- 1 Definition / Scope
- 2 Market Overview
- 3 Key Metrics
- 4 Market Risks
- 5 Top Market Opportunities
- 6 Market Drivers
- 7 Market Restraints
- 8 Industry Challenges
- 9 Technology Trends
- 10 Regulatory Trends
- 11 Other Key Market Trends
- 12 Market Size and Forecast
- 13 Market Outlook
- 14 Technology Roadmap
- 15 Distribution Chain Analysis
- 16 Competitive Landscape
- 17 Competitive Factors
- 18 Key Market Players
- 19 Strategic Conclusion
- 20 Further Reading
- 21 Appendix
Definition / Scope
Facility management is an organizational function that enhances the quality of life and improves the productivity of the core business by integrating people, place, process and technology within the facility. It involves the maintenance of property, buildings, equipment and optimization of inventory and other operational elements. ISO defines Facility Management as "organizational function which integrates people, place and process within the built environment with the purpose of improving the quality of life of people and the productivity of the core business."
The development of SEZs and mega food parks will be the major facility management services market drivers in India. With the development of numerous SEZs in India, vendors are facing growth opportunities in offering facility related management services. SEZs offer companies and other business-related benefits. Also, the Government of India implemented the Mega Food Parks Scheme to combine all the stakeholders in agriculture such as farmers, processors, and retailers. This scheme aimed to reduce food wastage and maximize value addition, and these parks consisted of comprising collection centers, primary processing centers, and central processing centers, and others.
Hard services include HVAC, Mechanical, Electrical & Plumbing (MEP), Lighting, Energy Management Services, Water/Plumbing, Energy Audits, Safety Audits, etc.
Soft services include Cleaning, Landscaping, Admin Support, Transport/Fleet Services, Waste Management, Housekeeping, Pantry and Catering, Horticulture and Landscaping, Security, Pest Control, Front Office Support, etc.
The Indian facilities management market is estimated to grow 17 per cent to cross USD 19 billion mark from 2015 to 2020
The swiftly growing services sector is creating huge potential for FM services, which is anticipated to grow at a CAGR of around 17 per cent during 2015-2020 and reach to approximately USD 19.4 billion by 2020
Factors such as boom in real estate, increasing awareness levels, growth in retail and hospitality sectors are the major drivers of this sector In light of the immense growth potential that the sector promises, many players, including foreign players, have dotted the Indian market. India's service sector is the fastest growing part of its economy.
The overall services sector held 33.3 per cent of GDP (at current prices) in 1950-51 and it grew to 67.8 per cent in 2017-18
Soft services is dominating the market with the share of about 65 per cent, in which housekeeping and security occupy large shares of 45 per cent and 34 per cent respectively.
HVAC/Electro-mechanical is clearly dominating the hard services sector and is expected to occupy 90 per cent of the market in 2018
More than 60 per cent of these services are performed in-house, but this trend is changing rapidly. The corporate sector, especially IT/ITES, BPO/KPO and banking and finance sectors are rapidly inclining towards outsourcing the services
Currently 80 per cent of the services offered are on a sub-contractual basis, but it is expected that the trend will shift towards integrated facility management.
|Base Year||2018||Researched through internet|
Decreasing Operating Margin
The facilities management sector has experienced low margins for some time, with no sign of improving. Margins in the Indian facilities management (FM) sector are low, with very few companies showing an improvement. A review of the available accounts for 22 facilities management firms with operations in India, revealed that the average EBITDA margin has remained stagnant around 7% during the last three years. In comparison, revenue grew at an average of 17% from last year, which implies that facilities management providers have not been able to take advantage of scale whilst growing.
Competition and cost inflation are squeezing margins
The struggle to improve margins is largely due to input cost inflation as well as customers’ price squeeze (in response to their own cost pressures). It is also partially a result of the fragmented and competitive landscape in the sector, with a high number of SMEs entering the sector, which creates even further pricing pressure. The cost base of FM companies has recently been impacted by a number of regulatory changes such as the National Minimum Wage being fixed at INR 9735, Apprenticeship Levy and pensions. The introduction of the National Minimum Wage resulted in a cost increase for FM companies since labour is a significant proportion of their overall cost structure. A study from the Office of National Statistics shows that Cleaning and Hospitality were two service sectors most impacted by the National Minimum Wage prior to its introduction.
