Report Description

Forecast Period

2025-2029

Market Size (2023)

USD 21.46 billion

CAGR (2024-2029)

5.85%

Fastest Growing Segment

Organized

Largest Market

South Brazil

Market Size (2024)

USD 30.46 billion





Market Overview

Brazil Facility Management Market was valued at USD 21.46 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 5.85% through 2029. Growing environmental awareness and a desire to reduce operational costs prompt organizations to adopt energy-efficient and sustainable facility management practices. FM services play a critical role in achieving these goals.

Key Market Drivers

Growing Urbanization and Real Estate Development

Brazil's Facility Management Market is experiencing a significant surge in demand due to the country's growing urbanization and real estate development. This trend can be attributed to several factors, including rapid population growth, increased urban migration, and the expansion of commercial and residential construction projects. As more people move to urban areas in search of better job opportunities and improved living standards, the need for well-managed facilities has become paramount. Facility management services have emerged as a vital component in ensuring the efficient operation and maintenance of buildings and infrastructure in these urban centers.

One of the key aspects of this driver is the boom in real estate development. Brazil's real estate sector is witnessing substantial investments, with both residential and commercial construction projects on the rise. This is due to the demand for modern housing and office spaces, driven by a burgeoning middle class and increasing foreign investments. As a result, property owners and developers are turning to professional facility management services to enhance the value of their investments, ensure operational efficiency, and provide high-quality services to occupants.

The government's emphasis on urbanization and infrastructure development has fueled the demand for facility management services in Brazil. Public-private partnerships are being formed to construct and manage public infrastructure projects, such as transportation systems, healthcare facilities, and educational institutions. These initiatives require comprehensive facility management to maintain and operate these assets effectively. Consequently, facility management companies play a vital role in ensuring that these projects continue to serve the public efficiently and sustainably.

The growing urbanization and real estate development in Brazil are the primary drivers of the Facility Management Market. The increased construction of residential and commercial properties, coupled with the government's focus on urban development, necessitates professional facility management services to ensure the effective operation, maintenance, and sustainability of these facilities.

Regulatory Compliance and Sustainability Initiatives

Another significant driver of the Facility Management Market in Brazil is the increasing emphasis on regulatory compliance and sustainability initiatives. In recent years, Brazil has witnessed a growing awareness of the importance of environmental and safety standards, which has led to stricter regulations and requirements for businesses and facilities. Facility management services are instrumental in helping organizations meet these compliance and sustainability goals.

One area where regulatory compliance has had a profound impact is workplace safety. The Brazilian government has implemented stringent safety regulations to protect workers and the environment, which has made it imperative for businesses to adhere to these standards. Facility management companies play a crucial role in ensuring that facilities are maintained in compliance with these regulations, providing safety assessments, implementing safety protocols, and conducting regular audits to identify and address potential hazards.

Brazil has been increasingly focusing on sustainability and environmental protection. This includes energy efficiency, waste reduction, and responsible resource management. Facility management companies are integral in implementing sustainable practices within facilities, which not only helps organizations meet regulatory requirements but also reduces operating costs and environmental impact. They can implement energy-efficient systems, manage waste disposal responsibly, and ensure that facilities are constructed and maintained with eco-friendly materials and practices.

The Facility Management Market is witnessing a surge in demand for sustainable building certifications, such as LEED (Leadership in Energy and Environmental Design), which is a globally recognized symbol of sustainable building excellence. Facility managers are responsible for overseeing the implementation of LEED principles and ensuring that buildings meet the criteria for certification. This can significantly enhance the marketability of properties, making them more attractive to environmentally conscious tenants and investors.

Regulatory compliance and sustainability initiatives are key drivers of the Facility Management Market in Brazil. Facility management services are vital in helping organizations navigate the complex landscape of regulations, and they contribute to creating more environmentally responsible and safer facilities, which is increasingly important in today's business environment.

Technological Advancements and Digital Transformation

The Facility Management Market in Brazil is experiencing robust growth driven by technological advancements and the ongoing process of digital transformation. This driver is characterized by the adoption of innovative technologies, data-driven decision-making, and the integration of smart systems within facility management processes, enhancing operational efficiency and customer satisfaction.

