Saudi Arabia Facility Management Market is expected to reach more than $30 Bn by 2026: Ken Research

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Key Findings

• Residential units would be a major booming segment to focus on due to the rising younger population, ex-pats, government-sponsored affordable housing programs to the poor population.
• In future years, companies need to increase their service portfolio adding new building management, energy management services and other as per the changing demand patterns.
• Rapid real estate development in terms of smart city development, new infrastructure developments, and focus on tourism and hospitality promotion are the supporting factor for commercial facility management services revenue.

Focus on Green Building Management: Green buildings aim at increasing the efficiency of resource usage while minimizing their negative impact on humans and surroundings. Saudi Arabia Green Building Forum is a providing leadership and encouraging collaboration in conducting environmentally sustainable practices for green building design and development.

Inclusion in Real Estate Plans: Facility managers are consulted at the start of the design phase to provide feedback on effective utilization of project area, landscaping, fire and safety systems and lifecycle cost analysis of the building. International companies are forming a strategic alliance with local companies to penetrate the Saudi Market. Examples: Zamil group and International Maritime Industries launch OSV joint venture. The new joint venture would address the needs of the local market but also go beyond that and compete in the regional and international arena.

New Trends: Growing trend towards adopting sustainable practices is also expected to contribute positively to the demand for Facility management services. The share of Integrated Facility management (Total Energy management) would increase due to changes in customer preference, cost and operational efficiency. Growth in construction activities, banking, IT and telecommunication sectors have increased the demand for IFM services as more companies have begun outsourcing their non-core activities. Increasing number of multinational companies have begun outsourcing contracts for integrated facilities management.

Analysts at Ken Research in their latest publication “KSA Facility Management Market Outlook to 2026F- Driven by the government initiatives to promote Tourism along with Saudi Vision 2030 and infrastructure developments in the country” By Ken Research observed that Facility Management market is an emergent market in KSA at a rebounding stage from the economic crisis after pandemic. The rising government policies and demand for facility services, inclusion in real estate plans along with government initiatives is expected to contribute to the market growth over the forecast period. The market is expected to grow at a 7.8% CAGR during 2021-2026F owing to the rise in economy of the country, increasing consciousness towards looks and new government policies.

Key Segments Covered in the report

KSA Facility Management Market

• By Type of Services

• Soft Services
• Hard Services

• By Soft Services

• Housing keeping
• Security
• Landscaping
• Others

• By Hard Services

• Electromechanical Services (including HVAC)
• Operations and Maintenance Services
• Fire Safety and Security Systems

• By Service Type

• Integrated facility management (IFM)
• Bundled services
• Single services

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• By End User Sector
• Commercial (Includes Offices, retail, infrastructural)
• Residential
• Industrial

• By Personal Type
• Outsourced Personnel
• In-House Personnel

Key Target Audience

• Factories
• Plants and Industries
• Hotels
• Hospitals
• Malls
• Companies and offices
• Tourism Agencies
• Government Bodies & Regulating Authorities
• Facility management companies
• Real estate companies

Time Period Captured in the Report:

• Historical Period: 2016-2021
• Forecast Period: 2021-2026F

Companies Covered:

• Al Yamama
• Aljahrary Overseas
• Zahran Operations & Maintenance
• Zamil Operations and Maintenance
• Almaja G4sl Facility Management
• Initial Saudi
• Safari
• ENOVA
• Nesma United
• Alborj Facility Managment
• Khidmaah
• Saudi Emcor (EFS)
• Musanadah Facilities Management (MFM) 
• El Seif (ESOM)

Key Topics Covered in the Report

• Saudi Arabia Real Estate Market Overview, 2021
• Major Real Estate Giga Projects in Saudi Arabia
• Saudi Arabia Facility Management Market Ecosystem
• Business Cycle, Genesis and Timeline of Saudi Arabia Facility Management Market
• Value Chain & Vendor Selection Process of KSA Facility Management Market
• Business Acquisition Process in Saudi Arabia Facility Management Market
• Saudi Arabia Facility Management Market Size, 2021
• Saudi Arabia Facility Management Market Segmentation, 2021
• SWOT Analysis of Saudi Arabia Facility Management Market
• Key Growth Drivers in Facility Management Market in Saudi Arabia
• Trends and Developments in Saudi Arabia Facility Management Market
• Major Challenges Faced by the Saudi Arabia Facility Management Market
• Competition Framework for Saudi Arabia Facility Management Market
• Future Outlook and Projections of the Industry, 2021-2026F
• Market Opportunities and Analyst Recommendations

