A new market report has indicated that the Facilities Management industry in Nigeria is expected to have a compound annual growth rate of 6.4% from this year till 2027. The report shows that the market value of the industry during the year (2027) will be $12.7 billion. Examining the value, our analyst discovered that the industry will have $1.8 billion as average value from 2020 to 2027.
From the analysis carried out by the producer of the report, it is obvious that the commercial segment of the industry is likely to generate about three-fourths share during the forecast period. The current prediction is not quite different from what has been predicted by our analyst through qualitative understanding of the industry. For instance, for years, the key players in the industry have largely focused on industrial and commercial users of FM solutions, especially in Lagos, Port-Harcourt, Abuja and other big cities at the expense of residential places.
“On the other hand, growth in investments and incentives by the government for the construction industry and infrastructure sector is anticipated to offer remunerative opportunities for market growth. Further, an increase in investments in commercial infrastructure is expected to create the need for effective facility management solutions such as security, cleaning, and catering.
By application, the commercial segment dominated the Nigerian facility management services market in 2019 and is projected to grow at a CAGR 6.6% during the forecast period. By service, the property segment led the Nigerian facility management services market in 2019,” Notes to the report reveal.
The report wants players and professionals in the industry to have the right strategies and tactics for effective mitigation and elimination of the Covid-19 impacts. According to the report, uncertain micro and macroeconomic policies of the current government would hamper the growth of the industry.
“The novel coronavirus has undesirably affected a variety of facility management services, which include catering, security, plumbing, and electrical amongst others in the building industry. The adverse trends in the Nigerian economy is projected to worsen the growth of the Nigeria facility management services industry. Additionally, travel bans due to lockdown and absence of workforce have also influenced the demand for facility management services in Nigeria.”