One of the pivotal technologies driving this trend is the Internet of Things (IoT). IoT sensors and devices are being deployed within facilities to collect real-time data on various parameters, such as temperature, humidity, occupancy, and equipment status. This data is then processed and analyzed to optimize facility operations. For example, HVAC systems can be adjusted based on real-time occupancy, reducing energy consumption and operational costs. IoT-enabled predictive maintenance helps facility managers identify and address equipment issues before they lead to costly breakdowns, ensuring uninterrupted services and enhancing the longevity of assets.

Digital twin technology has gained traction in the Facility Management Market. Digital twins are virtual replicas of physical facilities, which allow for real-time monitoring and simulation. Facility managers can use digital twins to visualize facility operations, identify potential problems, and test various scenarios to optimize performance. This technology is particularly valuable in critical facilities such as data centers and industrial plants, where downtime and inefficiencies can result in substantial financial losses.

Artificial intelligence (AI) and machine learning are also being leveraged in facility management. These technologies enable the automation of routine tasks, predictive analytics, and the optimization of maintenance schedules. AI-powered chatbots and virtual assistants are used to enhance customer service and provide immediate responses to facility occupants' queries and requests.

Facility management software platforms have evolved to offer comprehensive solutions that streamline various processes, including asset management, space utilization, and work order management. These platforms provide real-time visibility into facility operations, allowing for data-driven decision-making and performance optimization.

Technological advancements and digital transformation are driving the Facility Management Market in Brazil. The adoption of IoT, digital twin technology, AI, and advanced software platforms is revolutionizing how facilities are managed, offering improved efficiency, cost savings, and a better overall experience for facility occupants. As technology continues to evolve, the demand for technologically advanced facility management services is expected to grow even further in Brazil.

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Key Market Challenges

Regulatory Complexity and Compliance

One of the foremost challenges facing the Facility Management Market in Brazil is the complexity of regulatory requirements and the need for rigorous compliance. The country has a labyrinth of regulations and standards governing various aspects of facility management, including safety, environmental protection, and labor laws. Navigating this regulatory landscape can be a daunting task for facility management companies, often requiring significant resources, expertise, and continuous monitoring.

Safety regulations, in particular, are stringent in Brazil, covering everything from building codes to workplace safety standards. Facility managers must ensure that their properties meet these standards, conduct regular safety audits, and implement safety protocols to protect occupants and employees. Non-compliance can result in fines, legal issues, and reputational damage.

Environmental regulations are also increasingly important, with a focus on sustainability and eco-friendly practices. Facilities must adhere to waste management, energy efficiency, and environmental impact standards. Implementing and monitoring these practices can be both costly and complex.

Labor laws in Brazil are complex, impacting the management of facility maintenance staff and service providers. Compliance with labor regulations is essential to avoid legal disputes and ensure that workers' rights are protected.

The challenge of regulatory complexity and compliance places a significant burden on facility management companies, demanding resources and expertise in legal and regulatory matters. Failure to meet these requirements can lead to legal repercussions and hinder business operations.

Economic Volatility and Budget Constraints

Brazil's Facility Management Market faces challenges associated with economic volatility and budget constraints. The country has a history of economic instability, characterized by inflation, currency fluctuations, and periods of recession. These economic uncertainties can have a direct impact on the facility management sector, as clients, whether in the public or private sector, may tighten their budgets in response to economic downturns.

During economic downturns, facility management clients may cut costs, delay maintenance projects, or even cancel service contracts. This can lead to reduced revenues for facility management companies, making it challenging to maintain operational stability and invest in technology and training.

Budget constraints are not limited to private sector clients. In the public sector, government agencies and municipalities may experience fiscal challenges, affecting the outsourcing of facility management services. As a result, facility management companies may face delayed payments or even contract cancellations.

In response to these challenges, facility management companies must adopt proactive strategies to diversify their services, reduce operating costs, and establish contingency plans to weather economic downturns. They may also need to engage in more rigorous contract management and financial planning to ensure financial stability and resilience in the face of economic volatility.

