How Will Hospitality Sector Strengthen Kuwait Facility Management Market?

The Kuwaiti facility management market is expected to grow at a CAGR of 8.5% between 2021 and 2030, owing to the booming hospitality sector and upcoming infrastructure projects in the country. According to P&S Intelligence, the industry was valued at $954.4 million in 2021, and it will generate $1,995.5 million revenue by 2030. In recent years, economic diversification has become a major trend in the market. To decrease its reliance on the energy sector, the government is focusing on increasing investments in the tourism, construction, and hospitality sectors to reduce its dependence on oil revenue.

One of the major growth drivers of the Kuwaiti facility management market is the flourishing hospitality sector, owing to the increasing footfall of tourists in the country. According to the WorldData, a total of 2 million tourists visited Kuwait in 2020. The government is encouraging private investments, constructing new attractions, increasing international promotion campaigns, and expanding airport capacity to boost the hospitality sector in the nation. The surging tourist footfall and soaring government support for the hospitality sector will result in the construction of hospitality units, which require facility management services to offer more comfort to customers.

The property category, within the service segment, accounted for the largest share in the Kuwaiti facility management industry in 2021. Whereas, the cleaning category is expected to register the fastest growth in the market throughout this decade. This will be due to the rising expectation for cleaning, germfree, and hygienic public spaces and workspaces, on account of the ongoing COVID-19 pandemic. To deal with the safety quotient of sanitation, enterprises and government organizations are using innovative scanners and sensors in facility management equipment.

With the presence of numerous players, the Kuwaiti facility management market is fragmented in nature, owing to which the competition has increased considerably. Nowadays, the market players are focusing on different strategic measures, such as contract wins and product launches, to gain a competitive edge. Some of the leading players in the market include Kharafi National for Infrastructure Projects Developments Construction and Services S.A.E., R&E Petroleum Co., and Fawaz Trading & Engineering Services Co. W.L.L.

Thus, the expanding hospitalization sector will steer the demand for facility management services in Kuwait.

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Why will Demand for Facility Management Services Soar in Asia-Pacific in Coming Years?

The expansion of the construction, hospitality, and tourism industries is one of the major factors driving the demand for facility management services across the world. Furthermore, the rising urbanization rate, rapid economic progress, and the launch of smart city and infrastructural development projects by the governments of several countries are also pushing up the requirement for these services, as these services are heavily required by businesses and commercial establishments such as mega food parks, shopping malls, and special economic zones (SEZs) for catering to the needs of people. 

Additionally, the surging number of corporate offices and retail stores in several countries, on account of the economic growth and increasing industrialization and urbanization rates, is also fueling the demand for facility management services all over the world. Owing to the aforementioned factors, the facility management market is predicted to exhibit huge expansion in the coming years. Hard services and soft services are the two most widely used types of facility management services across the world. Between these, the demand for hard services is predicted to rise sharply in the coming years.

Further, the rapid development of green/sustainable buildings is also driving the demand for facility management services across the world. Globally, the demand for these services will rise at the fastest pace in the Asia-Pacific (APAC) region over the next few years, as per the estimates of P&S Intelligence, a market research company based in India. This is attributed to the increasing construction and infrastructural development projects in regional countries in order to meet the surging requirements of people. 

Furthermore, many international companies are setting up their offices, service centers, and research and development facilities in the region, owing to the high growth potential there. This is subsequently pushing up the requirement for facility management services in the region. Cleaning, property, security, support, catering, and environmental management are the major facility management services used all over the world. Some of the major organizations operating in the facility management market are Imdaad LLC, Tenon FM, Compass Group, Jones Lang LaSalle, G4S plc, Emrill Services LLC, and EMCOR Group.

Thus, it can be safely said that the demand for facility management services will surge sharply in the coming years, primarily because of the expansion of hospitality, tourism, and construction industries, rising urbanization and industrialization rates, and increasing number of retail stores and corporate offices across the world.

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Surging Construction Activities Driving Demand for Facility Management in Saudi Arabia

With the expansion of the infrastructure industry, the demand for facility management services is surging in Saudi Arabia. The country has witnessed the launch of several construction projects in the recent years, and this trend will continue in the coming years, due to strong government support and the huge investments being made in this industry. For example, the government announced in January 2019 that it intends to invest $426 billion by 2030 for developing industries and infrastructure in the country.

These infrastructural development projects, once completed, will massively push up the demand for facility management services in the country. Besides, the booming tourism industry is also positively impacting the demand for these services in the country. This is because of the soaring requirement for maintaining resorts and hotels, shopping complexes, and various other facilities and also for catering and security, on account of the expansion of the tourism industry in the country.

Furthermore, the Ministry of Tourism in the country announced in June 2020 that it plans to launch a tourism development fund with an initial investment of $4 billion. Hence, it is safe to say that the expansion of the construction and tourism industries is fueling the growth of the Saudi Arabian facility management market, with the market revenue expected to grow from $31,264.1 million in 2020 to $87,216.0 million by 2030.

Amongst these, the property category held the largest market share in 2020, due to the huge demand for routine maintenance and asset management services and for the advertisement of several leasable properties. When mode is taken into consideration, the market is categorized into outsourced and in-house. Between these, the outsourced category will demonstrate the faster growth in the Saudi Arabian facility management market in the upcoming years, as per the estimates of the market research firm, P&S Intelligence. 

Thus, it is clear that due to the increasing construction and infrastructural development activities and the thriving tourism industry, the demand for facility management services will skyrocket in Saudi Arabia in the coming years.

Read More: https://www.psmarketresearch.com/market-analysis/saudi-arabia-facility-management-market

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