Market Trends of Bahrain Facility Management Industry
This section covers the major market trends shaping the Bahrain Facility Management Market according to our research experts:
Hard FM Offerings is Expected to Remain the Major Segment in the Industry
- Hard services type mainly includes HVAC maintenance, lift and escalator maintenance, MEP services, decoration and refurbishment, fire safety system maintenance, drainage, building management systems (BMS), total energy management, emergency generation & UPS system, and project management, among others.
- In January 2021, Bahrain Airport Company (BAC), along with its partners and FM companies, coordinated fire and safety drill actions to clear 1,000 trial passengers and staff from the terminal. BAC also announced the phase 2 expansion in the same month, which fuelled the demand for Hard facility management services in the country.
- Due to the increase in the demand for facility management services, a lot of the companies are being contracted with FM services which will create an opportunity for the local firms to expand their services and expand their customer base in the country.
- In March 2022, Bahrain International Circuit (BIC) announced the completion of a major solar project delivering on the Kingdom of Bahrain's 2021 commitment to make the Formula 1 Gulf Air Bahrain Grand Prix green by 2022. Projects like these are pushing the demand high for Hard FM services in the nation.
- According to the International Monetary Fund, the value of investments in the country is expected to surpass USD 16.07 Billion by 2025. The rising investments in the country are driving the demand for FM services, especially Hard offerings.
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Integrated Facility Management is Expected to Witness the Highest Growth Rate
- There is a paradigm shift in the market as multiple industries are transforming from utilizing a single FM outsourcing type of model to an integrated services model that can meet all the core needs of customers on a large scale. In addition, with newer technology transforming the way organizations work, integrated facility management has become the key to smart buildings and work environments.
- For Various Vendors, IFM has been away for streamlined and efficient work and task management. The concept has primarily resulted in fewer contracts, teams, and resources to juggle and a single integrated view of all the management-related tasks. In comparison with overseeing each independent stakeholder and every task multiple times, IFM offers increased visibility that leads to effective management of teams, reduced operation costs, quicker responses to requests, less downtime for employees, and a greater focus on the bigger picture. Implementing large changes across multiple sites and services is also much easier using an IFM service provider.
- The trends in the Bahrain market are for a progression from single services to bundled services and further toward the integrated facilities management approach. This offers a broad scope of services provided and longer-term contracts, which adds value and drives better quality and economies of scale. Also, this is increasing the demand for outsourced services, where specialist expertise is required.
- The country witnessed various development activities supporting the need for integrated facility management services. For instance, in January 2021, Bahrain's Nabih Saleh Water Distribution Station completed its construction activities. The company collaborated with various FM vendors in order to complete the project. Nass Contracting Company constructed all the station's facilities and supplied it with the latest mechanical, electrical, control, and communication equipment. Meanwhile, Ahmed Mansoor Al-Aali (AMA Group) covered the upper reservoir and installed solar energy cells for the project.
- The upcoming metro rail project in the country is also driving the market forward. The project is entering the tender stage and represents the first phase of the government's plans to develop a 109km rail-based urban transit network.
