IWFM 2025 Market Outlook: “Facilitate the Future – Keep on Growing”

The Institute of Workplace and Facilities Management (IWFM) has published its 2025 Market Outlook Report, offering a comprehensive analysis of the UK facilities management (FM) sector. The report highlights the sector’s resilience, adaptability, and evolving priorities amidst ongoing economic and technological change.

📈 Sector Growth & Investment

• The UK FM sector contributes £102 billion to the economy and employs 1.2 million people.

• 42% of organisations have increased workspace investment; 33% expanded their managed space.

• Budgets are generally up from 2024, despite economic pressures.

🧼 Cleaning Industry Focus

• Cleaning remains a core pillar of FM, adapting rapidly to challenges such as:

  • Rising operational costs from wage increases and new regulations.

  • Demand for greater efficiency and regulatory compliance.

• Companies are responding with:

  • Operational streamlining

  • Technology adoption

  • Focus on eco-friendly solutions (biodegradable agents, water/energy reduction).

🤖 Technology & Innovation

• FM professionals are embracing:

  • AI, Big Data, and IoT to drive efficiency and decision-making.

  • Robotic cleaning solutions for routine tasks, freeing teams for specialist roles.

  • Smart scheduling based on real-time cleanliness and usage data.

🌱 Sustainability & ESG

• Sustainability remains high on the agenda, though fewer companies are setting clear targets in carbon and energy reduction.

• Cleaning sector trends:

  • Increased demand for green cleaning services

  • Adoption of eco certifications and non-toxic products

• Commitment to Equity, Diversity & Inclusion (EDI) holds steady.

👥 Workforce Challenges

• The sector continues to face:

  • Recruitment and retention issues

  • Skills shortages, especially in tech fluency

• Responses include:

  • Upskilling programs

  • Improved working conditions

  • Investment in employee well-being and competitive pay

📊 Changing Metrics & Client Expectations

• Facilities teams are now expected to deliver:

  • Data-driven insights linking FM performance to business outcomes

  • Monitoring of cleanliness and utilisation via IoT

  • Enhanced employee satisfaction through smarter workplace management