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Q4 2024 Investment Trends on the Move

3 Min Read

Growing, Shrinking, and Emerging Trends in the Market

The investment landscape is ever-changing. Here are three growing, shrinking, and emerging market trends our experts noted that may inform your approach to investments in Q4 and beyond.

  • Growing Trend: Facility Support Services
  • Emerging Trend: Other Support Activities for Road Transportation
  • Shrinking Trend: Publishing with Emphasis on Print

Growing Trend: Facility Support Services (NAICS 561210)

The facility management services market size in North America is forecasted to increase by $114.36 billion from 2022 to 2027, at a CAGR of 7.69%.1 The upward trend is evidenced by private equity-backed facilities services companies expanding by acquiring related businesses during Q2 2024, and this trend is expected to continue throughout the year. One example: Pye-Barker Fire and Safety acquired ten well-established businesses, strengthening its market position and service offerings from April to June.2 Acquisitions included Bates Security, Amherst Alarm, Briscoe Protective, Complete Security Systems, B Safe Security, Matson Alarm, and Mountain Alarm.

Facility Support Services Providers include security, janitorial, trash disposal, mail routing, reception, laundry, and other work to support operations within facilities. Office buildings make up the majority of the commercial buildings segment, which also includes hospitals, retail, and healthcare facilities. Notably, businesses and other organizations in North America are putting a greater emphasis on security and turning to facility management services to provide these services.

Emerging Trend: Other Support Activities for Road Transportation (NAICS 488490)

Urban congestion and technology improvements are lifting this sector, which includes specific services such as traffic light upgrades or repairs. The global light-emitting diode (LED) traffic signs and signals market size alone is forecasted to grow by $487 million from 2024-2028, a CAGR of over 8.09%.3 The global traffic lights market is expected to grow at a CAGR of 5.82% between 2024-2028.

Growth factors in this emerging segment include improved technology necessitating upgrades, as well as cities becoming more congested by people and traffic. Higher-tech advancements leading to upgrades include sensors, video cameras, efficient LED lighting, and smarter algorithms to monitor traffic in real time. Smart traffic management systems use sensors and AI to optimize traffic flow and reduce congestion to keep people safer.

Shrinking Trend: Publishing with Emphasis on Print (NAICS 513)

The publishing market overall is not in decline, but the segment focused largely on printing continues its freefall. This segment includes hard copy books, databases, magazines, newspapers, periodicals, and software.

Industry revenue is forecasted to decline 0.6% per year, reaching $44.2 billion by the end of 2024.4 Profits are also falling, reaching 5.7% of revenue.

Among the contributors to the decline are rising cost of paper (up 65% in 2023) alongside a digital shift to platforms such as e-books and audio books.5 In addition, the rising popularity of self-publishing sidesteps services offered in this segment: authors self-published 2.3 million books in 2021.6

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Resources:

1Facility Management Services Market size in North America to grow at a CAGR of 7.69% from 2022 to 2027, Driven by the growth in infrastructure development – Technavio (prnewswire.com)
2Pye-Barker Could Be Eyeing $6B Market Listing This Year, Report Says | SDM Magazine
3Light-Emitting Diode (LED) Traffic Signs And Signals Market size is set to grow by USD 487 million from 2024-2028, Increased investments toward road infrastructure development to boost the market growth, Technavio (yahoo.com)
4Book Publishing in the US – Market Research Report (2014-2029) (ibisworld.com)
56 Top Challenges in the Publishing Industry and How to Solve Them | NetSuite
6Self-Publishing Thriving According to Bowker Report | Publishers Weekly/Bowker Report