Published On : 2015-02-09
Integrated facility management (IFM) is an IT-based fiscal and financial management system that aims to provide organised, seamless, and accurate services to government, public, and private sector organisations. Integrated facility management is a segment of facility management, an evolving management system that focuses on the integration of people, place, process, and technology to provide cost-effective management solutions to organisations. The eleven core competencies were defined in 2009 through a Global Job Task Analysis (GJTA) undertaken by International Facility Management Association (IFMA).
Integrated Management Market: The Global Scenario
Integrated facility management market has undergone consistent transformation in the last decade on account of customised demand from organisations and dynamic changes in the technology sector. North America, Europe, and Asia Pacific are the leading markets for integrated facility management in the world. In GCC, the integrated facility management market is expected to grow steadily through 2019 on account of steady growth in the construction and manufacturing sectors and technological advancements. However, integrated facility management is yet to become mainstream in GCC due to lack of awareness among organisations—both big and small—and this can be a key challenge for the growth of the market.
Steady Economic Growth Rate and Technological Innovation Will Boost Integrated Facility Management Market in GCC
The economies of GCC countries are primarily dependent on oil production and exportation. Although the sharp decline in the global oil prices is expected to hurt GCC’s economy, large surpluses generated over decades of high oil prices will continue to provide an impetus to growth in the region. Moreover, the initiatives taken by GCC countries to develop non-oil sectors, such as construction, tourism, and minerals are expected to offset some of the impact of the prevailing low oil prices. The steady economic growthin GCC, especially in the construction and manufacturing sectors, is anticipated to boost the integrated facility management market in the region.
Technological innovation is projected to be another key driver for the growth of integrated facility market in GCC. Such innovations, especially the advancements in cloud computing, have made it easier for organisations to manage portfolios, respond to service requests, and interact with allied organisational systems. Technological innovations in the near future are expected to boost the growth of the integrated facility management market in GCC.
Low awareness about the benefits of integrated facility management and lack of standard practices are the key challenges for the growth of this market in GCC. Unlike the U.S. and Europe, where integrated facility management is a standard across most of the sectors, many organisations in the GCC region are yet to incorporate it completely. The innovation in cloud technology and the demand for outsourcing facility management services to third-party vendors are opportunities for the growth of this market.
Integrated Facility Management: Market Segmentation
The integrated facility management market is broadly segmented on the basis of solutions and services.
On the basis of solutions, the integrated facility management market is segmented into:
On the basis of services, the integrated facility management market is segmented into:
Real estate portfolio and maintenance management are the two sectors that are expected to grow at a brisk pace in GCC through 2019. The increase in infrastructural investment in GCC and the focus of government to develop non-oil sectors are projected to be the main reasons for the growth of these two segments.
Integrated Facility Management Market: Country-wise Outlook
Saudi Arabia is one of the largest markets for integrated facility management in GCC. Although the drop in global oil prices is anticipated to have a negative impact on Saudi Arabia’s economy, a high single-digit growth in the country’s non-oil sector is expected to offset the downslide. Steady growth in the construction, manufacturing, and service industries on account of government initiatives is expected to provide an impetus to integrated facility management market. Lack of awareness about the advantages of incorporating integrated facility management is a key challenge to the growth of this market in GCC. Initiatives by both government and private sectors to promote integrated facility management can open up new avenues for the growth of this market in the region.
The integrated facility management market in Kuwait is expected to witness a steady growth in the next four years on account of increased investments in infrastructure development. Kuwait’s construction industry, which is expected to exhibit a single-digit growth through 2019, will provide the boost for integrated facility management market. The key challenges for the growth of this market include absence of competent professional resources and lack of standard operational practices. Low awareness about integrated facility management is another key challenge for the growth of this market.
Qatar will be hosting the FIFA World Cup in 2022, and preparations are underway to make the event a grand success. The quick pace of development all over Qatar has generated demand for integrated facility management in the country. Qatar’s integrated facilities market is one of the largest — not only in GCC, but also in the entire Middle East — and it is expected to grow at a brisk pace through 2019 on account of growth in construction and manufacturing sectors. Like the rest of GCC nations, many end-user sectors lack awareness about integrated facility management and this continues to be a key challenge for the growth of this market.
UAE’s integrated facility market is expected to grow steadily through 2019 on account of the construction boom in the country and the demand for improved service levels. The focus of the UAE government to boost infrastructural activities in the country, along with the push to develop green open spaces is expected to augur well for the growth of integrated facility management market. However, this market hasn’t yet become mainstream and many sectors lack awareness about the benefits of outsourcing their facility management activities. This is expected to be a key challenge that this market will face in the near future.
Oman and Bahrain
Oman and Bahrain are two GCC countries where the growth of integrated facility management market is projected to be relatively lower than the rest. Although both Oman and Bahrain will see infrastructural investments in the next four years, the scale of those investments is projected to be lower than other GCC countries. On account of this, the integrated facility management market is expected to witness low to moderate growth through 2019. Awareness initiatives from the public and private sector can provide growth opportunities in this market.
The key players for integrated facility management in GCC include Oracle Corporation, SAP AG, Archibus, IBM, Manhattan Software, and Siemens AG. The presence of multinational service providers has helped bring more standardisation in the market. Considering the growth prospects of this market in GCC in the near future, it is expected that many new local players will emerge as a cost-effective alternative to multinational providers.