Top Market Opportunities
Integration of BIM with facility management solutions
By integrating program controls, communication, and information, teams will be able to make business decisions with the correct updated information and manage assets from a central location. Integrating Building Information Modeling and business strategy is the future of Building Information Technologies. BIM is the umbrella under which the network of information can be communicated.
The Benefits of Integrated BIM/ERP Systems are as listed below
- Integrating design and construction
- Synchronizing real time data including updates
- Facilitating interdisciplinary collaboration across the project's lifecycle team
- Bridging technical and operational aspects of built assets
- Increasing productivity through automation
Implementation of the digital twin technology for facility asset management
A Digital twin is a replica of the physical product, process or of a facility asset in this case. Other terms used to describe similar technology have included virtual prototyping, hybrid twin technology, virtual twin, and digital asset management. Digital twin acts as bridge between physical and digital worlds by using sensors to collect real-time data about a physical item. This data is then used to create a duplicate of the item, allowing it to be understood, manipulated, or optimized. Although digital twins have been around for several decades, it’s only been since the rapid rise of the internet of things (IoT) that they’ve become more widely considered as a tool of the future.
Digital twins are getting attention because they also integrate things like artificial intelligence (AI) and machine learning (ML) to bring data, algorithms, and context together — enabling organizations to test new ideas, uncover problems before they happen, and monitor items remotely. digital twins allow building operators to bring together previously unconnected systems - from security to HVAC to way finding system - to gain new insights, optimize workflows, and monitor processes remotely. By optimizing systems and connecting people, owners and operators can use digital twins to reduce costs, avoid future costs, increase occupancy rates, and improve overall asset value.
Need to maintain environmental and regulatory compliance
Economic pressures from regulatory requirements and increased competition are pushing companies to look at how they conduct business. Greater levels of scrutiny and tighter regulations, as a result of financial scandals, have led companies to look to strategic partners that can deliver and manage facility services - while taking on the associated risk. Organizations are looking for a partner that will help them to protect the investment they have made in facility assets, manage the delivery of facility services to minimise interruptions to their core business and look for ways to deliver added value both from the assets, and services they already deliver and other additional valued added services. Clients are looking for all this while at the same time expecting improved cost performance and mitigated risk that comes through delivering cost certainty.
Customers are also facing increasing pressure from health, safety, and environmental (HSE) regulatory bodies. In an effort to focus on their core mission, they are outsourcing their regulatory compliance to FM service providers with service level agreements (SLAs) that include penalty clauses for violations. These regulatory responsibilities are driving a new need for greater expertise in FM services.
Increasing demand for integrated facility management to achieve economies of scale
A rapidly growing construction market and the desire among the private and public sectors to build world-class infrastructure has fuelled the growth of the integrated facilities management (IFM) market in India. India is market for high-end IFM services due to the governments’ and consumers’ emphasis on smart or energy efficient buildings. Green commissioning services and green FM service solutions that allow clients to maintain their green certification have given a huge added boost to IFM in India. As cost management and quality continue to be key concerns for many businesses in the region, IFM service providers have been striving to offer service standardisation as well as significant cost, energy, and ultimately, operational efficiencies. Standardisation is especially important to MNCs as they have facilities in multiple sites.
Changing focus to virtual workplace and mobility
Technology is ubiquitous. Cloud-based functionalities have led to increased transmission of data and information instantaneously, anytime and anywhere. This trend is depicting a growing shift to meet the mobile needs of facilities management. Workers are on the move and in order to access systems and information online, facility managers’ are increasingly using mobile apps resulting in easy accessibility to networks and seamless functioning of all business operations across facilities.
The past few years have seen a clear change in the way employees work; the concept of virtual workplace is growing at a rapid face. Simultaneously, the evolution of the telecommunications industry has been the medium of growth for facility managers adopting increased use of mobile infrastructure for work purposes. It has been found that laptops are the most used technology, but this is expected to decline significantly over the next two years, while smart phones are forecast to grow by 30 percent. Increased adoption of mobile solutions is creating an avenue for facility managers to remotely interface with facilities or locate any maintenance issues with the help of remote monitoring features just from their phones. Hence, the focus on virtual business operations is on the rise amongst facility managers and building owners.
