India Integrated Facility Management Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.78 Billion |
| Market Size (2029) | USD 7.76 Billion |
| CAGR (2024 - 2029) | 10.18 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Integrated Facility Management Market Analysis
The India Integrated Facility Management Market size is estimated at USD 4.78 billion in 2024, and is expected to reach USD 7.76 billion by 2029, at a CAGR of 10.18% during the forecast period (2024-2029).
The India integrated facility management market is driven by several factors, including the growing infrastructural developments, rising commercial real estate and residential buildings, sustainable economic growth, and government initiatives such as smart cities and Housing for All. In addition, the significant presence of several local as well as international vendors, technological advancements in the facility management landscape, and the growing emphasis on sustainability and energy efficiency in India are supporting the growth of the integrated facility management market in India.
- Moreover, the construction sector in India is growing, with the rising office spaces and IT parks, growth in commercial and residential construction coupled with growth in the establishment of retail spaces and malls across the country. In addition, the country is also witnessing support and investment from the government to bolster the infrastructure developments in the country. With the surge in commercial, residential, and industrial buildings, there's a growing demand for IFM providers. These providers are tasked with enhancing property management efficiency, curbing operational costs, and ensuring the long-term upkeep of infrastructure.
- India's construction industry is witnessing significant expansion, driven by considerable public sector investments. This growth is creating new infrastructure, necessitating the establishment of efficient facility management systems to maintain and operate these facilities effectively. Government-funded initiatives, including smart cities, highways, airports, and public utilities, are establishing extensive infrastructures that necessitate continuous maintenance and oversight. With the surge in construction projects, there's a growing demand for professional integrated facility management to uphold these assets.
- In India, sectors like healthcare, retail, and ITES (Information Technology Enabled Services) are driving a surge in demand for Integrated Facility Management (IFM) services. As these industries expand rapidly, they increasingly seek advanced facility management solutions to ensure their operations run smoothly, efficiently, and in compliance with regulations.
- Cost optimization problems are a major factor hindering the growth of the integrated facility management market in India. IFM providers face increasing labor, energy, equipment maintenance, and technology adoption costs. Keeping up with these rising expenses while maintaining competitive pricing can reduce profit margins, making it difficult for integrated FM companies to sustain growth.
- In July 2024, the International Monetary Fund (IMF) raised India's growth forecast for 2024-25 to 7%, up from the previous estimate of 6.8%. This adjustment was largely attributed to a boost in private consumption, especially in rural areas of India. As India's economy is on an upward trajectory, a pronounced focus on sustainable development is anticipated in the coming years. With the ascent of green buildings and the embrace of energy-efficient technologies, the integrated FM industry is poised to pivot, offering specialized services aligned with sustainability objectives.
India Integrated Facility Management Market Trends
Hard FM and HVAC Type Segment is Expected to Hold Significant Market Share
- Hard FM and HVAC services encompass MEP (Mechanical, Electrical, Plumbing) and HVAC (Maintenance Services, Enterprise Asset Management, among others). In India, the demand for these services is fueled by the urgent need to maintain and manage building infrastructures efficiently. Contributing factors include a booming commercial real estate market, rapid urbanization, infrastructure development, and an increasing emphasis on efficiency and safety.
- Moreover, as the construction sector flourishes, there's a pronounced growth in the demand for HVAC maintenance services. This surge aligns with a broader focus on curbing carbon emissions and boosting energy efficiency across various industries.
- For example, in September 2023, Prime Minister Shri Narendra Modi reaffirmed India's commitment to achieving net-zero emissions by 2070. India's push for green building certifications, notably LEED and IGBC, further amplifies the demand for energy-efficient HVAC systems and sustainable hard facility management practices. Consequently, as these structures prioritize such standards, there's a notable uptick in opportunities for MEP and HVAC maintenance services.
- By End-User, the Government, Infrastructure, & Public Entities sector is set to be a major player in the demand for Hard FM and HVAC services. This is underscored by a noticeable increase in tenders for HVAC system installations across both public and private buildings, as well as infrastructure projects. Such trends are anticipated to bolster opportunities for HVAC maintenance services. For instance, in July 2024, the Airports Authority of India (AAI) secured a contract for managing HVAC installations at Chennai International Airport's terminal buildings, spanning 2024-2026.
- Furthermore, government initiatives like the Pradhan Mantri Awas Yojana (PMAY), Smart Cities Mission, National Infrastructure Pipeline (NIP), and Bharatmala (road projects) are propelling the demand for MEP services. These ambitious programs, aimed at modernizing urban infrastructure, underscore the importance of integrating mechanical, electrical, and plumbing systems from the design phase.