For more information on the research reports, refer to below link: -

KSA Facility Management Market Outlook to 2026F: Ken Research

Related Reports:

Qatar Facility Management Market Outlook to 2026F

Chile Facility Management Market Outlook to 2023

Vietnam Facility Management Market Outlook to 2023 

The Rising Infrastructural Growth in Saudi Arabia will Increase the Demand for Facility Services particularly in Commercial Sector: Ken Research

 

1.  50+ Facility Management Service Provider Market has huge profitability scope at its growing stage

During the emerging phase till 2000s, facility management services was demanded for basic service including cleaning, security, and maintenance. The market was driven by the motives of cost-cutting and outsourcing non-core services. The demand for both hard and soft services started increasing during the growing phase with MEFMA being set up and many big players venturing into market.

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2. Giga projects have been designed to stimulate overall economic growth which is expected to boost the KSA Facility Management Market

Saudi Arabia's giga-projects, designed to create new ecosystems and unlock new sectors, are heavily facilitated and promoted by technology and knowledge. Due to their sheer size, giga-projects help to diversify the economy away from oil by stimulating the economy and expanding beyond the real estate and infrastructure sectors. There are currently five giga-projects in the Kingdom and ~$1060 Bn has been incurred towards the completion of Vision 2030 Giga Projects.

3. Due to which Saudi Arabia Facility Management Market is expected to grow at a CAGR of 7.8% during 2021-26

Residential units would be a major booming segment to focus on due to the rising younger population, ex-pats, government-sponsored affordable housing programs to the poor population. In future years, companies need to increase their service portfolio adding new building management, energy management services and other as per the changing demand patterns.

4. Adoption of advanced technology, Integrated services has altered the growth of facility management in KSA

BIM technology enables organizations to visualize specific components of a space, including structural elements. Machine learning enables building systems to automatically collect and analyze data in order to predict outcomes. Smart Building Technology is used to automatically controls a facility’s operations, including heating, air conditioning, lighting and security. Increasing number of multinational companies have begun outsourcing contracts for integrated facilities management. International companies are forming a strategic alliance with local companies to penetrate the Saudi Market.

For more insights on the market intelligence, refer to the link below: -

KSA Facility Management Market Outlook to 2026F: Ken Research

KSA Facility Management Market Size, Forecast, Revenue & Outlook to 2026F: Ken Research

 The report “KSA Facility Management Market Outlook to 2026F- Driven by the government initiatives to promote Tourism along with Saudi Vision 2030 and infrastructure developments in the country“ provides a comprehensive analysis of the Facility management market in KSA. The report covers overview and genesis of the industry, service wise market size; market segmentations; analysis on facility management market; trends and developments, issues and challenges and comparative landscape including market shares of major companies, competition scenario, cross comparison and cost sheet of major market players in KSA. The report concludes with future market projections of each service segmentation and Analyst recommendations to win the Facility Management Market in KSA.

Facility Management Overview:

Although, the pandemic has affected almost all sectors, yet the facility sector was able to withstand the strike in this period. Rise in real estate market with $155 Bn in market share in 2021, also under Vision 2030, the government has introduced several mega projects like NEOM, The Red Sea etc. comprising of many luxury hotels, thus creating a positive impact in terms of boosting tourism and increasing demand in the hospitality sector. Saudi Arabia aspires to become a significant tourist destination by 2030, with tourism capital expenditure estimated to exceed SAR 200 Bn ($54Bn) in the next ten years. All of these different sectors and projects are directly affecting the facility management sector in KSA.

KSA Facility Management Market Overview:

Demand for facility management services was driven by commercial and real estate expansion, rising awareness among the clients regarding importance of maintenance services for sustainable buildings. The market continues to be attractive because higher competition, leading to greater scrutiny of contracts, contract renewals and customized contracts. Market growth rate was slowed down during covid-19 due to closure of various commercial buildings and restriction but in 2021 industry bounced back with increased demand for cleanliness sanitisation and other services.

KSA Facility Management Segmentations

By Types of Service:

The Facility Management Companies are adopting new technology to automate the various hard and soft services for faster and high-quality service delivery and less reliance of manual labor.

By Types of Soft Service:

Growth in the residential sector as a 23.3% gain in the total value of agreements in 2021, a rise in the hospitality and construction sectors have surged the demand for housekeeping services in the Kingdom.

