Latin America Soft Facility Management Market Size
| Study Period | 2022 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2022 - 2022 |
| CAGR | 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Latin America Soft Facility Management Market Analysis
The soft facility management market in Latin America is estimated to register a CAGR of 5.0 % over the next five years. Several private and public projects, including construction, infrastructural, energy projects, etc., are creating a massive demand for the soft facility management market.
- The Key players in the soft facility management market include CBRE Group, Inc., Cushman & Wakefield plc, Sodexo, Inc., Ecolab Inc., and ISS A/S are offering cleaning facility management services, catering services, additional support, landscaping services, and security services that will drive new growth opportunities in the end-user industries (Commercial, Institutional, Public/Infrastructure, Industrial) across Latin America.
- An increase in the development of commercial facilities, along with significant investments in infrastructure projects such as hospitals, airports, and educational institutions, are expected to drive market growth. Increasing awareness of the benefits of soft facility management services is expected to fuel the market's growth.
- According to the United Nations Conference on Trade and Development (UNCTAD), Mexico was the 10th largest destination for foreign direct investments, with approximately USD 32 billion in 2021, an increase of USD 4 billion from 2020. Also, the value of greenfield projects announced increased by 43%. Growing investments in greenfield projects are expected to drive the growth of the market studied.
- The spread of COVID-19 has forced the mass closure of workspaces and the implementation of work-from-home policies in most industries, especially in the corporate buildings of the IT and telecommunication sector, which negatively affected the market. However, for some businesses, the new normal initially may mean virus-proofing their offices through short-term fixes, new working patterns, and long-term design upgrades that put hygiene at the core of workplace planning. This may positively impact the region's soft services, such as COVID-19 cleaning services.
Latin America Soft Facility Management Market Trends
This section covers the major market trends shaping the Latin America Soft Facility Management Market according to our research experts:
Commercial End User is Expected to Hold a Significant Market Share
- The government's commercial projects in the Latin America region focus on the construction of smart cities and the implementation of advanced automation technologies are expected to propel the demand for the soft facility management market over the next five years.
- Moreover, the rise in foreign direct investments for infrastructure developments and the growing construction of commercial buildings creates enormous growth opportunities for the soft facility management market. For instance, in May 2022, Equinix acquired four data centers from EmpresaNacional De TelecomunicacionesS.A. ("Entel") in Chile. Equinix also signed an agreement to acquire another data center from Entel, with all five data centers holding an enterprise value of USD 735 million. Equinix operates eleven International Business Exchange (IBX) data centers in Brazil, Mexico, and Colombia.
- According to the United Nations Conference on Trade and Development (UNCTAD), Mexico was the 10th largest destination for foreign direct investments, with approximately USD 32 billion in 2021. Furthermore, the increasing FDI investments and new opportunities from infrastructural projects across the Latin America region are further anticipated to propel the soft facility management market demand.
- The government infrastructure initiatives using private capital in Mexico were operational as of March 2022. 113 projects were currently in the implementation stage. Such infrastructure development projects will increase the need for soft facility management services.
Brazil is Expected to Witness Significant Growth
- The Brazilian soft facility management market is driven by an increasing number of commercial establishments such as MNCs and local corporations, rising technological integration resulting in increased efficiency, and rising FDI (Foreign direct investment) investments in the country. This has increased the demand for soft facility management services in the country.
- According to the United Nations Conference on Trade and Development (UNCTAD). Brazil was the 6th largest destination for foreign direct investments, with approximately USD 50 billion in 2021, an increase of USD 22 billion from 2020. Also, the value of greenfield projects announced increased by 3%, and the number of international project finance deals increased by 32% in 2021.
- In addition, ongoing infrastructure development activities, a rising real estate sector, and a surge in demand for energy-efficient green buildings are expected to add growth to the soft facility management market. For Instance, Shizen International Inc. (Shizen International) has signed an agreement to construct a solar farm for 17 locations in Brazil for a total of 33.4 MWp will be completed this year.
- Brazil's construction market reached USD 73 billion in 2021. This indicates that the construction industry is expected to grow further, and the demand for the soft facility management market is expected to grow over the next five years.
