UAE Integrated Facility Management Market Research Report: Forecast (2022-2027)
Market Definition
Facility Management services refer to multiple disciplines for the safety, sustainability, & operational efficiency of a facility. The vast variety of services that are secondary for organizations such as cleaning, catering, building & energy management, fitment & repair of electrical installations, etc., come into this category. The Facility Management services help the organization to avail specialized services from the FM services providers for secondary work as well as reduce the constraints pertinent to keeping an in-house team for every service required.
Market Insights
The UAE Integrated Facility Management Market is projected to grow at a CAGR of around 13.57% during the forecast period, i.e., 2022-27. UAE has emerged as one of the most dynamic markets for Integrated Facility Management in the Middle East during the historical period since the country is considered the regional financial hub. The growing efforts by the UAE government to diversify its economy away from conventional oil exports to service sectors have strongly contributed to the growth of the UAE Integrated Facility Management Market.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 13.57% |
| Key Companies Profiled | EMRILL Services LLC, Imdaad L.L.C., Farnek Services LLC, EFS Facilities Management Services, COFELY BESIX Integrated Facility Management (IFM), Khidmah LLC, Al Shirawi Facilities Management LLC, Interserve, Etisalat Facilities Management L.L.C., Enova Integrated Facility Management (IFM) Services LLC) |
| Unit Denominations | USD Million/Billion |
In 2020, the Covid-19 pandemic significantly increased the demand for soft services, such as cleaning & sanitization, across various buildings & facilities in the UAE, which positively impacted the market growth. Rapidly increasing developments in the country, such as the construction of high-rise buildings, luxurious residential villas, expansion of corporate offices, leveraging the tourism sector, etc., have created the thrust for Facility Management services across the UAE.
Additionally, the country’s sustainable development objective by the means of green & smart buildings has intensified the market of UAE Facility Management. Consequently, the customer demand for smart buildings has driven the need for facility management services, such as cloud-based enterprise management systems, or integrated building automation systems.
However, with the increasing number of competitors offering diverse & niche services, the rate of outsourcing facility management services in the UAE is rapidly surging, & of all countries in the GCC region, it was the highest in 2020. With the rising focus of organizations on core businesses & offering a better quality of services, they have shifted toward outsourcing facility management services, which, in turn, would positively impact the overall growth of the UAE Integrated Facility Management Market during the forecast period.
Impact of Covid-19 on the UAE Integrated Facility Management Market
In 2020, the UAE Integrated Facility Management Market experienced a slowdown due to the Covid-19 pandemic. Several construction projects & events, including Dubai Expo 2020, were delayed until 2021. Facility management service providers were exploring new opportunities for remote working. Moreover, the lockdown imposed by the UAE government to curb the virus spread amidst the pandemic caused delayed payments and the unavailability of workers. Real estate, commercial & manufacturing sectors, etc., were running at minimal efficiencies due to stringent government restrictions. Hence, all these factors severely hampered the Integrated Facility Management Market in the UAE.
However, the demand for cleaning services was high since facility management service providers started building capabilities to avoid infection at client sites and assisted in creating a safe work environment to deal with the pandemic. It started with cleaning, sanitization, & disinfection services that witnessed the highest demand amidst the crisis to prevent the risk of the contagious disease. Moreover, the same trend is likely to be followed in the coming years, owing to the mounting inclination of citizens toward good hygiene practices.
Key Trend in the UAE Integrated Facility Management Market
Facility management companies in the UAE are integrating advanced technologies into their services, with an increasing demand for cloud-based technologies since they offer better reliability, incur lower costs, & are highly customized. Moreover, cloud-based FM services can be accessed remotely, from any location, and real-time insights can help companies make better decisions.
Moreover, cloud-based solutions prevent facility management services from cyberattacks since the cloud system detects bots & brute-force attempts of hackers and, in turn, strengthens the data security. Furthermore, cloud-based FM solutions reduce the demand for installing additional hardware or software, thus, reducing the capital expenditure of organizations.
Recently, many leading market players have partnered with other tech companies to integrate cloud-based software into their FM solutions & provide their clients with easy accessibility, real-time insights, etc.
Market Segmentation
By Service Type:
Of them all, Hard Integrated Facility Management services are projected to grab the major market share over the forecast years. Hard services comprise district cooling, building management, plumbing apparatus, electrical installations, energy management, etc. Since air conditioning is the UAE's fundamental need due to its harsh climate conditions, there is a continuous demand for HVAC services in the country. The increasing constructions of large commercial & residential spaces in the country are propelling the need for Hard FM services, which would retain its majority market share in the forecast period, i.e., 2022-27.
Moreover, Hard FM services have been in continuous demand due to strict government regulations for energy management systems, carbon emission protocols, etc. Due to this, services like district cooling, building energy management have been well-adopted by hospitality, retail, healthcare, government, educational sectors, etc. Furthermore, the country’s extreme weather conditions have also elevated the demand for Hard Facility Management services.
By End Users:
Facility management services have been a basic need across the commercial sector since they ensure & take care of the smooth work flow in an organization. They look after the safety, comfort, functionality, efficiency, & other factors of individuals or representatives working in a company or an allied industry. The commercial sector entirely dominated the market during 2017-21. Massive investments in real estate and rapid construction of offices, hotels, malls, & buildings has attributed to the demand for facility management in the commercial sector. For instance:
Moreover, the application of facility management services in the commercial sector is expected to increase further in the forecast years owing to the expansion of commercial infrastructures & services. The demand for FM services in IT & communication, finance, marketing sectors, etc., is also projected to surge considerably in the coming years.
By Enterprise Size:
Of these three, Large Enterprises completely dominated the market in 2021, grossing more than 70% of the total spending in the Integrated Facility Management Market. Large budgets, inclination towards accessing better IFM technologies, and tendency to focus on core business activities are the key aspects attributed to the pole position of large enterprises in the market in 2021. Despite increasing investments in FM services by Mid-Size companies, the same trend is likely to prevail over the forecast years.
Market Dynamics:
Key Driver: Increasing Investments in the Construction Sector by the UAE Government
In recent years, the UAE government has invested in many construction projects, including The Dubai Metro Red Line extension, the Royal Atlantis Resort, the Container Terminal 4 (Jebel Ali Port), etc. According to BNC Network, the projects of worth more than USD200 billion are in pipeline in UAE, and are scheduled for completion during 2022-2035. These projects include amusement parks, business parks, mixed use buildings etc. Also, the government is investing heavily in the Energy sector, which, in turn, is infusing construction activities.
Market Competition
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The UAE Integrated Facility Management (IFM) Market is projected to grow at a CAGR of around 13.57% during 2022-27.
A. Commercial & Healthcare sectors are anticipated to emerge as an area of remunerative opportunities for the leading players in the UAE Integrated Facility Management (IFM) Market during the forecast period.
A. Digitalization of facility management services, with the integration of Artificial Intelligence (AI) & Cloud, would act as a prominent driver for the UAE Integrated Facility Management Market during 2022-27.
A. Amidst the Covid-19 crisis, cleaning, sanitization, & waste management emerged as attractive services on which the spending by end-users increased significantly. With the depleting impact of the pandemic, the construction activities are moving towards full-fledge revitalization in 2022, and the UAE Integrated Facility Management Market is expected to continue prospering in the forthcoming years.
