By Tanuja Akkannavar
Facility Management Industry is a broad term for a service that integrates personnel, places, operations, resources, and technology to maintain the functioning, safety, comfort, and productivity of the workplace environment. In India, the in-house component dominates the facility management market; although, such services are rapidly being deployed. The sector is also developing due to the increased need for comprehensive facility management. The industry's interconnected business is likely to develop more as the companies shift more to the organized sector.
Whereas the market is now highly diversified and ruled by disorganized small players, it is likely to grow more structured in the future years as bigger companies acquire smaller businesses. In India, the corporate sector is the most popular end-use industry, preceded by manufacturing and many other sectors. Corporate offices, such as those in the IT, BPO, and BFSI domains, are increasingly migrating their services to outsourcing, resulting in facility management industry growth development in India.
Growth of Facility Management Industry in India
India's facilities management industry is being fuelled by the country's fast rise in population. Market expansion is also aided by rising modernity and urbanization. The growing demand for workplace modernization and service simplification is assisting the industry's expansion. Because India is a rising economy, global firms are increasingly establishing themselves there. Rapid growth from foreign corporations is also helping India's sector flourish. Special administrative zones, such as India and China, provide an ideal platform for lead to more effective; as a result, the company's expansion is aided substantially by the developing economy.
The consistent increase of the market in India is being fuelled by urban development as well as the rise of the real estate industry. With the population increase and immigration, the Indian government is also extending its housing facilities. Housing demand is skyrocketing. There is also a growing market for facility management to match the continued growth. Furthermore, the real estate industry is developing as a result of the rising need for housing amenities. The comprehensive facility management industry is being driven by the rising real estate sector, which is being fuelled by the building of both residential and commercial structures such as business centres, offices, manufacturing units, and housing complexes, among other facilities.
Security, housekeeping, electrical, cleaning, mechanical, and civil engineering services are in high demand from the real estate business. The expanding building of malls and retail outlets in India is also propelling the sector ahead.
Factors Driving the Facility Management Industry
1. The real estate industry is being driven by rising wealth and urbanization as a result of the country's economic progress.
2. One of the reasons propelling the market is the rising demand for office space in the nation.
3. The number of flexible workspaces in the country is increasing, and the convenience and cost-effectiveness of co-working facilities are enticing small and medium-sized businesses.
4. Facility management services are also becoming more popular in the residential real estate market. The market is being driven by the country's expanding number of residential complexes.
5. Because the organization attempts to focus on core process growth, the Indian market for contracting such facilities is likely to increase in the future years.
Over the following five years, the India Facility Management Market is expected to develop at a CAGR of 24%.