Published: January 2021 | Report Code: PE11386 | Available Format: PDF | Pages: 242
The Gulf Cooperation Council (GCC) facility management market valued $53,804.3 million in 2019, and it is projected to witness a CAGR of 10.1% during the forecast period (2020–2030). This is majorly attributed to the growing demand for facility management services in commercial and residential buildings, civil infrastructure projects, and industrial units. In addition, the facility management market is set to be driven by the various development programs being executed, such as the Saudi Vision 2030, Qatar National Vision 2030, Kuwait National Development Plan, and U.A.E. Vision 2021, in GCC countries, following the governments’ desire to fuel the growth of several sectors.
The COVID-19 pandemic has negatively impacted the GCC facility management market. This is ascribed to contractual disputes and shift in consumer behavior toward online buying, which will reduce the area occupied by physical stores. Additionally, the shrink in the facility management budget, with clients and tenants looking for lower service charges, has severely impacted the facility management market in GCC nations.
In 2019, the property category accounted for the largest market size in the GCC facility management industry, on the basis of service. This was because of the increasing demand for property management services, such as heating, ventilation, & air conditioning (HVAC) maintenance and mechanical & electrical maintenance, at the newly constructed buildings in GCC countries.
Based on property service, HVAC maintenance services witnessed the highest demand in 2019. This is majorly attributed to the extreme climatic conditions in GCC countries resulting in a high dependence of buildings on HVAC systems, which is expected to fuel the demand for their maintenance in the coming years.
The commercial category, based on end user, is projected to witness the fastest growth in the GCC facility management market during the forecast period. This is attributed to the growing awareness on expenditure optimization among end users for commercial building management. Moreover, the increasing requirement for maintenance and cleaning services, for attractive and clean facilities, to attract customers/visitors, is fueling the market growth.
In 2019, the in-house classification held the larger share in the mode segment. This is attributed to the advantages of the in-house employees performing their duties better and being responsible for their work. In addition, long-term financial analysis generally supports in-house facility management services, as they are considered sustainable in the long term.
Hard services accounted for the largest value share in the GCC facility management market in 2019, on the basis of type. This can be ascribed to the growing adoption of advanced hard services that require minimal staff for organizing the work atmosphere across different sectors. In addition, the entry of multinational corporations in GCC countries is fueling the demand for hard facility management services. The other major reason was the increase in the foreign direct investments in the energy management and real estate sectors, which drove the market for hard services in member countries.
During the historical period (2014–2019), Saudi Arabia held the largest market share in GCC facility management. This is majorly attributed to the growing infrastructure and tourism sectors. In addition, an increase in the revenue from the oil and gas sector of the kingdom is fueling the industry growth, as the government is heavily investing in the development of other sectors, such as infrastructure and construction. According to the Japan External Trade Organization (JETRO), the Saudi Arabian facility management industry is likely to reach $100 billion in the next 20–25 years, with around $1 trillion worth of projects planned or under construction here.
One of the major factors driving the market growth in Qatar is the steady development of commercial and residential properties in the country. As towers, stadiums, malls, and other structures are being constructed, the facility management market is expected to witness exponential growth in the coming years. In order to promote, educate, and empower facility management providers in the area of sustainable practices, a new initiative was launched in the country. Under this initiative, the Facility Management Interest Group was set up by the Qatar Green Building Council (QGBC) and the Middle East Facility Management Association (MEFMA), as a platform where the best practices related to facility management services can be shared. Furthermore, upcoming events, such as FIFA World Cup a020, and the Qatar Vision 2030 will be responsible for pushing the market for facility management services in this country.
The most prominent trends in the GCC facility management market are the stringent regulatory environment and economic development. Most member countries have launched strategic plans or visions for the development of sectors other than energy, to strengthen their economies. Additionally, the increasing competition and high pressure because of the stiff regulatory requirements are compelling companies to evaluate their way of conducting business. To deal with the tight regulations and high scrutiny, organizations are looking for ways to minimize risks and manage their facilities efficiently. To achieve this, they have started employing facility management companies that can deliver and manage these services and also bear the risks associated with them.
The outsourcing of services is another major trend being witnessed in the facility management market of GCC. The demand for outsourced facility management services is increasing in GCC countries owing to the advantages it offers, such as reduced overhead costs and freedom to focus on core competencies. For instance, in 2020, Darwish Interserve Facility Management W.L.L. secured a three-year facility management contract from the Qatar Civil Aviation Authority to provide integrated facility management services, such as cleaning and mechanical, electrical, & plumbing (MEP), at the Qatar Air Traffic Control Centre.
