Facility Services Market in Austria to Grow by 2.46% in 2025

The Austrian facility services market continues to show steady growth despite economic challenges. In 2024, facility service providers achieved a total revenue of €6.993 billion, marking a +5.2% increase in the external facility services segment. Although the annual growth rate is slowing down, all indicators point to a robust demand that is expected to persist in the coming years, according to a study by Interconnection Consulting.

The ongoing economic recession is increasing pressure for efficiency and forcing companies to optimize costs. The current economic environment, characterized by inflation and recession, is temporarily dampening growth. For 2025, an increase of only +2.46% is expected. However, for 2026, a rebound to +3.07% is forecasted. The main drivers of the outsourcing trend include rising demands due to digitalization, sustainability, and compliance requirements. According to study author Johannes Lözelt, these factors are creating a growing need for external support and expertise. Facility service providers are increasingly evolving into consulting and support partners.

Digitalization, Integrated Facility Services, and Sustainability Fuel Sector Growth

Building automation and the use of robotics are also on the rise. Falling costs for robotic solutions offer significant cost advantages that are increasingly being leveraged. There is no consensus in Austria regarding the profitability of robotics, but it is clear that robotics are more cost-effective for large areas compared to smaller ones, due to a higher return on investment.

Austria is also witnessing a trend towards integrated facility management (IFM), although this trend is less pronounced than in Switzerland and Germany. An increasing number of clients are seeking bundled services — “everything from a single source” — to reduce the number of contact points and make processes more efficient. Facility service providers are strategically and operationally committed to sustainability in areas such as waste management, procurement, and supplier selection. Sustainability is a major topic, especially concerning chemicals and the entire supply chain. E-vehicles, CO₂ pricing, and decarbonization are additional key issues. Greater transparency and increased documentation requirements necessitate comprehensive reporting. Clients are delegating these tasks to facility service providers, who handle coordination through digital specialization. Delegating such tasks increases the demand for consulting and support services. Professional facility service providers are becoming sparring partners in helping clients achieve their sustainability goals. Expertise is becoming just as important. This allows facility service providers to differentiate themselves as support and consulting partners.

Trends in Technical Facility Services, Healthcare, Public Sector, and Office Buildings

In 2024, the technical segment recorded the highest annual growth at +5.5%. In comparison, the commercial segment showed the weakest growth at +5.0%. Among the various sectors within facility services, healthcare, the public sector, and office buildings are expected to experience particularly strong growth by 2028. The strong growth in healthcare is partly due to demographic changes and stricter regulations. Cleaning services currently dominate infrastructural services, followed by security services. In technical services, building maintenance accounts for less than a third but is expected to grow above average in the coming years. Likewise, other commercial services are expected to see significant growth due to increased bureaucracy and regulatory requirements.

Larger Companies Strengthen Their Market Power

In Austria’s facility services sector, companies such as Apleona, Caverion, Dussmann, ISS, and Strabag have expanded their market shares through acquisitions. Interestingly, no major insolvencies have occurred among the larger facility service providers. Smaller companies facing insolvency struggled with efficiency due to a shortage of qualified personnel. The top five companies in this market in Austria (in alphabetical order) are: CKV Gruppe, Dussmann, ISS, Simacek, and Sodexo. In 2024, the top ten companies accounted for 23.9% of the total market revenue in Austria.

02/07/2025

Copyright: Interconnection, Publication free of charge for coverage regarding the study and InterConnection Consulting.