India Facility Management - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

India Facility Management - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

The India Facility Management Market size is estimated at USD 148.65 billion in 2024, and is expected to reach USD 212.12 billion by 2029, growing at a CAGR of 7.37% during the forecast period (2024-2029).

FM encompasses all aspects of managing a building, an organization's infrastructure, and the overall coordination of the workplace. This system streamlines processes and standardizes services for an organization.

Key Highlights

  • Facility management in India is increasingly gaining popularity due to rapid urban development, the booming construction sector, increasing emphasis on green buildings, and a growing awareness of advantages arising from outsourcing non-core business activities.
  • Regarding sophistication and development, India is one of the largest markets for outsourced facility management services. Small local companies focus on single contracts and single-service solutions, while the region's FM business operates with integrated contracts given by significant vendors from different continents. Given the changing dynamics in the region, there are more chances to combine facility management and corporate real estate in novel ways.
  • The public sector clients are eager to reduce the number of suppliers and decrease costs. Therefore, bundled service contracts are expected to profit from the budget cuts, keeping with the ongoing efforts of many government agencies to streamline their operations. As the need for total facility management (TFM) grows, public sector firms in the region are progressively outsourcing all "non-core business activities" to a single service provider, allowing them to focus more on their core businesses.
  • Moreover, the need for enterprises to evaluate possible cyber risks across their OT environments and take action to strengthen their security posture is more than ever as IT and OT systems continue to converge. Facility managers may offer crucial insider advice in developing and implementing a diligent cybersecurity plan to safeguard critical OT systems as the threat landscape continues to change at an alarming rate.
  • The COVID-19 pandemic had a mixed economic impact on FM companies in India. Limiting people's movement resulted in declining project work and activity at several customer locations. The pandemic lockdowns harmed significant companies in the market, including BVG, CBRE Group, and others.

India Facility Management Market Trends

Soft Services to Drive the Market Growth

  • 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.

North of the Country is Expected to hold Dominant Market Share

  • To serve a broad spectrum of customers and increase their market share, the businesses in the area are diversifying their product lines. For instance, Delhi NCR-based MASCOP Facilities Services provides comprehensive facility management services for trouble-free office space maintenance and operation. The company's clientele includes corporate entities, industries, government agencies, manufacturing firms, shopping centers, hotels, institutional settings, guesthouses, hospitals, multiplexes, and substantial office complexes.
  • Most newly formed markets are expected to keep an organized structure in light of smart city developments and eliminate the unorganized sectors, making it easy for FM vendors to deploy their services. The IT boom in the country paired it with e-commerce investments, and companies like Shopify, and Amazon, among others, announced overall infrastructural development that drives the demand for FM services.
  • For various suppliers, integrated facilities management has streamlined and effectively managed work and tasks. One integrated perspective of all management-related duties and fewer contracts, teams, and resources to manage are the main effects of the approach. IFM delivers better visibility that results in effective management of teams, decreased operating expenses, quicker replies to requests, less downtime for employees, and a stronger focus on the big picture instead of managing each separate stakeholder and each activity multiple times. Using an IFM service provider also makes it much simpler to implement significant modifications across numerous sites and services.
  • Coworking spaces have been crucial to India's growing gig economy and startup culture. In recent years, "coworking spaces in India" have grown exponentially. By renting out individual office spaces, these hubs have spared startups and corporations the immense burden of setting up new offices. Large Indian cities like Delhi, Bangalore, and Mumbai are no longer the only ones where there is a demand for coworking spaces. Additionally, it has reached other Tier 2 Indian cities.

India Facility Management Industry Overview

The Indian Facility Management Market is fragmented. The major companies include Sodexo Facilities Management Services India Private Limited, ISS Facility ManagementBVG India Limite, G4S India, and Mortice Group PLC (TenonFM).

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.

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.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Please note: The report will take approximately 2 business days to prepare and deliver.

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Market
5.1 Introduction to Market Drivers
5.2 Market Drivers
5.2.1 Growing Emphasis on Outsourcing of Non-core Operations
5.2.2 Steady Growth in Commercial Real Estate Sector
5.2.3 Strong Emphasis on Green Practices and Safety Awareness
5.3 Market Restraints
5.3.1 Skilled Manpower Shortage and Macro Level Fluctuations
6.1 By Facility Management Type
6.1.1 Hard Services
6.1.2 Soft Services
6.2 By Sector Type
6.2.1 Unorganized
6.2.2 Organized
6.3 By End-User
6.3.1 Commercial
6.3.2 Industrial
6.3.3 Infrastructure
6.4 By Geography
6.4.1 North
6.4.2 West
6.4.3 South
6.4.4 East
7.1 Company Profiles
7.1.1 Sodexo Facilities Management Services India Private Limited
7.1.2 BVG India Limited
7.1.3 ISS Facility Management
7.1.4 G4S India
7.1.5 Mortice Group PLC (TenonFM)
7.1.6 Quess Corporation
7.1.7 Dusters Total Solutions Limited
7.1.8 ServiceMax Facility Management Private Limited
7.1.9 EFS Facilities Services
7.1.10 Updater Services Private Limited

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