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

Online On-demand Laundry Service Market Forecast 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 is fueled by the modern lifestyle characterized by time constraints, which leaves minimal time for laundry chores. Rising costs linked with owning and maintaining washing machines further drive consumers towards convenient alternatives. With the integration of logistics services, online on-demand laundry services offer a hassle-free solution, catering to the needs of busy individuals seeking convenience and efficiency in their laundry routines. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges.

Online On-demand Laundry Service Market Overview

Market Forecast 2023-2027

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The market is witnessing significant growth, driven by evolving consumer lifestyles and societal adoption of convenient solutions. As the working-class population continues to grow, coupled with time constraints and the rise of working women, there is a heightened demand for laundry services that offer convenience and efficiency. This trend is further fueled by the luxury lifestyle preferences of consumers, driving the adoption of online laundry services. With advancements in technology and the emergence of online platforms, consumers can now easily access washing and ironing services, aligning with their busy schedules and lifestyle needs. As the industry embraces digital transformation, the global market for online services presents lucrative opportunities for businesses to cater to the evolving demands of modern consumers.

Market Segmentation

In this market, services cater to residential and commercial segments, offering convenience and eco-friendly solutions. With a focus on sustainability and health, organic detergents promote safe lifestyles, reducing skin allergies and diseases. Businesses utilize on-demand mobile apps like Tide Cleaners for streamlined operations. Water-saving practices and the WaterSense label are prioritized to minimize environmental impact. Different business models cater to diverse needs, including laundry care, dry clean, and duvet cleaning. As consumers seek safe and efficient options, the market continues to innovate, providing on-demand services that promote a healthy lifestyle while meeting the demands of modern living.

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 segment 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 laundry 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 remarkable growth, propelled by evolving consumer lifestyle trends and societal adoption of convenience-driven solutions. With the rise of luxury lifestyles and time constraints, working-class populations, especially working women, seek efficient laundry solutions. From washing and ironing clothes to handling bedding, these services offer convenience at affordable prices, catering to busy schedules. Moreover, with increasing concerns about skin allergies and the environment, the demand for eco-friendly detergents and safe laundry practices is on the rise. On-demand mobile apps like Tide Cleaners are reshaping business models, providing organic solutions and patching services for a sustainable, healthy lifestyle. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. 

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 the 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 services that include high quality, non-aggressive eco-friendly technology, kind to one's clothing as well as the environment.

We 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.  

Market Analyst Overview

The market is witnessing rapid growth driven by technological innovations and market demand for convenient solutions. Digital platforms and mobile apps offer automation and enhanced service accessibility for customers seeking time-saving benefits. With features like laundry pick-up, delivery online, and digital booking, customers enjoy a seamless experience. Quality cleaning, tracking, and online payments ensure customer satisfaction while promoting eco-friendly practices.

Robust security measures and transparent processes instill confidence, especially for private and sensitive items. As the industry evolves, emphasis on hygiene and safety concerns drives contactless and sanitization protocols, offering convenient and safe laundry solutions with enhanced customer communication. With an increased focus on hygiene and safety, the online laundry service market is set to expand, offering safe and efficient laundry care options.

The laundry industry trends are driven by the evolution of consumer lifestyles. With increasing awareness about environmental sustainability and health, there's a growing demand for eco-friendly laundry detergents and practices. This shift is reflected in the popularity of organic laundry detergents and products carrying the WaterSense label, promoting water efficiency. Moreover, concerns about skin diseases and overall well-being have led to a preference for safe and healthy lifestyles and laundry solutions. The emergence of on-demand mobile laundry apps caters to these evolving needs, offering convenience and accessibility. Segments like Commercial application segment, laundry care segment, and Dry clean segment are adapting to meet these changing consumer lifestyle evolution.

Segment Overview

The market 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. 

• 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

Market Scope
Report Coverage	Details
Page number	154
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 39.38%
Market growth 2023-2027	USD 145.72 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	33.41
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 34%
Key countries	US, China, Japan, Germany, and the UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	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
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
Customization purview	If our market 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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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 behaviour
• 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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