What is facilities management?

Modern facilities management combines aspects of engineering and property management with the latest technologies to help organizations ensure that workspaces are helping them achieve their core business goals.  

Today, FM spans a wide range of functions, including energy management, space planning, fire safety and custodial services. With the rise of the internet, wireless networks and the mobile workforce, modern technologies like artificial intelligence (AI), smart buildings and the Internet of Things (IoT) have become deeply integrated.

Enterprise asset management (EAM) systems equipped with real-time automation tools help facilities managers track asset performance and optimize maintenance strategies in complex work environments.

Whether managing a single workspace or an international real estate portfolio, modern facilities management systems help increase operational efficiencies, optimize asset performance and extend asset lifespans through advanced tools and technologies.

Facilities management is popular and rapidly growing, with a global market currently valued at USD 61.08 billion. It is expected to reach USD 138.50 billion by 2030, reflecting a compound annual growth rate (CAGR) of 17.8% over the forecast period.¹

Modern facilities management (FM) approaches can vary widely depending on the types of physical assets and built environments an organization needs to maintain.

FM practices are typically divided into two categories, hard FM and soft FM. Hard FM focuses on the maintenance of physical assets, while soft FM applies to building operations.

Hard FM is widely regarded in the FM industry as the backbone of infrastructure management because it addresses the maintenance of physical assets that are critical to a business’s core functionality.

Here are some of the systems and components maintained by hard FM practices:

• Electrical and plumbing systems: Hard FM helps ensure the seamless, uninterrupted flow of water and electricity through a building, as well as compliance with required regulations.

• Energy systems: Energy management is a critical aspect of hard FM, helping facilities managers reduce costs and ensure the physical assets they’re responsible for are energy-efficient.

• Fire safety systems: Hard FM practices maintain fire alarms, sprinklers and evacuation procedures that ensure buildings are fire safe and in compliance with all applicable codes and regulations.

• Upgrades and renovations: Hard FM practices ensure all renovations and modernizations—like roof replacements, elevator modernizations and door and window upgrades—are done safely and efficiently.

Soft FM, known in the FM industry as the ‘human’ or ‘operational’ layer of FM, deals with the day-to-day operations required to keep facilities safe and comfortable.

Here are some of the most common Soft FM practices:

• Cleaning services: Soft FM practices govern a building’s cleaning solutions, such as window washing, vacuuming, pest control and waste management. This helps make sure that physical spaces are welcoming and hygienic.

• Security: Soft FM covers all building security practices, such as the management of guards and the maintenance of alarm systems and cameras that help keep the facility safe.

• Food preparation: Soft FM covers all aspects of safe and efficient food preparation and disposal, including vending machines, snack bars, cafeterias and kitchen and dishwashing areas.

• Space planning: Soft FM practices help facilities managers manage occupancy across the spaces they’re responsible for, including offices and conference rooms.

• Sustainability initiatives: Modern soft FM is increasingly responsible for any sustainability initiatives around building operations that organizations take on, such as using AI to optimize water and energy usage.

In addition to the two broad categories of facilities management (FM), six core types of FM are more specifically attuned to an organization’s needs. These types of FM have characteristics that span both hard and soft FM and sometimes combine practices from both.

Operations management is a type of FM that focuses on the management and maintenance of physical assets such as heating, ventilation and air conditioning (HVAC), electrical, water and plumbing systems. These systems are essential for facilities to function effectively. Operations managers rely primarily on hard FM practices to maintain the assets they’re responsible for.

Facilities managers in charge of operations typically implement strategies like predictive and reactive maintenance to ensure that assets are running at peak levels for extended periods. Asset uptime and downtime are key performance indicators (KPIs) for most operations managers, helping them measure the success of their programs in near real-time.

Project management is a type of FM that involves the strategic planning and execution of upgrades, renovations and modernization initiatives that ensure buildings remain safe and compliant as they age.

Older facilities often fall out of code as building regulations change and newer materials and technologies become available. Examples of common building renovation projects controlled by a project management team include updates to heating and cooling systems and installation of new energy-efficient windows and flooring. Upgrades to outdated flooring and insulation are also frequently managed.

Organizations with a global real estate portfolio are often responsible for managing properties in more than one region or country. Modern FM software tools help enterprises comply with shifting regulations, regardless of where buildings are located, while still ensuring they meet their core financial and operational goals.

Facilities managers responsible for maintaining large portfolios rely on advanced FM systems to help optimize strategies for managing lease agreements, room reservations, maintenance costs and other aspects critical for success. For example, AI and IoT tools can automate repetitive, data-intensive tasks that increase the accuracy of maintenance records and help lower operational costs.

