Report Description

Forecast Period

2025-2029

Market Size (2023)

USD 27.72 Billion

CAGR (2024-2029)

13.87%

Fastest Growing Segment

Soft services 

Largest Market

West Region

 

Market Overview

India Facility Management Market has valued at USD 27.72 Billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 13.87% through 2029. Clients while engaging in Facility Management (the tools and services that support the functionality) face a common problem of being pressured to do more with less money. Various budget and other constraints affect the cost of project over the course of time while a project is into development stage. Some of the challenges clients have to deal with, include tracking inventory, negotiating prices with suppliers, keeping regular tabs on maintenance costs and financial information, and evaluating the value of certain technological investments. Clients had to consider all costs when preparing budget estimates, including fixed, variable, direct, and indirect. Further, consumers must constantly work on and execute cost-control and cost-reduction methods because of their limited budgets. Budget estimates, tracking inventory, and using costs as well as financial projections for service development, are among the numerous tasks they must do with limited resources. Thus, consumers had to spend a good amount of time and energy to keep a record of spending and ways to reduce spending. Therefore, cost control is likely to be a major concern for the clients in the India Arabia Facility Management market. Anticipated growth in the market can be attributed to an increase in construction activities across commercial as well as residential sector. Moreover, various initiatives by Government to provide housing for all citizens and development of smart cities in India are further expected to positively influence India facility management market in the coming years. Furthermore, rising population across tier 1 cities and continuing growth in IT/ITeS and banking sectors would further steer India facility management market during the forecast period. The market is dominated by unorganized players.

The impact of technology on managing building facilities will fuel the India Facility Management Services Market growth. Technology plays a key role in ensuring well-connected and streamlined facilities. Technological developments are therefore expected to create a wave of opportunities for providers during the forecast period in terms of business expansion and service efficiency. The provider must harness the power of advanced and innovative technology to improve its three dimensions of service: cost, quality, and time. Advanced technologies such as intelligent security monitoring systems, intelligent building control systems, and advanced robotics are expected to shape the future of building management services during the forecast period.

Vendors find it difficult to deal with advanced technology and lose market share compared to other vendors who can keep up with change. The facility management services market in India is a moderately mature market that is open to end-users adopting technology to improve their facilities. Therefore, it is imperative for facility management providers to hire, train and retain staff with the knowledge and skills to handle advanced technology, which is expected to drive the growth of the India Facility Management Services Market during the forecast period.

Key Market Drivers

Multitasking & Coordinating Teams

It is essential to employ workplace practices that provide a steady flow of communication, organization, information sharing, productivity, and innovation to keep operations running smoothly between client and vendor. Reporting issues, producing automated reports, and more are hectic tasks experienced by customers. Maintaining a team's maintenance obligations and planning the workload properly, shall be done in a proper manner for the smooth and collective working of a team and improving information retrieval. Improper coordination can lead to the absence of reliable and accurate data and can give rise to several issues which could be expensive and time consuming. Thus, clients had to keep a proper record while keeping a healthy interaction with all the teams involved in the facility management activity, which can be a painful process for the customer.

Rising Failures in Handling

Many tasks are to be accomplished in facility management daily, from organizing teams to attending meetings and responding to critical communications. In addition, companies have many concerns and problems that need to be addressed by the client. Customers never have it easy when it comes to time management. Faced with various challenges and other responsibilities, clients also have to juggle meetings, calls, writing an email, coordinating one or multiple teams, budgeting, taking time for personal work, and so much more. Adding all these factors, as well as various unplanned daily occurrences, it can be said that time management is one of the biggest pain point in India facility management market for clients.

 Maintenance of Aging Equipment and Facilities

Proficiently managing routine maintenance and repair activities of equipment and assets is critical to ensuring productivity. It is also natural for some parts of equipment to show signs of wear and tear after heavy usage with time, but this process can be slowed down by taking appropriate preventive and corrective maintenance measures. As a client, downtime is unacceptable, so creating a maintenance management system to monitor all equipment is crucial. However, this can be a difficult and time-consuming task.


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Key Market Challenges

Lack of Trained Facility Service Providers

India is witnessing a stringent lack of skilled and trained workers in the facility management industry. This can be attributed to various reasons such as low daily wages, inconsistent compensation, and pandemic outbreak. Additionally, many professionals working in the facility management business in India do not possess the required skill-sets to deliver high-quality management services. Further, talent acquisition and training are significant obstacles in the industry due to the absence of dedicated facility management courses and training staff in the country. As a result, the companies struggle to acquire well-qualified and capable staff. These reasons are hindering the growth and posing a challenge to the India facility management market.

Market at Initial Stage

India facility management market is at a nascent stage of development, and the importance of facility management is conceived only as maintenance of damaged or strained buildings. Therefore, the facility management market experiences lower market penetration as most companies consider it an additional and unrequired expense. Also, companies in the country mainly opt for in-house facility management, impacting the organized facility management market. Additionally, the contract for facility management is mainly given to the least cost bid, which degrades the overall value of facility management services. Hence, these factors are becoming an obstacle for India facility management market.

