Building Management Market in Japan: Key Research Findings 2020
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the building management market in Japan, and found out the trend by building usage, the trend by operation, the trend at market players, and the future perspectives.
Building management market in Japan is estimated to attain 4,276,300 million yen for FY2019, up 7.0% compared to the previous fiscal year (based on the value at prime contractors). Increase of building stocks to be managed, rise in price per contract due to soaring labor cost, and acquirement of new contracts with high profitability are the factors assumed to have lead the market expansion.
Building Maintenance Market share by Building Usage
Estimated size of the building management market for FY2019 by building usage (outlook) is approximately 151,500 million yen for residence (3.5% share by building usage / 112.5% YOY) and 4,124,800 million yen for non-residence (96.5%/106.8%). Out of non-residence, office building accounts for the largest share, with the market size of approximately 933,200 million yen (21.8%/106.6%), roughly one fifth of the building management market. School facility yielded 424,100 million yen (9.9%/105.1%), medical/welfare facility 423,600 million yen (9.9%/108.4%), and factory/workplace 409,200 million yen (9.6%/105.6%).
The domestic building management market is projected to drop to 3,933,500 million yen for FY2020, 92.0% of the preceding fiscal year. Decline in FY2020 is assumed to be unavoidable as future of the market demand is unclear due to influence of COVID-19 in businesses such as accommodation facilities and commercial facilities.
Meanwhile, traditional issues now see the light gradually; for example, unit price rose by contract review, and manpower for operations such as cleaning and security assurance are being secured. Use of non-human building management methods including introduction of cleaning robots and security robots are underway. Switching from traditional labor-intensive way to streamlined way, and establishing business operations based on cost balance remains a huge challenge for the industry hereafter.
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