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KSA Facilities Management Market, Forecast to 2025

KSA Facilities Management Market, Forecast to 2025

  • November 2019
  • 75 pages
  • ID: 5828901
  • Format: PDF
  • Frost & Sullivan


Table of Contents

With rapid advances in AI and cloud technology, the global facilities management (FM) market has transformed significantly in recent years.In order to cope with this transformation, the market is witnessing various mergers and acquisitions.

The single services or services in bundles traditionally offered by FM companies have now been replaced by the more comprehensive integrated facility management (IFM) services.Compared to bundled services, IFM is more strategic and can offer multiple services within a single contract.

IFM streamlines business operations and allows companies to focus on the more important business issues, thereby improving overall business performance and effectively reducing costs.More than 50% of services in the global FM market are outsourced, out of which more than 11% involve IFM.

The global FM market is also witnessing an increasing demand for value-added services. From superior customer service to delivering sustainable solutions, FM providers are expected to integrate value-added services in order to offer positive and long-lasting solutions to businesses. Leveraging modern technologies and energy-efficient solutions, the top FM companies have been able to provide such value-added services to customers. The rapidly growing FM market in the Middle East is poised to become the fastest-growing regional FM market by 2025. The market is primarily driven by booming construction activity and the rapid progress of multiple mega- and giga-projects related to economic cities, transport, housing, education, healthcare, and hospitality, amongst others. Currently, the FM market in the Middle East is dominated by in-house and other outsourced services, with IFM adoption slowly gaining traction in recent years. Saudi Arabia is the largest FM market in the Gulf region, accounting for more than 55% of the regional FM market. Saudi Arabia’s FM market is primarily dominated by domestic FM companies, with the top 5 companies accounting for a market share of more than 32% as of 2018. In sync with Saudi Vision 2030, the country is adhering to sustainable practices and moving towards a greener economy. This trend is bound to create a shift in the FM market, with services such as energy management being increasingly offered. There is also a growing demand for outsourced FM services in Saudi Arabia. Therefore, companies are increasingly favouring integrated and bundled services, whereas single services are prevalent mostly to provide soft FM services to customers. FM companies in Saudi Arabia still lag behind in leveraging modern technologies, as there is limited technology penetration in the overall FM market. However, given the growing demand for energy management in the form of building automation systems, HVAC solutions, lighting controls, renewable solutions, and security, amongst others, FM providers are bound to invest in advanced technology and offer sustainable solutions to customers going forward. This study provides a detailed insight into the FM market in Saudi Arabia and also presents a forecast for the 2018–2025 period.

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