Middle East Facility Management Services Market to grow by USD 34.05 billion from 2022 to 2027, Growing adoption of technology to be a key trend in the market - Technavio

NEW YORK, March 13, 2023 /PRNewswire/ -- The facility management services market in the Middle East size is estimated to grow by USD 34.05 billion from 2022 to 2027, according to Technavio. The market is expected to grow at a CAGR of 10.85% during the forecast period. The growing adoption of technology in facility management to improve efficiency is a major trend in the market during the forecast period. Various vendors in the region adopt technologies like AI, IoT, BIM, and CAFM to enhance overall planning, maintenance, and operational effectiveness in their offerings. Hence, rapid technological advances like these are expected to boost the growth of the facility management services market in the Middle East during the forecast period.

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Facility Management Services Market in the Middle East – Market Dynamics
Key factor driving market growth

• The rapid growth in commercial construction activities in the region has been a significant driver for the Middle East facility management services market growth.
• The steady implementation of construction projects like Vision 2030 in key countries of the region is driving commercial construction activities, thereby increasing the demand for facility management services.
• Sectors like transport, hospitality, entertainment, religious tourism, real estate, and healthcare have been witnessing rapid construction of commercial infrastructure since 2022.
• Additionally, the increased construction activities in Saudi Arabia to host the high-profile Expo 2020 event have also boosted the growth of commercial infrastructure in the region.
• Therefore, the growth in commercial construction activities is expected to boost the market growth during the forecast period.

Major challenges hindering the market growth

• The growing labor shortage in both skilled and unskilled labor segments is a key challenge to the growth of the market during the forecast period.
• A majority of the overall workforce in the Middle East is the expatriate population. The imposition of regulations and taxes by several countries in the region to encourage native employment may create a labor shortage during the forecast period.
• The expatriate population is expected to pay a monthly fee for each of their sponsored dependents. Additionally, Saudi Arabia introduced an ex-pat levy in 2017, which is to be paid by the private sector companies in the country.
• These methods are designed to encourage native employment but could lead to a labor shortage in the latter part of the forecast period.

To know more about other drivers, trends, and challenges, historic period (2017 to 2021),
and Forecast (2023 to 2027)- Request a sample report!

What's New?

• Special coverage on the Russia-Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession 
• Global competitiveness and key competitor positions 
• Market presence across multiple geographical footprints - Strong/Active/Niche/Trivial  - buy the report!

Facility Management Services Market in the Middle East - Segmentation Assessment
Segment Overview
Technavio has segmented the market based on service (hard service and soft service) and type (outsourced and in-house). 

• Outsourcing is a major segment of the facility management services market in the Middle East. The outsourcing of cleaning activities segment is driven by the growing demand for high-quality and efficient cleaning services in commercial, residential, and industrial facilities.
• Another popular segment to experience increased outsourcing is security services. This is due to the businesses and individuals in the region seeking reliable and professional solutions for their asset security needs.
• Maintenance services are heavily outsourced by large commercial and industrial facilities in the Middle East region. The expertise and resources of professional maintenance companies benefit businesses through cost reduction and improved overall efficiency.
• The demand for facility management services continues to grow in the region and consequentially drives growth for the outsourcing segment.

Geography Overview
The report provides actionable insights and estimates the contribution of all regions to the growth of the global facility management services market in the Middle East.

• Saudi Arabia has witnessed rapid growth in construction activities over the past two years. 
• This is due to the rapid construction activities in the country under the Saudi Vision 2030 initiative launched in 2017.
• The facility management services market is small in the nation compared to the rapidly growing building infrastructure.
• This is expected to change after the completion of large-scale projects like Riyadh Metro.

Get a glance of the market contribution of various segments, historic (2017 to 2021) and
forecast market size (2023 to 2027) - Download a Sample Report

What are the key data covered in this Middle East Facility Management Services Market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the facility management services market in the Middle East between 2023 and 2027
• Precise estimation of the size of the facility management services market in the Middle East and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the facility management services market across the Middle East. 
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of the facility management services market vendors in the Middle East. 

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Related Reports:

According to the research report, the facility management services market in India will witness a growth of 11.14% at a CAGR of 14% which is expected to increase by USD 13.43 billion for the forecast period 2021 to 2026. One of the key factors driving growth in the facility management services market in India is the rising levels of outsourcing in building management. 

The facility management services market in North America has the potential to grow by USD 122.97 billion during 2021-2025, and the market's growth momentum will accelerate at a CAGR of 9.12%. Rising construction activities in both residential and non-residential sectors will result in an increased demand for facility management services in North America. 

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Table of Contents

Executive Summary

Market Landscape

• Market ecosystem
• Value chain analysis

Market Sizing

• Market definition
• Market segment analysis
• Market size 2020
• Market outlook: Forecast for 2020 - 2025

Five Forces Analysis

• Five forces summary
• Bargaining power of buyers
• Bargaining power of suppliers
• Threat of new entrants
• Threat of substitutes
• Threat of rivalry
• Market condition

Market Segmentation by Service

• Market segments
• Comparison by Service
• Soft service - Market size and forecast 2020-2025
• Hard service - Market size and forecast 2020-2025
• Market opportunity by Service

Customer landscape

Geographic Landscape

• Geographic segmentation
• Geographic comparison
• Saudi Arabia - Market size and forecast 2020-2025
• UAE - Market size and forecast 2020-2025
• Qatar - Market size and forecast 2020-2025
• Bahrain - Market size and forecast 2020-2025
• Rest of Middle East - Market size and forecast 2020-2025
• Market opportunity by geography
• Market drivers
• Market challenges
• Market trends

Vendor Landscape

• Overview
• Landscape disruption

Vendor Analysis

• Vendors covered
• Market positioning of vendors
• BESIX Group SA/NV
• EFS Facilities Services Group
• Ejadah Asset Management Group
• Emrill Services LLC
• Farnek Services LLC
• Initial Saudi Arabia Ltd.
• Kharafi National for Infrastructure Projects Developments Construction and Services S.A.E.
• Mace Group
• Mitie Group Plc.
• Serco Group Plc

Appendix

• Scope of the report
• Currency conversion rates for US$
• Research methodology
• List of abbreviations

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SOURCE Technavio