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The online on-demand home services market size is estimated to grow at a CAGR of 60.78% and the size of the market is forecast to increase by USD 7,259.2 billion between 2022 and 2027. The growth of the market depends on several factors, including the advantages of online on-demand home services, increasing internet penetration, and an increasing number of startups entering the market.
This report extensively covers market segmentation by platform (mobile application and website), service (home care and design, repair and maintenance, health wellness and beauty, and others), and geography APAC, North America, Europe, South America, and the Middle East and Africa. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing Internet penetration is notably driving the online on-demand home services market size growth, although factors such as the high competition among vendors may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Online On-demand Home Services Market Driver
The increasing Internet penetration is notably driving the on-demand home services market growth. Owing to the rapid penetration of e-commerce and Internet-enabled devices across the world, consumers prefer online on-demand home services. Internet penetration in most developing countries is attributed to factors such as the development of information and communication technology (ICT) infrastructure and the availability of inexpensive data plans.
The rising Internet penetration worldwide is enabling consumers to access online apps easily, which is accelerating the demand for online on-demand home services. Therefore, widespread Internet penetration is expected to be a major driver for the growth of the global on-demand home services market during the forecast period. As Internet penetration is growing all over the world, all industries dependent on the Internet, including online on-demand home services, are witnessing massive growth. With the advent of smartphones and the Internet, the demand for several home services, such as house cleaning, furniture assembly, plumbing, lawn mowing, and painting, is likely to increase during the forecast period.
Key Online On-demand Home Services Market Trend
The increasing influence of digital media is the primary trend driving the on-demand home services market growth. With the proliferation of Internet-enabled smartphones, digital media has emerged as a key communication and marketing channel for vendors operating in the global on-demand home services market. Service visibility is considered to be one of the principal factors in the marketing strategy implemented by online on-demand home service providers. Therefore, several online on-demand home service providers are widely adopting digital media marketing strategies to increase their service visibility and promote sales.
Several innovative features in technologically-advanced smartphones help online on-demand service providers increase their visibility. Vendors use various social media platforms such as YouTube, Facebook, Twitter, Instagram, and Google Plus for home services marketing service promotions and campaigns. These platforms enable consumer engagement with popular brands and help increase consumer awareness about several new services offered by online on-demand home service vendors. The rising popularity of social media is expected to expand rapidly to various emerging markets, which may boost the growth of the global online on-demand home services market during the forecast period.
Key Online On-demand Home Services Market Challenge
The high competition among vendors may impede the on-demand home services market growth. The global online on-demand home services market is dynamic because of the presence of several regional and international players that compete based on parameters such as acquisitions, expansions, and marketing and advertising campaigns. The competition among the existing players in the market is expected to intensify during the forecast period with the entry of new startups. The presence of numerous vendors is intensifying the competition and leading to price wars among vendors. Such price wars have the potential to erode profit margins and can lead to smaller businesses exiting the market.
The global on-demand home services market is highly fragmented, with the presence of numerous unorganized vendors. There are several issues associated with unorganized vendors, such as the inability to maintain standard service quality and ensure transparency and timely performance, which adversely affect the overall business. Moreover, the global online on-demand home services market faces intense competition from various small, local brick-and-mortar stores that offer on-demand home services. All these factors together are expected to hamper the growth of the global on-demand home services market during the forecast period.
Key Online On-demand Home Services Market Customer Landscape
The demand for online home service industry 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 growth strategies.
Global Online On-demand Home Services Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the on-demand home services on-demand home services market.
HomeServe Plc - The company has a diversified business model that comprises various segments, namely membership & HVAC in EMEA, membership & HVAC in North America, and home experts, with a primary focus on Membership & HVAC in EMEA and Membership & HVAC in North America. Its core services consist of home cleaning, plumbing, and electrician services.
The market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Technavio categorizes the global online on-demand home services market as a part of the specialized consumer services market and within the global consumer discretionary industry. The parent global specialized consumer services market covers the revenue generated by consumer service providers, including residential services, home security services, legal services, personal services, renovation, and interior design services, consumer auction services, wedding services, and funeral services. Our research report has extensively covered the external factors influencing the parent market growth during the forecast period.
The on-demand home services market share growth by the mobile application segment will be significant during the forecast period. Mobile applications or apps act as one of the key platforms through which vendors offer online on-demand home services. Customers need to download such applications first and then book or schedule an appointment for online on-demand home services from the given slots. Customers can see the charges once they have opted for the required service. Mobile applications that offer online on-demand home services also give an option to their customers to rate the services offered by the service provider.
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Customers can choose to pay either online or offline. The increasing use of smartphones and rising Internet penetration are expected to drive the growth of the mobile application segment of the on-demand home services market during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027. The growth of this segment is primarily attributed to the increasing adoption of online on-demand home services by residential consumers, which is driven by an increase in the global demand for the on-demand home services market.
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APAC is projected to contribute 42% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the on-demand home services market during the forecast period.
Owing to the high demand for on-demand home services in APAC, some countries are taking various initiatives to promote the on-demand home services industry in the region. For instance, the Chinese government has decided to promote the online home services industry by encouraging people to use the Internet and other new technologies. It is also providing training to service providers to improve the quality of their services. This initiative taken by the Chinese government is expected to boost domestic demand for online on-demand home services and attract more investors and professionals to improve the quality of the services offered in the country. Apart from this, in the last few years, many startups have become operational in APAC, owing to the increased demand for on-demand home services.
To help industries recover from these problems, governments of various countries in the region announced relief packages. After the lifting of lockdown restrictions in May 2020, most industries started to recover gradually. The on-demand home services market has also witnessed an increase in demand for several online on-demand home services, including food delivery and house cleaning services, as the majority of the companies have provided work-from-home options to their employees. Such factors are expected to drive the growth of the market in the region during the forecast period.
The global online on-demand home service industry report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, product, distribution channel, and region.
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Online On-demand Home Services Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 60.78% |
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Market growth 2023-2027 |
USD 7,259.2 billion |
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Market structure |
Fragmented |
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YoY growth (%) |
52.29 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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Key countries |
US, Canada, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Airtasker Pty Ltd., Alfred Club Inc., Amazon.com Inc., American Home Shield Corp., Angi Inc., AskforTask Inc., Cedar plus Slate home services, ChartLead.com Inc., Cleanly Inc., Helpling GmbH and Co. KGA, HomeServe Plc, Houzz Inc., MyClean Inc., Oneflare Pty Ltd., Paintzen Inc., Porch Group Inc., ServiceMaster Clean Ltd., ServiceWhale Inc., and Super Home Inc. |
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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, Market condition analysis for the forecast period |
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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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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