Building Management Market in Japan: Key Research Findings 2023

Domestic Building Management Market for FY2023 Projected to Reach 4,649,400 Million Yen, 101.3% of Previous Fiscal Year

Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the building management market in Japan and found out the trends by building usage and by business type, the trend at market players, and future perspectives.

Transition and Forecast of Building Management Market
Transition and Forecast of Building Management Market

Market Overview

The building management market size based on the value at prime contractors reached 4,588,900 million yen for FY2022, 105.7% of the previous fiscal year.
The growth factors were resumed new service orders that had been postponed amid the corona crisis and order acceptance for building renovations that increased from the preceding fiscal year.

Noteworthy Topics

“Office Building” Occupies One Fifth of Building Management by Building Usage

The building management market size by building usage for FY2022 was estimated as 177,300 million yen for residence (accounting for 3.9% by building usage, 112.3% on YoY), 4,411,500 million yen for non-residence (occupying 96.1%, 105.4% on YoY).

In detail, office buildings occupied the largest share in non-residence, approximately at 994,500 million yen (accounting for 21.7%, 105.1% on YoY), roughly one fifth of the entire building management market, followed by commercial facilities and stores attaining 829,700 million yen (occupying 18.1%, 105.2% on YoY), medical/welfare facilities reaching 467,900 million yen (10.2%, 106.5% on YoY), factories/workplaces climbing to 428,300 million yen (9.3%, 105.1% on YoY), and school facilities at 427,400 million yen (9.3%, 103.4% on YoY).

Future Outlook

The domestic building management market size by the value at prime contractors for FY2023 is projected to attain 4,649,400 million yen, 101.3% on a YoY basis. In addition to renewed operations for postponed or suspended orders, renewal of existing contracts that focus on profitability is expected, which all conduce to sales increase at building management companies and eventually to market expansion.

While building management companies function to prop up building management by daily building maintenance work and operations, the cooperation by building owners is indispensable for such a function to facilitate. Therefore, building owners and building management companies need to work in tandem for better building management.
A building owner is expected to contribute to generation of added values from the aspect of what can be provided to the building and to the visitors and what position to establish in a local society. Meanwhile, it is the building management companies that can generate special added values in management of buildings thereby to allow visitors to escape from daily lives, by uniting with building owners. To develop business that enhances their property values through such collaborations is necessary.

Research Outline

1.Research Period: July to September 2023
2.Research Object: Domestic building management businesses
3.Research Methogology: Face-to-face interviews (including online) by expert researchers, questionnaire by phone, and literature research

Building Management Market

Building management in this research refers to building management services such as cleaning, facility/equipment management, and security undertaken by building management companies, with the market size calculated by the value at prime contractors. The market size includes peripheral businesses such as repairment and renovation works carried out by building management companies.

<Products and Services in the Market>

Cleaning (sanitation), facility/equipment management, security, and other operations (building renovation, etc.)

Published Report

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