This blog is based on our analysis Top 10 Strategic Imperatives in Facility Management, authored by Frost & Sullivan’s Growth Expert, Melvin Leong, from the Homes & Buildings team.
Facility management (FM) is undergoing a fundamental shift as sustainability priorities, digitalization, and advanced technologies redefine how buildings are operated and maintained. Rising Environmental, Social, and Governance (ESG) expectations, energy efficiency targets, and the need for always-on assets are pushing FM l eaders to rethink traditional service models. At the same time, organizations face challenges with legacy systems, skills shortages, cybersecurity risks, and cost pressures as they scale digital FM solutions across complex portfolios. So, how will your organization stay competitive in this rapidly evolving environment?
Frost & Sullivan outlined 10 strategic imperatives driving transformation in the facility management industry.
To succeed amid these shifts, service providers and enterprise leaders feel the pressure of aligning with these imperatives that redefine operating models, technological innovation, and value creation:
Transformative Megatrends
Enabling Sustainable, Climate-resilient Buildings: FM is evolving as customers embed sustainability into core business priorities and demand buildings that perform under increasingly volatile climate conditions. This dual focus is pushing providers to adopt new technologies, build new capabilities, and collaborate across ecosystems to deliver smarter and energy-efficient building management.
How is your team ensuring that its current growth strategy aligns with industry megatrends?
Innovative Business Models
Implementing IoT-driven Dynamic Pricing: Internet of Things (IoT) adoption in FM enables real-time visibility into asset usage, occupancy, and energy consumption. This data supports dynamic pricing models, where service costs adjust to actual demand rather than fixed contracts. By linking pricing to footfall, performance, and peak usage, providers improve cost transparency, drive resource efficiency, and align operations with digital FM solutions.
Geopolitical Chaos
Navigating Global Environmental Compliance Standard: Companies are facing stricter international requirements on energy efficiency, emissions, waste, and water use. This is accelerating the adoption of smart technologies and flexible compliance frameworks across regions. Consequently, providers are aligning their ESG priorities with sustainability performance and corporate reputation to mitigate risk and create long-term value, contributing to more sustainable building operations.
How is your team navigating and adapting to geopolitical chaos to ensure stability in the building industry?
Competitive Intensity
Capitalizing on International Alliances: FM firms are forming partnerships and acquisitions to expand service coverage and capabilities. These collaborations enable the delivery of smart building solutions, ESG consulting, and sustainability upgrades across borders. This strategic approach allows providers to scale cost-effective services, supporting energy-efficient building management in complex and regulated environments.
Internal Challenges
Bridging Technology Skill Gaps in FM: The rapid adoption of smart technologies like IoT, AI, and cloud systems is transforming building operations and maintenance. Yet, many professionals lack the digital skills to operate, analyze, and optimize these systems effectively. To stay competitive, providers are investing in role-specific training and digital FM solutions to deliver smarter and more sustainable facilities.
How is your organization tackling internal challenges to improve building operations and maintenance?
Innovative Business Models
Redefining FM with AI Innovation: AI is enabling data-driven business models that optimize energy use, automate maintenance, and enhance occupant comfort and safety. Meanwhile, companies like Apleona, Mitie, and JLL are moving toward outcome-based contracts, while governments in the UAE and South Korea are promoting AI adoption to boost efficiency and climate resilience. This is driving providers to build capabilities that deliver adaptive, performance-focused services aligned with energy-efficient building management strategies.
Disruptive Technologies
Accelerating the Digital Shift: Traditional models are being disrupted as digital FM solutions redefine how facilities are monitored, maintained, and managed. Real-time visibility, predictive maintenance, and automated workflows are replacing manual, reactive processes. As these platforms raise the bar on transparency, responsiveness, and user experience through dashboards and mobile apps, they are reshaping client expectations and intensifying pressure on providers to modernize and compete in a digitally driven environment.
Is your team actively integrating disruptive technologies to replace the manual processes?
Compression of Value Chains
Disrupting Traditional Models with Direct-to-consumer Solutions: Direct-to-consumer energy models are shifting control to building owners as decentralized technologies such as smart meters, analytics platforms, and on-site renewables compress value chains and weaken legacy service models. In response, providers are gravitating toward data-led services such as energy optimization, predictive maintenance, and sustainability reporting to remain relevant in an increasingly decentralized energy landscape, supporting energy-efficient building management.
Industry Convergence
Driving Joint Innovation Between FM and Technology Firms: Providers and technology firms are collaborating to integrate IoT, AI, and cloud platforms into core building operations. Partnerships such as Facilicom Group’s work with Spacewell demonstrate how real-time monitoring and predictive maintenance are replacing reactive models. As buildings become more complex and ESG expectations rise, these collaborations are enabling more efficient and sustainable building operations.
Is your organization leveraging industry convergence to gain a competitive edge in building operations?
Internal Challenges
Overcoming Digital Resistance in FM: Digital transformation is often slowed by legacy systems, manual workflows, and limited digital readiness across teams. Organizational inertia, unclear ROI, and weak alignment between IT and operations further dilute adoption. Leading providers are addressing this through focused change management and workforce enablement, as seen in Mitie’s Science of Service® approach that embeds digital FM solutions into everyday service delivery.
Ready to Align with Strategic Imperatives and Capture New Opportunities?
The future of FM is being shaped by AI-driven services, energy decentralization, and deeper collaboration across the building ecosystem. As sustainability, climate resilience, and global ESG compliance become business priorities, companies should prioritize collaboration, upskilling, and proactive service models. By doing so, they can navigate complex regulations, meet rising client expectations, and lead the way in delivering sustainable building operations.
What steps is your team taking to capitalize on the emerging growth opportunities in the rapidly evolving FM ecosystem?
Connect with our Homes & Buildings Growth Experts for tailored insights to guide your strategy.
