Chile Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Chile Facility Management Market is Segmented by In-house FM Service, Outsourced FM Service (Single FM, Bundled FM, Integrated FM), by Offering Type ( Hard FM, Soft FM) and by End-User (Commercial, Institutional, Public/ Infrastructure, Industrial).

Market Snapshot

Chile Facility Management Market
Study Period: 2020-2027
Base Year: 2021
CAGR: >4.12 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The Chile facility management market is expected to grow at a CAGR above 4.12% during the forecast period, 2022-2027. The government-led construction boom and surging emphasis on green building practices increase the demand for facility management in Chile. More IT-based facility management companies are expected to grow in the future and enormous growth in the tourism and healthcare industries in the region.

  • Facility management (FM) consists of multiple disciplines to influence the efficiency and productivity of organizations. Conforming with the industry best practices, the new management system standard constitutes a benchmark for developing and driving practical strategic, tactical, and operational FM principles across Chile.
  • The companies in the region see more significant investment in facility management services, and it is likely to increase in the near future. For instance, in Oct 2021, Chile's Buk, which has developed a human resource management platform for companies in Latin America, raised USD 50 million in a Series A funding round for a valuation of USD 417 million.
  • The growing investments in commercial properties are expected to increase the region's demand for facility management services. It is pretty evident with the recent developments happening in the country. For instance, in March 2022, Brazilian data center firm Scala announced that it is planning a 45-megawatt data center in Chile and has signed an anchor tenant for the facility.
  • Additionally, rapid infrastructure development and the rising focus on integrated facility management services are anticipated to positively influence the Chilean facility management market over the coming years.
  • However, the growing competition in the market impacts the profit margins and growth of existing vendors. The match between suppliers is so high that the FM services are transitioning to be commoditized in the country.
  • The outbreak of COVID-19 has had a mixed business impact on facilities management firms, as the restrictions on the movement of people have resulted in a decline in project work and a reduced level of activity across many customer sites. Major players in the market, such as ISS Limited, CBRE Group, and others, were adversely affected due to the pandemic lockdown.

Scope of the Report

Facility management confines multiple disciplines to ensure functionality, comfort, safety, and efficiency of any building by integrating people, place, process, and technology. While Hard services include physical and structural services like fire alarm system lifts, among others, soft services include cleaning, landscaping, security, and similar human-sourced services, providing a solution to end-users such as Commercial Buildings, Retail, and Government, Public Entities, etc.

The Chile 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 Facility Management
Inhouse Facility Management
Outsourced Facility Management
Single FM
Bundled FM
Integrated FM
By Offering
Hard FM
Soft FM
By End User
Commercial
Institutional
Public/Infrastructure
Industrial
Other End Users

Report scope can be customized per your requirements. Click here.

Key Market Trends

Integrated Facility Management to have a significant share

  • There is a paradigm shift in the market as multiple industries are transforming from utilizing a single FM outsourcing model to an integrated services model that can meet all the core needs of customers on a large scale. In addition, with newer technology transforming the way organizations work, integrated facility management has become the key to intelligent buildings and work environments.​
  • IFM has been away for streamlined and efficient work and task management for various vendors. The concept has resulted in fewer contracts, teams, and resources to juggle and a single integrated view of all the management-related tasks. In comparison with overseeing each independent stakeholder and every task multiple times.
  • IFM offers increased visibility that leads to effective management of teams, reduced operation costs, quicker responses to requests, less downtime for employees, and a greater focus on the bigger picture. Implementing significant changes across multiple sites and services is easier using an IFM service provider.
  • The trends in the Chilean market are for a progression from single services to bundled services and further toward the integrated facilities management approach. This offers a broad scope of services and longer-term contracts, which adds value and drives better quality and economies of scale. Also, this is increasing the demand for outsourced services, where specialist expertise is required.
  • A lot of mergers and acquisitions are happening in the IT sector in the region, which is expected to increase the integrated facility management services in the area. For instance, in March 2022, Equinix announced to acquire four Entel data centers in Chile and Peru for USD 705 million.
Chile FM Market

