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The Saudi Arabian facility management (FM) market is expected to witness a growth of 9.7 percent during 2019-2024, mainly driven by the increasing construction activities in the country.
According to a new report by ResearchandMarkets, property services in the Kingdom is expected to be largest category with an estimated contribution of more than 25 percent in the FM market, in 2018.
On the other hand, the commercial sector is the largest end-user with an estimated contribution of more than 40 percent in the Saudi Arabian FM market in 2018.
“The demand for these services is growing in the commercial sector, owing to increase in awareness among end-users to optimize expenditure on commercial building management. During the forecast period, the market is expected to witness a significant growth among commercial end-users,” the report said.
Hard services are estimated to account for the largest share in the Saudi Arabian FM market 2018, driven by the fact that these services are technical in nature which is considered expensive.
Moreover, certain hard services such as HVAC maintenance services, mechanical services, and lift management services are of critical nature which is essentially required by commercial, industrial or residential units.
“Due to lack of in-house expertise and a need to focus on core competencies, the demand for outsourcing FM services is increasing, which is creating ample opportunities for the growth of FM market in the Kingdom,” the report said.
“Outsourcing provides a number of advantages considering the areas it can cover, starting from the cost of leased spaces, lifetime of plants and equipment, energy consumption, technical maintenance, and others; thereby boosting the demand of this mode of service,” it further added.
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