Download Market Scan Report for Facility Management Industry

Market Scan Report
For Facility Management
Industry - India
Avon Facility Management Services Pvt Ltd
Industry Outlook
Industry growth trends
India has witnessed robust growth in the services sector in the past two decade. The services contribution
to the Indian GDP has grown from 36 % in 1983 – 84 to 56 % in 2009 – 2010. The growth in the services
sector was dominated by financial Services, organized retail, telecom, Information technology; IT enabled
services and hospitality services. These new economy sectors has created employment opportunities in
sales and marketing , back office operations, logistics services , hospitality , BPO – voice and non voice
process , IT hardware and software technicians etc .The economic outlook for the country remains
stable and India is well poised to register more than 8 % GDP growth in the coming decade .
The size of India’s labor force in 2007 was estimated at 489 million that is higher than the total population
in 1961. In 2012 the size of the labor force will be in the range of 538 million that would be very close to
the total population in 1971. By 2017 India’s labor force would exceed the total population in 1971 by 45
million. Researchers have indicated that Indian labor force is likely to exceed China by 2025. The country
will have a huge challenge in generating employment opportunities for the increasing labor force. Few of
the challenges have been highlighted in the report published by NCEUS in 2007 -
1.
2.
The overwhelming portion of workers of the poor and vulnerable groups (between 94% and 98%)
is informal workers, while they constitute much smaller proportion of the work force in the middle
class or higher income groups. The growth rate of employment also was much less among the
Poor and vulnerable groups compared to the Middle and Higher income groups. In other words,
both in terms of quantity and quality of employment the poor and vulnerable groups had been
lagging far behind the others during the period of rapid economic growth.
This disconnects between income growth and employment growth in India becomes even more
striking when we examine the records of the organized manufacturing sector. During the ten
years of high rate of growth between 1993 and 2004, GDP was associated with an impressive
growth of the value added in the manufacturing sector, but there was very little growth of formal
employment in this sector during this period.
(Extracts from the report – “The challenge of employment in India)
Facility Management Industry
The market for facility management services is highly fragmented and unorganized. Small and medium
sized unorganized players with few clients and services dominated the market. The growth in the office
space and the creation of more integrated facilities and campuses has created growth opportunities for
more organized players. The market for facility management grew with the IT revolutions. International
players also entered the Indian market to tap the growing opportunity. As per the latest industry estimate
the market size for the Facility management services is close to 8,000 Crores and has an employment
potential of 5 Million People.
A study in 2009 by CRISIL on the real estate development in the country revealed that India is likely to
add more than 150 million Sq Ft of office Space during 2009- 2011 . The addition along can generate
more than 1 lakh Jobs in the Housekeeping and Janitorial Services. Big metropolitan cities are adding
malls, restaurants, Technology Parks and Integrated campuses. SEZs, Integrated plants, Ports and
Highways, these facilities require large and integrated players to manage the operations. Employment
generation potential in this segment is huge.
Source: Avon analysis
The facility management service is expected to grow at about, 30% per annum on account of the
following growth drivers:


Strong growth in commercial and office space
High growth of IT / ITES sector with its unique demand of large and 24x7 complexes
Value Chain of Activities in Facility management
Projected Human resource requirement in ‘000s
Resources to be employed in Facility and management and related industry (‘000s)
Skill pyramid Required for the Facility management and its required industry
Employment Potential across various sectors
Facility Management Services sector offers huge employment potential. As per the NCEUS report the
projected incremental demand for manpower till 2022 is as below.
All Figures in Lakhs
Incremental Manpower
Requirement by
Sector
Roles
2022
Housekeeping
Electrical and Maintenance Services
Landscaping and Gardening
Fire Fighting
Hospitality
Environmental Services
39.37
Waiters
Room Attendants
Houseman
Facility Management
Housekeeping Supervisors
10.17
Bedside patient assistant
Technicians
Paramedics and others
Healthcare
Total
7.85
Store operations
57.39