Facility Management Services Market in Middle East 2019-2023
About this market
Increasing emphasis on waste reduction initiatives in Middle East have prompted several facility management service companies to incorporate waste management as core function. Facility management vendors are developing long-term waste management frameworks to provide their end-users with efficient waste management solutions. Moreover, stringent regulations to monitor waste disposal is being imposed by several governments of Middle Eastern countries. Thus, the growing emphasis on sustainable waste management is prompting facility management service providers to offer waste management as a key service. Technavio’s analysts have predicted that the facility management services market in Middle East will register a CAGR of over 11% by 2023.Market Overview
Rapid growth in commercial construction
Commercial construction activities in the Middle East are increasing over the last few years. Initiatives such as the Vision 2030 by Saudi Arabia, and Qatar National Vision 2030 by Qatar are contributing to this rapid growth of commercial construction. UAE is also hosting the high-profile Expo 2020 which have helped in the growth of commercial infrastructure in the country. The transport, hospitality, entertainment, and healthcare sectors are outsourcing their non-core functions to facility management companies. Thus, the rapid growth in commercial construction is driving market growth during the forecast period.
Cost constraints in facility management services
Facility management services is a relatively new concept for the Middle East. The lack of awareness about the benefits of facility management services is prompting the facility management vendors to quote lower prices to survive in this highly competitive market. The intense price-based competition and the lack of awareness is leading to cost constraints in facility management services which in turn is hampering market growth in Middle East.
For the detailed list of factors that will drive and challenge the growth of the facility management services market in Middle East during 2019-2023, view our report.
The market appears to be fragmented and with the presence of several companies including BESIX, and Farnek the competitive environment is quite intense. Factors such as the rapid growth in commercial construction, will provide considerable growth opportunities to facility management service companies in Middle East. BESIX, Farnek, Interserve, Mace Group, and Serco Group are some of the major companies covered in this report.
Technavio Announces the Publication of its Research Report – Facility Management Services Market in Middle East 2019-2023
Technavio recognizes the following companies as the key players in the facility management services market in Middle East: BESIX, Farnek, Interserve, Mace Group, and Serco Group.
Commenting on the report, an analyst from Technavio’s team said: “The need for sustainable waste management in Middle East is driving facility management providers to offer waste management services. This will act as a key trend driving the growth of facility management services market in Middle East during the forecast period.”
According to the report, one of the major drivers for this market is the rapid growth in commercial construction in Middle East. The commercial construction activities have received a boost by initiatives such as the Vision 2030, and Qatar National Vision 2030. This will be a major factor driving the growth of facility management services market in Middle East.
Further, the report states that one of the major factors hindering the growth of this market is the cost constraints in facility management services due to intense price-based competition and lack of awareness about the benefits of FMS. This hurts the profit margins of vendors and thereby hampers market growth.