PROFESSIONAL SERVICES SECTOR OVERVIEW-2020 (Industrial Equipment industry)

Statistics, news & updates: everything you need to know about the Professional Services Industry in India (Industrial Equipment industry)

Snapshot

  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats
INDUSTRIAL EQUIPMENT SECTOR

Sub-Industries

  • Business Services
  • Cleaning Services
  • Engineering Services
  • Technical Consulting Services

Summary

Cleaning services

The domestic and global factors govern the growth of services sector. The Indian facilities management market is likely to grow at 17 per cent CAGR between 2015 and 2020. It is likely to surpass the US$19 billion mark supported by booming real estate, retail, and hospitality sectors. Moreover, the services sector is the key driver of India’s economic growth. In fact, the sector has contributed 54.17 per cent of India’s Gross Value Added at current price in 2018-19.

Business Services

  • Over the Years, the Indian consulting industry has seen a substantial growth, not only in terms of size, but also in terms of the service offerings. In recent years, the demand of specialist consulting services is being immensely sought by customers in India. This has given an opportunity to a large number of consultants to help businesses with expert knowledge base and resources.
  • Due to constantly increasing demand, the industry is likely to grow at a compounded annual growth rate of 30 percent. It is likely to become a US$ 3.6 Billion industry by 2020.
  • This fast growth of this sector in India is largely attributable to improved investment activities because of low-cost structure, entry of many big players into the Indian market, relaxation of previous FDI restrictions, and strong capabilities in areas like IT, management, civil engineering, telecommunication, petrochemicals, power and metallurgy. Lastly, the steady growth will ultimately lead to expected rise in hiring activities.

Technical Consulting Services

  • By end of 2023, India’s IT and business services sector is likely to reach US$ 14.3 billion. That too with 8 per cent growth. In addition, the India IT & Business Services market is likely to grow annually by 8.8 per cent. Moreover, it is likely to reach USD 13.1 billion by December 2020.

Nikkei India Services Purchasing Managers’ Index (PMI) stood at 57.5 in February 2020, indicating an expansion. The expansion in services activity is because of the boost in capacity and demand along with favourable public policies.

Covid-19 Impact on Industrial Equipment industry

When the COVID-19 pandemic came ashore and moves like lockdowns were being deliberated upon, the USD 180-billion IT sector faced a huge challenge for business continuity. More than a month into it, industry executives feel it has been a blessing in disguise. As a result of this, a larger number of people to work from home in the post coronavirus world.

They attribute the emerging scenario to cost and productivity gains out of WFH (Work From Home) and it is not just the IT sector which is reaping the benefits. Companies across the services sectors, including banks, are set to have fewer people work from the offices in the future. Like most sectors, even the Security Services industry has seen the impact. However, Rituraj Sinha, Group Managing Director, SIS Group Enterprise feels that the economy will see a V-shaped recovery, similar to the crisis in the 1990s and in the ‘2000’.

While automation has been happening over the past three years, each year this technology has been gaining momentum and size. Moreover, in the COVID-19 world, it will expand at a phenomenal pace. So, remote monitoring, automation, use of sophisticated security equipment, contactless security will be growing. Furthermore, due to COVID-19, it is going to accelerate much faster. In fact, remote monitoring would be a practice more than a norm.

The Industrial Equipment industry statistics below are taken from Industry data available pre-Corona virus impact.

Map – Industry Clusters

proffesional-services-map

Growth Drivers

  • Gross FDI equity inflows jumped by 33 per cent YoY during April-September 2019 to reach US$ 17.58 billion. The above, accounts for about two-thirds of the total gross FDI equity inflows into India.
  • The jump in FDI equity inflows was driven by strong inflows into sub-sectors such as ‘Information & Broadcasting’, ‘Air Transport’, ‘Telecommunications’, ‘Consultancy Services’ and ‘Hotel & Tourism’.

Key Players in India

 National

  • PruVisor Management Consulting Pvt. Ltd.
  • BizMania Consulting
  • Tata Strategic Management Group
  • Vector consulting firm

International

  • NeenOpal Inc.
  • Accenture
  • McKinsey & Company
  • PWC
  • Deloitte
  • KPMG
  • Boston Consulting Group
  • Bain & Co

Market Stats

  • By 2023, the healthcare industry is likely to reach US$ 132 billion. India’s digital economy is estimated to reach US$ 1 trillion by 2025.
  • India is likely to be the fourth largest private wealth market globally by 2028. In fact, India is today one of the most vibrant global economies, owing to robust banking and insurance sectors. The relaxation of foreign investment rules has received a positive response from the insurance sector. As a result of this, many companies have announced plans to increase their stakes in joint ventures with Indian companies. Finally, over the coming quarters, there could be a series of joint venture deals between global insurance giants and local players.
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