India Facility Management Market Report - 2020 |India Housekeeping Management Market

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India Facility Management Market Outlook to 2020 - Driven by Rapid Growth of Commercial Spaces and Advent of Smart Cities" provides a comprehensive analysis of the facility management services in India. The report covers various aspects such as market size of India facility management market, segmentation on the basis of types of services, organized/unorganized, major cities, type of contracts, sectors of services provided and subsectors.

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India Facility Management Market Report – 2020:
Ken Research

Facility management encompasses numerous disciplines to
make sure the functionality of the built facility by
incorporating people, process, place and technology. With the
technological improvement and transforming living standards
of people the demand of facility management has also
increased to a great extent. The facility management market
in India has however still been in its nascent stage covering
only ~% of the working areas. A huge proportion of
population still prefers in house management of servicing
rather than outsourcing the services.

The facility management market in India has grown enormously
at a CAGR of ~% duri g the period FY’
-FY’
. I the
current scenario, people have been prepared to spend a
premium to upgrade their environment and living conditions.
Hence, the facility management industry has been emerged
as one amongst the most booming Industries across India. It
has broadly been categorized into 2 types of services:
• Hard services include electro-mechanical, fire safety and
business operations and management services.
• Soft services include housekeeping, security, façade cleaning
and business support services

I FY’
, the arket for fa ilit a age e t i I dia is
dominated by soft services with the market share of 65% in
the overall market revenues. The main reason for the
dominance of soft services has been the higher utilities of soft
services since they have been used in every day work and
operation of an organization. Housekeeping and security for
example have been required everyday in any organization, on
the other hand hard services such as electro-mechanical
services are not required every day which is why these
services have a lower share of ~% in the overall market
revenues of facility management in the country.

It has also been observed that out of the major cities, Bangalore
has been dominating the market for facility management in
the country with ~% share in overall market revenues of
FY’
ei g a IT hu a ked a e or ous i rease i et
absorption of commercial spaces. In 2014, a 72% increase in
net absorption was recorded in Bangalore which makes it
clear leader in the market. In Delhi NCR, Gurgaon, MG Road,
NH8 and Noida city witnessed higher absorption while the
Eastern Suburbs and Thane- Navi Mumbai witnessed higher
absorption in Mumbai in 2014.

Mumbai and Delhi have been the second and third leader in the
market in terms of revenues with ~% and ~% share in the
market revenues respectively from facility management in
FY’
.The India facility management market has been
penetrated with high competition arising from presence of
both international and domestic players in the market. So far,
the market has been concentrated in the terms of revenues,
since more than ~% of the revenues has been accrued to
major 3 players namely JLL, CBRE and Cushman & Wakefield.

JLL has been leading the market with ~% share in the overall
revenues from facility management services. Other players
include Knight Frank, BVG, A La Concierge Services, George
maintenance services and many more Market revenues from
the facility management market in India are expected to
e pa d to USD ~ illio i FY’
, gro i g ith a CAGR of
~% fro FY’
to FY’
. The soft facility management
services has clearly dominated the facility management
market majorly due to the fact that these services have been
demanded in almost every commercial organization,
residential apartments in urban areas and many more spaces.

Moreover the change in behavioral pattern of the population of
country towards a clean and safer environment has further
provided an impetus to the industry which has lead the
i dustr to gro at a CAGR of ~% duri g FY’
to FY’
.
India soft facility management market has earned revenue
orth USD ~ illio i FY’
. The soft ser i es a
ajorl
be segmented into four categories namely: housekeeping,
security, façade access and business support services. The
major share in the market has been accrued to the
housekeepi g arket orth USD ~ illio i FY’
o eri g
~% of the India soft facility services.

The second highest share has been accrued to the security
services accounting for 34% of the market and has been
re orded to e orth USD ~ illio i FY’
. The arket
has been segmented on basis of the revenues from the
sectors such as commercial, residential and hospitality. It has
been observed that the commercial business parks have been
growing along with other commercial spaces which have been
getting highly automated with the improvement in technology
and to further focus on the core business of the companies,
they outsource their additional management to the facility
management companies.

