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The Saudi Arabia facility management market size stood at $32,480.4 million in 2019, and it is expected to demonstrate a CAGR of 9.3% during the forecast period (2020–2030). The increase in construction activities, along with the growth of the tourism sector in the country, is one of the major factors propelling the Saudi Arabia facility management industry.
The COVID-19 pandemic has created a negative impact on the industry, on account of the countrywide lockdown since April. This has led down to the shutting down of facilities such as malls, shopping complexes, and offices, along with restrictions on gathering at mosques, which, in turn, has reduced the requirement for facility maintenance services.
Property services held the largest share, on the basis of service, in 2019, and the trend is likely to continue during the forecast period. This can be ascribed to the increasing need for such services, in order to keep the facility in prime condition; the demand for heating, ventilation, and air conditioning (HVAC), mechanical, and electrical maintenance services at the property has also been high. In addition, there is also a rising requirement for space planning, designing, and asset management, which is covered under property services. With the convenience offered, entities are likely to hire professionals for such services at their facilities, which, in turn, is expected to drive the Saudi Arabia facility management market.
The property services category is further subcategorized into HVAC maintenance services, mechanical and electrical maintenance services, and other services. Among these, the HVAC maintenance services category held the largest share in 2019. The country witnesses a high-volume adoption of HVAC equipment, owing to its extremely hot climatic conditions. In a bid to effectively run the HVAC systems, regular maintenance is required, which, in turn, boosts the Saudi Arabia facility management market to a great extent.
The commercial category held the largest market share in 2019, based on end user. This can be ascribed to the strong government support, along with high investments in the commercial infrastructure of the country. For instance, the National Transformation Program 2030, laid out by the government of Saudi Arabia as part of its Vision 2030 development plan, focuses on accelerating the implementation of primary and digital infrastructure projects. This, in turn, is expected to promote the growth of the Saudi Arabia facility management market.
The Saudi Arabia facility management market has been bifurcated into in-house and outsourced, on the basis of mode of services. Among these, the in-house bifurcation held the larger share in 2019, and the trend is likely to continue in the coming years. This can be ascribed to the increase in the reliance on in-house services, primarily for the management of assets, catering, and security.
The outsourced mode has been further subcategorized, on the basis of type, into integrated, bundled, and single. Among these, the bundled category held the largest share in 2019, due to a large number of facilities preferring bundled services, as these services can be highly customized, as per requirement.
The market has been categorized into hard services, soft services, and others on the basis of type, among which hard services is expected to demonstrate the fastest growth during the forecast period. Hard services are critical in nature, owing to which they are highly preferred in the country. Additionally, hard services are relatively more expensive, as they require a higher level of professional expertise. This is why they make the largest revenue contribution to the overall industry. With the increase in the preference for professional services, the market category is expected to witness the fastest growth in the coming years
The Saudi Arabia facility management market is poised to witness strong growth during the forecast period, with the expansion of the infrastructure sector in the country. Saudi Arabia’s construction sector has witnessed profound growth lately, on account of the strong support from the government, along with an increase in the investments. For instance, in January 2019, the government announced plans to invest $426 billion by 2030, in order to develop infrastructure and industries in the country.
Additionally, with the launch of the National Transformation Program 2030, a strong focus has been put on the improvement of the living standards and safety level in the country. The program particularly aims at augmenting the quality of services provided in Saudi cities, urban landscape, and traffic security. Therefore, such targets and initiatives by the government are expected to promote the growth of the Saudi Arabia facility management market.
The increasing focus of the government on economic diversification is a key trend being observed in the Saudi Arabia 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 that aims to decrease the country’s dependence on hydrocarbons. Additionally, the government introduced an economic reform plan, known as ‘Saudi Vision 2030’, in order to focus on the development of public sectors, including health, education, infrastructure, recreation, and tourism. Such factors are expected to propel the adoption of various maintenance services, in turn, boosting the Saudi Arabia facility management market.
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 in the country. For example, in 2017, the ‘Smart City’ initiative was launched by the Saudi government for the development of infrastructure projects, wherein the government plans to deploy smart cameras, smart parking solutions, smart solid waste disposal, smart lighting systems, and environmental pollution monitoring tools, which is expected to drive the need for services to maintain these systems. Such factors are expected to augment the Saudi Arabia facility management market 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, in order to maintain a facility, provide security, catering, and several other facilities, has witnessed a rise. Additionally, in June 2020, the Ministry of Tourism announced plans to start a tourism development fund, with an initial $4 billion investment. Therefore, such factors are expected to increase the need to avail facility management services, in turn, promoting the growth of the Saudi Arabia facility management market.
|Base Year (2019) Market Size||$32,480.4 million|
|Forecast Period (2020-2030) CAGR||9.3%|
|Report Coverage||Market trends, revenue estimation and forecast, segmentation analysis, companies’ strategic developments, product benchmarking, company profiling|
|Market Size by Segments||Service, end user, mode, type, end user capacity, workforce analysis|
|Secondary Sources and References (Partial List)||Cooperative Association of Housing, FM EXPO Saudi, General Authority of Statistics, International Labour Organization, International Project Management Association, Ministry of Commerce & Investment (Saudi Arabia), Ministry of Housing (Saudi Arabia), Saudi Clean Expo|
The Saudi Arabia facility management market comprises a large number of players, such as EMCOR Group Inc., Khidmah LLC, Interserve plc, Al Borj International, Petrojana, and Nesma Trading Co. Ltd.
In recent years, players in the industry have aimed at bagging large-scale projects, in order to stay ahead of their competitors. For instance:
The Saudi Arabia facility management market offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Service
Based on End-Use
Based on Mode
Based on Type