Online On-demand Laundry Service Market by End-user, Service and Geography - Forecast and Analysis 2023-2027

Online On-demand Laundry Service Market Size 2023-2027

The Global Online On-demand Laundry Service Market size is forecast to increase by USD 145.72 billion at a CAGR of 39.38% between 2022 and 2027. The market thrives on the contemporary lifestyle marked by time constraints, leaving little room for laundry tasks. Escalating costs associated with owning and upkeeping washing machines propel consumers toward more convenient alternatives. Integrated logistics services have paved the way for online on-demand laundry services, presenting a seamless solution. These services cater precisely to the demands of busy individuals, prioritizing convenience and efficiency in their laundry routines. By outsourcing laundry chores, consumers reclaim valuable time, aligning with their fast-paced lifestyles. Furthermore, the accessibility of these services through digital platforms ensures convenience at the touch of a button, resonating with modern consumer preferences. Thus, the market flourishes as it evolves to meet the evolving needs of time-strapped individuals, offering a practical and efficient solution to the perpetual challenge of laundry management.

Market Overview

Market Forecast 2023-2027

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Market Segmentation

End-user Segment Analysis 

The market share growth by the residential segment will be significant during the forecast period. Residential users have become much more active in the adoption of these tasks. Working people who may not have enough time or resources to do their laundry can enjoy the convenience offered by these services. They can schedule a collection or delivery of their clothes just by tapping their phone, which will also spare valuable time.

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The residential segment was the largest and was valued at USD 5.65 billion in 2017. The growth of this market is being driven by rapidly expanding urbanity, evolving lifestyles, an increasing workforce, and the emergence of innovative online services. Furthermore, there is also a growing number of companies offering these services in Europe and North America that are contributing to market growth. According to The World Bank Group (WBG), the global urban population increased from around 54% in 2015 to over 57% of the total population in 2022.  The increasing number of consumers choosing online services is due to an increase in consumer disposable income, as well as a growing number of Internet users.

Moreover, customers are offered a variety of other benefits such as discounts, exemptions from cancellation and rescheduling fees, and no minimum delivery or free hang dry. As people's lives become more fast-paced time-saving services become highly desirable. As a result, the demand for these services is expected to increase, which is expected to drive the growth of the market growth during the forecast period. 

Regional Analysis

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North America is estimated to contribute 34% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  Due to the presence of several players, North America's market is fragmented. In the region, a large number of online users are leading to an increase in demand. As a whole, the United States will have 302.28 billion internet users in 2021. Between 2000 and 2021, this number increased by 94.2%.  

Companies that offer tailors, alteration, and restorations, as well as dry cleaning and laundry services, have a lot of end users approaching them. Consequently, this consolidation of services is being used by a large number of suppliers. For instance, ByNext Inc. offers the above-mentioned services through its mobile application called ByNext. End Users may, where necessary, order their cleaning service through the Internet with detailed information about clothes to be cleaned and any modifications or fittings of clothing that they require. Therefore, due to such developments, the market in the region is expected to grow during the forecast period.

Market Dynamics

The market is witnessing rapid growth driven by the evolution of consumer lifestyles and societal adoption of convenience-driven solutions. From catering to luxury lifestyles to serving the working-class population and working women, these services offer a hassle-free alternative to traditional laundry businesses. They handle everything from washing and ironing clothes to bedding, all at affordable prices. Additionally, they provide patching services and utilize eco-friendly laundry detergents, promoting a safe and healthy lifestyle by reducing the risk of skin diseases and allergies. With the rise of on-demand mobile apps and companies like Tide Cleaners leading the way with innovative business models, the market is poised for further expansion. Organic laundry detergents and services like Laundry Care offer eco-conscious consumers additional choices for their laundry needs.

Key Market Driver 

Busy lifestyle, allowing very little time for laundry is one of the key factors driving the market growth. Due to the busy lifestyle of the current generation, it becomes difficult to balance between professional and personal commitments. The market is also driven by increased disposable income, an increasing number of dual-income households, and the reliability of local unorganized players. There is a limited amount of time to perform household duties, given the growing number of two-income households. This is a burden that will be alleviated through the use of on-demand laundry services, enabling families to have more quality time with each other. The time-saving solution for consumers will be provided by these services. Individuals can devote more time to other important aspects of their lives, such as work, family life, or personal interests, through the outsourcing of laundry.

However, on-demand services offered customers a variety of flexible scheduling options allowing them to select pick-up and delivery times that correspond with their schedules, thereby making it easier for them to cope with busy lives. This combination of factors has given rise to a highly requested solution among people looking for efficient handling of these under their difficult schedules, which can be achieved through these services. Therefore, the market is anticipated to experience major growth during the forecast period.