Clearly facility managers are adopting new ways of conducting business and providing services to stay competitive in an increasingly global marketplace. They are trying to boost productivity and lower operation costs.
Increasing development of the sustainable infrastructure
Infrastructure – roads, bridges, ports, power plants, water supply – drive economic growth in many countries by facilitating manufacturing, services and trade. But it’s not just a matter of building more. To achieve good development on a planet stressed by climate change and diminishing natural resources, infrastructure needs to be sustainable. Sustainable infrastructure not only enables sound economic development, job creation and the purchase of local goods and services, it also enhances quality of life for citizens, increases positive impacts (benefits), helps protect our vital natural resources and environment, and promotes a more effective and efficient use of financial resources.
Financial and economic benefits can result from reduced use of materials, improved pollution prevention, reduced carbon emissions, payment for environmental services, and better labor and community relations. Environmental sustainability can also improve the prospects for the financing of projects. Additionally, project stakeholders, and civil society in general, are demanding and expecting environmental sustainability to be integrated into infrastructure projects.
Emergence of the SaaS deployment model
The Software as a service (SaaS) deployment model needs no introduction today. It’s the most reliable software distribution model, where the application is hosted by the vendor and the customers or users access it over the internet network. SaaS ensures secured access to the software and its functionalities from any part of the globe as a web-based service. The user needs a compatible device and an internet connection to access the features of the software application anytime and anywhere.
Facility management requires focus and attention round-the-clock, as it’s a reactive process, where anything can happen anytime. The person responsible for facility management needs to be very quick and should respond within least possible time, no matter where they are or what they are doing. Combing the power of SaaS and facility management will do miracles for any business organization. With a facility management software based on the SaaS model, any information can be accessed within few seconds.
Growing adoption of IoT and smart connected devices for building automation
While India is still at an early adoption stage when it comes to connected devices, home automation is set to drive growth for Internet of Things (IoT) in India. With an increased internet penetration and data usage, the connected devices segment is expected to witness huge growth by 2020. With the government’s continued focus on digitisation, we will see a rapid adoption of connected devices market in India.
Lack of awareness about facility management solutions
There is an ardent lack of awareness about facility management solutions due to the lack of knowledge and the poor transfer of knowledge about the Facility Management Solutions. The lack of managerial awareness is hindering the market from attaining its true potential. The lack of awareness about the benefits of facility management services is prompting the facility management vendors to quote lower prices to survive in this highly competitive market. The intense price-based competition and the lack of awareness is leading to cost constraints in facility management services which in turn is hampering market growth in India.
Budget limitation and cost pressure
The SMEs have Budget Limitation and this restrains the FM Service Providers to offer their services at the lower budgets which causes compromise of the quality of the Services offered and it has been found that compromised quality affects the overall outcome of the offered services. In addition the facilities management sector has experienced low margins for some time, with no sign of improving. Margins in the Indian facilities management (FM) sector are low with very few companies able to meet the ends.
Dependence on the in-house facility management team
To reduce operations costs, facility managers are trying to perform all workplace management tasks in-house. However, some facility managers are gradually deploying facility management solutions, but there is still a considerable lack of awareness related to these solutions. Despite facility management being an important part of operations, enterprises are unaware of the evolving solutions. This has made it a complex task for organizations to give equal importance to their facility management department.
Security breaches and threats have sharply increased a facility manager’s concern about security-related responsibilities. This forces a facility manager to focus on the importance of emergency preparedness. In many organizations much remains to be done regarding emergency evacuation procedures. Bringing the organization up to speed is, therefore, a very challenging task.
Integration of facility management with legacy ERP systems
Outdated ERP Systems is one of the common problems affecting the productivity. In addition There are several inherent risks and security vulnerabilities associated with using unsupported or outdated ERP Systems and all too often successful attacks prey on these gaps. Failure to maintain ERP Systems could impact organizations in one or more ways:
- Data security. One of the major risks is associated around document security, which leaves you vulnerable to security breaches and open to compliance violations with potential fines. 96% of outdated ERP Systems have serious security vulnerabilities that could pose to be major risks to the organization.