Support services management is a type of FM that focuses on the services that keep buildings safe and clean for their occupants. Support services facilities managers are responsible for both hard and soft FM functions like custodial services, security and catering.

While often not as complex or strategic as some of the other types of FM, support services are no less critical. A strong approach to support services helps ensure that facilities meet the business goals of an organization. It also allows occupants to feel safe and productive in their workspaces.

The management and maintenance of smart buildings is a relatively new type of FM that is growing rapidly with the spread of IoT and “smart” technologies. Smart buildings are structures designed to rely on digital technology to automate aspects of building operations that were traditionally managed manually.

According to a recent report, the global smart building market was valued at USD 117.4 billion in 2024. It is projected to grow at a compound annual growth rate (CAGR) of 21.2% over the next 6 years, reaching USD 548.5 billion by 2032.²

FM for smart buildings is the most technologically advanced type of FM, leveraging advanced software systems. These systems rely heavily on AI, IoT and machine learning (ML) to maintain a wide range of physical assets. As FM practices are evolving to meet the needs of smart building technology, so are the roles typically associated with the practice.

Integrated facilities management (IFM) is an approach to FM where a single service provider takes on multiple facility functions for a facility rather than multiple vendors. IFM helps organizations get the vital FM services they need (for example, maintenance, security, cleaning and more) without the hassle of hiring and supervising multiple service providers.

Modern IFM approaches rely on EAM systems and tools like computerized maintenance management systems (CMMS) to manage tasks and services required to maintain facilities. IFM helps enterprises manage their FM needs more centrally and combine workflows to boost efficiencies. IFM often leads to significant cost reductions, faster digital transformation and lower operating costs.

The International Facility Management Association (IFMA) is the world’s largest professional body for facilities management (FM) professionals, offering education, networking and certifications for a wide range of FM functions. With the rise of new technologies and advancements in smart building design, IFMA is changing its requirements and how it prepares trainees for FM careers.

Here’s a look at how some roles are changing:

• Certified facility managers (CFM): Globally recognized institutions that offer facilities management certificates are changing their programs to ensure recipients are trained in new technologies like real-time data and AI-enhanced automation.

• Facility management professional (FMP): While FMP is typically an entry-level certification, the required core competencies are nonetheless shifting away from technical skills. They are moving toward more strategic and data-driven capabilities that meet the maintenance demands of smart buildings.

• Sustainability facility professional (SFP): As more enterprises look to smart building design to help them meet sustainability goals, SFPs are becoming highly sought after in the industry. SFPs tend to focus on types of FM and approaches to FM strategy that can reduce energy usage and waste to speed environmental initiatives.

Facilities management (FM) supports organizations of all sizes. It uses the latest technologies, tools and strategic approaches to manage their facilities. A strong FM function offers several benefits, which are outlined in the list that follows.

• Lower operating costs: Strong FM helps enterprises lower their bottom line by optimizing energy management practices and establishing more efficient asset maintenance programs through task automation.

• Increased sustainability: FM helps organizations reach sustainability goals faster by implementing more energy-efficiency maintenance programs and establishing low-impact waste management practices.

• Better occupant experiences: FM improves aspects of building management like lighting, air quality and cleanliness that make occupants feel more welcome and productive in their workspaces.

• Improved business continuity: Strong FM enhances organizations’ ability to maintain their core business processes during unexpected events like fires, power outages and cyberattacks, a function known as business continuity.

• More strategic property management: Through automated occupancy monitoring and collection and analysis of space utilization data, modern FM systems help organizations optimize their spaces in safe, cost-effective ways.

Facilities management (FM) faces a range of challenges as it continues to evolve to meet the needs of larger, more complex and sophisticated buildings. Rapid technological changes that are transforming how companies and people work amplify many of the hurdles it must soon overcome.

FM will face three of its most significant tests in the years ahead:

1. Rising operating costs: Fluctuating energy prices, disruptions to global supply chains and geopolitical unrest are causing FM operating costs to rise, a trend that will likely continue in the years ahead. Modern FM teams must find creative ways to balance their budgets while maintaining facility performance and safety.
2. Increased regulatory pressure: Many businesses face rising pressure to demonstrate their commitment to building and maintaining energy-efficient infrastructure and meeting new environmental regulations. Meeting these standards can mean integrating new processes, tools and technologies into their existing maintenance programs, a process that can be both costly and time-consuming.
3. Upgrading legacy systems: Modernizing facilities so enterprises can take advantage of smart building technology requires significant upfront investment as well as retraining for maintenance teams. To refit existing building systems so they can leverage AI, IoT and other technologies, organizations must cope with potential downtime while facilities are upgraded.