- India's burgeoning industrial and manufacturing sectors are amplifying the demand for Hard FM services. The 'Make in India' initiative has catalyzed the establishment of new industrial plants, warehouses, and logistics hubs, all of which require robust MEP installations. HVAC systems play a pivotal role in maintaining environmental controls, while dependable electrical and plumbing systems ensure smooth operations.
- In the Indian integrated facility management landscape, the demand for Hard FM and HVAC services is on an upward trajectory. This growth is primarily driven by a heightened focus on building energy efficiency and operational excellence. Both the industrial and government sectors, especially in infrastructure and construction, are at the forefront of this demand surge. As urbanization continues its march, the market is adapting, underscoring the increasing need for intelligent, efficient, and sustainable building systems.
North India is Expected to Hold Significant Market Share
- The North Region includes states/Union Territories such as Delhi, Haryana, Punjab, Uttar Pradesh, and Chandigarh, among others. Several factors drive the IFM market in the North region. These include the rapid expansion of corporate offices, a booming construction sector, and the presence of major IFM vendors like SIS Limited, Lions Services, and Impression Services, all headquartered in the North. Additionally, urbanization is rising in cities like Delhi, Gurgaon, and Noida, supporting market growth.
- Further, state governments in the north region, particularly in Uttar Pradesh, have rolled out a series of policies and initiatives to draw investments and foster industrial growth. These initiatives encompass the creation of special economic zones, streamlining regulatory processes, and extending incentives and subsidies to industries. Moreover, in September 2024, the Uttar Pradesh (UP) government secured almost 1,000 acres in Agra for extensive industrial development, with the vision of turning it into an eco-friendly manufacturing hub. Such advancements are poised to bolster the demand for a wide array of integrated FM services, including cleaning, HVAC, and Hard FM services.
- Punjab's industrial sector, especially in cities like Ludhiana, Amritsar, and Mohali, increasingly demands hard facility management services, including electrical, plumbing, and HVAC maintenance. This surge is fueled by the expansion of the manufacturing, retail, and commercial sectors. For example, in August 2024, the Punjab government received approval from the Centre to establish an Integrated Manufacturing Cluster (IMC) spanning 1,102 acres in Rajpura, located in the Patiala district. The IMC project, part of the Amritsar-Kolkata industrial corridor, is projected to draw investments totaling INR 6,400 crore (USD 0.7612 Billion) from both national and international investors. This positions Rajpura as a pivotal hub for industrial and commercial developments.
- In the North region's IFM market, the commercial, retail, and restaurant sectors are poised to command a substantial share over the forecast period. Cities like Delhi and Gurgaon are rapidly expanding their commercial real estate sectors, fueled by the influx of multinational companies and burgeoning startups. Furthermore, the region's swift urbanization has spurred the development of residential facilities and shopping malls, amplifying the demand for integrated services like cleaning, security, catering, HVAC maintenance, and landscaping.
- In cities like Gurugram and Delhi, the retail sector is thriving. Companies in this sector are focusing on enhancing customer experiences by creating environments that boost productivity and draw in both tenants and customers. Consequently, there's been a surge in demand for Integrated Facility Management (IFM) services in the area. For example, in July 2024, the Elan Group appointed CBRE to oversee the comprehensive facilities management of its four malls in Gurugram. This strategic alliance underscores Elan Group's dedication to providing outstanding experiences for both customers and visitors at its venues.
- Furthermore, according to the Ministry of Statistics and Programme Implementation (MOSPI) data, India's construction industry was valued at INR 3,610 Billion (USD 42.94 Billion) in the fourth quarter of 2023. The value of construction to India's GDP rose from INR 2,430.71 billion (USD 28.91 billion) in Q4 2021 to INR 3,610 Billion (USD 42.94 Billion) in Q4 2023.
India Integrated Facility Management Industry Overview
The Indian integrated facility management market is highly fragmented, with both local and international players having decades of industry experience. The integrated FM vendors are incorporating a powerful competitive strategy by leveraging their expertise.
Some of the major players in the market are BVG India Limited, Compass Group India (Compass Group PLC), ISS Facility Services India Pvt. Ltd. (ISS A/S), Impressions Services Private Ltd., and Krystal Integrated Services Limited, among others.
The IFM providers in the country are incorporating automation into their services, strengthening their service portfolio. For instance, Embassy Services Pvt Ltd has integrated automation into its facility management services, boosting operational efficiency, ensuring compliance, and elevating customer service quality.
Moreover, recently, a significant number of joint ventures and acquisitions were made in the wake of rising large-scale projects. Therefore, the intensity of competitive rivalry is high in the India integrated facility management market.
Quality certification, integrated FM service offerings, costs, brand presence, and technical capabilities are important factors attracting new contracts in the market.
Overall, the intensity of competitive rivalry is high in the studied market and is expected to be the same over the forecast period.
India Integrated Facility Management Market Leaders
-
BVG India Limited
-
Compass Group India (Compass Group PLC)
-
ISS Facility Services India Pvt. Ltd. (ISS A/S)
-
Impressions Services Private Ltd.