Significant Market Trends

The adoption of technology to automate laundry and delivery processes is the key trend driving the market's growth. Several providers have introduced technology to automate the washing and delivery process, which has reduced turnaround service times. Most companies offer to wash and deliver the clothes in an impressive turnaround time of 24 hours. Service providers are leveraging the use of technology to achieve this efficiency. For instance, a technology developed by Cleanly helps it to sort clothes automatically in fulfillment centres, and it helps customers to fix any issue or raise personal requests directly through apps. In addition, the software supports the cleaners in batching, sorting, and labeling the updates via a dashboard it is built in-house to achieve a turnaround time of 24 hours. Also, it allows drivers to scan the tagged bags and deliver the right clothes to the right customer.

However, it is an intensive task to plan a delivery fleet and route for logistics. The costs of operation can be increased by the incorrect design of route maps. Technology is used by several providers to manage their pickup and delivery operations. For instance, DRVY has developed an integrated Routific application programming interface (API), which automatically manages the routes for its dispatch operations.  This will make it unnecessary to use a manual route. Hence, technological advancement in the process may positively impact the market trends and analysis during the forecast period. 

Major Market Challenges

Operational challenges impacting the revenues of companies are the major challenges hindering market growth. Managing a two-way logistics service to enhance the efficiency of their daily operations is one of the major barriers for companies. It can be difficult to operate effectively picking up and delivering laundry orders, particularly in urban or metro cities where traffic congestion is a problem. Ensuring that the goods arrive in good time and quality while optimizing routes is a logistics challenge. Due to their unavailability at any other time of the day, these services for working customers have to be collected on a scheduled basis. This means that during the morning and evening hours, there will be an increased demand for logistics.

However, operating with fewer orders leads to an increase in idle capacity, which results in decreased efficiency and increased costs. The efficiency of vehicles is reduced and delivery time increases as a result of increased traffic congestion in large cities. Another problem encountered by delivery personnel is several other problems which impact operations, such as incorrect communication with clients and counterfeit orders which ultimately impacts operational efficiency and may hamper the growth of the global market in focus during the forecast period.

Key Players in the Market

Companies are implementing various strategies, such as market forecasting, strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

American Dry Cleaning Co. - The company offers online on-demand laundry services that include high quality, non-aggressive eco-friendly technology, kind to one's clothing as well as the environment.

The market research and growth report have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

American Dry Cleaning Co., ByNext Inc., CSC ServiceWorks Inc., Delivery.com LLC, Elite DhobiLite-Laundry Pvt. Ltd., EXPERTO URBANTECH PVT LTD, ihateironing.com Ltd., JUSTCLEAN GENERAL TRADING Co. W.L.L, Laundrology Comprehensive Services, Laundryheap Ltd., LaundryWala, Mr. Laundrywala, Mulberrys Franchising LLC, PML Solutions Pvt. Ltd., Rinse Inc., Simmeera India Pvt. Ltd., The Procter and Gamble Co., Washmen-Laundry LLC, Wassup On Demand, and WishWash-Laundry.

Technavio market growth and forecasting report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.

• End-user Outlook 
  • Residential
  • Commercial

• Service Outlook 
  • Laundry
  • Dry clean
  • Duvet clean

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Brazil 
    • Chile
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

You may also interested in below market reports:

• Dry-cleaning and Laundry Services Market - Dry-cleaning and Laundry Services Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, Japan, Germany, France - Size and Forecast
• Laundry and Dishwashing Detergent Market - Laundry and Dishwashing Detergent Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast 
• Laundry Care Market - Laundry Care Market by Product, Distribution Channel, Product, and Geography - Forecast and Analysis

Market Analyst Overview

In today's fast-paced world, online on-demand laundry services like Mulberry's Garment Care have revolutionized the laundry industry. Through their innovative app platform, customers can easily schedule drop-off or arrange for on-demand washing and dry-cleaning at their convenience. With flexible subscription plans and transparent pricing, Mulberry's caters to the market demand for hassle-free laundry cleaning solutions. Their commitment to innovation ensures that they stay ahead in the competitive on-demand laundry business landscape. By combining traditional dry cleaning with modern on-demand technology, Mulberry's has carved a niche in the online laundry business, providing efficient and convenient cleaning clothes services through their on-demand app.

Further, with a focus on sustainability, services bearing the prestigious WaterSense label are gaining traction, particularly in the commercial application segment. Catering to the diverse needs of consumers, this market encompasses both the laundry care segment and the dry clean segment, ensuring a comprehensive solution for every garment. In response to rising concerns about skin allergies, organic laundry detergents are becoming increasingly popular among users seeking gentler alternatives. These services provide a seamless blend of luxury, convenience, and eco-consciousness, redefining the standards of modern laundry care.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed market analysis and report information on factors that will drive the growth of the  market between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market growth and trends changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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