According to the market research report published by P&S Intelligence, with the growth of the construction industry in the kingdom, the Saudi Arabia facility management market is predicted to cross $76,244.9 million by 2030, from $32,480.4 million in 2019, at a 9.3% CAGR between 2020 and 2030. The Smart City initiative launched by the Saudi government in 2017 has been giving a strong push to its construction sector. Under the initiative, the government plans to install smart parking, smart cameras, smart lighting system, smart solid waste disposal, and environmental pollution monitoring tools in five Saudi cities. In addition, an investment of $500 billion in infrastructure development has been planned under Saudi Vision 2030.
The Saudi Arabia facility management market faced some hurdles in the wake of COVID-19, as most commercial settings, such as malls, hotels, theaters, and recreational centers, were closed. In addition, even entry to mosques was barred, and the Hajj pilgrimage was put in a limbo, to curtail the spread, which significantly reduced the requirement for facility management services. But, since the kingdom has now lifted the lockdown, the market is expected to pick up again.
The outsourced bifurcation, on the basis of mode, is projected to experience the higher CAGR in the Saudi Arabia facility management market, of 9.9%, in the immediate future. The growing demand for such services from the public sector, and the fact that by outsourcing such activities, companies are free to focus more on their core business areas, are compelling companies to hire third-party companies for such services at their premises.