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The Brazil facility management market is expected to grow at a CAGR of above 4% during the forecast period, 2022-2027. Facility management ensures the functionality of the built environment by integrating people, place, process, and technology to support an organization's core activities, including property, cleaning, security, catering and support, and others.
- The growth of the facility management market is attributed to the increasing demand for hard and soft facility services, primarily in the southeast and northeast regions of the country. Property and cleaning services are gaining demand from large-scale development of real estate projects and growing infrastructure developments across the country.
- The increasing number of commercial establishments, growing focus on environmental sustainability, and increasing adoption of technology integration are expected to drive market growth. Also, the rising influence of foreign players on integrated facility management services and rising outsourced facility management services are further expected to drive the demand for FM in Brazil.
- However, a lack of a skilled workforce and safety concerns restrain the market growth. In addition, they are increasing security breaches and growing cybercrime threats, hindering the market's growth.
- The Covid-19 had more impact on the country's southeast region, which contributes maximum to the country's GDP and hence to the facility management market owing to the presence of larger cities with several industries, airports, hospitals, and commercial businesses.
Scope of the Report
Facility Management Services are essential for the effective operation of the business as they ensure smooth functioning of an organization and assist them in focusing on core business competence. Organizations are outsourcing these services from facility management companies that provide cost-effective solutions.
The Brazil Facility Management Market is Segmented by In-house FM Service, Outsourced FM Service (Single FM, Bundled FM, Integrated FM), Offering Type (Hard FM, Soft FM), and by End-User (Commercial, Institutional, Public/ Infrastructure, Industrial).
|By Type of Facility Management|
|Inhouse Facility Management|
|By Offering Type|
|Other End Users|
Key Market Trends
Increased Focus on Energy Management and Services
- The energy management systems in Brazil are gaining momentum as the energy demand is rising in the country. Although conventional energy sources dominate a significant chunk of the market, the shares of renewable energy sources like solar, wind, and tidal have increased steadily.
- Tourism and commercial buildings have resulted in the growth of energy management systems in the country as these buildings aim to cut energy costs which form a major chunk of their operational costs.
- The demand for energy management and related services is on the rise for the systematic integration of sustainable energy sources to achieve energy efficiency, fueling the growth of energy management facility services in the country.
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Commercial End User is Expected to Hold a Significant Market Share
- The government's commercial projects in the country focus on the construction of smart cities and the implementation of advanced automation technologies are expected to propel the demand for the Brazil facility management market throughout the forecast period.
- 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 Brazil's facility management market's demand in the coming years.
- Moreover, the rise in foreign direct investments for infrastructure developments and the growing construction of commercial buildings creates enormous market growth opportunities in the country. For instance, according to the United Nations Conference on Trade and Development (UNCTAD) report, Brazil's infrastructure sector received a 53% increase in financing proposals in 2021 alone. Furthermore, the increasing FDI investments and new opportunities from infrastructural projects across the country are further anticipated to propel the market demand in Brazil.
Brazil Facility Management is highly fragmented as it is a highly competitive market with several players of different sizes. This market is expected to experience several mergers, acquisitions, and partnerships as companies continue to invest in strategically offsetting the present slowdowns they are experiencing.
- April 2022 - Shizen International Inc. (Shizen International), international development and asset management company of renewable energy power plants, has concluded a solar farm agreement for 17 locations in Brazil for a total of 33.4 MWp completed within 2022.
- May 2022 - Ardagh Group has selected Minas Gerais as their location for Brazil's first glass production facility. The advanced facility in Juiz de Fora will manufacture glass packaging for clients in the Brazilian market. This would create a significant opportunity for the FM provider in the region.
Table of Contents
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 Forces 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 Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for Sustainable and Energy Efficient Green Building
5.1.2 Increasing Focus on Integrated Facility Management Services
5.2 Market Challenges/Restraints
5.2.1 Lack of Managerial Awareness
6. MARKET SEGMENTATION
6.1 By Type of Facility Management
6.1.1 Inhouse Facility Management
6.1.2 Outsourced Facility Management
184.108.40.206 Single FM
220.127.116.11 Bundled FM
18.104.22.168 Integrated FM
6.2 By Offering Type
6.2.1 Hard FM
6.2.2 Soft FM
6.3 By End-User
6.3.5 Other End Users
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 CBRE Group, Inc.
7.1.2 Jones Lang LaSalle IP, Inc. (JLL)
7.1.3 Cushman & Wakefield PLC
7.1.6 G4S Brazil (Allied Universal Company)
7.1.7 GRSA (Compass Group)
7.1.8 Brasanitas Group
7.1.9 Leadec Brazil
7.1.10 GPS Group
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Brazil Facility Management Market market is studied from 2020 - 2027.
What is the growth rate of Brazil Facility Management Market?
The Brazil Facility Management Market is growing at a CAGR of >4% over the next 5 years.
Who are the key players in Brazil Facility Management Market?
CBRE Group, Inc., Jones Lang LaSalle IP, Inc. (JLL), Cushman & Wakefield PLC, Sodexo, Manserv are the major companies operating in Brazil Facility Management Market.