Saudi Arabia Facility Management

Saudi Arabia Facility Management Market Research Report: Forecast (2021-2026)

By Type (Hard, Soft, Risk, Administrative), By Operating Model (In-House, Outsourced), By Service Delivery (Integrated, Bundled, Single Services), By End-User (Commercial, Residential, Government, Ret Read more

  • Buildings, Construction, Metals & Mining
  • Dec 2021
  • 132
  • BM44032

Market Definition

Facility management is a service that provides different types of management & maintenance support to an organization/facility. This industry has dramatically expanded in Saudi Arabia in recent years, principally due to rapid industrialization across the country. The key operations of facility management systems are:

  • Lease management
  • Space Optimization & Management
  • Business Continuity
  • Energy Management
  • Emergency Management, among others.

Market Insights

The Saudi Arabia Facility Management Market is projected to grow at a CAGR of around 15% during the forecast period, i.e., 2021-26The market is driven principally by the swiftly increasing number of projects for infrastructure development, coupled with the growing construction activities in Saudi Arabia, thereby propelling the demand for facility management services to look after the operations like maintenance & management of the building/facility.

Report Coverage Details
Study Period Historical Data: 2016-19
Base Year: 2020
Forecast Period: 2021-26
CAGR (2021-2026) 15%
Key Companies Profiled ENGIE Solutions, Khidmah LLC, Interserve Plc, Enova Facility Management Services LLC, Rezayat Group, Musanadah Facilities Management Co. Ltd., Nesma Trading Co. Ltd., Al Borj International, Petrojana, Al Hajry Overseas Co. Ltd., etc.
Unit Denominations USD Million/Billion

 

Moreover, Saudi Vision 2030 is increasingly focusing on infrastructural developments with several construction projects in the country, thereby playing a crucial role in driving the facility management market. Additionally, the integration of the Internet of Things (IoT) & industrial automation in facility management, coupled with employee engagement programs, are other crucial aspects driving the market. 

Besides, due to numerous benefits of facility management like the productivity of facilities & personnel, risk management, communications management, implementation of new business strategies, risk management, cost-efficiency, etc., shall further boost their demand and fuel the overall market growth during the forecast period.

Demand for Facility Management to Upswing Post the Covid-19 Pandemic

The Covid-19 pandemic had a decelerating effect on most industries across Saudi Arabia, including the facility management market. Initially, to curb the virus spread, the government responded to the pandemic by imposing stringent movement restrictions & lockdown. As a result, most industries had to shut and adopt the work-from-home culture, owing to which all operations of the facility management were severely affected.

However, the market also observed new developments across Saudi Arabia amidst the crisis, with massive government investments in improving facility management and facilitating various other services, especially around containment zones.

Besides, with the swiftly reducing number of cases, the Saudi government uplifted restrictions and recommenced operations in facilities. It, in turn, generated a mounting demand for facility management across the country due to the rising awareness about cleanliness, sanitization, & safety to avoid the virus contract. Hence, the market observed a hike in the later phase of 2020.

Nonetheless, in the coming years, the role of facility management is anticipated to become prominent with a swift shift from operational to strategic level services & management, thereby integrating a new work environment and fulfilling employee needs from work-from-home to corporate culture.

 

Saudi Arabia Facility Management Market Research Report: Forecast (2021-2026)

Market Segmentation

Based on the Type:

  • Hard
  • Soft
  • Risk
  • Administrative

Of them all, Hard services are anticipated to witness the highest growth in their demand during the forecast years. It owes principally to the rapid expansions in the infrastructure sector, i.e., infusing the need for facility management services to look after the physical assets of a facility and provide services like lighting, temperature, cleanliness, ventilation, eating, workspace management, and toilet & washing facilities.

These facilities are compulsory for the safety & welfare of both employees & customers. Besides, the mounting number of construction projects across Saudi Arabia is another crucial aspect projected to soar the demand for facility management services & drive the market in the coming years.

Based on the Operating Model:

  • In-House
  • Outsourced

Of them all, the demand for the Outsourced operating model is anticipated to demonstrate significant growth during the forecast period, owing to its benefits that ensure cost-effective implementation of all the management services.

Outsourced facility management services are delivered in single, bundled, and integrated services, where single services are mainly contractual to outsource service for one event. On the other hand, bundled services involve 3-4 services, be it hard or soft. Nonetheless, integrated outsourced facility management includes all the services under one roof.

Besides, outsourced facility management reduces potential risks and might offer an extra layer of abidance by the regulatory standards. Hence, their demand is rising significantly across companies and, in turn, driving the market.

Recent Developments by the Leading Players

  • In September 2020, market leader Khidmah Training Centre coached more than 2,500 staff in the first year of operations, which took more than 15000 hours to develop multiple hard & soft facility management services.
  • In March 2020, a 50 sq. km energy city megaproject, King Salman Energy Park (SPARK), is positioning a hub of global energy, industry, and technology between Dammam & Al-Ahsa in Saudi Arabia, to which the market leader ENGIE Solutions would deliver world-class services using Computer-Aided Facilities Management (CAFM)

Market Dynamics

Key Drivers

  • Improving Space & Energy Management to Drive the Market

Facility management services offer several benefits like the efficient management of operations like building maintenance, asset management, space optimization, energy conservation, and sustainable utilization of all resources. These benefits entwined with mounting construction activities across Saudi Arabia are the prime factors projected to drive the facility management market during 2021-26.