Talent Shortages and Skill Gaps

A significant challenge in the Brazil Facility Management Market is the shortage of skilled talent and the existence of skill gaps within the workforce. The facility management sector requires a diverse set of skills, ranging from technical expertise in building systems and maintenance to soft skills in customer service and project management. Finding qualified personnel with the necessary skills and experience can be a formidable task.

One contributing factor to this challenge is the lack of comprehensive educational and training programs for facility management in Brazil. There is a need for more specialized education and certification programs to develop a pipeline of skilled professionals. Additionally, facility management is a relatively young industry in the country, and the existing workforce may lack the depth of experience required for complex and large-scale projects.

The shortage of skilled personnel can result in several problems, including delays in project completion, increased maintenance costs, and potential customer dissatisfaction. Skill gaps may also affect the adoption of advanced technologies and best practices in facility management.

To address these talent shortages and skill gaps, facility management companies must invest in training and development programs for their employees. Collaboration with educational institutions to promote facility management as a career path and to develop relevant curricula is also essential. Furthermore, companies may need to consider offering competitive compensation packages to attract and retain top talent in the industry.

The Facility Management Market in Brazil faces a range of challenges, including regulatory complexity and compliance, economic volatility and budget constraints, and talent shortages with skill gaps. Addressing these challenges requires a proactive and strategic approach that involves regulatory expertise, financial planning, and investment in workforce development. Overcoming these obstacles is crucial for the sustained growth and success of the facility management sector in Brazil.

Key Market Trends

Integration of Smart Building Technologies

One prominent trend in the Brazil Facility Management Market is the integration of smart building technologies. Smart buildings leverage digital infrastructure, the Internet of Things (IoT), and automation to enhance the efficiency, sustainability, and overall management of facilities. This trend reflects a growing demand for more technologically advanced and connected solutions in facility management.

Smart building technologies encompass a wide range of applications, including:

IoT Sensors:

These sensors are deployed throughout buildings to collect data on various parameters, such as temperature, humidity, occupancy, and equipment status. The data is then transmitted to a central platform for analysis and action. Facility managers can use this real-time data to optimize building operations. For instance, HVAC systems can adjust automatically based on real-time occupancy data, reducing energy consumption and operational costs.

Energy Management:

Smart building technologies enable more precise and efficient energy management. Lighting, heating, and cooling systems can be controlled remotely and optimized for energy savings. Energy usage data is analyzed to identify trends and opportunities for further efficiency improvements, leading to cost savings and a reduced environmental footprint.

Predictive Maintenance:

IoT sensors and data analytics can predict equipment failures before they occur, allowing for proactive maintenance. This not only reduces downtime and operational disruptions but also extends the lifespan of assets, saving on replacement and repair costs.

Security and Access Control:

Smart building systems can enhance security by integrating access control, surveillance, and alarm systems. These systems can be monitored and controlled remotely, providing real-time insights into building security and enabling rapid response to security incidents.

Occupant Experience:

Building occupants benefit from smart technologies as well. Occupants can use mobile apps to control lighting and temperature, access building services, and receive alerts or notifications. This contributes to a more comfortable and convenient experience.

The adoption of smart building technologies in Brazil is driven by the desire for greater energy efficiency, cost savings, and sustainability. Additionally, the COVID-19 pandemic has accelerated interest in touchless and remote-controlled systems to minimize physical contact in shared spaces. As a result, facility management companies in Brazil are increasingly incorporating these technologies into their service offerings to meet the evolving needs of clients and occupants.

Sustainability and Green Building Practices

A second noteworthy trend in the Brazil Facility Management Market is the growing emphasis on sustainability and green building practices. This trend aligns with global efforts to address climate change, reduce environmental impact, and enhance the overall environmental performance of buildings and facilities. Brazil is no exception to this movement, and sustainability has become a central theme in facility management.

Several factors are contributing to the prominence of sustainability in facility management:

Environmental Regulations:

Brazilian authorities have introduced and reinforced environmental regulations aimed at reducing greenhouse gas emissions, promoting energy efficiency, and minimizing waste. Facility managers must comply with these regulations and adapt their practices to meet sustainability goals.

