Published: April 2021 | Report Code: PE11355 | Available Format: PDF | Pages: 132
The Saudi Arabian facility management market size stood at $31,264.1 million in 2020, and it is expected to demonstrate a CAGR of 11.1% during the forecast period (2021–2030). Advanced technologies, such as augmented reality (AR)/virtual reality (VR), artificial intelligence, and robots, are some of the key factors that are helping the market grow. Further, the increase in construction activities, along with the growth of the tourism sector of the country, is one of the major factors propelling the Saudi Arabian facility management industry.
The COVID-19 pandemic has had a negative impact on the industry on account of the countrywide lockdown in 2020. This has led to the shutting down of facilities such as malls, shopping complexes, and offices, along with restrictions on gatherings at mosques, which, in turn, has reduced the requirement for facility maintenance services.
Cleaning services, which were the fastest-growing category during the historical period (2015–2020), are expected to show the same trend during the forecast period, based on service. Moreover, this category will hold the largest share in 2030 owing to the rise in the demand for cleaning services due to COVID-19, which has led to a heightened awareness among people regarding general hygiene. As a result, entities will likely hire professionals for such services at their facilities, which, in turn, is expected to drive the market for facility management services in Saudi Arabia.
The business and corporate category held the largest share in the facility management market of Saudi Arabia in 2020, based on end user, and it is expected to retain its position in 2030. This is ascribed to the strong government support, along with the high investments in the business and corporate sector.
For instance, the National Transformation Program 2030 of the Government of Saudi Arabia, a part of its Saudi Vision 2030 development plan, focuses on accelerating the development of primary and digital infrastructure projects. This infrastructure growth will encourage businesses and corporates to expand in the kingdom, which will further raise the requirement for facility management services, thereby pushing the market of facility management in Saudi Arabia forward.
The in-house category held the larger share in 2020, under segmentation by mode, and this Saudi Arabian facility management market trend is likely to continue in the coming years. This can be ascribed to the increase in the reliance on in-house services, owing to its sustainability in the long run, primarily for asset management, catering, and security.
On the basis of type, soft services held the largest share in 2020, and they are expected to retain their position in the forecast period. This is attributed to the high demand for non-technical services such as cleaning, security, catering, and support services at public, as well as private complexes and institutions. Furthermore, corporations are turning to facility management companies to provide all aspects of aforementioned mentioned corporate maintenance services for the satisfaction of clients and employees, which in turn drives the demand of soft services.
On the basis of sector, the facility management market in Saudi Arabia was led by the private category in 2020. This is majorly attributed to the rapid construction of plastic factories, medical laboratories, educational buildings, and offices of construction companies.
The increasing focus of the government on economic diversification is a key trend being observed in the Saudi Arabian facility management market. In order to reduce the dependence on the oil & gas sector, which was severely affected by the slump in the oil prices in 2015 and 2016, the government is putting a strong focus on developing a long-term economic roadmap to decrease the country’s dependence on hydrocarbons. In this regard, the government has introduced an economic reformation plan, known as the Saudi Vision 2030, in order to develop other sectors, including health, education, infrastructure, recreation, and tourism. Such factors are expected to propel the construction of several types of facilities, thus boosting the demand for facility management services in the kingdom.
The facility management sector in Saudi Arabia is majorly being driven by the growing infrastructure industry owing to a large number of construction projects in various stages of implementation in the country. The strong support from the government, along with the increasing investments in the sector, is propelling the requirement for facility management services. For instance, in January 2019, the government announced plans to invest $426 billion by 2030 in order to develop infrastructure and industries. Such factors are expected to augment the revenue for facility management companies in Saudi Arabia during the forecast period.
The tourism sector is one of the largest contributors to the country’s economy. With the growth of the tourism sector in recent years, the need for services to maintain hotels and resorts, shopping complexes, and other facilities and provide security, catering, and several other facilities to owners and visitors has witnessed a rise. In June 2020, the Ministry of Tourism announced plans to start a tourism development fund with an initial $4-billion investment. Such factors are expected to promote the growth of the Saudi Arabian facility management market by increasing the demand for such services at the existing and under-construction commercial premises.
|Base Year (2020) Market Size||$31,264.1 Million|
|Market Size Forecast in 2030||$87,216.0 Million|
|Forecast Period (2021-2030) CAGR||11.1%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Companies’ Strategic Developments, Company Profiling|
|Market Size by Segments||By Service, By End User, By Mode, By Type, By Sector|
|Secondary Sources and References (Partial List)||General Authority of Statistics, International Labour Organization, International Project Management Association, FM EXPO Saudi, Ministry of Commerce & Investment Saudi Arabia, Ministry of Housing, United Nations, World Bank Group, US-Saudi Business Council, International Monetary Fund|
The Saudi Arabian facility management market comprises a large number of players, such as Muheel Services LLC, Safari Group, APSG Group, AMNCO, EFS Facility Services Group Limited, Khidmah LLC, Enova Facility Management, Musanadah Facilities Management Co. Ltd., Al Borj International, Petrojana, Nesma Trading Co. Ltd., Al Hajry Overseas Co. Ltd., Zahran Holding Company, Initial Saudi Group, FMCO, Jones Lang LaSalle Incorporated, CBRE Group Inc, and Al Yamama Group.
Many of these companies have signed many small contracts for providing services at mega projects, such as Amaala, King Salman Park, and Qiddiya. Additionally, players in the industry have aimed at bagging large-scale projects in order to stay ahead of their competitors. For instance:
The Saudi Arabian facility management market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Service
Based on End User
Based on Mode
Based on Type
Based on Sector
The 2020 size of the market for facility management services in Saudi Arabia was $31,264.1 million.
Property services witness the highest demand in the Saudi Arabian facility management industry.
End users in the market for facility management services in Saudi Arabia are hiring third parties for these tasks to save on operational costs.
Economic diversification and the usage of advanced technologies for providing the services are the biggest Saudi Arabian facility management industry trends.
Players in the market for facility management services in Saudi Arabia are acquiring client contracts for business growth.
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