Saudi Arabia Facility Management Market Size (2024 - 2029)

Saudi Arabia Facility Management Market Analysis

The Saudi Arabia Facility Management Market size is estimated at USD 27.58 billion in 2024, and is expected to reach USD 49.66 billion by 2029, growing at a CAGR of 12.48% during the forecast period (2024-2029).

The International Facility Management Association (IFMA) defines facility management as combining a physical workplace with an organization's workforce and work, including equipment upkeep, space planning, and portfolio forecasting. These services include leadership and strategy, real estate and property management, project management, quality, human aspects, emergency planning and business continuity, and environmental sustainability.

• There are various trends that may propel facility management in the Saudi region. For example, the Internet of Things (IoT) encompasses physical equipment and sensors that leverage the Internet to communicate with Facility Management (FM) teams. These devices produce performance data, serving as an early warning system for facility managers. This allows FMs to oversee and manage equipment, providing real-time operational insights remotely. When integrated with FM software, like a computerized maintenance management system (CMMS), IoT may swiftly identify issues (e.g., office temperature discrepancies), autonomously generate and allocate work orders, and monitor their completion.
• For instance, in March 2024, SIERRA unveiled its eFACiLiTY Enterprise Facility Management Software, touted as the most comprehensive computer-aided facilities management (CAFM) and integrated workplace management system (IWMS) globally. The software operates on a Software as a Service (SaaS) subscription model hosted on Microsoft Azure. It also offers the eFACiLiTYVirtual Assistant, an advanced multilingual AI/ML solution that leverages the Maintenance Guru. This intelligent feature diagnoses issues by navigating through our knowledge base and streamlines the creation of precise work orders with a single click.
• The Saudi Arabian government is rapidly investing in infrastructure projects to diversify the economy. These projects include air transport, urban planning, logistic centers, tourism, and several others. This creates fertile ground for facility management services as they are required to maintain these facilities and any new infrastructure.
• Outsourced FM has been successfully used in various industries, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing, and education. The areas covered by FM services vary widely, mainly depending on the type and size of the company and the sector in which it operates.
• The lack of awareness of the importance of facility management poses a significant challenge to the market studied. Enterprises in the country are trying to focus on their core businesses, but they are reluctant to outsource FM activities as a part of the vision to focus on the core. Talent retention and acquisition pose considerable challenges in the Saudi facility management market. The demand for skilled facility management professionals, including technicians, engineers, and skilled laborers, continues to grow with the growing infrastructure and real estate sectors. However, retaining and attracting talent in a competitive job environment may be difficult.
• According to the International Monetary Fund (IMF), the country's GDP amounted to USD 833.54 billion in 2021. It is expected to cross USD 1,072.44 billion by the end of 2027. Facility management services are also expected to grow significantly as infrastructure development projects heavily contribute to the country's economic growth.

Saudi Arabia Facility Management Industry Segmentation

Facility management services involve building upkeep, utilities, maintenance operations, waste services, and security. These services are divided into hard and soft facility management services. Hard services comprise mechanical and electrical maintenance, fire safety and emergency services, building management system controls, elevator and lift maintenance, and conveyor maintenance. Soft services include cleaning, recycling, security, pest control, handyperson services, ground maintenance, and waste disposal.

The Saudi Arabia facility management market is segmented by service type (hard services (asset management, MEP and HVAC services, fire systems and safety, and other hard FM services), soft services (office support and security, cleaning services, catering services, and other soft FM services)), offering type (in-house facility management and outsourced facility management (single FM, bundled FM, and integrated FM)) and end-user industry (commercial, retail, and restaurant, manufacturing and industrial, government, infrastructure and public entities, institutional, and other end-user industries), and by region (Jeddah, Riyadh and the rest of Saudi Arabia). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.