The workplace and facility management landscape is set for a series of transformative shifts throughout 2025, driven in part by more connected devices and new streams of data. As businesses implement AI across a wide range of use cases, they will need to revisit and potentially redefine critical workflows for commercial real estate, facility maintenance, and workplace management, as well as how employees interact in the office.
The need to connect is driving FM market expansion
The global FM market is set for significant growth, with projections of an 8.2% increase, pushing it to $2284.8 billion by 2032, up from $1315.7 billion in 2024. Much of it will be from an increasing demand for tech-integrated solutions, automation, and better records, reporting, and data-driven insights — technologies critical to optimizing resource allocation, preventive maintenance, and space utilization — reflecting a broader trend toward digital transformation across the FM and FM-adjacent industries.
The demand is set to increase, but it’s already strong. In fact, in our 2024 Workplace Index report, building and facility leaders said data analytics was the top technology they were hoping to deliver over the following 12 months.
Closely connected to FM’s growth is the rapid expansion of the Internet of Things (IoT) market. Currently, there are over 18.8 billion connected IoT devices worldwide, with projections for 25.44 billion by 2030. The global IoT market for smart cities is expected to grow by 20.5% to $931.5 billion by 2032, driven by smart tech adoption, government initiatives, and smart city projects.
Interconnecting devices will create new streams of data, and centralized systems will help organizations break down silos, making it easier to paint a complete, real-time picture with data. But because current estimates are that 90% of data is considered “unstructured,” which means it lacks a predefined structure, making it hard to leverage, many companies currently lack the technology to process all that data.
That’s where AI comes in.
Predictions about the future of the FM field include new devices that capture and share new types of data — and more of it. But just as important will be the AI applications that empower organizations to generate actionable insights and business intelligence.
In the future, AI will be a part of everything
Over the next ten years, AI is expected to transform industries and societies globally, including:
- Advanced automation: Automation will spread and deepen, with AI handling more complex tasks that currently require human intervention, lead to significant productivity gains and cost savings across various sectors, from manufacturing to healthcare.
- Enhanced personalization: AI will drive hyper-personalization in consumer experiences. Algorithms will become more sophisticated, offering tailored recommendations and services that anticipate individual needs and preferences.
- Healthcare revolution: AI will revolutionize healthcare, enabling early disease detection, personalized treatment plans, and improved patient outcomes. Telemedicine and AI-driven diagnostics will become more common, making healthcare more accessible and efficient.
- Quantum computing: Advances in quantum computing will significantly enhance AI capabilities, allowing for more complex problem-solving and faster data processing, which will in turn open new possibilities in fields like drug discovery, financial modeling, and cryptography.
- Global collaboration: International collaboration on AI research and development will increase, fostering innovation and knowledge sharing, helping address global challenges and ensure that the benefits of AI are distributed equitably.
The transformative potential of AI over the next decades will create a future that is more efficient, personalized, and interconnected, but will also come with its own set of challenges. As AI becomes more prevalent in daily life and across industries, the focus on different considerations, including best practices and regulatory frameworks, will intensify. Already, governments and organizations worldwide are recognizing the need to ensure that they’re using AI responsibly.
CRE professionals and workplace managers will find more ways to maximize utilization for spaces across portfolios with AI
AI integrations are set to revolutionize strategic decision-making in CRE and workplace management, boosting productivity to deliver a competitive edge. In fact, across industries, the AI revolution has already started. In 2024, adoption rates of generative AI nearly doubled in just a 10-month period, with 65% of respondents reporting regular use, according to McKinsey & Company.
Moving forward, the market is anticipated to grow nearly 40% between 2024 and 2030, with significant revenue increases projected to rise to $1.3 trillion by 2030, up from the estimated $214 billion in 2024, according to Forbes.
In CRE and workplace management, there will be plenty of growth from integration of data analytics, workplace solutions, and collaboration software, which support strategic decision-making by providing better insights.