Commercial End User Sector is expected to hold major share

  • The commercial end-user sector cover office buildings occupied by business services, such as corporate offices of manufacturers, IT and communication, and other service providers. Owing to this, the provision of necessary fitments and interiors and commercial buildings decoration and management has gained significant importance, thereby driving the market in the Country's retail sector.
  • The investment companies usually decide to specialize either in the residential or commercial property market. Commercial investments suggest higher cash flow potential and often provide better returns on investment. The commercial buildings segment offers lucrative opportunities, making them an attractive form of investment in the region, consequently boosting the Facility Management Market's growth during the forecast period.
  • As per a report from CBRE Group, Post COVID occupancy rate of the offices has increased. After analyzing 108 buildings in the Country, the firm found that the use rate of office towers at the end of October 2021 was 41%, which was 37% in September 2021 and 26% in July 2021.
  • Moreover, the commercial sector covers office buildings occupied by business services, such as corporate offices of manufacturers, IT and telecommunication, finance and insurance, property, and other service providers. The rise in the IT sector across Chile will allow more commercial sector expansion and facility management services.
  • For instance, the telecom players are focusing on 5G deployments in Chile, which will create significant opportunities for the region's facilities management sector. For example, in March 2022, WOM launched the commercial 5G services across several regions of the Country. After starting a service across a limited area in January 2022, WOM has expanded the network to cover 99 settlements across Valparaiso, Biobio, and the Santiago Metropolitan Region.
Chile FM Market

Competitive Landscape

The Chile Facility Management Market is competitive with the presence of diverse firms of different sizes. This market is anticipated to encounter a number of partnerships, mergers, and acquisitions as organizations continue to invest strategically in offsetting the present slowdowns that they are experiencing. The clients in this region are employing FM services to increase the ease of their business operations. The market comprises key solutions and service providers, such as CBRE Group, JLL Limited, ISS Chile, Cushman, and Wakefield, among others.

  • Jan 2022 - JLL Limited has announced the acquisition of Sacramento-based Hank, an AI-powered virtual engineering platform that automatically optimizes commercial building management systems to offer more comfort, greater air quality, and energy savings.

Recent Development

  • July 2021 - CBRE Chile announced the approval of the environmental impact study of line 7 of the metro, which will allow the start of the work completed in 2027. The line will have 19 stations and will link Renca with Vitacura.
  • April 2021 - CBRE has partnered with Idea-Tec, who developed a solution to convert plumavit into paint. CBRE wants to bring this technology to corporate buildings and help reduce the carbon footprint by more than 16,000 kg of Carbon dioxide in just 12 months. More than 18,000 tons of plumavit waste in Chile is produced every year, and there are no industrial processes to recycle it.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumption And Market Definition

    2. 1.2 Scope of the study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power Of Suppliers

      2. 4.2.2 Bargaining Power Of Buyers

      3. 4.2.3 Threat Of New Entrants

      4. 4.2.4 Threat Of Substitutes

      5. 4.2.5 Intensity Of Competitive Rivalry

    3. 4.3 Impact Of COVID-19 On The Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Trend of Smart Buildings

      2. 5.1.2 Steady Growth in Commercial Real Estate Sector

      3. 5.1.3 Increasing Demand of Energy Management Services

    2. 5.2 Market Challenges/Restraints

      1. 5.2.1 Lack of Skilled Workforce

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Facility Management

      1. 6.1.1 Inhouse Facility Management

      2. 6.1.2 Outsourced Facility Management

        1. 6.1.2.1 Single FM

        2. 6.1.2.2 Bundled FM

        3. 6.1.2.3 Integrated FM

    2. 6.2 By Offering

      1. 6.2.1 Hard FM

      2. 6.2.2 Soft FM

    3. 6.3 By End User

      1. 6.3.1 Commercial

      2. 6.3.2 Institutional

      3. 6.3.3 Public/Infrastructure

      4. 6.3.4 Industrial

      5. 6.3.5 Other End Users

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 CBRE Group

      2. 7.1.2 ISS Chile

      3. 7.1.3 Sodexo Facilities Management Services

      4. 7.1.4 JLL Limited

      5. 7.1.5 Compass Group

      6. 7.1.6 Cushman and Wakefield

      7. 7.1.7 Colliers International Group Inc

      8. 7.1.8 Aramark Facility Services

      9. 7.1.9 Serco Facilities management

      10. 7.1.10 Grupo Eulen

      11. 7.1.11 Johnson Controls

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Chile Facility Management Market market is studied from 2020 - 2027.

The Chile Facility Management Market is growing at a CAGR of >4.12% over the next 5 years.

CBRE Group, ISS Chile, Sodexo Facilities Management Services, JLL Limited, Compass Group are the major companies operating in Chile Facility Management Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!