The smart city initiative launched by the Saudi government aims to boost infrastructure development in urban areas. Due to the subsequent surge in construction activities, the Saudi Arabian facility management market value is expected to increase from $31,264.1 million in 2020 to $87,216.0 million by 2030, at an 11.1% CAGR between 2020 and 2030. Among the under-construction mega projects in the kingdom currently are AMAALA, QIDDIYA, King Salman Park, Red Sea project, Diriyah Gate, Jabal Omar, King Abdullah Financial District, and NEOM City.
During the COVID-19 pandemic, a major part of the country, including its tourist attractions, religious places, hospitality units, commercial spaces, and many factories, was shut down. This negatively impacted the Saudi Arabian facility management market, as the shutting down of end-user facilities killed the demand for such services.
Saudi Arabia Facility Management Market Segmentation Analysis
In the years to come, the cleaning service category will witness the fastest growth in the Saudi Arabian facility management market. Due to the COVID-19 pandemic, the awareness on hygiene has risen massively, since the virus is transmitted via nasal droplets accumulating on hands and objects that haven’t been sanitized.
The highest CAGR in the Saudi Arabian facility management market, under segmentation by type, of 11.9%, is predicted to be seen in the soft services category. Public and private entities in the kingdom are generating an increasing demand for cleaning, catering, security, support, and other non-technical services. This service demand is now being fulfilled by third-party companies, thereby driving the industry.
Presently, the higher revenue in the Saudi Arabian facility management market, on the basis of sector, is generated by the private bifurcation. The kingdom’s efforts to diversify its economy have led to the growth of private-sector companies in the last few years.
The major players in the Saudi Arabian facility management market include Muheel Services LLC, APSG Group, Safari Group, AMNCO, Khidmah LLC, EFS Facilities Services Group Limited, Enova Facility Management, Nesma Trading Co. Ltd., Musanadah Facilities Management Co. Ltd., Al Borj Facility Management, Al Hajry Overseas Co. Ltd., Petrojana, Zahran Holding Company, FMCO, Initial Saudi Group, CBRE Group Inc., Jones Lang LaSalle Incorporated, and Al Yamama Group.
Key Findings of Saudi Arabia Facility Management Market Report
• Property services were demanded most widely historically
• End users to increasingly outsource facility management services
• Growing hospitality sector driving market expansion
• Market players securing service contracts for continued prosperity
• Usage of advanced technologies key trend in industry
• Demand for cleaning services rising fastest
Source: www.psmarketresearch.com
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