Saudi Arabia Facility Management Market Size (2024 - 2029)

Saudi Arabia Facility Management Market Analysis

The Saudi Arabia Facility Management Market size is estimated at USD 8.73 billion in 2024, and is expected to reach USD 15.79 billion by 2029, growing at a CAGR of 10.51% during the forecast period (2024-2029).

The facility management sector in the country is based on integrated contracts provided by major vendors. At the same time, small local companies focus on single contracts and single-service solutions. There are growing opportunities to leverage facility management and corporate real estate.

• Several service providers operating in the country have prioritized their expansion over the last decade to profit from the growing demand for facility management, particularly with the current trend favoring the outsourcing of non-core activities. This is also consistent with the efforts being made by several public sector organizations to streamline their operations. As the need for total facilities management (TFM) grows, public sector organizations in the country are progressively outsourcing all non-core business operations to a single service provider, allowing them to focus more on core business.
• Investments made by the Saudi government in the development of infrastructure projects as a part of diversifying the economy are rapidly growing in areas such as the development of air transport, urban planning, logistic centers, and tourism. This creates fertile ground for facility management services as they are required to maintain these facilities and new infrastructure.
• Outsourced FM has been successfully used in the country 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 in 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 skilled facility management professionals demand, including technicians, engineers, and skilled laborers, continue to grow with the growing infrastructure and real estate sectors. However, retaining and attracting talent in a competitive job marketplace can be difficult.
• The COVID-19 pandemic created both opportunities and disruptions in the FM industry. While payment delays and working capital issues afflicted the industry, the demand for cleaning and sanitization services also witnessed a significant increase. Cleaning, sanitization, and disinfection services were most in demand during the pandemic. Heating, ventilation, audit, air conditioning, HVAC, and maintenance benefits also have the highest order.

Saudi Arabia Facility Management Industry Segmentation

Facility management services involve building upkeep, utilities, maintenance operations, waste services, security, etc. These services are further 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, conveyor maintenance, etc. 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 facility management market is segmented by type of facility management (in-house facility management, outsourced facility management [single FM, bundle FM, and integrated FM], by offering type (hard facility management and soft facility management), by end-user industry (commercial and retail, manufacturing and industrial, government, infrastructure and public entities, and institutional). The market sizes and forecasts are provided in terms of value in USD for all the above-mentioned segments.