Saudi Arabia Facility Management Market Size (2024 - 2029)

The Saudi Arabia Facility Management Market Size is set to grow significantly in the coming years, driven by factors such as the outsourcing of non-core activities by public sector organizations, government investments in infrastructure projects, and the increasing demand for facility management professionals. However, challenges such as a lack of awareness about the importance of facility management and talent retention issues could impact the market. The COVID-19 pandemic has also brought both opportunities and disruptions to the market, with an increased demand for services like cleaning and sanitization, but also issues like payment delays and working capital problems.

Market Size of Saudi Arabia Facility Management Industry

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Saudi Arabia Facility Management Market Summary
Study Period 2022 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 27.58 Billion
Market Size (2029) USD 49.66 Billion
CAGR (2024 - 2029) 12.48 %
Market Concentration Low

Major Players

Saudi Arabia Facility Management Market  Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Facility Management Market Analysis

The Saudi Arabia Facility Management Market size is estimated at USD 27.58 billion in 2024, and is expected to reach USD 49.66 billion by 2029, growing at a CAGR of 12.48% during the forecast period (2024-2029).

The International Facility Management Association (IFMA) defines facility management as combining a physical workplace with an organization's workforce and work, including equipment upkeep, space planning, and portfolio forecasting. These services include leadership and strategy, real estate and property management, project management, quality, human aspects, emergency planning and business continuity, and environmental sustainability.

  • There are various trends that may propel facility management in the Saudi region. For example, the Internet of Things (IoT) encompasses physical equipment and sensors that leverage the Internet to communicate with Facility Management (FM) teams. These devices produce performance data, serving as an early warning system for facility managers. This allows FMs to oversee and manage equipment, providing real-time operational insights remotely. When integrated with FM software, like a computerized maintenance management system (CMMS), IoT may swiftly identify issues (e.g., office temperature discrepancies), autonomously generate and allocate work orders, and monitor their completion.
  • For instance, in March 2024, SIERRA unveiled its eFACiLiTY Enterprise Facility Management Software, touted as the most comprehensive computer-aided facilities management (CAFM) and integrated workplace management system (IWMS) globally. The software operates on a Software as a Service (SaaS) subscription model hosted on Microsoft Azure. It also offers the eFACiLiTYVirtual Assistant, an advanced multilingual AI/ML solution that leverages the Maintenance Guru. This intelligent feature diagnoses issues by navigating through our knowledge base and streamlines the creation of precise work orders with a single click.
  • The Saudi Arabian government is rapidly investing in infrastructure projects to diversify the economy. These projects include air transport, urban planning, logistic centers, tourism, and several others. This creates fertile ground for facility management services as they are required to maintain these facilities and any new infrastructure.
  • Outsourced FM has been successfully used in various industries, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing, and education. The areas covered by FM services vary widely, mainly depending on the type and size of the company and the sector in which it operates.
  • The lack of awareness of the importance of facility management poses a significant challenge to the market studied. Enterprises in the country are trying to focus on their core businesses, but they are reluctant to outsource FM activities as a part of the vision to focus on the core. Talent retention and acquisition pose considerable challenges in the Saudi facility management market. The demand for skilled facility management professionals, including technicians, engineers, and skilled laborers, continues to grow with the growing infrastructure and real estate sectors. However, retaining and attracting talent in a competitive job environment may be difficult.
  • According to the International Monetary Fund (IMF), the country's GDP amounted to USD 833.54 billion in 2021. It is expected to cross USD 1,072.44 billion by the end of 2027. Facility management services are also expected to grow significantly as infrastructure development projects heavily contribute to the country's economic growth.

Saudi Arabia Facility Management Industry Segmentation

Facility management services involve building upkeep, utilities, maintenance operations, waste services, and security. These services are divided into hard and soft facility management services. Hard services comprise mechanical and electrical maintenance, fire safety and emergency services, building management system controls, elevator and lift maintenance, and conveyor maintenance. Soft services include cleaning, recycling, security, pest control, handyperson services, ground maintenance, and waste disposal. The market for the study tracks the revenue accrued from the sales of hard and soft FM services in the country.

The Saudi Arabian facility management market is segmented by type of facility management (in-house facility management and outsourced facility management [single FM, bundle FM, and integrated FM]), offering type (hard facility management and soft facility management), and end-user industry (commercial and retail, manufacturing and industrial, government, infrastructure and public entities, institutional, and other end-user industries). The report offers the market size in value terms in USD for all the abovementioned segments.

By Type of Facility Management
In-house Facility Management
Outsourced Facility Management
Single FM
Bundled FM
Integrated FM
By Offering Type
Hard Facility Management
Soft Facility Management
By End-user Industry
Commercial and Retail
Manufacturing and Industrial
Government, Infrastructure, and Public Entities
Institutional
Other End-user Industries

Saudi Arabia Facility Management Market Size Summary

The Saudi Arabia Facility Management Market is expected to witness significant growth over the forecast period. The market is primarily driven by the increasing demand for facility management services due to the rapid development of infrastructure projects in the country, as part of the government's efforts to diversify the economy. The market is also benefiting from the rising trend of outsourcing non-core activities among service providers operating in the country. This trend is particularly prevalent among public sector organizations that are seeking to streamline their operations and focus more on their core business. The market is characterized by a mix of major vendors providing integrated contracts and smaller local companies focusing on single contracts and single-service solutions. However, the market faces challenges such as a lack of awareness about the importance of facility management and difficulties in talent retention and acquisition. Despite these challenges, the market is expected to continue growing, driven by factors such as increased economic activity, consumer spending, and tourism activities in Saudi Arabia. The COVID-19 pandemic has also created both opportunities and disruptions in the industry, with a significant increase in the demand for cleaning and sanitization services.

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Saudi Arabia Facility Management Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitutes

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Base Indicator Analysis

      1. 1.3.1 Construction Activities In Saudi Arabia

      2. 1.3.2 Expansion of Key International FM Services

      3. 1.3.3 Growth in Commercial Establishments

    4. 1.4 Impact of COVID-19 on the Saudi Arabia FM Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Facility Management

      1. 2.1.1 In-house Facility Management

      2. 2.1.2 Outsourced Facility Management

        1. 2.1.2.1 Single FM

        2. 2.1.2.2 Bundled FM

        3. 2.1.2.3 Integrated FM

    2. 2.2 By Offering Type

      1. 2.2.1 Hard Facility Management

      2. 2.2.2 Soft Facility Management

    3. 2.3 By End-user Industry

      1. 2.3.1 Commercial and Retail

      2. 2.3.2 Manufacturing and Industrial

      3. 2.3.3 Government, Infrastructure, and Public Entities

      4. 2.3.4 Institutional

      5. 2.3.5 Other End-user Industries

Saudi Arabia Facility Management Market Size FAQs

The Saudi Arabia Facility Management Market size is expected to reach USD 27.58 billion in 2024 and grow at a CAGR of 12.48% to reach USD 49.66 billion by 2029.

In 2024, the Saudi Arabia Facility Management Market size is expected to reach USD 27.58 billion.

Saudi Arabia Facility Management Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)