Building management, maintenance, security, cleaning, reception and landscaping services are all in high demand from companies. In recent years, sales in the environmental services (ES) sector have increased significantly. Here are some insights from the experts at AURIS Finance, a consultancy specialising in mergers and acquisitions.
The environmental services (ES) sector is now well established in France. A recent study conducted by Idet, in collaboration with Sypemi and CRDIA, estimates the turnover of services to the working environment at €154 billion for 2024. This sector employs a total of 2.6 million people, including 1.2 million service providers and 1.4 million direct employees. The latter account for a significant proportion of the market, particularly in the public sector (hospitals, local authorities, education, etc.). The most common occupations are cleaning, followed by security and maintenance, which together account for the vast majority of the workforce.
Greater outsourcing in the service sector
The service sector, on the other hand, relies more heavily on external service providers, especially for cleaning, maintenance of green spaces, and other related services. In recent years, there has been a steady rise in the overall rate of outsourcing of cleaning and related services by French companies, rising from 68% in 2009 to 80% in 2020. In the years following the pandemic, the market has expanded further. However, some functions, such as reception, mail management, archiving and events management, remain largely in-house.
A comprehensive offering for service sector businesses
In order to serve service sector companies, players in the ES sector are organising their offering. This involves mergers and acquisitions, through which they are acquiring smaller companies to gain market access, as well as companies with specific expertise. This dual-faceted strategy allows them to develop their offering to meet the diverse requirements of their corporate client base. During 2024, a number of strategic moves were executed. The giant Onet acquired the cleaning, facilities management and logistics activities of ISS in France, strengthening its position as leader in the French market. Similarly, Nicollin Group continued its strategic and geographic diversification with the acquisition of Caronet, a cleaning company based in Lorraine, marking its expansion in eastern France.
New challenges
Mergers between companies in the ES sector are set to continue over the coming months. By achieving significant scale, these companies will be well-positioned to initiate their digital and environmental transition strategies. This is driven by mounting environmental regulations, with corporate customers increasingly selecting suppliers and service providers based on strict CSR criteria. In the current business climate, cleaning companies are under pressure to adopt sustainable practices, including the use of environmentally-friendly cleaning products, optimised resource management, and a reduction in their carbon footprint. Added to this are the new technical challenges of integrating digital solutions and optimising processes through the use of artificial intelligence.
Our experts at your service
AURIS Finance’s sector-specialist experts have a proven track record in the waste management and business services sectors, having been involved in numerous disposals and acquisitions. From sourcing finance to identifying potential targets, we can help you to transform your plans into reality.
