Facility Management (FM) refers to the use of a third-party service providers to maintain a part or entire building facility in a professional manner. It is increasingly gaining popularity amongst commercial as well as residential clients driven by modernization, rapid urban development and a growing awareness of advantages arising from outsourcing non-core business activities.
The Indian facility management market accounts for 3.2% of the GDP of the country and is at present an INR 5 lakh crore market and is expected to grow at a rate of 20-25% annually. The market is highly fragmented with relatively few organized players. However, with the growing formalization of the economy, the proportion of organized players is steadily increasing.
At present, the organized FM services industry in India is valued at INR 50 thousand crore constituting 10% of the total market. This is expected to grow to INR 1.25 lakh crore by 2022. In India FM services companies have only tapped 25% of the addressable market with 75% of this work still being undertaken in-house, a stark contrast to 49% at the global level
The Indian Facilities Management (FM) industry is in the midst of rapid development. The anticipated growth in the market can be attributed to:
Growth in commercial and residential real estate
Increase in SEZs, mega food parks, smart cities and housing projects
Greater awareness of cleanliness and hygiene amongst industries
Reduction in operating costs of the facilities/buildings
More outsourcing by corporates who were hitherto insourcing
Inability to provide specialized cleaning by inhouse personnel
Increased business activities from Tier-2 and Tier-3 cities
Increase in outsourcing of facility management services by Government offices