The evolution of FM: Insights of 2024 and what’s next for 2025
2024 was undoubtedly a significant year for FM. The year was marked by a mix of positives and negatives – economic downturn, rising energy costs, technological advancements, labour shortages, and regulatory shifts.
2024 was a big year for DMA too. Our specialist digital platform BiO® won the IWFM Best SME Led Innovation award for reducing DMA’s workload by as much as 10,000 hours each year. This unique digital platform was created through a combination of advancements and understanding the needs and challenges of the DMA team. This ensured BiO® worked for everyone across the business. Winning the IWFM award underscores the impact of technology in increasing output whilst also putting humans at the heart of FM.
How was technology integrated into FM in 2024?
Artificial Intelligence
It’s hard to talk about the advancement of technology in 2024 without mentioning artificial intelligence (AI). GPT-4 marked the first time technology mimicked human-like thinking and learning. The State of Facilities Management Technology 2024 Report from JLL found that 59.1% of its FM respondents were excited to apply AI into their existing business practices.
However, the true value of AI lies not in replacement but in enhancement. As our experience shows, customers consistently value human interaction. A 2024 Survey Monkey report found that 61% of respondents indicated that humans better understand their needs compared to AI.
FM, like many sectors, stands at a pivotal crossroads when it comes to understanding and taking advantage of AI’s potential – from the mechanics of asset protection and maintenance, to realising digital transformation and automated workflows. What’s key is that, in 2025 and beyond, we identify the barriers to adoption and address future integration. The successful use of this technology should enhance and strengthen customer relationships and service quality, rather than replace humanity all together.
The internet of things
AI can only operate effectively when working with reliable and relevant data, which is why 2024 also saw AI integrate pre-existing internet of things (IOT) technology. The key to successful IoT implementation lies in gathering quality data that can inform AI decision-making. This involves data cleansing processes to maintain accuracy, and conducting regular audits.
Predictive maintenance
The merge of AI and IoT has the potential to particularly enhance predictive maintenance capabilities. Our BiO® platform is a key example where data analytics optimises maintenance schedules and prevents equipment failures. This approach has proven especially valuable in managing our portfolio of 6,400 assets for customers like Leigh Academies Trust, where we handle an average of 80 reactive jobs monthly.
The success of predictive maintenance relies on:
- Continuous monitoring of equipment performance
- Analysis of historical maintenance data
- Real-time alert systems for potential issues
- Automated scheduling of preventive maintenance
- Integration with work order management systems
Tech contributed to a reduction in overall machine downtime reduction in 2024, saving facility managers considerable time and money by preventing costly machine and tool breakdowns.
What changes took place in 2024 to affect sustainability targets?
2024 saw the FM industry continue its focus on sustainability targets. In the retrofit sector in particular, this is a priority as 80% of buildings that exist will still be here in 2050. To get buildings ready for climate change, the targets that FMs set help them work towards Net Zero (where a facility’s greenhouse gas emissions balance with an equivalent amount removed from the atmosphere). To meet this target, the new Labour government brought in two key policies in 2024:
- Great British Energy bill: This bill will create a publicly owned clean power agency to focus on renewable energy.
- Crown Estate bill: This bill removes the restrictions within public infrastructure and allow for an easier investment in sustainable technology.
These bills are both relevant to our sector, and FMs should note the potential sustainability changes that may come as a result. A consultation is currently underway looking at the Energy Performance of Buildings (EPB), which may bring additional changes.
Our approach at Rye Hospital demonstrated how successful energy auditing can lead to considerable savings and sustainability improvements:
Energy efficiency upgrades, included:
- LED lighting with automatic controls reduced unnecessary energy use
- High-efficiency fan motors optimised ventilation system performance
- Advanced BMS systems provided granular control over energy consumption
- Electric flow boilers replaced outdated gas systems
- Solar PV systems generated 74,300 kWh in 2022
- Tesla Powerwall Batteries with 125kW/h capacity enhanced energy storage
- Water system upgrades improved efficiency and reduced risks
These initiatives delivered remarkable results:
- 98% reduction in overall energy usage
- Projected decrease of 240,000 kWh by 2024
- Annual carbon savings equivalent to planting 4,300 trees
- Complete elimination of gas consumption
- Enhanced resilience through battery storage systems
Investments in sustainable practices have been shown to not only benefit the environment, but also a circular economy helps with overall cost savings in the business. Furthermore, it prevents the risk of penalties that come from non-compliance with regulation.
With the sustainability focus in 2024, FMs made financial savings while benefitting the planet at the same time.
How did the FM market change throughout 2024?
The facilities management sector saw unprecedented merger and acquisition (M&A) activity throughout 2024, with several significant deals reshaping the industry landscape. This surge in M&A activity reflected broader market trends and priorities across other sectors.
Key acquisitions included:
- OCS’s acquisition of FES FM and FES Support Services, creating one of the largest hard services provider in the UK.
- Mitie’s strategic expansion into the fire and security market through the acquisition of Argus Fire
- Nurture Group’s milestone 50th acquisition with the purchase of Tivoli, creating a combined revenue of £245m in the grounds maintenance sector
- Multiple acquisitions by Bellrock, including Jordon Group and Capital Provincial, strengthening their position in critical engineering services
- Atlas’s expansion through acquiring both Tudor Group and Aston Services Group, enhancing their cleaning and security capabilities across multiple regions
Several clear themes emerged from this M&A activity:
- Market Consolidation Larger FM providers sought to strengthen their market position through strategic acquisitions, while smaller specialists found value in joining larger groups to enhance their service delivery capabilities.