Key Market Trends

Significant Growth in The Real Estate Sector

Significant growth in the real estate sector on account of shifting preferences towards a safe, clean, and secure environment represents one of the primary factors bolstering the market growth in India. Additionally, the emerging concept of Green Building, along with the enactment of the Real Estate (Regulation and Development) Act (RERA) 2016, which protects home buyers and helps boost the real estate sector, is stimulating market growth. With the booming information technology (IT) sector and the growing popularity of e-commerce platforms, the overall need for infrastructure and organized spaces is increasing, which is also influencing the market positively. Apart from this, several companies are utilizing AI and IoT technologies to automate FM services for energy efficiency audits. Moreover, the Government of India has launched the Smart Cities Mission to promote sustainable and inclusive cities. This has resulted in increasing investments in the infrastructure sector, which has further created a need for professional FM services. Furthermore, the post-pandemic rising emphasis on hybrid workspaces and return-to-the-workplace strategies is anticipated to augment the demand for FM services to maintain safety, health, and productivity in the country. This industry in India is dominated by in-house segment; however, these services are increasingly being outsourced. The growing demand for integrated facility management is also propelling the industry growth. The integrated sector in the industry is expected to further grow with the industry increasingly shifting to the organised sector. While, currently, the industry is highly fragmented and is dominated by unorganised small operators, with larger players increasingly acquiring smaller players, the industry is expected to become more organised in the coming years. The commercial sector is the leading end-use industry in the market in India, followed by industrial and other sectors. Corporate offices like IT, BPO, and BFSI sectors are rapidly shifting towards outsourcing their services, thus, driving the industry growth in India. The industry is primarily concentrated in Tier 1 and metro cities. Pune and Mumbai are expected to witness significant growth within the industry.

Globally, too, the industry is growing rapidly, driven by the rising outsourcing of services by companies. The industry is also being supported by the growing demand for integrated facilities management in the Asia Pacific region. The region is witnessing increased demand, especially for outsourced facility management services. The Asia Pacific region is also the fastest-growing region for the industry, driven by the growing economies like India and China. The rapidly rising population in these regions is also boosting the market growth.

Segmental Insights

Type Insights

The primary categories of soft services are cleaning, recycling, security, pest control, handyman services, grounds maintenance, and waste management. Based on the increasing complexity of projects in Delhi, Hyderabad, and other cities, FM firms have determined that high-level cleaning services represent a growth opportunity for their business.​

Internet of Things (IoT) adoption quickly emerges as a major driver in FM soft services. IoT enables improved decision-making and work process optimization across various industry sectors by providing a continuous, real-time data stream. The demand for outsourcing services is growing, and businesses are emphasizing individualized services with added value, such as risk management that is reliable and efficient and manages local labor laws and HSE.​

Additionally, the consistent rise in commercial real estate in emerging cities like Kolkata is anticipated to offer growth prospects for the incumbents battling challenges like congestion in mature markets. With the impact of regional variables like the development of new branch offices and the outsourcing of soft FM, the demand is predicted to experience a continual rise even though the country's current market penetration is still (relatively) limited.

The COVID-19 outbreak has sparked changes in how facilities and services are run. The future of organizations will demand careful thought and tailored plans. Therefore the role of FM service providers may also change to one that is more strategic and long-term in character.


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Region Insights

The dominant region in the India facility management market is West and Central India. This region accounts for the largest share of the market, due to the presence of major commercial and industrial hubs such as Mumbai, Pune, Ahmedabad, and Indore. The region is also home to a large number of government buildings and infrastructure projects.

The other regions in the India facility management market are North India, South India, and East India. These regions are also growing rapidly, but they have a smaller market share than West and Central India..

Recent Developments

  • Apr 2023: Sodexo Facilities Management Services India Private Limited Sodexo signed an MOU with the Ministry of Skill Development of India and launched the Tourism & Hospitality Skill Council (THSC) and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) under the aegis of NSDC and India Skill Development Initiative to offer first-time employment opportunities to the frontline workforce working in the food & catering and facilities management spaces.
  • May 2022: Tech24 announced its acquisition of Facilities Management LLC and Peltz Services Inc., based in Indiana, to enhance the FM services in maintenance for food service and commercial HVAC equipment.
  • In June 2022, the FacilityCobot interdisciplinary innovation project was a partnership between the University of Southern Denmark (SDU), consulting firm K-Jacobsen, Signal Architects, and ISS, as well as the technology firms Ubiqisense and Enabled Robotics. The project's goal is to create a novel mobile robot that combines a smart building sensing system with a human-robot interface and frees cleaning employees from laborious or repetitive chores. The robot will be able to operate effectively with cleaning personnel with the integration of the aforementioned technologies, particularly in spaces with a lot of open space, like offices and canteens.
  • In March 2023, Sodexo Facilities Management Services India Private Limited launched its expertise to AHPI-affiliate healthcare providers and diagnostic centers in Ranchi for the repair, maintenance, and upkeep of clinical equipment to enable quality patient care. The warehouse comprises a state-of-the-art repair laboratory housing vital spare parts and accessories for equipment crucial to patient care.

