Published: December 2022 | Report Code: 11352 | Available Format: PDF
The U.A.E. facility management market size stood at $15,768 million in 2021, and it is expected to advance at a compound annual growth rate of 9.8% during 2021–2030, to reach $36,575 million by 2030.
The growth can be primarily attributed to the rising necessity for soft facility management services and the increasing focus on green buildings. Specifically, the growing service demand in Dubai is mainly because of the increasing investments by the government in infrastructure development. Furthermore, the rising in tourism activities in this emirate post the pandemic are contributing toward the growth of the hotel industry, thereby creating a high need for these services.
The emergence of new and advanced technologies is further expected to fuel the market advance. When the latest technologies, such as building information modeling (BIM), advanced heating, ventilation, and air conditioning (HVAC), and automated facility management software, are integrated, companies are able to deliver excellent solutions to customers.
The expansion of the real estate sector and development of smart cities are some key factors propelling the need for facility management. Further, the growing adoption of cloud-based solutions is a key trend in the U.A.E. facility management market. The newly launched SaaS platforms and better accessibility allow for enhanced security to and management of material components and manpower, which assists in cost reductions for the players as well as customers. In addition to scalability, real-time collaboration, easy accessibility, and disaster recovery, SaaS platforms can also offer insights into the ongoing operations.
The service segment is divided into property, cleaning, security, catering, support, environmental management, and others. Among these, property services held the largest share, of 28.1%, in 2021, owing to the increasing demand for HVAC servicing and the maintenance of mechanical and electrical systems. Between the end of 2020 and April 2022, the population of the country rose by 100,000, which, in turn, has been driving the market in this category. Similarly, the high temperature in the Middle East region necessitates HVAC installation and regular maintenance.
The cleaning services category is expected to witness the fastest growth during the forecast period because an increasing number of people are showing consciousness about hygiene, which includes sanitizing homes. In addition, due to the strong online presence of players and technological advancement in these services, the requirement for them is expected to increase significantly in the coming years.
The business and corporate sector held the largest share, of 46.7%, among business and corporate, education, industry and manufacturing, healthcare, public administration, hospitality, construction, and others. The dominance of this category is ascribed to the rising investments by the government in the corporate sector of Dubai. For instance, the Dubai Smart City Plan 2021 focuses on making Dubai a smart and sustainable place to live and work. The corporate places in this smart city would require electrical maintenance and HVAC solutions, which, in turn, will boost the demand for FM.
On the basis of mode, the domain is bifurcated into inhouse and outsourced. Between these, the inhouse category holds the larger share because of the high efficiency and operational control carrying out these tasks oneself offers. The inhouse mode is also more convenient; thus, prominently opted for by end users.
The outsourced category, which is set to witness the higher CAGR, is further categorized into integrated, bundled, and single. Among these, the integrated mode will register the fastest growth during the forecast period, because a rising number of users are preferring customized solutions, for better results and cost-savings.
Soft services hold the larger share, of 63.6% among soft services and hard services. It is because soft services are required on a daily basis, especially with the rising concerns related to health since the pandemic. In this regard, the increasing awareness about hygiene and growing disposable income are the key factors propelling the market. Since hygiene directly impacts the productivity and job satisfaction of employees, the rising investments in a more-productive and functional workplace have pushed the demand for soft services in the country.
Market Size in 2021
Revenue Forecast in 2030
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
By Service, By End user, By Mode, By Type, By Sector
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The U.A.E. facility management market has also been categorized into the public and private sectors, of which the private sector is expected to show significant growth in the coming years. The strategic approach based on acquiring value-added skills, such as environmental and sustainability planning, has created a high demand for these facilities in the U.A.E. Furthermore, the rising number of contracts between providers and private institutions has pushed the market for facility management in the country.
The growth in the U.A.E.’s tourism industry plays a vital role in driving the market. As per sources, the number of international tourists who visited Dubai in the first seven months of 2022 is approximately 8.1 million. This invites significant foreign direct investments and creates job opportunities in the hospitality sector of the country, which will further drive the market. Further, with the rising government investments in economic diversification, the tourism sector in the U.A.E. is growing rapidly. Moreover, the rising construction of railways, airports, transportation facilities, hotels, and other pieces of infrastructure for tourists, amidst the strict regulations regarding safety, cleanliness, and hygiene, is driving the demand for facility management in the U.A.E.
The growing investments in the construction sector are also boosting the growth prospects for the facility management market in the U.A.E. The construction industry has been witnessing strong growth owing to the wide variety of construction projects in the tender/bidding phases related to urban development, manufacturing, transportation, utilities, and oil and gas. For instance, the government has approved a total expenditure of $15.5 billion to support social, health, educational, and cultural activities, as well as infrastructure development in the country.
Furthermore, in 2022, the country planned a $23-billion infrastructure investment. The operators of all the buildings/facilities developed with this funding will look for FM companies to manage their assets. Additionally, the Dubai government has allocated $1.4 billion for construction, earmarking 9% of the total GDP in 2022 in order to maintain the volume of investments in infrastructure. This plan, which has been approved by the vice president, prime minister, and ruler of the country, will further increase the requirement for both soft and hard FM services.
The study uncovers the biggest trends and opportunities in the market, along with offering segmentation analysis at the granular level for the period 2017 to 2030.
Based on Service
Based on End user
Based on Mode
Based on Type
Based on Sector
In 2030, the value of the facility management market in the U.A.E. will be $36,575 million.
The U.A.E. facility management industry is expected to grow at a CAGR of 9.8%.
Property services dominate the U.A.E. facility management market in the U.A.E.
The U.A.E. facility management industry is driven by infrastructure development.
Most users in the facility management market of the U.A.E. currently prefer the inhouse mode.
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