India Facility Management Market Assessment, By Type, By Mode, By Industry Type, By End-user, By Region, Opportunities and Forecast, FY2019-FY2033F

India facility management market is projected to witness a CAGR of 12.75% during the forecast period FY2026-FY2033, growing from a total addressable market (TAM) size of USD 54.81 billion in FY2025 to USD 138.04 billion in FY2033. The facility management market in India is growing rapidly, owing to the rapid growth of urbanization, infrastructure, and changing business needs. The facility management domain is a broad domain which provides services such as maintenance, operations, security, and energy management for built environments to ensure they function and perform efficiently. The technological developments in IoT, AI, and automation for predictive maintenance, optimizing resource use, and efficient cost management are factors propelling the demand. The other key drivers include the growth of commercial real estate, hybrid workspaces, and government initiatives such as the Smart Cities Mission, which focuses on sustainable and inclusive urban development. Increasing adoption of green building practices and compliance with regulatory frameworks are also driving demand for professional facility management services. The market has witnessed tremendous growth due to increasing outsourcing trends, and the integration of cloud-based solutions is again reshaping the landscape of this industry. IT, healthcare, and retail sectors significantly influence the demand for integrated facility management services for operational excellence. This dynamic market is poised for sustained expansion as businesses prioritize safety, sustainability, and efficiency in their operations while embracing innovative solutions to meet evolving infrastructure needs across India. Businesses are increasingly acquiring competitors entirely as part of their growth strategies, while many are also partnering with technology firms to enhance their services and long-term efficiency.

According to CBRE (2025), the country reported the highest-ever office absorption in H1 2025, with Global Capability Centres (GCCs) driving 35-40% of leasing. Strong demand in Bengaluru, Hyderabad, Pune, and NCR, coupled with long-term foreign investments, is creating sustained opportunities for hard (technical) and soft (support) FM services, particularly in areas such as space optimization, HVAC upgrades, security, and workplace experience management.

Advanced Maintenance Services for Industries Drive the Market

India facility management market is in a growth phase, driven by high-technology maintenance services for various industries. As organizations increasingly recognize the significance of operational efficiency, the integration of cutting-edge technologies such as IoT and automation has become paramount. Furthermore, the soft and hard service delivery market is changing due to the growing emphasis on sustainability and cost-effectiveness through providers' adoption of eco-friendly practices and energy-efficient solutions. Such a paradigm shift enhances the longevity of buildings and infrastructure significantly improving overall productivity. Also, advanced clinical equipment maintenance services led the healthcare providers by ensuring the reliability, safety, and efficiency of critical medical devices. By emphasizing quality control, user training, and preventive care, they enhance patient outcomes while reducing operational risks.

For instance, in February 2025, Sodexo India inaugurated a new Healthcare Technology Management (HTM) facility in Sector V, Kolkata. The 6,700 sq ft facility hosts six specialized labs and is designed to maintain up to 500,000 medical devices, significantly enhancing HTM operations in eastern India.

Growth in the Commercial Sector Fuels the Demand

Growth in the commercial sector is significantly contributing to the growth of facility management services in India. With urbanization picking up pace and businesses expanding, there is a huge need for commercial spaces to be well maintained. Organizations are outsourcing facility management services to enhance operational efficiency and focus on core activities. After the pandemic, expectations around safety, hygiene, and sustainability have surged, increasing demand for all-around facility management solutions. On the other hand, the Indian government is taking infrastructure development initiatives such as Smart Cities Mission and expressway construction to boost the commercial and residential settlements near them. This provides numerous opportunities for facility management service providers to support shifting commercial landscapes in cities.

In May 2025, the Punjab government announced the appointment of facility managers across all district hospitals to improve non-clinical services and ease the administrative burden on doctors. The move aims to streamline hospital operations, ensuring the efficient management of logistics, equipment maintenance, sanitation, water supply, hygiene, and outsourced services, including diet, security, and laundry. By shifting these responsibilities to professional managers, doctors can focus more on clinical duties, while accountability and service quality in public health facilities are expected to improve significantly.

Hard Services are Projected to be the Fastest Growing Segment

Hard services are projected to be the fastest-growing segment in the facility management market, as organizations increasingly focus on the structural integrity and operational efficiency of their facilities. Hard services include essential maintenance tasks such as HVAC systems, electrical and plumbing services, and building repairs, which are critical for ensuring safety and compliance with regulatory standards. As businesses expand, the urbanization rate accelerates, and real estate booms, there is a greater need for efficient hard services to maintain the complex infrastructures. Focusing on hard services reduces risk and contributes to commercial environments' overall productivity and sustainability, ensuring a firm market grip. Hard services such as electrical works encompass essential tasks such as installation, maintenance, and repair of electrical systems, which are critical for the functionality of modern infrastructures.

Southern India Leads the Market

Southern India is emerging as a key region in the Indian facility management market, primarily due to rapid urbanization and strong economic growth. The growth of the commercial sector in the region, particularly in cities such as Bengaluru and Chennai, has increased the demand for holistic facility management services. As companies increasingly focus on operational efficiency, the demand for niche hard and soft services skyrocketed. In addition, with many IT parks and commercial hubs set up, the competitive environment fosters innovation and integration of technology into facility service delivery. Companies are enhancing infrastructure by offering their services, boosting market growth, and making Southern India hold a significant market share with the highest demand for facility management services. Companies are collaborating and acquiring to foster innovation and expand their footprints in southern states.

For instance, in January 2025, Supreme Facility Management Limited, a leading player in the facility management sector, signed a Non-Binding MOU (Term Sheet) to acquire a 76% stake in two companies, Cleanway Management Systems (India) Private Limited and Ashok Business Service India Private Limited respectively. This strategic move is set to bolster the Supreme's Integrated Facility Management service offering in the southern part of India, particularly in Karnataka, Tamil Nadu, and Telangana, further consolidating its leadership in the region.

Future Market Scenario (FY2026 - FY2033F)

The Indian facility management market will witness increased adoption of smart technologies for efficient, real-time service delivery for the forecasted period.

Sustainability-focused solutions will dominate as eco-friendly practices and energy-efficient technologies become critical to be used in buildings as per standards.

Integrated facility management services will streamline operations, offering holistic solutions to meet diverse business needs.

Infrastructure growth and urbanization will drive demand for professional facility management across expanding sectors such as healthcare, residential real estate, and hotels.

Key Players Landscape and Outlook

The competitive landscape of the Indian facility management market is characterized by a high degree of fragmentation, with numerous local and international players vying for market share. The market competition is driven by the growing demand for both hard and soft services across various sectors, including commercial, healthcare, and education. Major players such as BVG India Limited, ISS Facility Services, and SIS Limited leverage their extensive experience and technological advancements to enhance service delivery and operational efficiency. The growth opportunities remain robust, driven by government initiatives like the Smart Cities Mission and rising urbanization. As businesses prioritize sustainability and efficiency, the facility management sector is poised for continued evolution, with innovation and quality service becoming key differentiators in this competitive environment. This scenario further means the growing demand for sophisticated facility management services, making industry players indispensable partners in fostering operational excellence and strategic growth.

For instance, in January 2025, KISL secured a major facility management contract at Aurangabad Airport to provide mechanized housekeeping services and support operations with a skilled workforce and hygiene solutions. The same contract portfolio includes landside security services at Chhatrapati Shivaji Maharaj International Airport.