Market Definition
Facility Management is a service that backs operations, safety, and sustainability of a building or a facility. There are two major types of facility management services, viz. Hard & Soft, where the former looks after the physical assets of a facility like fire management, wiring, plumbing, and electrical demands, among others, while the latter includes services like housekeeping, catering, cleaning, safety & security, etc. There is a plethora of benefits of facility management services. Have a look:
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2021-2026) | 8.2% |
| Country Covered | Saudi Arabia, Qatar, UAE, Kuwait, Oman, Bahrain |
| Key Companies Profiled | EMCOR Group Inc., Emrill Services LLC., United Facilities Management, Khidmah LLC, Cofely Besix Facility Management, Kharafi National, Interserve plc, Imdaad LLC, Musanadah Facilities Management Co. Ltd., and Farnek Services LLC |
| Unit Denominations | USD Million/Billion |
Market Insights
The GCC Facility Management Market is projected to grow at a CAGR of around 8.2% during the forecast period, i.e., 2021-26. The market is driven primarily by the burgeoning focus of governments of GCC countries on infrastructural developments and the rapidly increasing number of construction activities owing to the booming travel & tourism across the region. In addition, with the increasing establishment of multinational corporations, especially across Saudi Arabia, the government is also actively supporting the education and real estate sector in line with Vision 2030, thereby driving the facility management market through 2026.
For instance, Middle East Facility Management Association (MEFMA) & Qatar Green Building Council (QGBC) established a Facility Management Interest Group to share best facility management practices among various service providers.
Besides, countries like Qatar are extensively promoting the construction activities to host the FIFA Cup 2022, thereby upgrading its infrastructure and fueling the demand for facility management services. More, countries in the GCC region are also focusing on adopting green building practices to reduce carbon emission and bring better energy efficiency to the facility & drive the market.
Furthermore, with the rapid technological advancements like Artificial Intelligence (AI) & the Internet of Things (IoT) in facility management, the demand for these services is further soaring across organizations for better building management & operational efficiency. Hence, the GCC facility Management Market is projected to witness lucrative growth opportunities in the coming years.
Impact of Covid-19 on the GCC Facility Management Market
The Covid-19 pandemic in 2020 had a decelerating effect on most industries across the GCC region, and the Facility Management Market was no exception. During the initial phase of the pandemic, the government of member countries imposed stringent movement restrictions & lockdowns to curb the virus spread. As a result, most companies had to shut and adopt the work-from-home trend.
With this, the demand for facility management services fell substantially, and the market observed massive losses amidst the crisis. However, when the Covid-19 cases were hiking, the government took immense help from the facility management service providers to facilitate the underlying services across containment zones, which helped the market sustain.
Later, with the gradually reducing cases, countries in the region began uplifting the lockdown and allowed the resumption of business operations, which fueled the requirement for facility management, as concerns associated with hygiene, safety, & cleanliness were mounting.
Needless to say, this opened up remunerative growth opportunities for the leading players in the market. Furthermore, the same trend is projected to prevail in the coming years owing to the growing prominence to integrate new work environment & sufficing employee needs at a facility
Market Segmentation
Based on the Operating Model:
Of them both, the demand for Outsourced facility management is anticipated to demonstrate significant growth in the coming years since it is attracting a growing number of merchants with new service offerings. In addition, facility management accounts for a substantial amount of the company's expenditure. Hence, outsourcing these services to certified their-party vendors optimizes the overall cost for the company, thereby positively impacting the company's income.
Besides, with the growing influx of technological advancements focusing on building automation, the demand for outsourced facility management is likely to rise. Across countries like Qatar, prominent outsource facility management service providers are helping end-users in reducing energy costs & carbon emissions.
Based on the Type:
Of them all, Hard Services held the largest market share in recent years. The growing demand for hard facility management is mainly to ensure that the facility isn’t compromised. These services look after the physical aspects of a facility and are nearly always required by law for safety, health, & hygiene concerns. Moreover, with the growing establishment of multinational companies & increasing construction activities across the region, the demand for hard facility management services is soaring & fueling the overall market growth.
Country Landscape
Based on the country, the GCC Facility Management Market expands across:
Of them all, Qatar is anticipated to observe a significant market growth in the coming years and is among the leading markets for facility management across the entire GCC region. It owes principally to the massive government support toward robust infrastructural developments and a prime inclination toward adopting green buildings to promote better energy utilization & conservation.
In addition, owing to the swiftly changing lifestyles & increasing demand for facility management services, Qatar is categorized as a market with high customer awareness, which soars the need for outsourced facility management services. Besides, the country is one of the highest spenders on construction activities & has been keeping a trajectory of growth & continuation in the construction sector, which is a crucial aspect expected to drive the Facility Management Market in Qatar over the forecast years.
The Qatar Green Building Council (QGBC) encourages sustainable business practices to enhance the organizational capability for more sustainability & strategically optimize the environmental, social, & financial factors.
Recent Developments by Leading Companies
Market Dynamics:
Key Drivers
Rising Construction Activities in GCC to Drive the Market
Owing to the swiftly rising tourism & economic conditions across GCC countries, the number of construction projects is rising substantially as a part of several strategic visions to diversify the economy across non-oil industries. Hence, the member countries are investing heavily in the construction sector & boosting the facility management market.
Sustainable Development & Green Building Projects to Hike the Market Growth
The GCC member countries are actively putting efforts in reducing energy consumption and promoting the adoption of green building projects, thereby soaring the demand for environment-friendly buildings & constructions for a sustainable approach and ensuring minimal environmental degradation. Benefits of green buildings comprise greater use of natural light, efficient Heating, Ventilating, and Air Conditioning (HVAC) systems, and others.
Growth Restraints
Increasing Cases of Cyberattacks & Data Breaches Might Restrain the Market Growth
The growing concerns associated with the safety of data, networks, and devices owing to the rising cases of cybercrimes might hinder the market growth. Moreover, the unavailability of skilled professionals to provide hassle-free & optimized facility management services is another aspect that could limit the market growth in the coming years.
Competitive Landscape
According to MarkNtel Advisors, the major leading players in the GCC Facility Management market are EMCOR Group Inc., Emrill Services LLC., United Facilities Management, Khidmah LLC, Cofely Besix Facility Management, Kharafi National, Interserve plc, Imdaad LLC, Musanadah Facilities Management Co. Ltd., and Farnek Services LLC.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
A. The GCC Facility Management Market is projected to grow at a CAGR of around 8.20% during 2021-26.
A. Outsourced services are likely to bring lucrative growth opportunities to the leading players in the GCC Facility Management Market during 2021-26.
A. The rapidly growing tourism & construction sector, entwined with the growing focus on adopting sustainable practices, is projected to soar the demand for facility management services and act as a prominent factor in promoting the economic growth of member countries and driving the market in the coming years.
A. With the mounting prevalence of health concerns & the increasing inclination toward hygiene & sanitization, the demand for facility management services at organizations for a safer work environment is anticipated to boost post-pandemic and fuel the overall market growth.
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