|Status : Published||Published On : Mar, 2019||Report Code : VREP3010||Industry : Energy & Power||Available Format :||Page : 135|
The GCC facility management market is predicted to grow at 9.4% CAGR during the forecast period with the market size reaching USD 86.8 billion by 2024. Different services such as property, cleaning, environmental management, security, support, catering, and others (contract management, utility management, furniture supplies, and reception staffing) are majorly contributing to the facility management market size. The market has witnessed significant demand for property over the last few years due to its advantages such as minimal maintenance and repair price, reduced occupant turnover, support with taxes, rent collection, and small vacancy cycles.
Insight by Service
Based on the service, the GCC facility management market is categorized into property, cleaning, environmental management, security, support, catering, and others (contract management, utility management, furniture supplies, and reception staffing) of which property holds the largest share during the historic period in the facility management market due to its advantages such as minimal maintenance and repair price, reduced occupant turnover, support with taxes, rent collection, and small vacancy cycles.
Moreover, the catering segment is predicted to grow at the fastest growth during the forecast period owing to mounting tourism and hospitality industry. The property segment is further subdivided into heating, ventilation, and air conditioning (HVAC) maintenance, mechanical and electrical maintenance, and others.
Insight by End User
On the basis of the end user, the GCC facility management market is segmented into commercial, industrial, and residential. Of all, the commercial category is predicted to witness the highest CAGR of 9.8% during the forecast period and accounted for the largest share in the facility management market due to escalating alertness among end users for commercial building maintenance to minimize expenditure. Moreover, the benefits it offers to commercial users to sustain emphasis on their core capabilities to improve their attractiveness in the market and sustain their resources at a consistent time.
Insight by Mode
On the basis of mode, the GCC facility management market is segmented into outsourced, and in-house. Of all, the in-house category accounted for the larger share in the market due to elevated acceptance rate, long-standing existence, and comparatively low price. The outsourced segment is further subdivided into integrated, single and bundled.
Insight by Type
On the basis of the type, the GCC facility management market is segmented into hard, soft and others. Of all, hard category accounted for the largest share in the facility management market due to the high cost.
The regulatory and financial development in GCC countries and the advancement of outsourced facility management services are the major trends of the GCC facility management market.
The mounting construction activities and projects, technological advancement, and escalating tourism are the key factors leading to the growth in the facility management market in GCC are the key factors leading to the growth in the GCC facility management market.
Some of the other key factors driving the growth of the industry are mounting need of outsourced facility management and escalating emphasis on non-oil sectors. The flexibility that is required to encounter the continuously altering business needs and necessities would result, the immense opportunity for the outsourced facility management services.
Key factors hindering the growth of the GCC facility management market are inflationary pressure on the facility management service industry, and high standards.
Geographically, Saudi Arabia is the largest and observed to witness significant growth is the facility management market as the region the tourism industry is increasing. In addition, expanding construction activities, and rapid urbanization are also driving the growth of the Saudi Arabia facility management market.
Market players in the GCC facility management industry are investing capital to develop technologically advanced systems. In April 2017, Musanadah Facilities Management partnered with CoxGomyl, an exclusive distributor in Saudi Arabia, to implement its presence in Saudi Arabia.
EMCOR Group Inc., Emrill Services LLC., United Facilities Management, Khidmah LLC, Cofely Besix Facility Management, Kharafi National, Interserve plc, Imdaad LLC, Musanadah Facilities Management Co. Ltd., and Farnek Services LLC are some of the key players offering solutions for facility management in GCC.
PRIMARY RESEARCH INTERVIEWS - BREAKDOWN