Industrial Automation Magazine India

FM market in India is highly fragmented and unorganised

Published on : Thursday 01-10-2020

Arushi Thakur Upadhyay, Associate Director, Industrial Practice, Frost & Sullivan.

How big is the Facilities Management (FM) market in India and the unorganised segment? What do the current trends portend for the players in the organised sector?
The FM market in India is currently estimated to be around ?29,700 crore in FY20. Increasing preference for professional FM services by end-users is expected to drive the growth. With 200+ players, the unorganised segment contributes to 53% of the overall market, according to Frost & Sullivan’s report on ‘India Facilities Management Industry Outlook, 2020’. FM market in India is estimated to grow at a CAGR of 15% to 20% between FY19 and FY25. Due to the Covid-19 crisis, the market is expected to see a decline in FY21 compared to the original forecast. FM market in India is highly fragmented and unorganised. Small and medium-sized market players dominate the majority of the market. The Covid-19 scenario is likely to consolidate the market share for large organised FM player.

Energy efficiency is a key benefit but also difficult to achieve results, so how can FM help in this area?
In specialised hard services, there is a growing need for energy management and reduction of the building operating cost. The significance of conserving energy is gradually picking up momentum due to rising energy costs which results in companies hiring professional FM services for maintenance of energy-intensive equipment. Sustainability in Facility Management includes the reduction of energy consumption. All the supporting services offered should be aimed at improving the energy efficiency requirements. This can be achieved with the help of regular energy audits.

With the increasing need for energy management, there is usage of Extra-low Voltage (ELV) devices like Building Automation Systems (BAS), lighting controllers, etc., in most commercial buildings. Also, the growing need for energy management and reduction of the building operating cost has increased the focus on preventive maintenance which is now a lucrative area for growth.

How can the synergies between IoT devices and data analytics on the one hand, and cloud storage on the other, help in problem-solving?
IoT, with help of building automation, provides complete energy solutions and business value in facility services. Sensors are connected to devices related to lighting, Heating, Ventilation, and Air Conditioning (HVAC), security, and other functions. These interconnected devices are managed and operated remotely with the help of advanced communication systems. Digital transformation and Big Data will drive evolution with the help of IoT analytics and dedicated Big Data solutions for the FM market.

Cloud-based functionalities have led to increased transmission of data and information instantaneously, anytime, and anywhere. Facility management software that is cloud-based, bring in opportunities for remote servicing of equipment and systems, enabled by connectivity, and help access them from any location or device. Cloud solutions accelerate the shift toward value propositions based on guaranteed business outcomes that will drive the customer‘s productivity and profitability.

When we talk of using Building Information Modelling (BIM), how will it operate in case only a small part of the building is managed by FM? Or does it presume the whole building is under FM?

The BIM model is widely accepted in the construction of a building. However, its usage is still in a nascent stage in FM services. Contractors and architects predominantly use BIM as a tool to develop virtual models of various building projects and also scale them up for the construction process.

By integrating program controls, communication, and information, teams will be able to make business decisions with the correct updated information. Facility operators are realising the power of these tools for project delivery and data accessibility, either in a small part of a building or accessing service to a whole building.

Business is presently from the commercial sector. Can FM, especially when it comes to use of drones and robots, be more effective in manufacturing plants?
Drone technology is primarily used in surveillance and aerial photography across various sectors. However, in FM it is still in a nascent stage. Drones can lower costs by reducing the need for site visits, security measures, and fuel consumption. Ideally, FM providers could find a way to offset the costs of acquiring and maintaining a drone fleet by incorporating them into their service offerings, i.e., as drone-as-a-service (DaaS). In FM, drones help replace the workforce in the commercial/industrial segment for inspection and cleaning in hard-to-reach areas, such as rooftops, façade, and other structures.

Deployment levels of AI and service robots are rapidly rising in commercial and industrial buildings for both technology optimisation and service efficiency enhancement. Robotics is used by very few organisations for security and surveillance in industrial and commercial facilities.

What about concerns of confidentiality, trust, and privacy, and how are these addressed?
In India, there is no proper legislative framework currently for data protection. With the increasing number of cyber-crimes and fear of data breach, the Government of India is introducing the Personal Data Protection (PDP) Bill, which is still in the pipeline for approval by the House of Parliament. Data privacy laws and security concerns could increase the compliance costs for companies. The increase in IoT-enabled sensors and automation devices in buildings has resulted in the generation of volumes of data. Advanced data analytics can be used to arrive at insights to make informed decisions. Leveraging customer behaviour and customer preference data to provide value-added services and using the valuable insights generated without breaching privacy is the road to success.