Jeddah: – In its latest report entitled ‘Business Analysis: Home Maintenance Apps’, Chrome Advisory sheds light on the vast potential of the mobile residential facility management market in Saudi Arabia. A key finding shows that the Total Available Market in Saudi Arabia is SAR 7.8bn, based on a market size of 5.4mn households, which provides numerous opportunities for entrepreneurs and investors to explore.
The mobile residential facility management market has recently been identified as one of the top 10 sectors with high potential of growth for electronic applications. This is due to the growing housing needs of a young and growing population and an increase in internet penetration. In addition, the growth of e-commerce solutions, online platforms and mobile applications in the Kingdom, have paved the way for the residential facility management market to become an increasingly attractive and viable sector for entrepreneurs and investors alike.
“For decades, residential facility management in Saudi Arabia was carried out through traditional service providers,” shares Khalid Suleimani, Senior Partner at Chrome Advisory. “However, due to technological advancements and regulatory changes, we are noticing a visible shift in the market dynamics, as well as user preferences towards digitization. This creates an entirely new market segment that is approximately SAR 0.5 billion,” he adds.
To date, the total number of players in the market is estimated at 10 servicing companies, yet due to the low barriers to entry, this number is expected to increase in the near future. Therefore, this sector poses a promising opportunity for both entrepreneurs and investors.
“To achieve this market potential, there are many challenges to be overcome, such as the absence of registered IP and software proprietary technology in the Kingdom, which creates low barriers to entry to this market, from a technical perspective,” explains Loulwa Bakr, Senior Partner at Chrome Advisory. She adds that market players are required to be highly adaptable to changes in consumer behavior, and the need for digital payments to be made through the platform to reduce collection risk.
To download the report ‘Business Analysis: Home Maintenance Apps’ by Chrome Advisory, click here.
© Press Release 2020