-
Krystal Integrated Services Limited
*Disclaimer: Major Players sorted in no particular order
India Integrated Facility Management Market News
- October 2024: CBRE South Asia Pvt. Ltd has teamed up with NetApp to oversee its expansive 1.07 million sq ft office footprint in India. This portfolio encompasses NetApp's campus in Bengaluru, alongside sales offices situated in Bengaluru, Mumbai, and New Delhi. The three-year contract, worth USD 3 million, encompasses a suite of Facility Management services. These services include Account Management, Finance and Budget Management, Procurement Management, Transport Management, F&B (Food & Beverage) Management, Cleaning & Janitorial Services, and Repair & Maintenance.
- September 2024: Awfis, a leading player in the coworking space arena, is selling off its facility management division, 'Awfis Care,' to SMS Integrated Facility Services for INR 27.5 Cr (USD 3.2 Million) in a slump sale. This strategic decision enables Awfis to concentrate more intently on its core business, the flexible workspace market, while also easing its administrative and compliance responsibilities. Awfis Care has been instrumental in providing technical maintenance and operational solutions across the company's varied workspaces.
India Integrated Facility Management Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces 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 Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Public Sector Investment in Construction Activities
5.1.2 Growing Demand for IFM from Emerging Verticals
5.2 Market Restraints
5.2.1 Cost Optimization Problems and Lack of Specialized Talent
5.2.2 Operations Handled by the Unorganized is Eating into the Market Pie
5.3 Dynamics Between Unorganized and Organized Sectors of FM Demand in India
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Hard FM and HVAC
6.1.2 Soft FM
6.2 By End-User
6.2.1 Commercial, Retail, and Restaurants
6.2.2 Manufacturing and Industrial
6.2.3 Government, Infrastructure & Public Entities
6.2.4 Institutional
6.2.5 Other End Users
6.3 By Region
6.3.1 North
6.3.2 West
6.3.3 South
6.3.4 East
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 BVG India Limited
7.1.2 Compass Group India (Compass Group PLC)
7.1.3 ISS Facility Services India Pvt. Ltd. (ISS A/S)
7.1.4 Impressions Services Private Ltd.
7.1.5 Krystal Integrated Services Limited
7.1.6 Lion Services Limited
7.1.7 OCS Group Holdings Ltd.
7.1.8 Property Solutions (India) Pvt. Ltd.
7.1.9 SIS Limited
7.1.10 Sodexo India Services Private Limited (Sodexo S.A.)
7.1.11 Updater Services Limited
- *List Not Exhaustive
7.2 Vendor Positioning Analysis
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
India Integrated Facility Management Industry Segmentation
The India Integrated Facility Management (IFM) market is defined based on the revenues generated from the hard and soft Facility Management (FM) services used in various End-User industries across India. Integrated facilities management (IFM) consolidates the management of business-wide systems and processes, often handled by service providers, onto a single, technology-driven outsourced platform. By adopting IFM, companies can enhance operational efficiencies, realize cost savings, and utilize program data more effectively to align with corporate objectives.
The India Integrated Facility Management market is segmented by type (hard FM and HVAC, soft FM), by end-user (commercial, retail, and restaurants, manufacturing and industrial, government, infrastructure & public entities, institutional, other end users), and by region (North, West, South, and East). The report offers market forecasts and size in value (USD) for all the above segments.
| By Type | |
| Hard FM and HVAC | |
| Soft FM |
| By End-User | |
| Commercial, Retail, and Restaurants | |
| Manufacturing and Industrial | |
| Government, Infrastructure & Public Entities | |
| Institutional | |
| Other End Users |
| By Region | |
| North | |
| West | |
| South | |
| East |
India Integrated Facility Management Market Research FAQs
How big is the India Integrated Facility Management Market?
The India Integrated Facility Management Market size is expected to reach USD 4.78 billion in 2024 and grow at a CAGR of 10.18% to reach USD 7.76 billion by 2029.
What is the current India Integrated Facility Management Market size?
In 2024, the India Integrated Facility Management Market size is expected to reach USD 4.78 billion.
Who are the key players in India Integrated Facility Management Market?
BVG India Limited, Compass Group India (Compass Group PLC), ISS Facility Services India Pvt. Ltd. (ISS A/S), Impressions Services Private Ltd. and Krystal Integrated Services Limited are the major companies operating in the India Integrated Facility Management Market.
What years does this India Integrated Facility Management Market cover, and what was the market size in 2023?
In 2023, the India Integrated Facility Management Market size was estimated at USD 4.29 billion. The report covers the India Integrated Facility Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Integrated Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Integrated Facility Management Industry Report
Statistics for the 2024 India Integrated Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Integrated Facility Management analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