- System failure. If and when a system failure occurs, an organization can be left with no second or third level support. 70% to 80% of the top 10 malware can be detected by the latest ERP System.
- Increased costs. Using outdated or unsupported software increases infrastructure costs and lowers worker productivity. ERP System older than 4 years can cost $840 per employee per year in lost productivity.
- Future functionality limitations. Unsupported and outdated ERP System leads to future limitations and lost productivity due to antiquated workflows and processes. 57% of consumers agree that businesses that use modern technology are more competitive
Lack of skills and expertise
To support in meeting the industry’s demand it is emphasized that lack of knowledge and skills within the FM industry to effectively manage facilities from a sustainable perspective. Hence, relevant learning and academic programs to support the existing skill and knowledge base in FM are required to be developed. However, FM field is viewed as having an ill-defined career path, with very few FM academic programs to educate students, which thus hinders the influx of new talent entering the profession. This belief persists to the fact that so few educational programs are available to specifically train facilities managers and recruit cross-over facilities managers from other academic fields. The shortage of skilled manpower for services that require technical expertise is a challenge for the service providers in the market.
Another challenge a facility manager has to deal with is managing ageing inventory. As time passes, equipment and other machinery of the building start to age and begin to wear out. As a result, leakage and breakdowns become inevitable. A facility manager also has to take long preventive and proactive maintenance procedures affecting the quality of the offered facilities.
Green FM Services
Green FM Services is the adoption of sustainable and environment friendly solutions that does not affect the environment and in fact ushers the well-being of the environment. Green Facility Management involving usage of environment friendly solutions, reducing energy consumption and creating sustainable strategies to improve building efficiency is a technology being embraced by major players.
Growing Awareness of environmental sustainability in Indian government may pave the way for a better regulated energy management market in the future. Offering high opportunity for energy management services.
IoT and Analytics
The Internet of Things is routing new possibilities for building integrations and allowing the evolution of intelligent buildings. IoT makes it easy to understand the operations undergoing in an automated building environment, whereas analytics allow the supervisors to understand what is happening within every aspect of a building and a building automation system.
IoT and analytics can be defined as a large number of data points brought together into a cloud environment in which certain models can be applied to influence the outcome. IoT uses one common Internet Protocol (IP) platform to connect all of the sensors and devices in a building to exchange and analyze information and optimize controls automatically.
There is no direct regulatory act for Facilities Management in India, but it comprises a set of standards regulating the Facilities Management sector which includes
BS OHSAS 18001 - Occupational Health and Safety Management (OHS)
BS OHSAS 18001 sets out the minimum requirements for occupational health and safety management best practice. BS OHSAS 18001 is a framework for an occupational health and safety (ohs) management system and is a part of the OHSAS 18000 (sometimes incorrectly identified as ISO 18000) series of standards, along with OHSAS 18002.
Recently, the ISO 45001 has successfully passed the FDIS (Final Draft International Standard) ballot. As OHSAS 18001 will be withdrawn on publication of ISO 45001, organizations currently certified to OHSAS 18001 will have a three year period to upgrade to ISO 45001.
ISO 14001 Environmental Management (EMS)
ISO 14001 standard provides guidance on how to consider multiple aspects of your business procurement, storage, distribution, product development, manufacturing, etc.- so that it reduces its impact on the environment. It also drives to evaluate how to manage emergency response, customer expectations, stakeholders and the relationships with your local community. ISO 14001:2015 sets out the criteria for an environmental management system and can be certified to. It maps out a framework that a company or organization can follow to set up an effective environmental management system. It can be used by any organization regardless of its activity or sector.
EnMS 50001:201 Energy Management Systems
ISO 50001 provides strong base for energy management system for your organisation. The standard specifies the requirements for an EnMS to enable your organization to develop and implement a policy, identify significant areas of energy consumption and target energy consumption reductions
Food Safety and Drug Administration is the trusted agency in the state to enforce the Food, Drug, and Cosmetic Act fairly, upholds safety standards and protects the consumers. There are several state-level acts pertaining to the Food Safety and Drug Administration.
