Market Overview

The building management market size reached 4,829,700 million yen in FY2023, 105.2% of the previous fiscal year (based on the amount due to prime contractors). This growth is attributed to the price revisions in contract renewals for existing deals and optimized pricing in new contracts.

Noteworthy Topics

“Office Building” Accounts for More Than 20 Percent

The building management market size by building usage for FY2023 was estimated at 187,400 million yen for residential buildings (occupying 3.9% of the total; market size 105.7% of preceding fiscal year) and 4,642,200 million yen for non-residential buildings (96.1%; 105.4% on same basis).

Looking into non-residential buildings in detail, office buildings occupied the largest portion in non-residential buildings, approximately at 1,050,100 million yen (21.7% on the same basis; 105.1% on same basis), roughly one fifth of the entire building management market, followed by commercial facilities and stores at 869,300 million yen (18.0%; 104.8% on same basis), medical/welfare facilities at 496,000 million yen (10.3%; 106.0% on same basis), factories/workplaces at 447,000 million yen (9.3%; 104.4% on same basis), and school facilities at 441,800 million yen (9.1%; 103.4% on same basis).

Future Outlook

The domestic building management market size (by the amount due to prime contractors) in FY2024 is projected to reach 4,906,300 million yen, representing 101.6% of the preceding fiscal year. Given the price revisions that are underway in contract renewals for current building management deals, as well as increase in price for new contracts, building management companies can expect revenue expansion, thus raising the overall levels of the building management industry.
Meanwhile, the level of price revisions for existing projects remains insufficient. When compared to fees for new projects, contract unit prices are not at the level that would ensure a sufficient level of profit. Raising the salary level is one of the essential elements to secure the workforce and increase competitiveness against other industries. Building management companies must persist in negotiating with building owners to reach agreements on price revisions.

Another key point to note is the efforts by building management companies to ensure the financial viability of their businesses by introducing new management methods, such as the use of robots, sensing technology, systematization/digitization, and AI. Given that the labor shortage is unlikely to improve and the decline in the workforce is socially inevitable, leveraging technology where applicable can ultimately enhance the value of manual labor in building management operations.


We believe it is crucial for building management companies to focus on providing high-quality operations by creating value that can only be delivered by humans. In conjunction with advanced technologies that streamline building management tasks, we anticipate the industry will establish a new standard for building management.

Research Outline