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The Middle East facility services management market size is forecast to increase by USD 50.1 billion at a CAGR of 13.71% between 2023 and 2028. The Facility Services Management Market in the Middle East is experiencing significant growth due to several key factors. Firstly, the rapid expansion of the commercial construction sector in the region is driving demand for facility management services. Secondly, the increasing importance of technology in managing facilities is leading to the adoption of advanced solutions, such as Internet of Things (IoT) and Building Information Modeling (BIM), to enhance operational efficiency and reduce costs. Lastly, cost constraints continue to be a major challenge for facility management services providers in the Middle East, necessitating innovative pricing models and cost-effective solutions to meet client requirements. These trends and challenges are shaping the future of the Facility Services Management Market in the Middle East, offering significant opportunities for market participants.
The market in the Middle East is witnessing significant growth due to the increasing adoption of advanced technologies such as Computer-Aided Facility Management (CAFM) and Building Management Systems (BMS). These technologies enable remote monitoring and mobile solutions, enhancing the efficiency and effectiveness of facility management. The use of robotics, AI, and IoT is also on the rise, transforming the industry by automating routine tasks and improving predictive maintenance. The GCC region, with its high rental rates and construction boom, presents a lucrative market for facility services. Building owners and in-house departments are increasingly relying on service providers to ensure the sustainability and longevity of their assets.
Furthermore, the focus on society, health, safety, and the environment is driving the demand for qualitative maintenance and quality assurance in the freehold sectors and the middle-income group-housing sector. The integration of training centers and quality control measures is essential to maintain the high standards required in the industry. The importance of building fabric and lifestyle factors, such as health and safety, is also leading to a greater emphasis on sustainability and the use of eco-friendly practices. The sinking fund for maintenance and upkeep of assets is another significant factor influencing the market's growth.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The Hard service segment is estimated to witness significant growth during the forecast period. The Facility Services Management Market in the Middle East is witnessing significant growth due to the adoption of advanced technologies such as computer-aided facility management and building management systems. These technologies enable remote monitoring, mobile solutions, and the integration of robotics and AI to enhance building efficiency and maintenance. The GCC region, in particular, is witnessing a rise in demand for these services due to the large number of construction projects and the need for in-house departments and specialist contractors to ensure the longevity of assets. Large multi-service companies and consortia are providing Design, Build, Finance, and Management functions to building owners and residents in the freehold sectors and the middle-income group housing sector.
Furthermore, these services include qualitative maintenance of building fabric, lifestyle services, health and safety, environment, and quality assurance and control. Moreover, the integration of technology in facility management is leading to service level management in various sectors such as power plants, wastewater treatment systems, and roads. Training centers are being established to provide the necessary skills to service providers to meet the growing demand for these services. The focus on sustainability and the need for power and water conservation are also driving the growth of the facility services management market in the Middle East.
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The Hard service segment was valued at USD 25.50 billion in 2018 and showed a gradual increase during the forecast period.
Our market 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.
Rapid growth in commercial construction is the key driver of the market. The Facility Services Management Market in the Middle East has witnessed significant growth due to the increasing construction activities in various sectors such as transport, hospitality, entertainment, and healthcare since 2022. The region's commercial infrastructure development, driven by the strategic visions of countries like Saudi Arabia and Qatar, has led to an increase in the outsourcing of non-core business functions by building owners and residents to specialist contractors and large multi-service companies. Advancements in technology, including computer-aided facility management, building management systems, remote monitoring, mobile solutions, robotics, and AI, have significantly impacted the market. These technologies enable qualitative maintenance of building fabric, ensuring the longevity of assets, and enhancing lifestyle, health, safety, and environment.
Moreover, the implementation of Design, Build, Finance, Management (DBFM) consortia and the growth of the freehold sectors and middle-income group-housing sector have further fueled the market's expansion. The importance of quality assurance, quality control, and service level management in facility services is emphasized through the establishment of training centers and adherence to sustainability initiatives. Power plants and wastewater treatment systems, along with roads and other infrastructure, are essential components of the facility services management market. The market's future growth is expected to be driven by the increasing focus on societal needs, sinking funds, and the integration of technology in facility management functions.
The growing prominence of technology in facility management is the upcoming trend in the market. In the Middle East, the Facility Services Management Market is witnessing significant advancements due to the integration of technology solutions. Computer-aided facility management and building management systems are becoming increasingly popular, enabling remote monitoring and mobile solutions for enhanced efficiency. The adoption of robotics and Artificial Intelligence (AI) is transforming facility management services, with applications ranging from design analysis and estimation to customer service through online chatbots and big data operations.
Furthermore, the GCC region's construction industry is embracing these trends, with in-house departments, specialist contractors, large multi-service companies, and consortia adopting technology for Design, Build, Finance, Management functions. Building owners and residents benefit from these advancements, ensuring the longevity of assets through qualitative maintenance, focusing on lifestyle, health, safety, environment, and quality. The freehold sectors and the middle-income group-housing sector are also adopting technology for service level management, power plants, wastewater treatment systems, and roads. Training centers are being established to ensure quality assurance and control. Sustainability remains a priority, with technology enabling efficient energy management and reducing the carbon footprint.
The cost constraints in facility management services is a key challenge affecting the market growth. The Facility Services Management Market in the Middle East is characterized by the adoption of advanced technologies such as computer-aided facility management, building management systems, remote monitoring, mobile solutions, robotics, and AI. These technologies enable efficient management of building fabric, power plants, wastewater treatment systems, roads, and other infrastructure. The market comprises various stakeholders, including in-house departments, specialist contractors, large multi-service companies, consortia, and design, build, finance, management functions. Building owners and residents are the primary consumers of these services. Despite the growing awareness of the importance of facility management, the market remains price-sensitive. Rental rates and sinking funds are major concerns for building owners in the GCC and Middle-income group-housing sectors.
As a result, facility management companies are under pressure to quote competitive prices. The lack of comprehensive industry benchmarks specific to Middle Eastern countries poses a challenge for international companies. However, the market offers significant opportunities for growth, particularly in the areas of sustainability, longevity of assets, lifestyle, health, safety, environment, quality, training centers, and freehold sectors. Service level management is a critical function, with power plants and wastewater treatment systems requiring regular maintenance and upkeep. Overall, the facility management services market in the Middle East is poised for growth, driven by the increasing demand for qualitative maintenance and the need for efficient management of building assets.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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 market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The facility services management market in the Middle East is witnessing significant growth due to the increasing adoption of advanced technologies such as Computer-Aided Facility Management (CAFM) and Building Management Systems (BMS). These technologies enable remote monitoring and mobile solutions, enhancing the efficiency and effectiveness of facility management. The region's construction industry, driven by large multi-service companies, consortia, and specialist contractors, is fueling the demand for facility services. In the GCC countries, the rental rates in the freehold sectors and the middle-income group-housing sector are driving the need for sustainable building design, build, finance, and management functions. Building owners and residents prioritize the longevity of assets, qualitative maintenance, and lifestyle, health, safety, and environmental considerations.
Furthermore, AI and robotics are increasingly being integrated into facility services to improve quality, training, and service level management. Power plants and wastewater treatment systems, along with roads and other infrastructure, require specialized maintenance. Society's expectations for quality assurance and control are high, and service providers must meet these demands to remain competitive. Sinking funds and sustainability are essential considerations for building fabric maintenance. Facility services management companies must focus on enhancing the quality of their offerings and ensuring the safety and longevity of assets to meet the evolving needs of their clients.
Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2023 |
Historic period |
2017-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.71% |
Market growth 2024-2028 |
USD 50.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.97 |
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,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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
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