts in Bavaria show similarly high increases. However, the districts with the strongest declines are also found in Bavaria, especially in the region of Upper Franconia, but also in Hannover. Bavaria, Baden-Württemberg and North Rhine-Westphalia are also the federal states with the largest market volume. More than 20% of the industry’s total turnover is generated in the top 7 cities (Berlin, Munich, Hamburg, Frankfurt am Main, Hannover region, Stuttgart, Cologne, Düsseldorf).

Catering Highest Growth Potential

All four examined service segments (catering, cleaning, security, technical) show positive dynamics. Catering shows the greatest growth potential with a forecast increase of 10.2% for 2023-2024. This is followed by the segments of technology (9.1%), security (7.9%) and building cleaning at 7.5%. Overall, the technical services segment has the highest share with 52.7% or 31 billion euros in turnover. In 2023 this share will even rise to 54%. The building cleaning segment has a market share of 25.4%, security 14.6%. “The highest security demand is in the workshop building segment with 30%,” explains Yuliia Hrebenkova, the author of the study.

Hospitals Dispense with External Facility Management

In technical services, the largest segment, factories & workshops represent 30% of the total client portfolio. Offices & administrative buildings make up another 23.3% of the client base in the “Technical Services” segment. Commercial and warehouse buildings account for 8.1%.

13/04/2023

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.