South America Facility Management Market Assessment, By Type, By Mode, By Industry Type, By End-user, By Country, Opportunities and Forecast, 2018-2032F

South America facility management market is projected to witness a CAGR of 5.03% during the forecast period 2025-2032, growing from USD 40.08 billion in 2024 to USD 59.35 billion in 2032. The facility management market in South America is expanding, fueled by the rising need for effective management solutions across several sectors. Companies outsource facility management activities to reduce costs and boost operational efficiency. The commercial segment is quite influential in this market, considering the fast growth of commercial real estate, which is outsourcing non-core functions to dedicated providers. This shift enables businesses to focus more on their core operations with assurance that the facilities are put to good use. Key industries in this category with the highest demand are healthcare, retail, and commercial real estate; these are specific sectors requiring tailored management to ensure better service delivery standards. Advancements in technology are altering the industry's landscape, while smart technologies, such as the Internet of Things and artificial intelligence, enhance capabilities in operations. These innovations lead to automation in maintenance services and improve energy management practices, propelling the demand for integrated facility management models and allowing business to streamline their services through one provider, making it more efficient and less complicated. As South America continues to improve its infrastructure and urban environments, the facility management sector is all set for gigantic growth and innovations.

For instance, in December 2022, Sodexo, Inc. and Tetra Pak International S.A. extended their global agreement for a five-year contract renewal. Sodexo has renewed its five-year agreement with Tetra Pak, an international food processing and packaging solutions company, to provide global integrated facilities management (IFM) service. Sodexo provided Hard services for Tetra Park.

Incorporating Technological Innovations Drive the Market

Incorporating technological innovations is a significant growth driver in the facility management market. Advanced technologies such as robotics, the Internet of Things (IoT), artificial intelligence, and automation are changing how facilities are provided. These innovations enable real-time data collection and analysis and streamline processes, allowing facility managers to make informed decisions that enhance operational efficiency. AI-powered predictive maintenance detects problems before they become critical, thereby reducing downtime and maintenance costs. Smart building technologies also optimize energy consumption and enhance occupant comfort per sustainability objectives. As more organizations adopt these technologies, the facility management landscape is becoming more interconnected and intelligent, ultimately improving service delivery and user experiences. The companies are following the trend and launching robotics solutions for manual maintenance purposes, which underlines the role of technology in defining the future of facility management.

For instance, in January 2025, the company Robotic Work, known in Chile for its iconic robot waiters, launched robotic solutions for industrial cleaning and maintenance. This cutting-edge technology can clean thousands of square meters per hour with stable efficiency, outstanding cleaning quality, and lower cost, allowing companies to optimize their operations and stay up to date. Smart cleaning robots cover all needs, as they have four functions: sweeping, scrubbing, vacuuming, and mopping.

Workplace Hazards Fuel Demand for the Facility Management Market

Rising accident rates are a significant factor in the facility management market as organizations focus on safety and compliance. Growing awareness of workplace hazards has increased the demand for effective facility management solutions that can mitigate risks and enhance safety protocols. As a result of these challenges, businesses are investing in comprehensive maintenance strategies and advanced technologies to monitor and manage facilities more effectively. This includes regular inspections, improvement in emergency response plans, and the use of smart technologies for real-time hazard detection. As safety becomes a paramount concern, the facility management market is poised for growth, driven by the need to create safer environments for employees and visitors alike. This focus on safety protects individuals and enhances overall operational efficiency.

For instance, data from the social system of the Ministry of Labor and Employment (MTE) shows that in 2023, 373 typical work accidents with fatalities occurred in Sao Paulo. In Brazil, this number reached 2,888 fatal accidents in the same period. The MTE's new system, eSocial, facilitates the administration of all information related to Brazilian workers. In 2023, the system recorded a total of 499,955 work accidents. In the civil construction sector, the main causes are related to falls from height, burial, and electric shock caused by not managing the facilities.