Other Key Market Trends
The adoption of Facility Management Services is rapidly growing due to environmental and regulatory norms. The market is growing at a healthy CAGR of 17%. The companies embracing technologies such as Green FM services, IoT, Analytics, Robotics and Drones are opening the doors of the Facility Management revolution in India. There is an increasing preference for professional FM in the residential sector coupled with increased incidents of high-rise residencies that require unique FM solutions will drive the growth of the sector. Also Residential communities are now increasingly opting to employ professional service providers to manage the common areas including lighting water treatment plant etc. There is an increasing favour shown to outsourcing of Facility Management services to reduce cost and improve efficiency.
Market Size and Forecast
- USD 14.17 Billion – The estimated market size of the Indian Facility Management market in 2018.
- USD 9.21 Billion - The estimated market size of the Indian Soft Services market in 2018
- USD 4.14 Billion – The estimated market size of Indian housekeeping market in 2018
- USD 3.13 Billion – The market size of Indian Security Services market in 2018
- USD 4.46 Billion – The market size of HVAC/Electro-mechanical market in 2018
- USD 42.53 Billion – The projected market size of the Indian Facility Management market in 2025
- USD 21.25 Billion - The projected market size of the Indian Soft Services market in 2025
- USD 9.56 Billion – The projected market size of Indian housekeeping market in 2025
- USD 7.22 Billion – The projected market size of Indian Security Services market in 2025
- USD 10.3 Billion – The projected market size of HVAC/Electro-mechanical market in 2025
- 17% - The expected CAGR growth rate of Indian Facility Management market in the forecast period 2018-2025
Robotics is already installed by several major players for Security and Surveillance in Industrial and commercial facilities. Robots used in security today have evolved so that they are smarter, interactive and able to help humans make real-time decisions Designed for monitoring shopping malls, schools, and corporate and college campuses, the robots are equipped with rechargeable electric motors. They use cameras, GPS and sensors to navigate, and they can communicate with other robots and remote security staff.
Robots have also been created for detecting spillage and leakage in industrial environments and thus help keep the spillage and leakage under surveillance. This helps security personnel keep monitoring spillage and leakage and prevent occupational hazards that may occur because of this.
Drones are aircraft without a human pilot aboard, often referred to as unmanned aerial vehicles. Generally, drones are operated by a human pilot remotely. However, artificial intelligence (AI) algorithms can be used so that drones can fly autonomously. Drones typically carry cameras and allow operators to gather data from areas that are difficult, dangerous, or expensive for humans to get to. Within facility management, drones are primarily being used for inspections in hard to reach areas such as rooftop equipment or building façades. This can save time by obviating the need to erect scaffolding or aerial work platforms. But, more use cases are emerging as drone technology vendors are crafting solutions that can benefit facility managers.
Distribution Chain Analysis
The Facility Management Services could range from maintaining building's air conditions, electrical network, plumbing to cleaning building premises, maintaining landscapes, provide catering services etc. It is about improving and maintaining the quality of life within a facility. It is the role of facility management service provider to ensure that everything is available and operating properly for building occupants to do their work.
Facilities Management is expanding, yet competitive and price sensitive market-place, wherein it is critical for the service provider to maintain the cost leadership and at the same time ensure high customer satisfaction. As part of the next generation solution the facilities management service providers are looking for solutions that can reduce their high operating and administrative cost, ensures optimum utilization of resources, provide them real time visibility on the work that is executed at a remote location, helps them in in meeting customer SLAs and brings automation to reduce redundancy.
Some of leading best practices that were leveraged in designing Facilities Management process were -
- Automated Work Force Management - A tightly integrated Enterprise Asset Management, Scheduling and Mobility solutions.
- Intelligent Call Scripting - Optimum way to record issues raised by customers over a call.
- One click Work Order creation - An highly automated way to process service request, perform multiple validations and create work order as a positive outcome. All this with a single click.
- Quality inspection - A customer oriented automated solution to control the quality of work and gather customer feedback.
- Multi-dimensional Pricing models - Pricing rules based on multiple factors to incorporate multi-dimensional pricing models.
- SLA Monitoring - Priority based SLA tracking based on the time that a work order is sitting in a particular status.
- Out of Scope Services - Display out-of-scope services as well to the customers and give them the option to choose these services. Use this information in the KPI reports for the opportunity to add new service line for the customer.
