The facility management services market in India was valued at around $9 billion in 2015 and is expected to surpass $19 billion by 2020, says Technavio.
Technavio has announced its latest market research report on facility management services to its automation portfolio. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the facility management services market in India during the forecast period 2016-2020. Some of the top vendors listed in this industry analysis include Avon FMS, CBRE, Cushman & Wakefield, Jones Lang LaSalle, Knight Facilities Management, and UDS.
“The major trend that will drive growth in the market is the transition toward regional and global procurement. In an attempt to achieve cost savings and ensure quality control, several large global companies have incorporated global or regional model for outsourcing. During the forecast period, it is expected that the end-user industries will opt for a single vendor to centralize their FM services across their locations of operations. With more integrated offers, small players will be required to collaborate with a single vendor point for all facilities related services,” says Bharath Kanniappan, a senior lead analyst at Technavio for research on automation.
Click here to request a free sample of this report
The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Growing real estate and property management market
The major contributor to the country’s GDP is the Indian real estate sector and stands second in terms of employment opportunities. The contribution of housing sector in the real estate industry accounts for around 5% to the country’s GDP, whereas office space absorption was around 35 million sq. ft. in 2015. The major clients of office space in India are large corporate firms and MNCs. In Asia, India stands at a strong position in terms of total office space rented. Due to the healthy growth of this sector in the country, India accounted for almost half of Asia’s total office leasing during the third quarter of 2015. The property management companies that deal with integrated FM services get lots of scope with the growth in the real estate sector. It is expected that by 2020, many residential and commercial complexes will be constructed including hotels, offices, shopping malls, and hospitals. Owing to the growing requirement for FM services like housekeeping, security, cleaning, hospitality, property management, electrical, mechanical, and civil engineering services in the residential and commercial units, the growth in the real estate sector will have huge impact on the growth of FM market.
Demand from growing IT/ITES/BPO sector
The demand for FM services in India has witnessed huge growth due to the growth in BPO, IT, and ITES sectors. At present, the country has the world’s largest IT industry, accounting for approximately 65% of the global IT market, which is expected to grow further in the coming years. Most of the offices require hard and soft services which clearly indicates that the FM services industry will have a positive growth. Also, the rapid expansion of office spaces will contribute to the overall growth in the FM services market. FM services in the IT industry have gradually altered their role from an outsourcing service arm to a more solution-based channel for business improvement. With technological advancements, it is expected that FM services will evolve from workplace management to cloud-based solutions and services underlined by Computer Aided Facility Management (CAFM).
Increased adoption of outsourcing by industries
The levels of FM services outsourcing vary across different industries. For example, IT/ITES companies in India have arranged established FM outsourcing models, whereas other industries are still growing towards an integrated FM adoption. Depending on the competences of vendors, the service expectations vary. Unlike small and local vendors, big vendors have the opportunity to cater to wide variety of facilities services. Apart from this, delivery capability of FM services will also depend on the technological changes, which will further improve the quality of services offered. With developments in the FM services market, other important areas of businesses such as financial management, energy management, and assets and property management have become an integral part of service offerings.
Building integrated systems
With facility management becoming a crucial part of business operations, organizations can shift their focus towards core activities. The requirement for holistic solution to ensure that facilities are organized well, has made the organizations realize the importance of FM services. The overall system competence can be increased by functionally linking two or more systems that perform related functions. Integrated FM systems ensure a hassle-free technique toward operating and maintaining building facilities. It is expected that the organizations will adopt an integrated method for managing their facilities in the coming years, resulting in the overall growth of the sector.
Some of the other prominent vendors identified in this report are Atkins, Impressions Services, ISS, Nouvel, and Sodexo.
This research report includes an in-depth analysis and market shares and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, key financials, etc. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.
A more detailed analysis is available in the Technavio report titled, ‘Facility Management Services Market in India 2016-2020‘. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Remote Health Delivery Market in India 2016-2020
- Smart Classroom Market in India 2016-2020
- Global Energy Management Systems Market 2016-2020
To read more press releases- click here.
For any assistance or query, please contact our media team at:
media@technavio.com
US: +1 630 333 9501
UK: +44 208 123 1770
https://www.technavio.com/
