|Status : Published||Published On : Mar, 2019||Report Code : VREP3008||Industry : Energy & Power||Available Format :||Page : 105|
The Saudi Arabia facility management market is predicted to grow at 9.4% CAGR during the forecast period with the market size reaching USD 51.9 billion by 2024. Different types such as hard, soft and others are majorly contributing to the facility management market size. The market has witnessed significant demand for hard category over the last few years due to its high cost.
Insight by Service
Based on the service, the facility management market is categorized into property, cleaning, environmental management, security, support, catering, and others (utility management, contract management, reception, furniture supplies, and staffing) of which property holds the largest share during the historic period in the facility management market due to numerous advantages such as confirming small opportunity cycles, enhanced occupant retaining, and several others. 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 facility management market is segmented into commercial, industrial, and residential. Of all, the commercial category was accounted for the largest share in the Saudi Arabia facility management market due to escalating alertness among end users for commercial building maintenance to minimize expenditure.
Insight by Mode
On the basis of mode, the 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. The integrated segment accounted the largest share in the market, as it reduce complication by decreasing amount of service suppliers, and preserve single point of contact.
Insight by Type
On the basis of the type, the 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 elevated cost.
The economic divergence is the major trend of the Saudi Arabia facility management market. The country is mounting investment in the infrastructure sector to reduce its economic dependence. Moreover, the government initiated a reform plan “Vision Saudi 2030”, to upsurge private investment and decrease the country’s dependency on hydrocarbons.
The mounting infrastructure-based development such as commercial buildings, industrial projects, infrastructure projects, and residential construction projects, the escalating number of facilities and services, and expanding tourism are the key factors leading to the growth in the Saudi Arabia facility management market.
Some of the other key factors driving the growth of the industry are escalating need for outsourcing facility management services and mounting government expenditure on infrastructure projects. Owing to the Vision Saudi 2030 an immense demand for facility management services in Saudi Arabia is created. It would result, the need for schools, international airports, hospitals, and others.
Key factors hindering the growth of the facility management market is the lawful marketplace. Most of the rules and regulations are administrated by the Saudi law, majorly proceeds on the Shari’ah law and offers an inadequate defense in a situation of non-payment.
Market players in the Saudi Arabia 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., Rezayat Group, Al Borj International, Khidmah LLC, Musanadah Facilities Management Co. Ltd., Saudi Oger Ltd., Interserve plc, Nesma Trading Co. Ltd., Enova Facility Management, and Petrojana are some of the key players offering solutions for facility management in Saudi Arabia.
Primary Research Interviews - Breakdown