|Status : Published||Published On : Mar, 2019||Report Code : VREP3009||Industry : Energy & Power||Available Format :||Page : 104|
The U.A.E facility management market is predicted to grow at 9.6% CAGR during the forecast period with the market size reaching USD 24.4 billion by 2024. Different services such as property, cleaning, environmental management, security, support, catering, and others 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 U.A.E. facility management market is categorized into property, cleaning, environmental management, security, support, catering, and others 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 U.A.E. facility management market is segmented into commercial, industrial, and residential. Of all, the commercial category is predicted to witness the highest CAGR of 10.2% during the forecast period and accounted for the largest share in the U.A.E. 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 U.A.E. 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 U.A.E. 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 mounting emphasis on facility management services and changing the emphasis on integrated facility management services are the major trends of the U.A.E facility management market. The expanding property market, acceptance of more progressive technology is resulting in the augmented need of these services, speedy enlarging hospitality sector, and mounting mergers and acquisitions in the industry are consequential in augmented need of these services. Moreover, the intensifying need for real estate has produced the need for additional construction projects in the country and is leading to upsurge in the requirement of these services.
The mounting infrastructure-based development such as commercial buildings, infrastructure projects, residential construction projects, and industrial projects, growing commercial sector, relocation to support the development of major construction programmes, escalating number of residential projects, and mounting development of cloud-based solution in the country are the key factors leading to the growth in the U.A.E facility management market.
Some of the other key factors driving the growth of the industry are expanding disposable income, mounting tourism industry, and rapid urbanization. Owing to the upcoming international mega-events in the country such as the Dubai expo 2020 is creating immense demand for facility management services in U.A.E. The upcoming events would result, the need for hospitality services and infrastructure in order to provide accommodation resource for guests from various countries.
Key factors hindering the growth of the U.A.E. facility management market are inflationary pressure on the facility management service industry, and workforce management. In addition, several companies are refocusing to cost-cutting actions, which also pose further challenges in sustaining service quality ethics.
Market players in the facility management industry are investing capital to develop technologically advanced systems. In January 2019, Deyaar Property Management LLC partnered with Belhasa International Company LLC to accomplish its mixed-use structures across Dubai, Sharjah, and Abu Dhabi.
Emrill Services LLC, Etisalat Facilities Management LLC, Deyaar Development PJSC, Imdaad LLC, Transguard Group LLC, Cofely Besix Facility Management, EFS Facilities Management Services, Enova Facility Management Services LLC, Reliance Facilities Management, Al Shirawi Facilities Management LLC, Farnek Services LLC, and Blue Diamond Facilities Management LLC are some of the key players offering solutions for the facility management in U.A.E.
Primary Research Interviews - Breakdown