  • Adoption of New Technologies

Constant technological advancements like the introduction of cloud in facility management services for better management of business activities remotely, coupled with maintaining effective communication & collaboration to access resources & assets through the internet, are also projected to boost the market. 

Growth Restraints

  • Increasing Cyber Threats & Vulnerabilities Might Restrain the Market Growth

The growing concerns about the safety of data, devices, and networks owing to the increasing vulnerabilities to cyber threats & data breaches across Saudi Arabia might hinder the facility management market. Moreover, the unavailability of skilled professionals & standardization is another prominent aspect that might act as a growth restraint for the market in the coming years.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Saudi Arabia Facility Management Market?
  2. What are the industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Saudi Arabia Facility Management Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Saudi Arabia Facility Management Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the Saudi Arabia Facility Management Market study?

Frequently Asked Questions

A. The Saudi Arabia Facility Management Market is likely to grow at a CAGR of around 15% during 2021-26.

A. The significantly growing demand for Hard facility management services is anticipated to emerge as an area of lucrative opportunities for the leading players in the Saudi Arabia Facility Management Market during 2021-26.

A. Substantial investments by the government & private sectors in new infrastructure projects and increasing construction activities across Saudi Arabia are the prime factors to drive the Facility Management Market during 2021-26.

A. In the coming years, the role of facility management is anticipated to rise after the Covid-19 pandemic owing to the increasing focus on hygiene, sanitization, and a new work environment for employees.

  1. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  2. Executive Summary
  3. Expert Verbatim- What our Experts Say?
  4. Macroeconomic Outlook
  5. COVID-19 Impact on Saudi Arabia Facility Management Market
  6. Saudi Arabia Facility Management Market Outlook, 2016-2026
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Type
        1. Hard
        2. Soft
        3. Risk
        4. Administrative
      2. By Operating Model
        1. In-House
        2. Outsourced
      3. By Service Delivery
        1. Integrated
        2. Bundled
        3. Single Services
      4. By End Users
        1. Commercial
        2. Residential
        3. Government
        4. Retail
        5. Education
        6. Healthcare
        7. Hospitality
        8. Others
      5. By Enterprise Size
        1. Large
        2. Mid-Size
        3. Small
      6. By Region
        1. East
        2. West
        3. North
        4. South
        5. Central
      7. By Company
        1. Revenue Shares
        2. Strategic Factorial Indexing
        3. Competitor Placement in MarkNtel Quadrant
  7. Saudi Arabia Hard Facility Management Market Outlook, 2016-2026
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Type
        1. District Cooling
        2. Building Management
        3. Plumbing Apparatus, Pumps, Sanitary units, etc.
        4. Electrical Installation
        5. Energy Management
        6. Air Conditioning System
        7. Roads & Street Lighting System
        8. Others
      2. By Operating Model
      3. By Service Delivery
      4. By End User
      5. By Enterprise Size
      6. By Region
  8. Saudi Arabia Soft Facility Management Market Outlook, 2016-2026
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Type
        1. Cleaning Services
        2. Catering
        3. Pest Control
        4. Landscaping
        5. Others
      2. By Operating Model
      3. By Service Delivery
      4. By End User
      5. By Enterprise Size
      6. By Region
  9. Saudi Arabia Risk Facility Management Market Outlook, 2016-2026
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Type
        1. Insurance Management
        2. Security
        3. Disaster Management
        4. Reserve/Sinking Fund
        5. Others
      2. By Operating Model
      3. By Service Delivery
      4. By End User
      5. By Enterprise Size
      6. By Region
  10. Saudi Arabia Administrative Facility Management Market Outlook, 2016-2026
    1. Market Size & Analysis
      1. By Revenues
    2. Market Share & Analysis
      1. By Type
        1. Mail Management
        2. Front Office Management
        3. Space Planning & Management
        4. Inventory Management
        5. Others
      2. By Operating Model
      3. By Service Delivery
      4. By End User
      5. By Enterprise Size
      6. By Region
  11. Saudi Arabia Facility Management Market Regulations
  12. Saudi Arabia Facility Management Market Trends & Developments
  13. Saudi Arabia Facility Management Market Dynamics
    1. Impact Analysis
    2. Drivers
    3. Challenges
  14. Saudi Arabia Facility Management Services Market, Customer Buying Behaviour
    1. Factors Influencing Customer’s Decision
    2. Priority Matrix of Customer’s Need
    3. Customer and Service Provider Proximity Analysis
  15. Saudi Arabia Facility Management Market Winning Strategies
    1. Investment Scenario
    2. Hotspots
  16. Saudi Arabia Facility Management Market Attractiveness Index
    1. By Type
    2. By Operating Model
    3. By End Users
    4. By Service Delivery
    5. By Enterprise Size
    6. By Region
  17. Saudi Arabia Facility Management Market Porter’s Five Forces Analysis
  18. Saudi Arabia Facility Management Market Pricing Analysis
  19. Competitive Benchmarking
    1. Competition Matrix
      1. Product Portfolio
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
      6. Strategic Initiatives
    2. Company Profiles (Business Description, Product Offering, Strategic Alliances or Partnerships, etc.)
      1. ENGIE Solutions
      2. Khidmah LLC
      3. Interserve Plc
      4. Enova Facility Management Services LLC
      5. Rezayat Group
      6. Musanadah Facilities Management Co. Ltd.
      7. Nesma Trading Co. Ltd.
      8. Al Borj International
      9. Petrojana
      10. Al Hajry Overseas Co. Ltd.
  20. Disclaimer
Saudi Arabia Facility Management Market Segmentation