Facilities Management Market Outlook

Facilities Management Market Outlook, Growth in Infrastructural Projects to Foster Demand for Facilities Management Services provides a comprehensive analysis on the soft and hard facilities management market in Saudi Arabia. The report covers Market Introduction, list of major real estate projects, Recent Contracts, Value Chain Analysis, Market Size, Market Segmentation – By Hard Facility Management Services and Soft Facility Management Services, By Integrated Facilities Services, Bundled Services and Single Services, By In-house and Outsourcing. It also provide information on regulatory landscape, trends and developments, issues and challenges, SWOT analysis, vendor selection criteria, competitive landscape, company profiles, future analysis by Segments, list of major projects in pipeline, analyst recommendations. It serves as a benchmark for every new player which is seeking to enter into facilities management market.

This helps readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report is useful for online grocery and food delivery companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Facilities Management Market
Facilities Management market has witnessed a robust growth in past few years. The market has increased from 2014 to 2020 growing at a high five year CAGR during the period. Growing infrastructure industry and booming hospitality sector in Saudi Arabia has surged the demand for facilities management services in the country. Increase in project activity centered on tourism, construction of resorts, hotels and budget hotel chains in the kingdom have raised the demand for soft and hard services in the country. Growing real estate market in Saudi Arabia has increased the number of residential and commercial units. This has resulted in the rising demand for facilities management services especially housekeeping services.

Market Segmentation
By Hard Services and Soft Services: The facility management market can be majorly segmented on the basis of types of services offered i.e. hard services and soft services. Hard services dominated the market of facilities management. Soft services have added a percentage share in terms of revenues in 2019. Increase in the construction facilities coupled with the new green and energy efficient concept in the design of shopping centers, hospitals, airports and others has led to surge in the demand of HVAC, operations and maintenance services, electro-mechanical services and fire safety and security system further impacting the FM market positively.

By Integrated Service, Single Services and Bundled Services: Facility management market is also segmented on the basis of integrated services, single services and bundled services. An integrated service was the largest contributor in the industry with the share of ~% in the revenues of the facilities management industry in 2019. The companies opt for integrated services in order to limit complexity by reducing number of service suppliers, maintain single point of contact and establish financial certainty of the customers. Single services have contributed a share in the revenues of the industry. Bundled services are the least contributor in the revenues of the industry with a huge share in 2019.

By Sectors: Residential sector was in lead of the FM market in terms of revenue generation in 2019. The government’s initiative announced the plans of construction which led to growth in the residential sector further increasing the demand of the facilities management services in this sector. Commercial sector has added a share in the revenues of the industry. Hospitality sector added a share in the revenues of the FM industry. Other sectors include oil & gas, logistics, education and others.

Positioning of Major Players in Facilities Management Industry
Facilities Management market is fragmented with many players operating in this industry. The facilities management market in Saudi Arabia has attracted various international players over the years due to high potential such as OCS Arabia, Cushman & Wakefield, JLL, Atkins and others. The market has been elevated owing to rising awareness and demand of the FM market. The industry is largely dominated by giants such as Saudi Oger, Almajal G4S, Zamil, Samama, Nesma Trading and others.

Future Potential
Facilities management market will grow at a healthy rate in coming future. The market is expected to increase at a five year huge CAGR during 2019-2024 owing to the rising construction industry in the country which would further lead to increased residential and commercial space. Moreover, the facilities management market is highly fragmented and nascent. This will give immense opportunity to the global and local players to tap the market with technology advancements in the FM industry. Growing hospitality industry in the country is expected to trigger the demand for HVAC services, security, cleaning, housekeeping and other facilities management services. Enormous growth in retail and construction industry in the country will increase the number of residential and commercial units in the country leading to rise in the demand of FM services by these industries. Rise in various industries such as tourism, IT and others will impact the market in positive manner.

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