Saudi Arabia Facility Management Market Flourishing: Projected to Register an Impressive CAGR of 8.2% during the Forecast Period
Published | 22 April 2021
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Saudi Arabia Facility Management Market which was worth USD 26.3 Billion in 2020 is estimated to grow at a CAGR of 8.2%, earning revenue of around USD 46.1 Billion by the end of 2027. The rising infrastructure development and construction activities, as well as expanding tourism in the region, are some of the favorable factors promoting the growth of facility management in Saudi Arabia. Furthermore, the significant adoption of technological advances such as artificial intelligence (AI), augmented reality (AR), and the use of robots in various sectors will contribute significantly to the growth of the Saudi Arabia facility management market during the forecast period.
Awareness of Hygiene and Cleanliness Driving the Market
People are becoming more aware of their personal hygiene and the cleanliness of their surroundings as a result of the COVID-19-induced pandemic. Due to this, cleaning services in Saudi Arabia are expected to expand exponentially over the forecast period, propelling both hard and soft services in the facility management industry. Cleaning and disinfecting the surroundings, especially in commercial spaces, has become the norm in the post-COVID-19 era. Other services, such as toilet and washing facilities, communal and eating areas, are expected to meet the same cleanliness norms in the upcoming period.
Gradual Shift Towards Economic Diversification will bring a surge in the Demand for Facility Management Services
Saudi Arabia's economy is primarily based on oil and gas exports. However, oil and gas prices on the international market are highly volatile. As a result, there is a need for a transition to other sectors as well. The government initiatives towards economic diversification will prove to be very beneficial for the facility management market. Furthermore, as the world is gradually shifting towards more renewable resources, the demand for oil and gases may face a slump in the coming years, which may eventually affect Saudi’s economy. As a result, the government is pursuing reform plans that include the development of other sectors such as education, tourism, and healthcare. The demand for facility management will increase in the coming years as a result of these factors.
Outsourced Facility Management is Expected to Dominate the Market in Upcoming Years
Based on type, the Saudi Arabia facility management market is categorized into in-house and outsourced segments. According to an estimate, both in-house and outsourced facility management services possess great potential to push the market forward. Companies that use the in-house segment are required to recruit additional staff for each of the facilities, which raises their costs. Thus, outsourced facility management is proving to be very cost-effective for them. By taking the help of third-party service providers, they are relieved of the burden of staff management. Furthermore, the outsourced segment provides contract-based services based on the requirements of the companies. It comprises sub-segments like single, bundled, and integrated services. Companies may choose based on their specific requirements, such as whether they need more hard or soft services.
Saudi Arabia Facility Management Market: Regional Market
Geographically, Saudi Arabia’s facility management market is divided into Makkah, Riyadh, Eastern Province, and the rest of Saudi Arabia. Riyadh is the capital city of Saudi Arabia and Makkah is a holy city. As a result, demand for the facility management market is the strongest in these two regions. Since Riyadh is more urbanized than other regions, with a high concentration of hotels, shopping malls, offices, and residential areas, the facility management industry is in high demand in this region. Makkah, on the other hand, has a high concentration of tourists because of its holy status. The demand for facility management is increasing in these specific cities as well as across Saudi Arabia as a result of the government’s infrastructure development initiatives.
Impact of COVID-19 on the Saudi Arabia Facility Management Market
The outbreak of COVID-19 and the declaration of the pandemic has had a negative impact on the overall Saudi Arabia facility management market. Due to the imposition of lockdown, commercial spaces like malls, offices, hotels, and factories were closed down, thereby reducing the demand for facility management services. Furthermore, people were also barred from going to mosques and the Hajj pilgrimage to prevent the contraction of virus or other communicable diseases, due to which the requirement for facility management was strikingly reduced. However, as the number of COVID cases is decreasing due to the introduction of tougher steps, the lockout is steadily being lifted. As a result, the market is expected to return to normalcy shortly.
The leading players of Saudi Arabia facility management market are Initial Saudi Group, SETE Saudia, Saudi Emcor Company Limited, Zamil Operations, and Maintenance Company (Zamil Group), Almajal G4S, Al Yamama Group, Enova Facility Management, Khidmah LLC, Nesma Trading Co. Ltd., AMNCO, Al Borj International, CBRE Group, Inc., Zahran Holding Company, Safari Group, and other prominent players.
The Saudi Arabia facility management market is viable for new entrants as it holds big opportunities for small-scale enterprises too. Moreover, the big facility management providers rely on small contracts to stay in the market and ahead of their competitors in the long run. Competitive strategies like partnerships, mergers, and acquisitions are also very prominent in this market. Additionally, the companies are also constantly adapting technological advancements for providing better service and management for improved customer response.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Saudi Arabia Facility Management market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the Saudi Arabia Facility Management market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solutions. BWC has built its reputation from the scratches by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
Recent Press Releases
- Facility Management Market to Grow at over 12% through 2028
- Double Digit Growth Awaits the Global AI Camera Market: Projected to Grow at a CAGR of 24.0% by 2027
- Global Low-Code Development Platform Market is Projected to Grow at a CAGR of 28.2% by 2027
- Global Virtual Mobile Infrastructure Market is Expected to Register Growth at a CAGR of 9.5% from 2020-2026
- United States Data Center Market Poised for Brisk Growth: Projected to Grow at a CAGR of 8.4% by 2027
- Global Low-Code Development Platform Market Getting into Magnanimous Mode: Projected to Grow at a CAGR of 28.2% by 2027