India Facility Management Services Market Size 2024-2028

The India Facility Management Services Market size is forecast to increase by USD 24.1 billion, at a CAGR of 18.67% between 2023 and 2028. A significant driver is the rising levels of outsourcing in building management. As organizations seek to optimize operations and cut costs, they increasingly turn to external specialists for efficient facility management services. Another important factor is the development of Special Economic Zones (SEZs) and mega food parks. These large-scale projects stimulate demand for comprehensive building management solutions to support infrastructure development and operational needs. Additionally, the focus on smart cities is driving market expansion. Smart cities leverage advanced technologies to enhance urban living, improve infrastructure, and streamline city services, which creates opportunities for innovative building management solutions. Together, the trend toward outsourcing in building management, the growth of SEZs and food parks, and the emphasis on developing smart cities are collectively propelling market growth and shaping the future of facility management solutions. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.

What will be the Size of the Market During the Forecast Period?

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Technavio’s Exclusive Market Customer Landscape

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.

Market Customer Landscape

Market Dynamics

In the market, digital manufacturing technologies and operations technology are transforming factory processes and enhancing customer satisfaction. By integrating smart machines and sensors, facility managers optimize production lines and ensure efficient maintenance requirements throughout the product life cycle. Smart factories leverage real-time feedback and information technology to streamline value chain management and improve service life of assets. Engineering design and tooling play critical roles in product innovation, ensuring that final products meet the highest standards. Product managers oversee design and servicing to align with digital transformation goals. Effective sourcing and resources management contribute to maintaining facility operations and supporting maintenance requirements. Emphasizing product life cycle and servicing practices ensures that customer satisfaction is achieved through enhanced factory processes and smart factory solutions.

Key Market 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 their investments.

Further, 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 Market 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.

Moreover, companies 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 Market 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 Market Players?

Companies 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 companies, 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 market growth and forecasting report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the companies. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. companies 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.

Market Segmentation

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.  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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The soft services segment showed a gradual increase in market share with USD 7.60 billion in 2018. 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Service Outlook
  • Soft services
  • Hard services

• End-user Outlook
  • IIBB
  • Manufacturing
  • Infrastructure
  • Healthcare
  • Retail and others

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Market Analyst Overview

In the market, digital tools and cloud computing are revolutionizing manufacturing processes by enabling real-time manufacturing visibility and optimizing production flows. Utilizing 3D modelling software and simulation techniques, facility managers can effectively simulate processes and model different factory floor layouts, leading to increased efficiency and reduced costs. Automated processes and automated exchange of data streamline paper-based processes, offering quicker turnaround and decreased inventories. This shift enhances performance and optimisation, ensuring product quality while reducing maintenance costs. Design changes and virtual manufacturing processes enable rapid design advantages, accelerating time to market. Customer data and real-time feedback guide manufacturing decision making, ensuring that critical decisions are informed by accurate, up-to-date information. As cloud-based manufacturing grows, reconfigurable production lines and digital manufacturing technologies continue to drive cost savings and pacing innovation, transforming the industry.

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What are the Key Data Covered in this Market Forecasting Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market forecast report of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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