Green Building Certifications:

There is a rising demand for green building certifications such as LEED (Leadership in Energy and Environmental Design) and AQUA-HQE (High Environmental Quality). These certifications recognize and validate the sustainability and environmental performance of buildings. Facility managers work to ensure that buildings meet the criteria for these certifications by implementing eco-friendly practices and technologies.

Energy Efficiency:

Energy efficiency is a top priority in sustainable facility management. Facility managers are incorporating energy-saving technologies, like LED lighting, efficient HVAC systems, and renewable energy sources, to reduce energy consumption and lower operating costs.

Waste Reduction:

Facility managers are implementing waste reduction and recycling programs to minimize the environmental impact of their operations. Proper waste management not only reduces landfill waste but also aligns with a corporate commitment to sustainability.

Water Conservation:

In a country prone to water scarcity in certain regions, water conservation is a critical aspect of sustainability. Facility managers are implementing water-efficient fixtures and systems to reduce water consumption and ensure responsible water use.

This trend aligns with the broader global movement towards sustainability and environmental responsibility. In response to market demand and regulatory pressures, facility management companies in Brazil are adopting green practices and embracing sustainability as a core principle in their operations. This trend not only aligns with environmental objectives but also resonates with clients and occupants who increasingly prioritize sustainable and eco-friendly building solutions.

Segmental Insights

Type Insights

The Hard segment is projected to experience rapid growth during the forecast period. Hard services in the Facility Management (FM) sector in Brazil refer to the more technical and physical aspects of managing and maintaining a building or facility. This includes services that are typically related to the infrastructure and systems that keep a facility running smoothly. Heating, ventilation, and air conditioning systems are essential in Brazil's varying climates. FM providers offer services related to the maintenance and optimization of HVAC systems. This includes the maintenance of electrical panels, wiring, and lighting systems, ensuring safety and energy efficiency. Maintenance of plumbing systems, water supply, and drainage is crucial in commercial and residential buildings.

FM providers offer services related to the installation, maintenance, and inspection of fire alarms, extinguishers, sprinkler systems, and emergency exits to comply with safety regulations.

Access Control: Maintenance and management of security systems, including surveillance cameras, alarms, and access control systems, are vital for safety and asset protection. Monitoring and upkeep of systems that detect unauthorized entry or security breaches.

Regular maintenance and safety inspections of elevators and escalators to ensure their proper functioning and safety.

Compliance with local regulations and industry standards is crucial in this segment. FM providers often tailor their services to the specific needs of their clients, taking into account the type of facility and its critical systems.

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Regional Insights

South Brazil is expected to dominate the market during the forecast period. South Brazil, also known as the Southern Region (Região Sul), encompasses the states of Paraná, Santa Catarina, and Rio Grande do Sul. This region is known for its economic diversity, agricultural production, industrial activities, and a growing services sector. The region is home to a significant industrial base, with a focus on automotive manufacturing, machinery, and food processing. These industries require specialized FM services for their manufacturing plants, warehouses, and office spaces.

Agriculture plays a crucial role in South Brazil, with a focus on soybeans, corn, and other crops. FM services may be needed for the management of agricultural facilities, such as grain storage and processing facilities. South Brazil has thriving commercial centers, including cities like Curitiba and Porto Alegre. The growth of office spaces, shopping malls, and retail centers creates a demand for FM services, such as maintenance and security.

The region hosts numerous schools, colleges, and universities. FM services are needed for maintaining classrooms, laboratories, and campus grounds, supporting the education sector. South Brazil attracts tourists with its beautiful landscapes and cultural heritage. FM services are critical for the maintenance and management of hotels, resorts, and entertainment facilities.

South Brazil has shown a commitment to sustainability, with several initiatives focused on energy efficiency, waste management, and environmental responsibility. FM providers can offer services to support these sustainability goals. It's important to note that the FM market can vary within the region itself. For instance, more urbanized areas like Curitiba may have higher demand for certain services compared to rural areas.

Recent Developments

  • In May 2022, JLL, a global leader in real estate services, announced the acquisition of BRX, a Brazilian real estate services company. The acquisition will strengthen JLL's position in the Brazilian market and allow it to offer a wider range of facility management services to its clients.

