India Facility Management Market |India Housekeeping Management Market presentation

About This Presentation

Transcript and Presenter's Notes

Title: India Facility Management Market |India Housekeeping Management Market

1
India Facility Management Market Report 2020
Ken Research
2

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 during the period
FY2010-FY2015. In 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

In FY2015, the market for facility management in
India 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 FY2015 being
a IT hub backed by an enormous increase in net
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 FY2015.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 expand to USD million in FY2020, growing
with a CAGR of from FY2015 to FY2020. 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 industry to grow
at a CAGR of during FY2010 to FY2015. India
soft facility management market has earned
revenue worth USD million in FY2015. The soft
services can majorly 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
housekeeping market worth USD million in
FY2015 covering 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 recorded to be worth USD
million in FY2015. The market 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
residential units. In the medium run, FY2018,
the soft facility 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 in the year FY2020.

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 revenues at a CAGR of
during FY2010-FY2015. The overall revenues
in the hard facility management market were
recorded at USD million in FY2015.

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 year
FY2015. It has also been observed that large
commercial enterprises dominated the market
revenues with a major share in the market
revenues in FY2015 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 grow at
an expected CAGR of from FY2016 to FY2020
and reach the levels of million in the medium
term outlook till FY2018 and further rise to USD
million in the longer run till FY2020.

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 contributed to
the countrys 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-
and-construction/infrastructure/india-facility-man
agement-market-research-report/6193-97.html
Contact UsKen ResearchAnkur Gupta, Head
Marketing CommunicationsAnkur_at_Kenresearch.Com
91-9015378249
Website www.kenresearch.com

19
Thank You

Write a Comment

User Comments (0)