|
Forecast
Period
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2025-2029
|
|
Market
Size (2023)
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USD
27.72 Billion
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|
CAGR
(2024-2029)
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13.87%
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Fastest
Growing Segment
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Soft services
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Largest
Market
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West
Region
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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
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By End User
|
By Region
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- Hard Services
- Soft Services
|
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- Commercial
- Industrial
-
Infrastructure
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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]