Key Market Players

  • CBRE Group, Inc.
  • Jones Lang LaSalle IP, Inc. (JLL)
  • Cushman & Wakefield—Servicos Gerais Ltda
  • Sodexo Serviços
  • Colliers International Property Consultants, Inc.
  • G4S Brazil Holding Ltda
  • GRSA corporate group
  • Brasanitas Group

By Service

By Type

By Application

By Industry

By Mode

By Region

  • Property
  • Cleaning
  • Security
  • Catering
  • Support
  • Others
  • Hard
  • Soft
  • Industrial
  • Commercial
  • Residential

 

  • Organized
  • Unorganized
  • Outsource
  • Insource
  • North Brazil
  • Northeast Brazil
  • South Brazil
  • Midwest Brazil
  • Southwest Brazil

 


Report Scope:

In this report, the Brazil Facility Management Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Brazil Facility Management Market, By Service:

o   Property

o   Cleaning

o   Security

o   Catering

o   Support

o   Others       

  • Brazil Facility Management Market, By Type:

o   Hard

o   Soft        

  • Brazil Facility Management Market, By Application:

o   Industrial

o   Commercial

o   Residential          

  • Brazil Facility Management Market, By Industry:

o   Organized

o   Unorganized    

  • Brazil Facility Management Market, By Mode:

o   Outsource

o   Insource                  

  • Brazil Facility Management Market, By Region:

o   North Brazil

o   Northeast Brazil

o   South Brazil

o   Midwest Brazil

o   Southwest Brazil        

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Brazil Facility Management Market.

Available Customizations:

Brazil Facility Management Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Brazil Facility Management Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]               

Table of content

1.         Service Overview

1.1.    Market Definition

1.2.    Scope of the Market

1.2.1.Markets Covered

1.2.2.Years Considered for Study

1.2.3.Key Market Segmentations

2.         Research Methodology

2.1.    Objective of the Study

2.2.    Baseline Methodology

2.3.    Formulation of the Scope

2.4.    Assumptions and Limitations

2.5.    Sources of Research

2.5.1.Secondary Research

2.5.2.Primary Research

2.6.    Approach for the Market Study

2.6.1.The Bottom-Up Approach

2.6.2.The Top-Down Approach

2.7.    Methodology Followed for Calculation of Market Size & Market Shares

2.8.    Forecasting Methodology

2.8.1.Data Triangulation & Validation

3.         Executive Summary

4.         Impact of COVID-19 on Brazil Facility Management Market

5.         Voice of Customer

6.         Brazil Facility Management Market Overview

7.         Brazil Facility Management Market Outlook

7.1.    Market Size & Forecast

7.1.1.By Value

7.2.    Market Share & Forecast

7.2.1.By Service (Property, Cleaning, Security, Catering, Support and Others)

7.2.2.By Type (Hard and Soft)

7.2.3.By Application (Industrial, Commercial and Residential)

7.2.4.By Industry (Organized and Unorganized

7.2.5.By Mode (Outsource and Insource)

7.2.6.7.2.6.By Region (North Brazil, Northeast Brazil, South Brazil, Midwest Brazil and Southwest Brazil)

