On the Rise: The Dynamic Expansion of India's Facilities Management Industry

The field of Facility Management (FM) is indeed undergoing significant transformations and upgrades due to several key factors and trends. Globally the Facilities Management Market grew from?USD 26.30 billion in 2023?to?USD 27.44 billion in 2024.?It is expected to continue growing at a CAGR of 4.41%, reaching?USD 35.59 billion by 2030. In India also from the year 2015 onwards, the FM market has shown consistent growth, driven by factors such as urbanization, outsourcing trends, and infrastructure development.The CAGR of the Indian FM market to be in the range of 12% to 15% over the past few years. This growth rate is considered strong compared to other segments within the real estate and services industries.

?The complexity involved in managing multiple facilities often creates challenges for organizations seeking to implement hard facilities management strategies. The integration of artificial intelligence (AI) and automation technologies promises to enhance operational efficiency by automating routine tasks and providing real-time insights into asset performance. As organizations continue to seek new ways to optimize operations while reducing costs, many are turning towards third-party service providers who specialize in managing physical assets on their behalf. The Governments machineries globally are increasingly providing support and frameworks for the integrated facilities management service providers with a strong focus on sustainability & ESG. These supports are fuelling the demand for advanced solutions in managing infrastructure, equipment, and other physical assets to ensure optimal utilization and minimal environmental impacts.

In India, integrated facilities management service providing organisations rely heavily on a fantastic blue-collar workforce – the security guards, the cleaning crew, the electricians, the plumbing heroes, the caring caretakers, who keep things running smoothly at client sites. But managing these superstars often involves a great ecosystem of sourcing, logistics, training, grooming, hostel arrangements, OJT and many more. Few factors like work from home, hybrid workplace, inconsistence minimum wages across country, have been partial roadblocks in long term retention of these workforce but has not impacted the overall growth of this sector, which is poised for further growth.

?The overall FM market in India is also influenced by global trends in outsourcing, advancements in technology (IoT, AI), and the growing focus on sustainability and energy efficiency in building operations. Looking forward, the Indian FM market is expected to continue growing at a healthy pace. Factors such as increasing urbanisation, the Make in India initiative, the development of smart cities, adoption of technology in FM practices and stringent regulatory requirements for building management and safety are likely to drive it ahead on the growth path.

Global Association for Corporate Services RICS IFMA iNFHRA Dr. Sameer Saxena, FRICS, IGBC AP, GEM CP, IOSH (UK) Aravind Babu Ramaraju Lt Col Ramesh Menon Kapston Services Limited Shashidhar Sharma JLL India CBRE India Reshmi Shankar Giri Prasad Ramamoorthy, FMP, MRICS Anand Mallepudi MRICS, EMBA,CSPO Major Aditi Mohan Wg Cdr Srikanth Balagandar MCR