Hard Services Dominate the Market

Hard services, including the core maintenance and management of physical assets within a built environment dominate the South American facility management market. These services include HVAC maintenance, plumbing, electrical system management, and building fabric upkeep to ensure operational efficiency and safety. The rising urbanization and infrastructure development taking place in the region have fueled the demand for these services because businesses want to optimize their facilities to support growing populations. In addition, technological advancements, including IoT and predictive maintenance, are changing the hard services landscape, allowing for real-time monitoring and improved operational capabilities. As organizations focus on efficiency and sustainability, hard facility management companies are expected to collaborate, build partnerships, and bid for tenders and projects dominating the market, reflecting a critical growing demand for overall facility management strategies in South America. The governments are taking initiatives to streamline the processes and make it easier for companies to opt for facility management companies for periodic maintenance.

For instance, in July 2024, the Agencia Gubernamental de Control (AGC) implemented this new registry for companies (Legal Entity, Self-Employed, or Monotributistas) in Argentina that are dedicated to the cleaning of hoods, and ducts. To achieve a safer commercial activity, and minimize and prevent risks, the AGC implemented the registration for Hood, Duct, and Related Cleaning Companies; whose purpose is to ensure the periodic execution of cleaning and maintenance tasks.

Brazil Leads the South America Facility Management Market

Brazil is the dominating country in South America, with a strong economy and increasing urbanization. The diversified commercial, residential, and industrial sectors drive demand for comprehensive facility management services. The demand is further increased by major infrastructure development projects, which require efficient management of facilities to ensure functionality and sustainability. Thus, modern technologies, including IoT and AI, improve operational efficiency and delivery of services. Also, the trend toward outsourcing non-core functions such as specialized facilities management capabilities help organizations focus their efforts on core objectives. The government of Brazil is signing new contracts for facilities management, due to which the market is experiencing tremendous growth and will serve as a dynamic response to market needs and regulatory frameworks. For instance, in November 2024, the Brazilian Development Bank (BNDES), the Ministry of Health, and the National Cancer Institute (INCA) signed a contract to structure an innovative partnership project between public and private institutions for the construction of a new building, renovation of the old one, and provision of non-healthcare services at the new INCA Campus in Rio de Janeiro (RJ). The purpose of the contract is to provide non-assistance services for up to 450 beds, such as renovation, construction, equipment, installation, operation, security, cleaning, maintenance, hotel services, laundry, fire brigade, and IT, among others. The estimated investment for the project is around USD 1.1 billion.

Future Market Scenario (2025-2032F)

The South America facility management market is expected to expand considerably, driven by the growth of commercial areas and increasing urbanization. This rising need is further propelled by real estate market expansion and the necessity for efficient urban infrastructure management.

Improvements in technology, such as the Internet of Things, Artificial Intelligence, cloud computing, and data analytics, are changing facility management across South America. These advancements allow for predictive maintenance, real-time oversight, and data-based decisions, boosting efficiency and better use of resources.

Governments in South America are implementing policies to boost sustainability, protect the environment, and ensure public safety, which impacts the facility management industry. Facility management companies are putting more emphasis on using resources efficiently, cutting down on waste, and using renewable energy to meet governmental aims.

Brazil, Chile, and Argentina will hold a considerable portion of the facility management market in Latin America because of swift infrastructural progress and more foreign investment. An increase in business locations, the blending of technologies, and the transfer of infrastructure to private hands further energize the facility management market there.

Key Players Landscape and Outlook

A mix of established multinational firms and local service providers characterizes the competitive landscape of the South America Facility Management Market. Key players such as CBRE Group, Cushman & Wakefield, Sodexo, and Ecolab dominate the market, leveraging their extensive resources and expertise to offer comprehensive facility management solutions. Local companies also play a significant role, often competing on price and tailored services to meet specific regional needs. The market is witnessing increased collaboration through partnerships and acquisitions, allowing companies to enhance their service offerings and expand their geographic reach. Additionally, technological advancements, such as IoT and AI integration, are reshaping service delivery, enabling providers to offer more efficient and innovative solutions to clients across various sectors.

For instance, in June 2024, Parso gained a new customer with Latin American operations for workspace management software. From the outset, they have worked closely with the project team to understand their customer needs and customize a facility that perfectly fits their facility management requirements.