India Facility Management Services Market by Service and End-user - Forecast and Analysis 2023-2027

The Facility Management Services Market size in India is estimated to grow at a CAGR of 15.23% between 2022 and 2027 and the size of the market is forecast to increase by USD 16.32 billion. The growth of the market depends on several factors, such as rising levels of outsourcing in building management, the development of SEZs and mega food parks, and the focus on smart cities.

This report extensively covers market segmentation by service (soft services and hard services) and end-user (IIBB, manufacturing, infrastructure, healthcare, and retail and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Facility Management Services Market in India During the Forecast Period?

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Technavio’s Exclusive Facility Management Services Market Customer Landscape in India

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Facility Management Services Market Customer Landscape

Key Drivers, Trends, and Challenges

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.  

Key Driver
 

Rising levels of outsourcing in building management are the key factor driving the India Facility Management Services Market growth. By outsourcing various facility-related services such as HVAC, catering, security, and various other support services, end users can focus their attention on core business activities. Companies today are more likely to generate profit from their core processes, selling unprofitable or connected processors and handing them over to third parties with the ability to take responsibility. Abundant growth opportunities in end-user segments such as healthcare, infrastructure,  and retail further emphasize the development of outsourcing services in the market. Outsourcing of corporate support functions such as facility management. Ensures that the provider is responsible for the facility's services and any risks that may be associated with the services. Internal operations also include training of service personnel, which contributes to the total cost of ownership. However, using an outsourced provider can greatly minimize training and operational costs, thereby maximizing profits. With investments in various areas of their business, organizations recognize the need to hire professional service providers to protect and protect their investments.

Businesses incur high costs when performing maintenance work and other business support functions. Technology platforms for maintenance and work order management have earned a strong place in mature facilities management contracts. Tools for financial management, benchmarking, energy management, space planning, and tenant management are therefore other supporting functions that form part of integrated facilities management. All these factors are expected to drive the growth of the India Facility Management Services Market during the forecast period.

Significant Trends

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. 

Major  Challenge

Employee attrition and lack of training can majorly impede the growth of the market. Skilled, semi-skilled, and unskilled workers are required to provide facilities management services. However, there is a shortage of qualified and semi-skilled workers to provide facility management services. Some facility management services such as plumbing, energy management, water management, and catering can be managed, but the shortage of skilled workers to provide services that require technical expertise is limiting the market. 

For example, new surveillance devices and security gadgets are being developed for security services. However, it takes skill to operate such devices. Although the general availability of unskilled labor increases the bargaining power of suppliers, labor force retention remains a major challenge for suppliers and is expected to act as a constraint on market growth during the forecast period.  

Who are the Major Facility Management Services Market Vendors in India?

Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

A La Concierge Services Pvt. Ltd: The company offers different types of facilities management services such as home services, postal services, and handyman services.

CBRE Group Inc: The company offers different types of facilities management services such as facility maintenance and technical talent.

We also have detailed analyses of the market’s competitive landscape and offer information on 18 market vendors, including:

• BVG India Ltd.
• Clean India Group
• CLR Facility Services Pvt. Ltd.
• Colliers International Property Consultants Inc.
• Cushman and Wakefield Plc
• EFS Facilities Services Group
• ISS AS
• Jones Lang LaSalle Inc.
• OCS Group International Ltd.
• Quess Corp. Ltd.
• ServiceMax Facility Management Pvt. Ltd.
• SILA Group
• SMS Integrated Facility Services Pvt. Ltd.
• Sodexo SA
• Tenon Facility Management Pvt. Ltd.
• Updater Services Ltd.
• Vatika Group
• Handiman Services Ltd.

The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.

Facility Management Services Market Segmentation in India by Service and End-user

Service Analysis

The soft services segment will contribute a major share of the market, as it holds a large share of the facility management services market in India. The soft services segment showed a gradual increase in market share with USD 7.08 billion in 2017 and continued to grow by 2021. This segment holds a larger share of the market due to the lower cost of soft services compared to hard services. Providers such as OCS Group International Ltd. have a lower level of technical expertise required to provide soft services, so SILA Group offers such services that economies of scale can be achieved. 

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Recovery of the facility management soft services market in India from the COVID-19 crisis depends on increasing demand for various services such as housekeeping, pest control, landscaping, and waste management. The demand for frequent cleaning of commercial and industrial facilities is increasing as cleanliness is an important consideration in the region, especially to prevent the spread of COVID-19. Additionally, demand for housekeeping services is expected to increase as additional precautions need to be taken to ensure the safety of staff and guests. The reopening of industries following the lifting of COVID-19-related shutdowns has further increased the demand for waste disposal globally. Hence, such factors are expected to increase the demand for soft services during the forecast period. 

End-user Analysis

India is an important destination for the IT industry. This is due to the presence of multiple domestic and global IT companies in the country. Increased use of digital technology and improved internet connectivity are expected to increase the demand for data centers, necessitating facility management services during the forecast period. There are several public banks, private banks, foreign banks, regional banks, city cooperative banks, regional cooperative banks, and cooperative credit institutions in the country. The domestic banking sector is developing due to the high penetration of digital devices and the increasing use of mobile banking. All these factors increase the demand for facilities management services in IT, ITES, BPO, and BFSI end-user segments. Therefore, the market is expected to grow during the forecast period.

Segment Overview

The facility management services market report in India forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Service Outlook (USD Billion, 2017 - 2027)
  • Soft services
  • Hard services

• End-user Outlook (USD Billion, 2017 - 2027)
  • IIBB
  • Manufacturing
  • Infrastructure
  • Healthcare
  • Retail and others

Facility Management Services Market Scope in India
Report Coverage	Details
Page number	132
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 15.23%
Market growth 2023-2027	USD 16.32 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	12.58
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	A La Concierge Services Pvt. Ltd., BVG India Ltd., CBRE Group Inc., Clean India Group, CLR Facility Services Pvt. Ltd., Colliers International Property Consultants Inc., Cushman and Wakefield Plc, EFS Facilities Services Group, ISS AS, Jones Lang LaSalle Inc., OCS Group International Ltd., Quess Corp. Ltd., ServiceMax Facility Management Pvt. Ltd., SILA Group, SMS Integrated Facility Services Pvt. Ltd., Sodexo SA, Tenon Facility Management Pvt. Ltd., Updater Services Ltd., Vatika Group, and Handiman Services Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Facility Management Services Market Research Report in India?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the facility management services market in India between 2023 and 2027
• Precise estimation of the size of the facility management services market size in India and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across India
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of facility management services market vendors in India

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