Home maintenance repairs and procedures have long been dominated by traditional service providers. Both in Lebanon and across the MENA region, maintenance and repairs have typically been carried out by qualified personnel, or dedicated facility management companies. However, a noticeable shift in this area is being witnessed due to changing consumer behaviors and growing demands. Many entrepreneurs have identified the potential of the market, and have responded by developing solutions and applications, to service residential properties across the region.
Saudi Arabia is one such country where the home maintenance App market is expected to grow exponentially in 2020, which provides lucrative opportunities for entrepreneurs and investors to explore. In a report by Saudi-based venture capital consulting firm, Chrome Advisory, a key finding shows that the Total Available Market in Saudi Arabia that can be captured by service providers is USD 2.07 billion.
This finding positions the mobile residential facility management market as one of the top 10 sectors with high potential of growth for electronic applications in Saudi Arabia. This shift is mainly driven by a young and growing population across the MENA region, as well as high connectivity rates, the growth of e-commerce solutions, as well as online platforms and mobile applications. This has paved the way for the residential facility management market to become an increasingly attractive and viable sector for entrepreneurs to innovate in.
However, despite the attractiveness of this sector, the total number of players operating in the MENA region remains limited. In Saudi Arabia, it is estimated that there are 10 servicing companies covering the entire market. However, the number of players is expected to greatly increase this year, due to the low barriers to entry.
So what are the challenges that exist in the home maintenance App market?
As an entrepreneur looking to venture into the home maintenance App market, there are many challenges and risks that need to be considered. According to Chrome Advisory, they include:
- The absence of registered IP and software proprietary technology, which is the case in Saudi Arabia, translating into low barriers to entry
- Market players are required to be highly adaptable to changes in consumer behavior
- Consumers are price sensitive, therefore will seek cost efficient solutions to carry out maintenance procedures
- Digital payments need to be optimized and done through the platform, to reduce collection risk.
To read the full report, click here.
