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The global contract cleaning services market size is forecast to increase by USD 145.92 billion, at a CAGR of 6.28% between 2023 and 2028.
The growth of the market depends on several factors such as the increase in the number of residential buildings, the rising awareness about workplace wellness and sustainability, and the growing number of office spaces The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in (USD billion) for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the growing number of office spaces. The demand for cleansing services is fuelled by the increase in the number of office spaces globally. In addition, the rise of multinational companies (MNCs) has led to an increase in the number of employees and office spaces across the globe.
Moreover, the growth in the number of technological parks and business parks has further contributed to the demand for advanced cleaning services, which is expected to increase during the next five years. In addition, favorable government policies for end-user industries and the increasing number of MNCs globally have triggered the entry of major players into the global market. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the growing demand for services from the hospitality industry. Over the last few decades, the hospitality industry has witnessed significant growth, particularly in regions including Europe, Southeast Asia, and North America. In addition, due to the growth in the tourism sector, there has been an increase in the number of hotels globally.
Moreover, increasing global trade and growth in the tourism sector have led to significant investments being made by international hotel brands. For example, in India, international hotel brands have launched several new hotels in 2023. Therefore, as this sector is among the prominent buyers and end-users of services, the growth of the global hospitality sector is expected to drive the growth of the market during the forecast period.
The low penetration rate of services in developing economies is a major challenge hindering market growth. The low awareness rate among consumers in emerging economies about the existence of such services is one of the factors resulting in the low penetration rate. In addition, other factors, including the high prices of such services, the lack of trained professionals, and limited availability, hinder the adoption of services in developing countries across South America, MEA, and APAC.
Moreover, in countries including India, there is a strong tradition of self-cleaning practices or hiring domestic workers. In addition, the easy availability of low-cost domestic labor in developing countries is a major challenge for the global market. Furthermore, in regions such as Africa, consumers have a low propensity to spend on premium services, such as contract cleaning, owing to the slow economic growth. Hence, such factors are hindering the market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABM Industries Inc: The company offers contract cleaning services through ABM GreenCare for industries including government, healthcare, aviation, eCommerce, and others.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 21 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The commercial segment is estimated to witness significant growth during the forecast period. There is a demand from several end-users in the commercial segment. In addition, commercial end-users include hospitality establishments (hotels, resorts, and others), spas and salons, food service establishments (restaurants, cafes, bars, pubs, and others), hospitals and healthcare centers, and institutions (schools, colleges, universities, and laboratories), and offices.
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The commercial segment was the largest segment and was valued at USD 178.80 billion in 2018. Moreover, the commercial segment is expected to experience the highest growth rate in coming years fuelled by the increasing demand for cleaning services from commercial office buildings and healthcare organizations, especially in APAC. In addition, the contribution from the healthcare end-user segment is expected to be high during the forecast period, owing to mandatory government standards for clean healthcare establishments. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Several factors such as the unprecedented rise in construction activities, the surge in the number of dual-income households, and the proliferation of advanced services offered by market players are fuelling the market growth in North America. In addition, the availability of affordable housing schemes has increased the number of residential construction projects across the region. Moreover, banks are offering home loans to consumers at attractive interest rates along with long-term payback policies. Furthermore, various governments have declared subsidies for first-time homebuyers. Hence, such factors are driving the market growth in North America during the forecast period.
In the realm of these services, business organizations prioritize workplace hygiene through professional cleaners and automated cleaning robots, leveraging Artificial Intelligence (AI) for efficient operations. Premise sanitization remains a key focus, particularly in the industrial segment, where debris and dust cleaning are crucial for maintaining cleanliness standards. Renovation activities often necessitate specialized cleaning solutions tailored to specific needs. As demand grows for comprehensive cleaning services, the market witnesses an influx of innovative technologies and methods. Professional cleaners play a vital role in ensuring thorough sanitation, while automated cleaning robots enhance efficiency and accuracy. The integration of AI further augments cleaning processes, optimizing results and meeting the diverse requirements of clients.
Ensuring hygiene and promoting employee wellness are paramount in fostering workplace sustainability. From floor to window dusting, maintaining sanitation and cleanliness is crucial in commercial and industrial establishments. The market often relies on contractual agreements with construction cleaning services for comprehensive workplace maintenance. Increasingly, there's a shift towards green cleaning using natural products like vinegar, baking soda, and lemons, minimizing exposure to harmful chemicals, carcinogens, and allergens. The evolvement of green products creates a hygienic surrounding while reducing environmental impact. These practices extend to various sectors, including corporate offices, manufacturing facilities, and even oil spill cleaning & control activities, emphasizing the importance of maintaining a clean and safe environment for all.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends and growth opportunities from 2018 to 2028.
Contract Cleaning Services Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.28% |
Market Growth 2024-2028 |
USD 145.92 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.5 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, Canada, China, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABM Industries Inc., AIS Contract Cleaners Ltd., Anago Cleaning Systems Inc., Atlas Facilities Management Ltd., Bonus Building Care, Clayton, Dubilier and Rice LLC, Crest Licensing Systems Ltd., Crystal Cleaning Servicing, Ecoserv Group, Extra Clean Inc., Harvard Service Group, ISS AS, Jani King International Inc., Pritchard Industries Inc., Roark Capital Management LLC, Sodexo SA, Stratus Building Solutions, BELFOR USA Group Inc., Cleaning Services Group Inc., Eco Group Services, and Nugent Contract Cleaning |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Service Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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