Key Market Players

  • Sodexo Facilities Management Services India Private Limited
  • BVG India Limited
  • ISS Facility Management
  • G4S India
  • Mortice Group PLC (TenonFM)
  • Jones Lang LaSalle Property Consultants (India) Private Ltd
  • Quess Corp Limited
  • Colliers International (India) Property Services Private Limited
  • CBRE South Asia Private Limited
  • SIS Limited

By Type

By Sector Type

By End User

By Region

  • Hard Services
  • Soft Services
  • Unorganized
  • Organized
  • Commercial
  • Industrial
  •   Infrastructure
  • North
  • West
  • South
  • East

Report Scope:

In this report, the India Facility Management Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Facility Management Market, By Type:

o   Hard Services

o   Soft Services

  • India Facility Management Market, By Sector Type:

o   Unorganized

o   Organized

  • India Facility Management Market, By End User:

o   Commercial

o   Industrial

o   Infrastructure

  • India Facility Management Market, By Region:

o   North India

o   West India

o   South India

o   East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Facility Management Market.

Available Customizations:

India Facility Management market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India Facility Management Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.            Product Overview

1.1.        Market Definition

1.2.        Scope of the Market

1.2.1.    Markets Covered

1.2.2.    Years Considered for Study

1.2.3.    Key Market Segmentations

2.            Research Methodology

2.1.        Objective of the Study

2.2.        Baseline Methodology

2.3.        Formulation of the Scope

2.4.        Assumptions and Limitations

2.5.        Sources of Research

2.5.1.    Secondary Research

2.5.2.    Primary Research

2.6.        Approach for the Market Study

2.6.1.    The Bottom-Up Approach

2.6.2.    The Top-Down Approach

2.7.        Methodology Followed for Calculation of Market Size & Market Shares

2.8.        Forecasting Methodology

2.8.1.    Data Triangulation & Validation

3.            Executive Summary

4.            Voice of Customers

5.            India Facility Management Market Outlook

5.1.        Market Size & Forecast

5.1.1.    By Value

5.2.        Market Share & Forecast

5.2.1.    By Type (Hard Services and Soft Services)

5.2.2.    By Sector Type (Unorganized and Organized)

5.2.3.    By End User (Commercial, Industrial, and Infrastructure)

5.2.4.    By Region

5.3.        By Company (2023)

5.4.        Market Map

6.            West India Facility Management Market Outlook

6.1.        Market Size & Forecast

6.1.1.    By Value 

6.2.        Market Share & Forecast

6.2.1.    By Type

6.2.2.    By Sector Type

6.2.3.    By End User

7.            South India Facility Management Market Outlook

7.1.        Market Size & Forecast

7.1.1.    By Value 

7.2.        Market Share & Forecast

7.2.1.    By Type

7.2.2.    By Sector Type

7.2.3.    By End User

8.            North India Facility Management Market Outlook

8.1.        Market Size & Forecast

8.1.1.    By Value 

8.2.        Market Share & Forecast

8.2.1.    By Type

8.2.2.    By Sector Type

8.2.3.    By End User

9.            East India Facility Management Market Outlook

9.1.        Market Size & Forecast

9.1.1.    By Value 

9.2.        Market Share & Forecast

9.2.1.    By Type

9.2.2.    By Sector Type

9.2.3.    By End User

10.         Market Dynamics

10.1.     Drivers

10.2.     Challenge

11.         Market Trends & Developments

12.         Company Profiles

12.1.            Sodexo Facilities Management Services India Private Limited.

12.1.1. Business Overview

12.1.2. Key Revenue and Financials

12.1.3. Recent Developments

12.1.4. Key Personnel

12.1.5. Key Product/Services

12.2.            BVG India Limited.

12.2.1. Business Overview

12.2.2. Key Revenue and Financials

12.2.3. Recent Developments

12.2.4. Key Personnel

12.2.5. Key Product/Services

12.3.            ISS Facility Management.

12.3.1. Business Overview

12.3.2. Key Revenue and Financials

12.3.3. Recent Developments

12.3.4. Key Personnel

12.3.5. Key Product/Services

12.4.            G4S India.

12.4.1. Business Overview

12.4.2. Key Revenue and Financials

12.4.3. Recent Developments

12.4.4. Key Personnel

12.4.5. Key Product/Services

12.5.            Mortice Group PLC (TenonFM).

12.5.1. Business Overview

12.5.2. Key Revenue and Financials

12.5.3. Recent Developments

12.5.4. Key Personnel

12.5.5. Key Product/Services

12.6.            Jones Lang LaSalle Property Consultants (India) Private Ltd.

12.6.1. Business Overview

12.6.2. Key Revenue and Financials

12.6.3. Recent Developments

12.6.4. Key Personnel

12.6.5. Key Product/Services

12.7.            Quess Corp Limited.

12.7.1. Business Overview

12.7.2. Key Revenue and Financials

12.7.3. Recent Developments

12.7.4. Key Personnel

12.7.5. Key Product/Services

12.8.            Colliers International (India) Property Services Private Limited.

12.8.1. Business Overview

12.8.2.