Argentina Facility Management Market - Growth, Trends, Covid -19 Impact, and Forecasts (2023 - 2028)

Argentina Facility Management Market - Growth, Trends, Covid -19 Impact, and Forecasts (2023 - 2028)

The Argentina facility management market is expected to grow at a CAGR of above 2.5% 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 FM market in Argentina is growing mainly due to the growing construction sector by increased economic activities. In addition, the growing presence of multinational corporations in the country is witnessing the growth of the facility management market in the country. For instance, in December 2021, Two-wheeler market leader Hero MotoCorp announced the expansion of operations in Argentina with the opening of its flagship dealership in Buenos Aires in partnership with Gilera Motors Argentina.
• Furthermore, the growth of the market is driven by the adoption of facility management outsourcing and consistent demand from growing industrial and commercial sectors such as corporate offices. However, the preference for individual services and low consumer awareness about the facility services restrain Argentina's market growth.
• The growing demand and evolving technology for sustainable FM services are expected to provide opportunities for FM service providers. Most businesses are looking for building solutions that help to enable facility management services and transform the safety, comfort, and efficiency of the employees and related organizational operations.
• The impact of COVID-19 on the working environment is aggressively pushing facility managers to design new working models that include remote, onsite, and hybrid models. As corporates are increasingly adopting remote and hybrid work models, facility managers are deploying technology platforms for desk scheduling, smart tracking, and tools for effective collaboration, helping the growth of the facility management market.

• According to World Bank, Argentina's economic activity has recovered faster than expected, with an increase of 10.3% of GDP in 2021, after a fall of 9.9% in 2020 in the context of the crisis unleashed by COVID-19. At the end of 2021, the economy was 5% above its pre-pandemic level of activity.
• The recovery in the economy is mainly attributed to the growth of manufacturing activity post-pandemic in the country as it is a leading food producer with large-scale agricultural and livestock industries. In addition, industries such as textiles, beverages, paper, and chemicals are contributing more to the growth of the manufacturing sector of the country.
• Multinational organizations are expanding their operations in the country to increase the manufacturing of their products and cater to the demand. For instance, in October 2020, PUMA Argentina announced the incorporation of two new production lines at its factory in La Rioja with an investment of USD 240 million pesos.
• The growth of manufacturing operations and expansion by key industry players in the country are expected to bolster the demand for hard and soft facility management services in the country.

• The Covid-19 pandemic has put focus on increased pollution by day-to-day activities and the consumption of energy that created the use of energy management systems and solutions and increased efficiency by business organizations.
• Hence, for the management of energy, businesses are opting for smart buildings and related solutions such as the use of smart sensors to switch on lighting, heating, and other climate control systems by installing energy management systems to track energy usage in real-time and identify opportunities to reduce consumptions and related cost to gain efficiency in their operations. Thus, the demand for facility management services related to energy management is gaining momentum in the country.

The Argentina Facility Management market is concentrated, with few domestic and international players active in the country. International participants operate in the country through partnerships with local players. With the market expected to broaden and yield more opportunities, more players are expected to enter the market soon.

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