By Types of Hard Service:

Due to the hot climatic conditions and global warming, the HVAC repair and maintenance segment has expanded at a higher rate in the country.

By Service Type:

An increase in the outsourcing of services has spiked the demand for Integrated services, small scale companies usually opt for single and bundled services, while large scale companies opt for Integrated services.

By End User Sector:

The commercial sector generates the highest demand both for soft and hard services.

In recent years, the Government has started outsourcing the facility management services for airports, hospitals and other infrastructure projects. There was a boom in the residential sector as a result of increased immigration, government effort for affordable housing and cascading effects from an increase in business activities. The industrial sector mostly prefers to employ in-house repair and maintenance services.

By Personnel Type:

Facility management companies are more dependent on hiring outsourced personnel as per project requirement.

To avail the benefits of economy of scale and flexility in permanent workforce, service providers have higher dependence on outsource personnel. Other benefits of outsourcing services are cost effectiveness, easy availability of on demand workers.

Competition Scenario in KSA Facility Management Market

The competition in Facility Management market was observed to be moderately fragmented in KSA. Al Yamama is the market leader owing to most market share and clients. The KSA Facility Management Market also includes other major players like Zahran Operations & Maintenance, Zamil Operations and Maintenance, Almaja G4sl Facility Management and more. Manufacturers are more focused on restoring to cost reduction techniques, mergers and acquisitions and adopting newer technologies to provide greater services.

Ksa Facility Management Market Future Outlook and Projections

KSA Facility Management Market is expected to grow CAGR ~ in 2016-2026F with robust revenue hike during 2022F-2026F. Rapid real estate development in terms of smart city development, new infrastructure developments, and focus on tourism and hospitality promotion will be supporting factor for commercial facility management services revenue. Residential units would be a major booming segment to focus on due to the rising younger population, ex-pats, government-sponsored affordable housing programs to the poor population.

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Time Period Captured in the Report:

• Historical Period: 2016-2021
• Forecast Period: 2021-2026F

Companies Covered:

• Al Yamama
• Aljahrary Overseas
• Zahran Operations & Maintenance
• Zamil Operations and Maintenance
• Almaja G4sl Facility Management
• Initial Saudi
• Safari
• ENOVA
• Nesma United
• Alborj Facility Managment
• Khidmaah
• Saudi Emcor (EFS)
• Musanadah Facilities Management (MFM) 
• El Seif (ESOM)

Key Topics Covered in the Report

• Saudi Arabia Real Estate Market Overview, 2021
• Major Real Estate Giga Projects in Saudi Arabia
• Saudi Arabia Facility Management Market Ecosystem
• Business Cycle, Genesis and Timeline of Saudi Arabia Facility Management Market
• Value Chain & Vendor Selection Process of KSA Facility Management Market
• Business Acquisition Process in Saudi Arabia Facility Management Market
• Saudi Arabia Facility Management Market Size, 2021
• Saudi Arabia Facility Management Market Segmentation, 2021
• SWOT Analysis of Saudi Arabia Facility Management Market
• Key Growth Drivers in Facility Management Market in Saudi Arabia
• Trends and Developments in Saudi Arabia Facility Management Market
• Major Challenges Faced by the Saudi Arabia Facility Management Market
• Competition Framework for Saudi Arabia Facility Management Market
• Future Outlook and Projections of the Industry, 2021-2026F
• Market Opportunities and Analyst Recommendations

For more information on the research reports, refer to below link:

KSA Facility Management Market Outlook to 2026F: Ken Research

Related Reports:

Qatar Facility Management Market Outlook to 2026F- Driven by Rising End-Users Awareness, Improving Technology and Government’s Strong Initiatives regarding Infrastructure

Chile Facility Management Market Outlook to 2023 – By Soft Services (Housekeeping, Security, Landscaping and Others); By Hard Services (Electromechanical Services, Operations and Maintenance Services, Fire Safety and Security Systems); By Integrated Services; and By End User Sectors (Industrial and Public Infrastructure, Retail and Commercial, Hospitality and Residential)

Vietnam Facility Management Market Outlook to 2023 - By Single, Bundled and Integrated Services; By Soft Services (Housekeeping, Security, Landscaping and Others) and Hard Services (Electromechanical Services, Operations and Maintenance Services, Fire Safety and Security Systems), By End User Sectors (Commercial, Industrial, Hospitality, Residential, Infrastructure and Others)