Published: December 2020 | Report Code: PE11361 | Available Format: PDF | Pages: 113
The Kuwait facility management market size was $958.2 million in 2019, and it is projected to witness a CAGR of 8.3% during the forecast period (2020–2030). This would primarily be due to the increasing real estate development activities in the country and rising need to manage these newly constructed facilities, which are creating opportunities for facility management service companies. The Kuwaiti government has been constantly rolling out new infrastructure projects, which is paving the way for the advance of the facility management market in this country.
The COVID-19 pandemic has spread to all countries across the world, thereby also creating a significant impact on Kuwait’s economic condition due to a halt in various operations. Furthermore, the increase in public borrowings and rise in unemployment owing to the coronavirus outbreak have resulted in a reduction in the consumer spending on facility management services, which has negatively affected the Kuwait facility management market.
In 2019, the property category accounted for the largest size in the Kuwait facility management industry, on the basis of service. This is attributed to the increasing need for property management services at the newly constructed buildings in the country.
The property category is sub-categorized into heating, ventilation, and air conditioning (HVAC) maintenance, mechanical & electrical maintenance, and others, among which HVAC maintenance accounted for the largest market share in 2019. This can be attributed to the extreme climatic conditions in the country resulting in a high dependence of commercial buildings on HVAC systems.
The residential category, based on end user, is projected to witness the fastest growth in the Kuwait facility management market during the forecast period. This can be attributed to the rising investments in constructing residential units across the country. The rising demand for private housing, such as villas and condominiums, and rising investments in renting properties will drive the market for facility management in the coming years.
In 2019, the outsourced classification held the larger share in the mode segment, primarily due to the cost-effectiveness of outsourced services, as they have the ability to absorb additional costs, such as training, compensation, and benefits. Furthermore, these services result in high profitability, improve productivity, reduce business risks, and let companies direct their efforts on their core business.
Based on type, the outsourced category is further categorized into integrated, bundled, and single. Of these, integrated services are expected to witness the fastest growth during the forecast period. This would be due to the large number of commercial and industrial units that are offloading their non-core tasks, such as facility management, and outsourcing such work to integrated service providers. This is resulting in increasing business opportunities for integrated service providers.
Soft Services were the most-demanded type of facility management services in Kuwait in 2019. The category is further expected to hold the largest share in the facility management market during the forecast years. This can be ascribed to the increasing demand for cleaning services, which ensure superior standards of cleanliness, hygiene, safety, and customer service. Cleanliness is the first step toward creating a healthy working environment, which is motivating and engaging for those inside a particular facility, be it an office, factory, or shopping mall.
Owing to the high dependence of Kuwait on oil revenue, there is an urgent need to diversify its economy. According to the Organization of the Petroleum Exporting Countries (OPEC), Kuwait’s energy sector contributes about 60% to its gross domestic product (GDP) and almost 95% of its export revenue. Hence, to reduce its reliance on the energy sector, the country is focusing on increasing private investments in other sectors, such as tourism, hospitality, and construction. These investments are also aimed at improving the business environment and attracting foreign players, which is expected to support the growth of the Kuwait facility management market.
The growing hospitality industry is being seen as one of the major drivers for the Kuwait facility management market. The growing tourism sector is creating a need for clean premises, which is escalating the demand for facility management services in the country. The government is taking steps to boost the country’s tourism industry, such as encouraging private investments, expanding the airport capacity, building new attractions, and increasing international promotion campaigns, which are providing a push to the hospitality industry of the country. These factors have driven the construction of hospitality units, thus propelling the market for facility management in the country.
The heavy investments in upcoming projects, especially for oil and gas extraction and processing facilities, residential units, and malls, will strengthen the demand for facility management services in Kuwait. For instance, the increasing demand for public housing is expected to drive residential construction. Real estate development companies in Kuwait are also launching their facility management affiliates; hence, infrastructure development will have a positive impact on the growth of the Kuwait facility management market.
|Base Year (2019) Market Size||$958.2 Million|
|Forecast Period CAGR||8.3%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Companies’ Strategic Developments, Key Offerings of Major Players, Company Profiling|
|Market Size by Segments||By Type, By Service, By Mode, By End User|
|Secondary Sources and References (Partial List)||Atlanta Chapter of the International Facility Management Association, Federal Emergency Management Agency, Public Authority for Housing Welfare, Global Facility Management Association, International Labour Organization, Kuwait Chamber of Commerce and Industry, Kuwait Green Building Council, Middle East Facility Management Association, Kuwait Municipality, International Monetary Fund|
The Kuwait facility management market is fragmented in nature, with the presence of market players such as Kharafi National for Infrastructure Projects Developments Construction and Services S.A.E, O&G Engineering W.L.L., Fawaz Trading & Engineering Services Co. W.L.L., EcovertFM Kuwait, Al Mazaya Holding Company, Al-Awsat United Real Estate Co., R&E Petroleum Co., Refrigeration Industries and Storage Company, PIMCO, United Facilities Management, Al Mullah Group Holding Company K.S.C.C., Gulf Engineering Company K.S.C.C., Kazema Global Holding K.S.C.H., Universal Technical Co., and Alghanim International.
In recent years, players in the industry have won numerous contracts in order to stay ahead of their competitors. For instance:
The global Kuwait 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
Based on Type
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