- Work Type handling - Automated solution to validate the source of generation of work order initiation and route it to the relevant path.
There has been a presence of lot of unorganized players prevailing in the market. These unorganized players are offering soft services at lower budgets, hence hampering the margins of the organized players.
In the Hard Services market there has been a presence of large number of players in the market, over 54% of the market revenues from the complete contract costs have been accrued to the 3 major players namely JLL, Cushman and Wakefield and CBRE. The International presence of these players has given them a USP on the basis of higher technical knowhow which is an important criterion in the hard facility management market in the country.
Evolve from passive supplier to proactive strategic partner
To stay competitive by 2020, facility management companies must move beyond traditional asset deployment and extend their focus on how to use workspace more efficiently to the benefit of all stakeholders.
This is a widening of the Facility Management role and requires a close collaboration with HR and IT teams to align but also to support the overall company strategy.
To accomplish that companies need to develop sets of more strategically relevant KPIs that measure outcomes such as: ability and speed of knowledge creation; impact of office environment on employee productivity and innovation; impact on culture; customer satisfaction; and ability to adapt to changes in the external environment.
Focus on value creation
Historically, the facility management success rate has relied heavily on costs and how to get more for less through cost-cutting. Even though cost-cutting will continue to dominate the agenda, with main emphasis on lowering occupancy costs – being a strategic partner will also require finding new ways to create value for the workspace inhabitants and other stakeholders. This can be reflected in adoption of new and forward-thinking technologies that allow more mobility or provide better conditions for employee training, or creation of a healthier workplace environment that can increase employee productivity, decrease absenteeism and minimize overall stress levels.
Develop sustainable solutions
Given the fact that buildings account for almost 40% of global energy use, sustainability has become an important strategic topic in Corporate Real Estate and Facility Management in particular.
Today, the majority of facility managers are responsible for energy management, health and safety, waste management, recycling, water consumption and carbon footprint management. These responsibilities will expand even more in the years ahead of us.
Because, sustainability is so highly prioritized on the agenda – even at the board level – the pressure on Facility Managers will increase to deliver sustainable solutions across all platforms and activities. The professionals will be forced to rethink all of their existing assets and system into a sustainable framework, including making life-cycle assessments and undertaking life-cycle building management. Training employees in maintaining a sustainable workplace and developing new methods to reduce energy levels, waste and carbon footprint overall, will therefore be one of the key ways to gain new market shares and improve the competitiveness of a facility management business overall.
- Towards 2020, more facility managers will be keen to leverage more technology in their service offerings to stay competitive.
- For many knowledge workers, today already, the idea of workplace naturally includes concepts such as the virtual workplace. This naturally falls within the domain of facility management and must be considered in the overall service offering.
- Technology is and will be important for two reasons. Firstly, it impacts both how we perform our work and where we work. New different types of workplaces – such as assigned workplaces, shared workplaces, home offices, virtual workplaces and flexible offices – emerge.
- Facility Management providers must understand and proactively respond to this.
- Secondly, facility management professionals must use technology to make these workplaces/spaces efficient and effective by taking all available technologies and applying them to support the employees.
- Many facility management technologies are available already, and they must be used and leveraged optimally.
Key Market Players
Jones Lang LaSalle Incorporated or JLL is an American professional services and investment management company specializing in real estate. Since March 2014 it has officially marketed itself under the abbreviation "JLL". Global headquarters are located in Chicago, with an operational remit covering the Americas regional market. Sub-headquarters operate in London (covering the Europe, the Middle East and Africa regional market), Singapore (covering the Asia Pacific regional market) and Moscow (covering Russia and the CIS regional market). The company’s real estate services include agency leasing, capital markets, tenant representation, real estate investment banking / merchant banking, property management, corporate finance, facilities management / outsourcing, hotel advisory, project and development management / construction, energy and sustainability services, valuations, value recovery and receivership services, consulting and investment management.
Cushman & Wakefield Inc. is an American commercial real estate services company. The company's headquarters is located in Chicago, with regional headquarters in New York City (Americas), London (EMEA), Sydney (APAC), and Bengaluru (Asia). Cushman & Wakefield is among the largest commercial real estate services firms with revenues of $6 billion.The firm operates in more than 70 countries and has 48,000 employees.