Additionally, GCC countries have become a hub of construction activities, which has induced a high demand for maintenance services to increase the lifecycle of facilities. Thus, the market for outsourced facility management services is growing due to organizations’ need for concentrating on core business activities, instead of facility maintenance.
The construction industry in GCC countries is expected to witness rapid growth in the coming years, attributed to the favorable economic conditions and increasing tourism activities. As part of several strategic visions, GCC member nations have allocated high budgets to the construction sector, which is providing a push to the facility management market. The countries are focusing on reducing their economic dependence on oil and gas revenue, which is one of the major factors resulting in the increasing investment in the construction sector.
The surging need for sustainable development is another among the major factors driving the growth of the facility management market, owing to the increasing efforts in member countries for reducing energy consumption. The demand for environment-friendly buildings and construction materials is increasing for a sustainable and green future. The governments of various GCC countries are extending their support to green projects to ensure minimal degradation of the environment. In addition, the unique benefits of green buildings, including the optimal utilization of natural light, highly efficient HVAC systems, and fewer volatile organic compound emissions, have pushed the demand for energy management, which has become an integral part of facility management contracts, which, in turn, is improving the growth prospects for the GCC facility management market.
The travel & tourism industry is one of the major drivers for GCC countries’ economic growth. Supported by the governments’ visions, the travel, tourism, and hospitality industries of GCC countries maintained their growth trajectory despite the decrease in oil prices in 2016. The currency depreciation has affected the demand in the short run; however, the long-term outlook for the tourism industry in GCC countries remains strong. Member countries have one of the largest hotel development pipelines across the world due to the increasing demand for accommodation arising from the growing tourism industry. Furthermore, the industry contributes to the ‘Saudi Vision 2030’. The introduction of the new visa system is one of the key steps taken to attract more than 100 million annual visitors to the country by 2030. These factors will provide tremendous opportunities to facility management companies, thereby driving the growth of the facility management market.
Moreover, organizations are looking for advanced technologies for their facilities, to ensure the safety, security, and health of their employees. Smart and environment-friendly facility management services are attracting clients, as they save money, power, and other resources. Technological advancements additionally help facility management companies achieve better efficiency; therefore, the integration of technology in this field is driving the facility management market in GCC countries.
|Base Year (2019) Market Size||$53,804.3 Million|
|Forecast Period (2020-2030) CAGR||10.1%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Country Breakdown, Segmentation Analysis, Companies’ Strategic Developments, Key Offerings of Major Players, Company Profiling|
|Market Size by Segments||By Service, By End User, By Mode, By Type, By Country|
|Market Size of Geographies||Saudi Arabia, Qatar, U.A.E., Kuwait, Bahrain, Oman|
|Secondary Sources and References (Partial List)||Association for Gulf and Arabian Peninsula Studies, Atlanta Chapter of the International Facility Management Association, Centers for Disease Control and Prevention, Dubai Chamber of Commerce and Industry, Emirates Real Estate Association, European Facility Management Network, Federation Internationale de Football Association (FIFA), Gulf Cooperation Council, International Facility Management Association, International Project Management Association|
The GCC facility management market is fragmented in nature, with the presence of players such as EMCOR Group Inc., Khidmah LLC, Interserve plc, Musanadah Facilities Management Co. Ltd., Engie Cofely, Kharafi National for Infrastructure Projects Developments Construction and Services S.A.E., United Facilities Management, Emrill Services LLC, Imdaad LLC, and Farnek Services LLC.
In recent years, players in the industry have won service contracts in order to stay ahead of their competitors. For instance:
The GCC facility management market report offers comprehensive market segmentation analysis along with market estimation for the period 2014-2030.
Based on Service
Based on End User
Based on Mode
The GCC facility management market will witness a CAGR of 10.1% between 2020 and 2030.
The commercial sector is the most-lucrative of all the GCC facility management industry end users.
Saudi Arabia is the largest and Qatar the fastest-growing GCC facility management market, on the basis of country.
The GCC facility management industry is primarily driven by the member countries’ economic diversification plans, infrastructure development efforts, and expanding tourism sector.
The pursuance of client contracts is the strongest strategic measure among GCC facility management market players.
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