Enjoy complimentary customisation on priority with our Enterprise License!
The Middle East facility management services market size is estimated to grow by USD 50.1 billion at a CAGR of 13.71% between 2023 and 2028. In the dynamic business landscape of Qatar, the construction sector has experienced remarkable growth, particularly in commercial projects. This expansion is driven by various factors, including the shift from an oil-dependent economy towards a more diversified and sustainable one. The Qatar National Vision 2030, which emphasizes economic diversification and sustainable development, has further fueled this trend. Moreover, there is a growing emphasis on sustainability in Qatar's construction industry, with a focus on LEED (Leadership in Energy and Environmental Design) certification and the use of renewable energy sources. These factors position Qatar as an attractive destination for international investors and businesses seeking to establish a presence in a thriving, modern economy.
To learn more about this report, Download Report Sample
The market is a dynamic and evolving industry that encompasses various services aimed at maintaining and enhancing the functionality, longevity, and sustainability of buildings and infrastructure. Key components of this market include Computer-Aided Facility Management (CAFM) systems, Building Management Systems (BMS), remote monitoring, mobile solutions, robotics, and Artificial Intelligence (AI). In the construction sector, in-house departments and service providers are increasingly adopting these technologies to optimize operations, reduce costs, and improve the overall quality of services. Building owners, particularly in the GCC region, are focusing on rental rates and the societal impact of their assets, with a growing emphasis on sustainability, lifestyle, health, safety, and the environment.
The use of CAFM, BMS, and AI in facility services management enables qualitative maintenance, ensuring the building fabric remains in good condition and enhancing the quality of life for tenants. Training centers and quality assurance/control measures are also crucial in this industry, as the demand for skilled professionals continues to grow. The freehold sectors and the middle-income group-housing sector are significant contributors to the market, with a focus on maintaining and upgrading existing assets while ensuring the highest standards of service delivery. The sinking fund, a crucial aspect of building maintenance, is also gaining importance as building owners recognize the need for long-term investment in their assets. Our researchers analyzed the data with 2023 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.
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 market forecasting period.
The rapid increase in equipment leasing is the key trend in the market growth analysis. 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 companies 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 market research report period.
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 Market Customer Landscape
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
Companies 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 companies, 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 market forecast period.
Get a glance at the market contribution of various segments Request a PDF Sample
The hard service segment was valued at USD 25.5 billion in 2018. 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 market research and growth period.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Facility Services Management refers to the coordinated management of various functions in buildings and infrastructure, including building management systems, computer-aided facility management, remote monitoring, mobile solutions, robotics, and AI. This market caters to various sectors, including Construction, GCC, and the rental rates market. In-house departments, specialist contractors, large multi-service companies, consortia, and society all play crucial roles in this industry.
Design, Build, Finance, Management functions, residents, building owners, and service providers are key stakeholders. Sinking fund, sustainability, longevity of assets, building fabric, qualitative maintenance, lifestyle, health, safety, environment, and quality are essential considerations. Training centers, freehold sectors, middle-income group-housing sector, quality assurance, and quality control are integral parts of the service delivery. Facility Services Management encompasses various management functions, such as power plants, wastewater treatment systems, and roads. With the integration of advanced technologies like AI and robotics, the market is evolving to offer more efficient and effective services. The focus on service level management and the increasing importance of societal expectations for health, safety, and environmental sustainability further drive the growth of this market.
Industry Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.71% |
Market growth 2024-2028 |
USD 50.1 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
10.97 |
Key countries |
Saudi Arabia, UAE, Qatar, Bahrain, and Rest of MEA |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Al Asmakh Facilities Management, Al Mulla Group, Al Tamyoz, Alghanim International, Atlas Ontario LP., EMCOR Group Inc., Emrill Services LLC, Etisalat Facilities Management LLC, Farnek, 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 LLC, United Facilities Management, and Veolia Environnement SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.