7.3.    By Company (2023)

7.4.     Market Map

8.         Brazil Cleaning Services Market Outlook

8.1.    Market Size & Forecast

8.1.1.By Value

8.2.    Market Share & Forecast

8.2.1.By Service

8.2.2.By Type

8.2.3.By Application

8.2.4.By Industry

8.2.5.By Mode

8.2.6.        By Region

9.         Brazil Property Services Market Outlook

9.1.    Market Size & Forecast

9.1.1.By Value

9.2.    Market Share & Forecast

9.2.1.By Service

9.2.2.By Type

9.2.3.By Application

9.2.4.By Industry

9.2.5.By Mode

9.2.6.        By Region

10.      Brazil Catering Services Market Outlook

10.1. Market Size & Forecast

10.1.1.     By Value

10.2. Market Share & Forecast

10.2.1.     By Service

10.2.2.     By Type

10.2.3.     By Application

10.2.4.     By Industry

10.2.5.     By Mode

10.2.6.     By Region

11.      Brazil Support Services Market Outlook

11.1. Market Size & Forecast

11.1.1.     By Value

11.2. Market Share & Forecast

11.2.1.     By Service

11.2.2.     By Type

11.2.3.     By Application

11.2.4.     By Industry

11.2.5.     By Mode

11.2.6.     By Region

12.      Brazil Security Services Market Outlook

12.1. Market Size & Forecast

12.1.1.     By Value

12.2. Market Share & Forecast

12.2.1.     By Service

12.2.2.     By Type

12.2.3.     By Application

12.2.4.     By Industry

12.2.5.     By Mode

12.2.6.     By Region

13.      Market Dynamics

13.1. Drivers

13.2. Challenges

14.      Market Trends and Developments

15.      Company Profiles

15.1.  CBRE Group, Inc.

15.1.1.     Business Overview

15.1.2.     Key Revenue and Financials  

15.1.3.     Recent Developments

15.1.4.     Key Personnel/Key Contact Person

15.1.5.     Key Product/Services Offered

15.2.  Jones Lang LaSalle IP, Inc. (JLL)

15.2.1.     Business Overview

15.2.2.     Key Revenue and Financials  

15.2.3.     Recent Developments

15.2.4.     Key Personnel/Key Contact Person

15.2.5.     Key Product/Services Offered

15.3.  Cushman & Wakefield—Servicos Gerais Ltda

15.3.1.     Business Overview

15.3.2.     Key Revenue and Financials  

15.3.3.     Recent Developments

15.3.4.     Key Personnel/Key Contact Person

15.3.5.     Key Product/Services Offered

15.4.  Sodexo Serviços

15.4.1.     Business Overview

15.4.2.     Key Revenue and Financials  

15.4.3.     Recent Developments

15.4.4.     Key Personnel/Key Contact Person

15.4.5.     Key Product/Services Offered

15.5.  Colliers International Property Consultants, Inc.

15.5.1.     Business Overview

15.5.2.     Key Revenue and Financials  

15.5.3.     Recent Developments

15.5.4.     Key Personnel/Key Contact Person

15.5.5.     Key Product/Services Offered

15.6.  G4S Brazil Holding Ltda

15.6.1.     Business Overview

15.6.2.     Key Revenue and Financials  

15.6.3.     Recent Developments

15.6.4.     Key Personnel/Key Contact Person

15.6.5.     Key Product/Services Offered

15.7.  GRSA corporate group

15.7.1.     Business Overview

15.7.2.     Key Revenue and Financials  

15.7.3.     Recent Developments

15.7.4.     Key Personnel/Key Contact Person

15.7.5.     Key Product/Services Offered

15.8.  Brasanitas Group

15.8.1.     Business Overview

15.8.2.     Key Revenue and Financials  

15.8.3.     Recent Developments

15.8.4.     Key Personnel/Key Contact Person

15.8.5.     Key Product/Services Offered

16.      Strategic Recommendations

17.      About Us & Disclaimer

Figures and Tables

Frequently asked questions

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The market size of the Brazil Facility Management Market was USD 21.46 billion in 2023.

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The Hard segment by type demonstrated significant dominance in 2023. In Brazil's diverse climates, heating, ventilation, and air conditioning (HVAC) systems play a crucial role. Facility management (FM) providers deliver services focused on maintaining and enhancing HVAC systems. This encompasses upkeep of electrical panels, wiring, and lighting systems to ensure both safety and energy efficiency.

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South Brazil dominated the Brazil Facility Management Market in 2023. South Brazil is characterized by ongoing urban development projects, infrastructure upgrades, and renovations. These initiatives create opportunities for FM providers to deliver comprehensive services, including building maintenance, energy management, and sustainability solutions.

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Technological Advancements and Digital Transformation are some of the major drivers for the Brazil Facility Management Market.

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Srishti Verma

Business Consultant
Press Release

Brazil Facility Management Market is expected to grow at a robust CAGR 5.85% through 2029

Jun, 2024

Brazil Facility Management Market is expected to grow owing to integration of technology, such as IoT (Internet of Things) devices and smart building solutions and overall facility management capabil