- Specialist Service Integration Many M&As focused on bringing specialist technical services in-house, particularly in areas such as fire safety, security, and critical engineering services.
- Geographic Expansion Regional growth drove numerous deals, as providers sought to establish or strengthen their nationwide coverage and service delivery.
- Compliance and Technical Capability The acquisition of specialist compliance and technical service providers reflected the growing demand for regulated services and complex technical solutions.
How did workplace management change in 2024?
Supporting flexible working
While some companies are insisting on a return to the physical office, many more are opting for a hybrid working model. FMs rose to meet the needs of businesses who require spaces specific to this way of working. This includes a hot-desk arrangement, where multiple employees use the same desk and thereby requiring less office space. Spaces also needed to be multi-functional, so that meeting spaces can double up conference calls, as well as additional desks for visitors.
Managing the workplace with technology
FMs also invested and/or developed their technology to be used both in home and office. These were also impacted by user-controllable technologies, which can control retractable window blinds and adjustable fans. All of this allows
To meet the demand of a hybrid model, FMs needed to ensure they remained flexible in their approach. Many employed desk and room technology that allows colleagues to know when they are coming into the office and where they’ll be sat. Larger buildings also benefitted from office wayfinding software. This provides a map of the office and colleague location, so that workers can find each other or locate available desks.
Wellbeing and accessibility
More companies in 2024 chose to put their employees first, ensuring that their wellbeing is a priority. This included creating wellbeing rooms, which required specialist attention from FM. Studies have shown that creating wellness rooms within an office contributes to the wellbeing of workers throughout their time with the company, while also boosting their productivity.
To engage with employee wellbeing, FMs implemented several ways to make their offices more accessible. Incorporating adjustable furniture and ergonomic desks allowed colleagues to have more flexibility in their desk layout. Adding quiet pods and phone booths allowed for the flexibility that came with hybrid working, and at the same time support those with additional sensory needs.
2024 saw greater recognition of how digital tools can support equality, diversity and inclusion (EDI) initiatives. With the combination of AI and IoT sensors, technology is becoming more responsive to adapt to neuro diversities and physical disabilities. Mobile workplace apps were also on the rise, providing support for colleagues when they working remotely or out in the field.
What are the main trends in FM in 2025?
Technology
AI will continue to dominate the technology market, with GPT-5 set to be released in early 2025. This means that AI will continue to develop its use of predictive analytics to enhance its decision making. Automation helps facilities managers integrate this effective AI, allowing them to adapt to their business environment.
FMs will need to keep their eye on the market and ensure that they use their technologies with the latest AI versions, as well as smart IoT sensors to capture data.
Sustainability
In 2025, the focus on retrofitting existing structures will intensify. These will be driven by:
- Integration of smart building management systems
- Increased adoption of renewable energy solutions
- Growing emphasis on carbon reduction strategies
Businesses can expect a discount on the Climate Change Levy. FMs must be able to measure and report their energy use and carbon emissions against targets over a 2-year period. Applications for this will open in May 2025.
And don’t forget, you have until 5th March 2025 to publish your plans under the Energy Savings Opportunity Scheme (ESOS) if your organisation qualifies. Businesses are also required to provide annual progress updates on December 5, 2025, and December 5, 2026.
The scheme covers energy consumption across multiple areas, including buildings, requiring detailed audits and energy intensity ratio calculations. Phase 3 is expected to save approximately 28 TWh of energy and £1.12b in energy bills across all participants, making it a significant part of sustainable FM. More information can be found on our blog post here.
The circular economy
March 2025 will see the introduction of Simpler Recycling, where materials are more readily recycle and managed in the same way across the UK. No fines or penalties have yet been announced, but this may be introduced in 2025.
Whether or not their business handles waste managements, FMs should keep an eye out for this for their own offices and comply with practices to avoid any potential fines or damage to business reputation.
M&A
Looking ahead, market analysts predict continued global M&A activity through 2025, particularly in high-growth areas such as technology-enabled maintenance. While others focus on acquisition-led progress, DMA remains committed to organic growth – driven by our technical excellence, customer-focused innovation, and continuous investment in technology.
What does 2025 have in store for FM?
Technology integration
- Continued advancement in AI applications for predictive maintenance. See our blog next month for more on this!
- An integration of IoT sensors for real-time monitoring and data collection.
- Growing emphasis on smart building management systems.
Sustainability
- Retrofitting existing structures to meet environmental standards.
- Adopting renewable energy solutions.
- Implementing more sophisticated energy monitoring and reporting systems.
M&A
- Continued M&A activity, particularly in high-growth and specialist service areas.
- An emphasis on integrated service delivery models.
- Further data-driven decision making.
- A need for supply chain resilience.
Workplace Management
- Further development of hybrid working solutions.
- Enhanced focus on workplace wellbeing and accessibility.
- Growing importance of space utilisation.
- Increased emphasis on flexible workspace solutions.
There are two important regulations incoming that it is important for businesses to be aware of:
- New requirements under the Energy Savings Opportunity Scheme (ESOS), with plans due by 5th March 2025. See our previous blog for more information.
- The introduction of Simpler Recycling regulations in March 2025, standardising recycling practices across the UK.
Here’s to an innovative and successful 2025!