For example, the facilities director at a large company will leverage AI-powered workspace analytics platform to maximize utilization without sacrificing productivity. They’ll use the platform to integrate data from various sources like occupancy sensors, Wi-Fi logins, and badge swipes to provide real-time insights into space utilization. From there, the AI might identify that employees often book conference rooms but then underutilize them, with many meetings involving only a few participants.
Backed by the platform’s predictive analytics feature, they’ll then simulate different space planning scenarios, factoring in team sizes, meeting frequencies, and peak usage times to forecast how each scenario would impact space efficiency and employee satisfaction.
Facility and maintenance managers will discover additional operational efficiencies thanks to AI
As we previously reported in the 2024 Workplace Index, across the facility management industry businesses are increasingly shifting away from legacy solutions in favor of unified platforms that offer scalability, advanced data analytics, and comprehensive reporting.
As technology investments continue to focus on enhancing core operations and processes, the move toward smarter buildings with greater interconnectivity will increase. By embracing integrated solutions and advanced technologies, facility, maintenance, and operations leaders can streamline their processes, improve efficiency, and enhance overall performance.
For example, facility managers will leverage AI-powered predictive maintenance to anticipate equipment failures, reducing downtime and maintenance costs. By integrating AI with building management systems, workplace leaders can optimize energy consumption, streamline operations, and boost overall efficiency.
The future of BIM for FM is twice as good with digital twins
One of the many exciting areas to watch will be building information modeling (BIM) for FM, where companies can use the information generated at earlier stages of the life cycle to create a digital twin of their facilities for improvements in everything from preventive maintenance scheduling to clash detection in capital improvement projects. The digital twin for buildings market is predicted to reach $20.2 billion by 2032, at 32.6% compound annual growth rate.
A big factor in the current and growing popularity is how the applications are becoming easier to master. In fact, in October 2024, we announced how space planners will be able to deliver space planning reports and occupancy management without having to a specialist in building design programs. Instead, thanks to cross-platform connections, departments will be able to use digital twin technology within their building and asset operational systems without Revit or 3D CAD training.
With a unified visualization that includes all a building’s systems, a space planner will be able to, for example:
- Assign space to maximize utilization and support productivity
- Manage dependencies between assets and space
- Plan efficient moves and seating arrangements
Enterprise-wide, companies can use these digital models to generate reports on efficiency, an important focus for larger companies with buildings spread out across multiple locations, where the benefits of savings in one location can be multiplied across the portfolio.
Workplace leaders will implement AI to better support employees who want to connect and collaborate in the office
By integrating AI into daily work life, companies can significantly enhance the employee experience and boost productivity. In fact, according to PwC, AI is expected to boost employee productivity by approximately 40%. And 42% of business owners believe AI will streamline job processes, according to Forbes.
In most cases, AI will act as a sort of personal assistant that efficiently manages individual tasks. Gartner predicts that in 2025, 50% of knowledge workers will use a virtual assistant every day.
Our October 2024 product announcement highlighted some of the different ways AI can help employees connect and collaborate. For example, AI for Team Days will help employees to find colleagues, add them to teams, and see office schedules.
Employees will no longer need to find and select a suitable workspace. Instead, the AI automatically allocates space bookings based on:
- Attendee needs
- Seating preferences
- Proximity to teammates
Integration with Microsoft Copilot functionality will mean employees can book a meeting using natural language. They simply ask the AI to “book a meeting space for 5 people for tomorrow afternoon at 2,” making it much easier to plan collaboration sessions, book desks, and reserve meeting rooms. And with Microsoft 365 integrations, employees will be able to take online meeting invites that don’t yet have a reserved room, forward the invite to a designated room mailbox, and the system will automatically book the appropriate space for them.
With intelligent worktech, everyone can get their own data team and personal assistant
The future for FM includes new devices and data, as well as AI applications that help professionals in CRE, facility maintenance, and workplace leadership deliver new operational efficiencies and stronger space utilization, while also supporting employees who want to connect and collaborate.
The coming era of smart facility management will not only support different people in various roles but also foster environments where both businesses and employees thrive.