Workplace Futures 2026: The Future of Facilities Management Is Human

March 11, 2026

The state of the UK FM market and emerging priorities

Workplace Futures 2026 was a reality check for facilities management. The UK outsourced FM market hit £36.46 billion last year and keeps growing. But with 40% of senior leaders over 55 and 86% of managers reporting skills gaps, capability, not technology, is now the real limiter.

This context framed discussions on the future of facilities management at Workplace Futures 2026, hosted by i-FM at One Great George Street in Westminster. As David Emanuel opened the day, he reminded us that we may not be able to predict the future, but we can envisage it.

The discussions that followed made one thing clear. Facilities management is entering a new phase, defined less by assets alone and more by people, capability and outcomes.

A recurring theme throughout the day was people’s capability, which surfaced in every session.

FM has evolved. Expectations have evolved faster

Sarah Hodge of the London Stock Exchange Group offered a powerful perspective on how far the profession has come. It was clear she knew her subject inside out, and it was a shame she did not have longer to delve even deeper. What began in the 1960s and 1970s as an accidental function of office and building managers solving practical problems has matured into a structured, strategic industry.

The 1990s formalised outsourcing and standards. The 2000s brought integration. The 2010s professionalised the sector. The 2020s are about experience.

FM has moved from building first, to asset first, to people first. That evolution matters because clients are no longer buying maintenance alone. They are buying performance, resilience and workplace experience.

AI accelerates, humans decide

Dr Mel Bull of Nottingham Trent Business School described the current period as the fastest workplace transformation in modern history. AI acceleration, demographic shifts, global uncertainty and rising workforce expectations are converging at once.

AI has moved from experiment to infrastructure. It generates insight at scale and supports decision-making. However, it does not build trust, create psychologically safe cultures or navigate complex human dynamics.

AI and smart building technologies are deployed not to replace teams, but to free FM professionals to focus on creating seamless, intelligent workplace experiences. As Steven Gladwin of Nodus Solutions put it during his “Power to the People” session, “AI elevates capable people”. His presentation was clearly backed by deep industry experience and a real passion for developing capability. The real risk is not that FM will fail to adopt AI, but that we place trust in it without developing the capability to interpret and challenge it.

In practical terms, the FM professional of the future is not simply a technical operator. They are an interpreter of data, a decision maker and a connector between technology and people.

In an AI-enabled environment, human capability becomes the competitive advantage. The industry may be underestimating the scale of the cultural shift required. Embedding AI is not simply a software decision; it is a leadership decision that shapes behaviour, accountability and culture.

Capability is the limiting factor

Several statistics shared during the conference underscored the urgency. 86% of FM managers report significant skills gaps, nearly 40% of senior leaders are approaching retirement age, and 78% of FM professionals say they want more development opportunities to progress.

As Steve Gladwin pointed out, people capability is now the limiting factor, not technology. Against a backdrop of wider demographic pressures, with predictions that up to 30% of the workforce could retire by 2035, succession risk is real. FM has shifted from operational delivery and cost control towards strategic value creation. Clients expect workplace experience, ESG credibility, data-driven insight and organisational resilience. Technology is advancing quickly, but people capability is not keeping pace.

The conclusion is direct. Leadership development, mentoring and structured succession planning are no longer optional. They are essential to maintaining service continuity and driving transformation. If this gap is not addressed structurally, it will not just slow innovation. It will undermine service resilience and client confidence.

Growth, competition and outcome-Based delivery

Commercially, the picture is strong but complex. John Raspin, Global Head of Growth Opportunity Analytics at Frost & Sullivan, shared analysis showing that the UK outsourced FM market was worth £36.46 billion in 2025 and is projected to reach £45.1 billion by 2032, with a compound annual growth rate of 3.1%. Integrated facilities management is growing faster at 4.5%. Sectors such as technology and life sciences are driving above-average growth, reflecting the increasing demand for high-quality, experience-focused workplaces.

FM continues to outperform GDP, even through economic volatility. However, the market is mature and competitive. The top five providers hold over 34% of market share, consolidation is increasing, and private equity interest is accelerating.

The shift that matters most is from cost to value. Procurement conversations are moving beyond efficiency and economies of scale towards outcome-based delivery. Clients want to see how FM contributes to productivity, asset optimisation, user experience and ESG performance. True differentiation will come from the ability to turn strategy into consistent, high-quality delivery.

Sustainability is now measurable

Sustainability featured strongly throughout the day. While net zero ambition remains, organisations are now under increasing scrutiny to demonstrate real progress.

Sunil Shah of Acclaro Advisory highlighted that sustainability is entering a new phase of accountability, with reporting standards maturing. Sustainability is no longer a narrative. It is a measurable performance and competitive requirement. Accountability will increasingly separate credible operators from those relying on narrative.

For FM providers, that means integrating energy optimisation, digital tools, ESG platforms and performance-based approaches into operational delivery. In the private sector, sustainability is measured not only by compliance but by the value it delivers to businesses: optimising energy, enhancing workplace experience, supporting productivity and strengthening investor and client confidence. Performance-based approaches ensure that ESG commitments are demonstrable, actionable, and directly aligned with the operational goals.

The question is no longer whether sustainability matters. It is whether organisations can demonstrate credible progress.

Leading the human era of FM

Taken together, the messages from Workplace Futures 2026 point to an inflection point for the industry.

Growth in the market continues, yet expectations are rising faster. AI is advancing, but human judgement is the real advantage. Sustainability commitments are widespread, but accountability is tightening. The biggest operational risk is increasingly human capability rather than technology. The industry has spent years talking about digital transformation. The harder work now is capability transformation, and that requires sustained investment, not short-term programmes.

The organisations that will lead the next phase of FM will be those that invest deliberately in people, align services to sector opportunities, use technology responsibly and focus on outcomes rather than inputs.

Success in the future of FM will not belong to those who automate the fastest. It will belong to those who develop their people with intent and give them the confidence to lead.

There were many other speakers throughout the day whose insights challenged and sharpened the conversation. Thank you to all of them for contributing to such an open and thoughtful discussion.

Our view at Anabas

For Anabas, the conference reinforced the importance of combining commercial awareness with human leadership. We are embedding intelligent technology into our contracts to enhance insight and efficiency, while ensuring decision-making remains grounded in experience and judgement. We are strengthening leadership pathways and mentoring to address succession risk and build long-term capability. We are integrating sustainability into operational performance so that clients see measurable outcomes, not simply commitments.

FM isn’t just about keeping the lights on. It’s about creating workplaces that genuinely support productivity, wellbeing and resilience.

The industry is not just adapting to change. It is shaping the future of facilities management. The real question is not what the future looks like, but how prepared we are to lead within it.

How is your organisation preparing for the next phase of facilities management?