Latin America Soft Facility Management Industry Overview
The Latin America soft facility management market is moderately fragmented due to ongoing partnerships and recent advancements in the market. Some major players in the market studied include CBRE Group, Inc., Cushman & Wakefield plc, Sodexo, Inc., Ecolab Inc., and ISS A/S.
- November 2021 - CBRE Group, Inc has a strategic partnership with Townsend Holdings Limited. Turner & Townsend serves customers across 46 countries with program management, cost consulting, project management, and advisory consulting services. Real estate, infrastructure, and natural resources are the three business segments.
- February 2022 - Sodexo On-site achieves Facility Service Management System Certification for Facilities Management (NBR ISO 41001:2020). The certification process took place within the Administration and Provision of Hygiene Services. It was conducted by one of the most recognized certification bodies in the country, Bureau Veritas. Sodexo On-site is one of the first companies in Brazil and throughout Latin America to receive certification to the standard.
Latin America Soft Facility Management Market Leaders
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CBRE Group, Inc.
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Cushman & Wakefield plc
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Sodexo, Inc.
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Ecolab Inc.
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ISS A/S
*Disclaimer: Major Players sorted in no particular order
Latin America Soft Facility Management Market News
- May 2022 - Ecolab launched a No-Rinse Alkaline Floor cleaner to clean areas with fat residues, including cafeterias and restaurants. The quick-drying feature of the cleaner helps avoid slippery surfaces, saving 25% on labor costs in an implementation monitored in a cafeteria measuring 900 square meters. This would help in providing better cleaning services and saving on resources.
Latin America Soft Facility Management Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Soft Facility Management Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Investments in Healthcare Infrastructure and the Construction of Healthcare Facilities Drives the Need for Soft Facility Managment Market
5.1.2 Steady Growth in Commercial Real Estate Sector
5.2 Market Restraints
5.2.1 Increased Instance of Data Breaches and Security Threats
5.3 Key Base Indicators of the Market
5.3.1 Occupancy Rates of Offices
5.3.2 Commercial Rest Estate Sector in the Region
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Office Support and Landscaping Services
6.1.2 Cleaning Services
6.1.3 Catering Services
6.1.4 Security Services
6.1.5 Other Soft FM Services
6.2 By End User
6.2.1 Commercial
6.2.2 Institutional
6.2.3 Public/Infrastructure
6.2.4 Industrial
6.2.5 Others
6.3 By Country
6.3.1 Brazil
6.3.2 Mexico
6.3.3 Argentina
6.3.4 Rest of the Latin America
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 CBRE Group, Inc.
7.1.2 Cushman & Wakefield plc
7.1.3 Sodexo, Inc.
7.1.4 Ecolab Inc.
7.1.5 ISS A/S
7.1.6 Brasanitas Group
7.1.7 Facility Service SA
7.1.8 Leadec Brazil
7.1.9 Brazil Cleaning Services
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Latin America Soft Facility Management Industry Segmentation
In Latin America, soft facility management services involve building upkeep, utilities, waste services, maintenance operations, security, etc. The study of the soft facility management market is segmented by type (Office Support and Landscaping Services, Cleaning Services, Catering Services, Security Services, and Other Soft FM Services), by end-user (Commercial, Institutional, Public/Infrastructure, Industrial), and by country.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | |
| Office Support and Landscaping Services | |
| Cleaning Services | |
| Catering Services | |
| Security Services | |
| Other Soft FM Services |
| By End User | |
| Commercial | |
| Institutional | |
| Public/Infrastructure | |
| Industrial | |
| Others |
| By Country | |
| Brazil | |
| Mexico | |
| Argentina | |
| Rest of the Latin America |
Latin America Soft Facility Management Market Research FAQs
What is the current Latin America Soft Facility Management Market size?
The Latin America Soft Facility Management Market is projected to register a CAGR of 5% during the forecast period (2024-2029)
Who are the key players in Latin America Soft Facility Management Market?
CBRE Group, Inc., Cushman & Wakefield plc, Sodexo, Inc., Ecolab Inc. and ISS A/S are the major companies operating in the Latin America Soft Facility Management Market.
What years does this Latin America Soft Facility Management Market cover?
The report covers the Latin America Soft Facility Management Market historical market size for years: 2022 and 2023. The report also forecasts the Latin America Soft Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Soft Facility Management Industry Report
Statistics for the 2024 Latin America Soft Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Soft Facility Management analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
