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The Middle East facility management services market is estimated to grow at a CAGR of 10.85% between 2022 and 2027. The size of the market is forecast to increase by USD 34.05 billion. The growth of the market depends on serval factors, including rapid growth in commercial construction, a shift from an oil-dependent economy, and a growing emphasis on sustainability.
This report extensively covers market segmentation by service (hard service and soft service) and type (outsourced and in-house). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing emphasis on sustainability is notably driving the market growth, although factors such as Cost constraints in facility management services may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Facility Management Services Market Driver in Middle East
The growing emphasis on sustainability is notably driving market growth. For the past few years, there has been an increasing global trend towards environmentally friendly structures and sustainable building techniques. The Middle East is using the same strategy as highly developed nations like the US and Western Europe in order to reduce building emissions. Countries such as the UAE and Qatar have incorporated sustainable assessment certifications to ensure the development and maintenance of eco-friendly buildings. Several end-user industries in these countries outsource building maintenance to facility management vendors to ensure compliance with these certifications.
The Department of Urban Planning and Municipalities (DPM) in the UAE developed and initiated the Estidama, aimed at the planning, development, and implementation of sustainable construction projects in the UAE. The rapid increase in green buildings in the region is expected to aid the growth of the Middle East facility management services market during the forecast period.
Significant Facility Management Services Market Trend in Middle East
The rapid increase in equipment leasing is the key trend in the market. Leasing key equipment from suppliers provides several advantages to vendors in the facility management service market in the region. Vendors can focus on their primary activities like integrated facilities management (IFM) and infrastructure service delivery by leaving equipment maintenance and repair to specialist suppliers. Leasing equipment also enables vendors to minimize upfront costs and significantly reduces machine downtime as suppliers are contractually bound to maintain, repair, and fix equipment breakdowns within a specified time frame.
Additionally, with vendors optimizing equipment ownership costs through long-term leasing contracts with suppliers, the leasing model is expected to continue gaining popularity in the market. Such factors will drive the growth of the market among end-users during the forecast period.
Major Facility Management Services Market Challenge in Middle East
Cost constraints in facility management services is the major challenge in the market. For the majority of end users, facility management services are an additional cost, and subsequently, facility management vendors are forced to quote lower prices to end users. This is primarily due to a lack of awareness of the benefits of facility management services. Various factors, including local factors that affect productivity, weather conditions, and the local compliance ecosystem, need to be considered for an effective cost analysis for financial management services.
Owing to facility management services being a relatively novel concept in the Middle East when compared with developed markets such as the US and the UK, the lack of comprehensive industry benchmarks specific to the Middle Eastern countries is a key challenge for international vendors in the region. Hence, the cost constraints in the Middle East facility management services market due to intense price-based competition among vendors and lack of awareness among end-users are expected to hinder the market growth during the forecast period.
Key Facility Management Services Market Customer Landscape in Middle East
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Facility Management Services Market Customer Landscape in Middle East
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Transguard Group - The company's primary offerings include cash, security, manpower, and integrated facility services, as well as business support and outsourcing services. The company offers facility management services that include specialized cleaning services to shopping malls, transportation networks and theme parks.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the hard service segment will be significant during the forecast period. Hard services consist of facility management service offerings that require technical expertise. The large-scale construction projects planned in countries such as the UAE, Saudi Arabia, and Qatar are expected to boost the demand for hard services during the forecast period.
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The hard service segment was valued at USD 23.16 billion in 2017 and continued to grow until 2021. Hard services offered by facility management service providers in the Middle East include electrical services, mechanical services, water management, and energy management services. The lack of certified technicians for hard services in Saudi Arabia and Kuwait is expected to limit the growth of the segment. Thus, the hard service segment is expected to exhibit slower growth than the soft service segment during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Parent Market Analysis
The report categorizes the facility management services market in Middle East as a part of the global environmental and facilities services market within the global industrials market. The global environmental and facilities services market comprises service companies providing environmental and facilities maintenance services, including waste management, facilities management, and pollution control services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Facility Management Services Market Scope in Middle East |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.85% |
Market growth 2023-2027 |
USD 34.05 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.07 |
Key countries |
Saudi Arabia, United Arab Emirates, Qatar, Bahrain, and Rest of Middle East |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and industry Risks |
Key companies profiled |
Al Asmakh Facilities Management, Al Mulla Group, Al Tamyoz, Alghanim international, EMCOR Group inc., Emrill Services LLC, Etisalat Facilities Management LLC, Farnek, G4S Ltd., Galfar Al Misnad, Gems industrial services W.L.L, Imdaad LLC, Khidmah Sole Proprietorship LLC, MRC, Muheel services for Maintenance and Operations LLC, ONE Facilities Management, Sbgom, Transguard Group, United Facilities Management, and Veolia Environnement SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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