CBRE Group, Inc. is a commercial real estate services and investment firm. It is the largest company of its kind in the world. It is based in Los Angeles, California and operates more than 450 offices worldwide and serves clients in more than 100 countries. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
Aramark Corporation, known commonly as Aramark, is an American food service, facilities, and uniform services provider to clients in fields including education, healthcare, business, corrections, and leisure. It operates in North America (United States and Canada) and an additional 20 countries, including United Kingdom, Germany, Philippines, South Korea, Chile, Ireland and Spain
ISS A/S (International Service System) is a Facility Services company founded in Copenhagen, Denmark in 1901. ISS services include: cleaning services, support services, property services, catering services, security services and facility management services. The ISS Group’s revenue amounted to DKK 73.5 billion in 2018 and ISS has nearly 500,000 employees and activities in approximately 65 countries across Europe, Asia, North America, Latin America and Pacific
Quess Corp Limited is a provider of business services with headquarters based in Bangalore. It is a step-down subsidiary of Fairfax Financial Holdings Group; held through its Indian listed subsidiary, Thomas Cook India and is listed on the Bombay Stock Exchange and NSE. Starting operations from 2007 Quess Corp operates in India with 64 offices across India along with a presence in North America, the Middle East and South East Asia. The employee strength of Quess Corp is over 2,61,700
Sindoori Faber is a niche player in the Facilities Management Sector, formed as a joint venture between Faber Facilities Sdn. Bhd. of Malaysia and Apollo Sindoori Hotels Limited of India. I t is formed with a vision to be a leader in providing effective and efficient Integrated Facilities Management Services, to enhance healthcare and non-healthcare industries service standards in India.
PSIPL also known as Property Solutions (India) Pvt. Ltd. (PSIPL), established in the year 2000, is part of the renowned Kalpataru Group. One of India’s largest indigenous companies in the Integrated Facility Management Services (IFMS) segment.
Sodexo (formerly Sodexho Alliance) is a French food services and facilities management company headquartered in the Paris suburb of Issy-les-Moulineaux. Sodexo is one of the world's largest multinational corporations, with 420,000 employees that represent 130 nationalities and are present on 34,000 sites in 80 countries. Sodexo serves many sectors, including private corporations, government agencies, schools from preschool through university(including seminaries and trade schools), hospitals and clinics, assisted-living facilities, military bases, and prisons. As of 2016 subsidiary Sodexo Justice Services operated support services in 122 prisons in eight countries, including 42 in the Netherlands, 34 in France, and others in Belgium, Italy, Spain, and Chile, as well as running 5 prisons directly in the UK.
The market size of the Indian Facility Management is estimated to be USD 14.17 Billion in 2018 and is expected to grow at a CAGR of 17% in the forecast period 2018-25. The market is set to reach a market size of USD 42.53 Billion.
The major factors restraining the growth of the Indian Facilities Management market includes Lack of awareness about facility management solutions, Budget limitation and cost pressure, Dependence on the in-house facility management team, Security Management.
The Challenges posing headwinds in the Indian FM market includes Integration of facility management with legacy ERP systems, Lack of skills and expertise, Ageing inventory
The driving factors augmenting the growth of the market includes Need to maintain environmental and regulatory compliance, Increasing demand for integrated facility management to achieve economies of scale, Changing focus to virtual workplace and mobility, Increasing development of the sustainable infrastructure, Emergence of the SaaS deployment model, Growing adoption of IoT and smart connected devices for building automation.
- HVAC - Heating, ventilation, and air conditioning
- MEP - Mechanical, Electrical & Plumbing
- USD - US Dollar
- CAGR - Compounded Annual Growth Rate
- FM - Facilities Management
- GDP - Gross Domestic Product
- ITES - Information Technology Enabled Services
- BPO - Business process outsourcing
- KPO - Knowledge process outsourcing
- EBITDA - Earnings before interest, tax, depreciation and amortization
- BIM - Building Information Modeling
- ERP - Enterprise Resource Planning
- AI - Artificial Intelligence
- ML - Machine Learning
- SLA - Service Level Agreements
- IFM - Integrated Facilities Management
- SaaS - Software as a service
- IoT - Internet of Things
- IP - Internet Protocol