India’s Security & Facility Management Industry to Grow 12% in 2025: Crisil Report

India’s Security and Facility Management Sector Set for 12% Growth in 2025: Crisil Report

Introduction

India’s security and facility management services industry is set to witness 10-12% revenue growth in the next financial year, driven by rapid urbanization, rising industrial investments, and expanding commercial spaces, according to a recent Crisil Ratings report.

The sector has experienced a compound annual growth rate (CAGR) of 13% over the last four years and is projected to sustain this momentum into FY 2025-26. Factors such as the return-to-office trend, growing commercial infrastructure, and technological advancements are contributing to this surge.

Key Growth Drivers for Security & Facility Management Services

1. Urban Expansion & Commercial Growth

   • The rise in new office buildings, shopping malls, luxury hotels, and residential complexes is increasing the demand for security and hygiene services.
   • The growing emphasis on safety compliance and cleanliness is further pushing companies to invest in facility management solutions.

2. Industrial Investments & Government Projects

   • Manufacturing sector growth and warehouse expansion are creating new opportunities for the facility management industry.
   • Government initiatives in railways, metro networks, and airports are further boosting the need for specialized security and maintenance services.

3. Return to Office & Compliance Standards

   • With more companies implementing return-to-office mandates, there is a renewed focus on workplace security, sanitation, and facility maintenance.
   • The need for integrated facility management solutions is rising as organizations look for cost-effective and regulatory-compliant services.

Technology’s Role in Industry Growth

According to Himank Sharma, Director at Crisil Ratings, technology is transforming the security and facility management sector, enabling companies to expand their service offerings. Key technological advancements include:

• AI-Integrated Surveillance Systems – Enhancing security through real-time monitoring and predictive analytics.
• Remote Monitoring Solutions – Reducing the need for on-ground security personnel while ensuring efficient surveillance.
• Automated Cleaning Technologies – Improving operational efficiency and reducing labor dependency.

While automation and smart buildings could reduce reliance on traditional manpower-based services, companies embracing technology-driven solutions are expected to maintain strong profitability and improved resource utilization.

Challenges & Industry Outlook

Despite the positive growth trajectory, the industry faces challenges such as:

• High attrition rates & labor shortages – Companies need to focus on retention strategies and workforce training.
• Rising labor costs – Operational efficiency and cost control measures will be crucial for sustaining profitability.
• Adapting to automation – Businesses must balance human resources with technology adoption to stay competitive.

The Crisil report projects that operating margins will remain stable at around 5%, with companies leveraging automation, workforce retention strategies, and operational efficiencies to absorb rising costs.

Conclusion

India’s security and facility management sector is poised for double-digit growth in FY 2025-26, backed by urban expansion, industrial investments, government projects, and advanced technology adoption. Companies that integrate AI-driven surveillance, remote monitoring, and automation solutions are expected to lead the market, ensuring sustainable growth and improved service quality in the years ahead.