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:
Market Insights
The Saudi Arabia Facility Management Market is projected to grow at a CAGR of around 15% during the forecast period, i.e., 2021-26. The 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.
Market Segmentation
Based on the Type:
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:
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
Market Dynamics
Key Drivers
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.
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
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:
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.
