Saudi arabia facility management market forecast and opportunities, 2024

1. PUBLISHED : APRIL 2019 2014 – 2024 SAUDI ARABIA FACILITY MANAGEMENT MARKET • BY SERVICE, BY END USER, BY REGION, COMPETITION, FORECAST & OPPORTUNITIES www.techsciresearch.com MARKET INTELLIGENCE . CONSULTING

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6. Product Overview • The term “Facility” is defined as any tangible asset of an organization that supports its operation. Facility management is the practice of maintenance of organization’s physical assets such as building and equipment through services such as Mechanical, Electrical & Plumbing (MEP) maintenance, cleaning, security, etc., which support and improve effectiveness of the primary activities of that organization. • According to the International Facility Management Association (IFMA), “Facility Management (FM) is a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology”. In brief, facility management is a discipline focused upon supporting the core activities of any company. • Facility management primarily includes services such as property, cleaning, security, catering, and support. These services are essential for the effective operation of any business, as they ensure its smooth functioning, thereby enabling the business to focus on its core operations. At the corporate level, facility management services contribute to the delivery of strategic and operational objectives. An effective facility management provides a safe and effective working environment for employees that is essential for their performance. • Global facility management market is fragmented and comprises a mix of in-house departments, specialist contractors, companies, etc. Most Organizations prefer to outsource their facility management requirements from specialized service provider companies, which offer cost-effective and specialized solutions. Facility management cost represents only 5% of a facility’s lifecycle cost, and it may provide up to 50% increment in the facility’s lifespan along with 50% operational cost savings.

7. Product Overview Facility Management

8. Research Methodology Data Analysis Data Collection Data Validation Market Profiling Developing List of Respondents Formulating Questionnaire In-depth secondary research was conducted to determine top players in Saudi Arabia facility management market, overall market size and segmental market size. • The data was scrutinized using MS-Excel, statistical tools and internal proprietary database to obtain qualitative and quantitative insights about Saudi Arabia facility management market. Data obtained as a result of primary and secondary research was validated through rigorous triangulation. TechSci conducted interviews with industry experts and industry players for data collection and verification. In order to conduct industry experts’ interviews, TechSci formulated a detailed discussion guide. List of industry players and industry specialists was developed. Primary Research Desk Research Company Analysis Actionable Insights Data Filter & Analysis Business Solution Research & Intelligence Data Collection • Recent Developments • Market Changing Aspects/Dynamics • Government Policies • Final Conclusion • Market Participants • Key Strengths • Identifying Key Opinion Leaders • Questionnaire Design • In-depth Interviews Primary Research Secondary Research Paid Sources • LinkedIn • TechSci Internal Database • Company Websites • Company Annual Reports • White Paper Study • Financial Reports • Investor Presentations • Regulatory Body • Associations, etc. • Factiva • Hoovers

9. Research Methodology • Baseline Methodology Our dedicated team of industry experts has monitored and analyzed various aspects of Saudi Arabia facility management market. The team has analyzed the outlook of various segments of this market, while considering the major influencing factors and speculated a robust growth during the forecast period. The study includes market forecasting, which would enable our clients to take better decisions while planning their strategy to achieve sustainability in Saudi Arabia facility management market. Methodology Followed for Calculation of Market Size: • Market Size by Value: Market size, in terms of value, for the year 2018 was calculated based on information collected through exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders, such as facility management service providers, industry experts, etc. • The team interviewed more than 20 companies, 50 industry experts and other value chain stakeholders in Saudi Arabia facility managementmarket to obtain the overall market size during 2014-2018, which was validated by the Delphi technique. Taking standard deviation into consideration, the market size was averaged out, to arrive at the market size data for 2014-2018.

10. Research Methodology • Respondents were asked about the current and future market growth rates, as well as market shares by service, by end user,by region and by company. Removing the outlier responses, the geometric mean of growth estimates and provider wise revenue shares generated across various segments were considered, to arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from other stakeholders depending upon the component. Methodology Followed for Calculation of Market Shares: • Market shares by service, by end user, by region and by company were calculated based on the responses received through primary surveys with industry experts, in which the respondents were asked about the market shares of the leading facility managementserviceproviders. The final shares were calculated by taking the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers. Moreover, respondents were asked about the leading companies in Saudi Arabia facility management market. Methodology Followed for Forecasting: • TechSci Research performed periodical checks on data collected through the surveys with logical checks and analyzed the survey results in SPSS/Tableau Software.

11. Research Methodology • Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast Saudi Arabia facility management market, TechSci Research used various forecast techniques such as: Moving Average Time Series Analysis Regression Analysis Econometric and Judgmental Analysis TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions. TechSci Research also used the impact analysis during short, medium and long term period to estimate and analyze market demand scenario.

12. INDUSTRY BRIEF According to TechSci Research report, “Saudi Arabia Facility Management Market By Service, By End User, Competition, Forecast & Opportunities, 2024”, the facility management market in Saudi Arabia is projected to grow at a CAGR of around 12% during 2019-2024. The growth is anticipated to be driven by rapid consolidation of companies operating in the facility management market due to influx of international suppliers and rising investments towards large-scale projects in the infrastructuresector. Total spending in Saudi Arabia construction sector registered a growth rate of 10% during 2014-2018, which is expected to grow further in the coming years, thereby driving demand in the facility management market during the forecast period. Makkah province is anticipated to dominate demand for facility management services in the country. The province is the most popular region among both travelers and pilgrims visiting Saudi Arabia as it houses two holy mosques, which are the holiest place for the Muslim community. Thus, the province registers one of the highest number of visitors in the country. Also, it boasts majority of establishments in the hospitality industry in Saudi Arabia. As of 2018, a total of 1,547 hotels are operating and over 15,700 buildings are under construction in the province. With the completion of these buildings, demand for facility management services is expected to surge in the province. “Development activities in the real estate sector directly influence the demand for facility management services. Under its Saudi Vision 2030, Saudi Arabia government has planned to develop housing units to cover around 50% of its citizens by 2020, increasing from nearly 30% in 2015. This development would certainly increase the need for MEP and HVAC services in the country. Further, development of infrastructure projects such as expansion of Makkah Haram, Haramain railway, and various universities, hospitals, etc., is expected to propel the demand for facility management services through 2024.,”said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

13. SAMPLE DATA - SNAPSHOT Saudi Arabia Facility Management Market Size, By Value, 2014-2024F (USD Million) CAGR (2019E-2024F) By Value: xx% CAGR (2014-2018) By Value: xx% • Saudi Arabia Catering Facility Management Service Market Share, By End User, By Value, 2018 & 2024F Saudi Arabia Facility Management Market Attractiveness Index, By Region, By Value, 2019E-2024F Riyadh Eastern Province Rest of Saudi Arabia

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