The soft facility management market in India has been
penetrated with high competition arising from presence of
both international and domestic players in the market. So far,
the market has been concentrated in the terms of revenues,
since more than ~% of the revenues has been accrued to
major 3 players namely JLL, CBRE and Cushman & Wakefield.
JLL has been leading the market with ~% share in the overall
revenues from soft services. There has been a presence of a
lot of low cost unorganized players prevailing in the market.
These unorganized players are able to provide the services at
a cheaper price hampering the margins of the organized
players.

However, the revenue share of the organized players have still
been as high as 70% backed by increasing awareness of
people to prefer the professional services as they do not wish
to sacrifice on the quality of soft services they receive. The
current penetration of the facility services have been as low
as ~%, thereby there is a huge scope for expansion of this
sector backed by increasing number of commercial and
reside tial u its. I the ediu ru , FY’
8, the soft fa ilit
management is expected to cross the USD ~ million in the
revenues and for the longer run it is expected to reach USD ~
million for the revenues in soft facility management services
i the ear FY’
.

The hard facility management services in India are majorly
related with fundamental electro-mechanical upholding of
lifts, diesel generator sets, maintenance of air conditioners
and a few more. However there has been a series of
technological changes which has been impacting the market
and hence led to the growth of facility management market
re e ues at a CAGR of ~% duri g FY’
-FY’
. The o erall
revenues in the hard facility management market were
re orded at USD ~ illio i FY’
.

The market for hard facilities management has been segmented
into different services including electro-mechanical,
operations and maintenance of building and fire safety. The
electro mechanical services has clearly dominated the market
for hard services with ~% share in the market revenues
majorly accrued from the HVAC systems in the facilities.
Despite the fact that there has been a presence of a number
of players in the market, over ~% of the market revenues from
the complete contract costs have been accrued to the major 3
players namely JLL, Cushman and Wakefield and CBRE.

The international presence of these players have given them a
USP on the basis of higher technical knowhow which is highly
required criteria in the hard facility management market in
the country. The leader in the hard services market has been
JLL with over ~% of the market share in terms of the revenues.
JLL has been followed by Cushman & Wakefield and CBRE
with ~% and ~% share respectively in the market revenues for
the ear FY’
. It has also been observed that large
commercial enterprises dominated the market revenues with
a ajor ~% share i the arket re e ues i FY’
out of
the overall hard services revenue. The other ~% share in the
market revues has been accrued to the small and medium
enterprises in the commercial sector.

Rising pollution and global warming is expected to impose the
needs of HVAC, rising personal disposable income will make
the consumers live more comfortably with power backups
becoming highly important to sustain and for maintaining
such complex devices there would be a need for hard facility
management services. High concerns for the newer
sustainability will require high demand of operations and
maintenance services for resource management. Owing to
these factors the revenues of the market will stimulate to
gro at a e pe ted CAGR of ~% fro FY’
to FY’
a d
reach the levels of ~ million in the medium term outlook till
FY’
8 a d further rise to USD ~ illio i the lo ger ru till
FY’
.

Improvement in the technology with reducing time taken for a
project has increased the automation of services in the
country. A rising number of companies have started including
mechanized or automated services in their portfolio. The
major reason of its popularity has been the loaded faults and
defects in the manual services. Now, for overcoming the
faults, the companies have to devise the automated versions
of their services. The companies have been finding different
possible combinations of man, machine and consumables for
achieving the best possible solution. This has helped the
companies to minimize the chances of human errors.

There has been a consistent growth in the economy of the
country with the increased share of service sector has led to a
boom in real estate of the country. Real estate has
o tri uted ~% to the ou tr ’s GDP in 2014. To make people
more aware and professionally certify facility management,
the International Facility Management Institute (IFMI) has
been launched in the cities of Hyderabad and Bangalore to
offer post-graduate courses in facility management (PGcFM)
and facility management practitioner (FMP) certification
courses which are certified by the International Facilities
Management Association, USA.



Source: https://www.kenresearch.com/manufacturing-andconstruction/infrastructure/india-facility-management-market-researchreport/6193-97.html



Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
[email protected]
+91-9015378249
Website : www.kenresearch.com



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