DUBLIN--(BUSINESS WIRE)--The "Saudi Arabia Facility Management Market - Growth, Trends, Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The Saudi Arabian facility management market was valued at USD 7,031.80 million in 2019, and it is expected to reach USD 10,118.31 million by 2025, registering a CAGR of 9.24% during 2020-2025.
The facility management market's scope consists of a vast range of services and solutions that impact businesses' efficiency. The facility management services across Riyadh, Jeddah, Makkah, and DMA, have become a mature and growing market. With the rising infrastructure development projects across the Kingdom of Saudi Arabia, contributing to its economic growth, facility management services are also required to a considerable extent.
According to an industry insider analysis, in H1 2019, Saudi Arabia's residential market prices appeared to have remained under significant pressure while transaction volumes surged significantly across critical regions, indicating that the residential market was heading toward the bottom of its cycle. With the rising urban population and a mismatch in the housing stock provision to low and middle-income group buyers, housing affordability in the country is a rising challenge.
However, the Sakani scheme was initiated to tackle the affordability challenge and drives significant construction activity in the market. The Kingdom of Saudi Arabia's Ministry of Housing planned that more than 32,285 families would benefit from the options provided by its 'Sakani' scheme in January 2020. The scheme was an effort taken by the government to expand the mortgage sector to ease the pressure on this area. Through these government initiatives, the rising affordability is anticipated to boost the construction sector, creating opportunities for the country's FM market.
According to the Middle East Facility Management Association (MEFMA), in 2020, the region expects to observe the use of more smart tools due to their numerous benefits. Presently, as per the latest statistics provided by the World Economic Forum, more than 70% of industrial enterprises are in 'pilot purgatory' when adopting Industry 4.0 technologies. Only 29% of players actively deploy Industry 4.0 technology at scale, and only 30% have yet to test this technology. MEFMA, the professional facility management (FM) platform, is confident that the use of cutting-edge technologies within the FM players will accelerate in 2020 and beyond.
The COVID-19 pandemic has further sped up the adoption of cloud and emerging technology. Countries have dedicated significant resources to expanding the role of small and medium-sized enterprises (SMEs) in the economy. Furthermore, small businesses in Saudi were provided with a USD 13 billion financial aid to weather the crisis. These also indicate the country's compliance with Vision 2030's goal of increasing SMEs' contribution to GDP to 35%.
As a part of Saudi Arabia's Vision 2030 strategy, the country aims to digitalize and develop AI. In August 2019, the Saudi Data and Artificial Intelligence Authority (SDAIA) was set up by a Royal Decree. The organization is intended to oversee the National Center for Artificial Intelligence, the National Data Management Office, and the National Information Center. As of August 2020, Saudi Arabia's AI strategy was also approved by King Salman Bin Abdulaziz. The move is expected to contribute an estimated SAR 500 Billion (approximately USD 133 Billion) to the country's GDP by 2030.
Competitive Landscape
The Saudi Arabian FM market comprises both local and international players possessing significant years of industry experience.
The FM companies are incorporating technologies into their services, which are adding strength to their service portfolio. For instance, Enova has introduced digital tools for its 'Kinan' project, which has positioned it as a significant player in the technology landscape.
Moreover, recently, a significant number of joint ventures/acquisitions were made in the wake of rising large-scale projects. Therefore, the intensity of competitive rivalry is high.
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Construction Boom Due to the Growing Clout of Multinational Conglomerates
4.2.2 Growing Demand for Soft FM Services
4.2.3 Emphasis on Green and Sustainable Building Practices
4.3 Market Challenges
4.4 PESTLE Analysis - Saudi Arabia
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.6 Base Indicator Analysis
4.6.1 Construction Activities in Saudi Arabia
4.6.2 Expansion of Key International FM Services
4.6.3 Growth in Commercial Establishments
4.7 Impact of COVID-19 on the Saudi Arabia FM Market
5 MARKET SEGMENTATION
5.1 Type
5.1.1 In-house
5.1.2 Outsourced
5.1.2.1 Single
5.1.2.2 Bundled
5.1.2.3 Integrated FM
5.2 End User
5.2.1 Commercial and Retail
5.2.2 Manufacturing and Industrial
5.2.3 Government, Infrastructure, and Public Entities
5.2.4 Institutional
5.2.5 Other End Users
6 COMPETITIVE INTELLIGENCE
6.1 Company Profiles
6.1.1 Initial Saudi Group
6.1.2 Saudi Emcor Company Limited
6.1.3 almajal G4S
6.1.4 SeteSaudia
6.1.5 Zamil Group
6.1.6 SAMAMA Holding Group
6.1.7 Khidmah Saudi Arabia
6.1.8 ENGIE Cofely Energy Services LLC
6.1.9 Nesma Trading Co. Ltd
6.1.10 Al Yamama Company
6.1.11 Olive Arabia Co. Ltd
7 MARKET POSITIONING ANALYSIS (Based on Pre-defined Market Metrics such as Footprint, Offering, and Innovation)
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/ikgygb
