The global contractual cleaning services market is anticipated to generate revenues of US$ 181.61 billion in 2023. Demand for contractual cleaning services is anticipated to expand at a CAGR of 4.3% and reach US$ 276.69 billion by 2033.
The contractual cleaning services demand is rising globally due to rising employee health and workplace sustainability concerns, as well as rising workplace cleanliness awareness. The need for dust-cleaning services from theatres, locations for events, and stadiums is one of the key drivers of the global market expansion during the forecast period.
Business Organizations Emphasis on Green Working Environments Influence the Global Market
- By 2033, the global cleaning services market is likely to expand at a 6.5% CAGR. Even commercial entities, especially sizable ones, engage in contracts with service providers. Business organizations are charged by service providers generally based on two criteria:
- The kind of service used
- The frequency of services required, which might be daily, once a week, semi-annually, once a month, or annually.
- Construction cleaning services are often used just once and are priced according to the level of cleaning needed. To provide their workers with a safe and healthy working environment, business organizations are investing a lot in effective workplace upkeep.
- Contractual cleaning services providers are gravitating towards the idea of “green cleaning,” which entails using all-natural chemicals to clean the space. These techniques are high in demand due to:
- Growing environmental concerns.
- Detrimental effects on human health of utilizing items that include dangerous compounds like allergies and carcinogens.
- The advantages of using green goods for clean-up are anticipated to enhance their popularity and influence service providers’ portfolios in the upcoming years.
Challenges Impact the Adoption of Contractual Cleaning Services
- The market is faced with a lot of challenges since domestic labor is so easily accessible and inexpensive in emerging nations. Although the house cleaning services market has a huge anticipated worth of US$ 13.9 billion by 2033, this challenge is likely to reduce the need for house cleaning services.
- Over the projection period, the low penetration rate in emerging economies acts as a significant obstacle for the market.
- The adoption of contract cleaning services in developing nations in South America, MEA, and APAC is further hampered by factors like the high cost of such services, the dearth of qualified personnel, and their restricted availability.
- The lack of client awareness about the existence of these services in emerging economies is the primary cause of the low penetration rate.
- The emergence of automated cleaning robots that use Artificial Intelligence (AI) capabilities to execute dusting tasks poses limitations to the market’s expansion.
Which Service Type is Widely Available on the Market?
In 2023, exterior cleaning services are likely to have a market share of 37.6%. The demand for exterior cleaning services has increased as more people and companies recognize the value of keeping their homes clean and well-maintained.
The necessity for expert cleaning services is fueled by the fact that regular exterior cleaning preserves buildings’ aesthetic value and structural integrity. Environmental sustainability, adherence to rules governing wastewater treatment, and the adoption of eco-friendly cleaning products are all becoming crucial in the market.
Contractual Cleaning Services End Use Analysis
In 2023, the residential category is anticipated to have a sizable proportion of 32.9%. The commercial sector exhibits a massive market expansion. Office buildings make significant efforts in maintaining the cleanliness and sanitization of their facilities, making up the lion’s share of the commercial sector.
Due to the increasing number of commercial buildings following the construction and real estate sector’s recovery, the category expects a large market share. Also, the adoption of janitorial cleaning services is increasing due to the declining office vacancy rates and an increase in commercial activity. As a result, the janitorial cleaning services market is expected to have a growth rate of 3.05 by 2033.
Some commercial facilities, like restaurants, hotels, hospitals, schools, and retail stores, choose to outsource the necessary cleaning tasks. Thus, the business sector is projected to present enormous contractual cleaning services market opportunities for service providers.
Over the projection period, the industrial category is anticipated to increase strongly and consistently. Such industrial manufacturing facilities engage with service providers to undertake construction cleaning tasks, such as clearing up trash and dust and controlling oil spills.
The United States Market Focus on Sanitary Working Conditions
A vast number of service providers, particularly in the United States, define the region. Business enterprises also have contractual service agreements with vendors to guarantee a sanitary working environment for their personnel.
For instance, Wegmans, which runs a chain of grocery shops under that name in the United States, engaged Cleaning Services Group, Inc. to maintain the construction sites. This helped the business preserve the retail environment free of trash, dust, and oil spills. In light of this, it is projected that the trend of contractual cleaning operations is likely to continue, supporting regional market growth throughout the research period.
In 2023, the United States Bureau of Labor forecasts that there are more than 236,500 additional janitorial positions across the nation. The contractual cleaning services in the United States market are expected to grow significantly, as there are many Americans employed in this sector.
United Kingdom Demand for Green Services Impacts the Global Contractual Cleaning Services Market Share
The contractual cleaning services market in the United Kingdom is expected to increase significantly, with the building and mining industries showcasing a substantial need for debris cleaning. As chemical cleaners are known to harm the environment, several service providers have quickly shifted to adopting green cleaning programs in the region.
Demand for Contractual Cleaning Services in Asia Pacific Influence by Construction Activities
Over the projection period, the Asia Pacific area is predicted to expand at a significant CAGR of 7.3%. Key factors influencing the growth of the regional market are anticipated to be the rising number of under-construction units, which need routine clean-up for efficient site management.
During the past several years, the region has seen a sharp increase in the number of new commercial spaces due to government expenditures on infrastructure development. As a result, it is anticipated that more people utilize cleaning services, such as upholstery, floor, and window cleaning, among others.
Asia Pacific is one of the areas most severely affected by the coronavirus and has a large population density, which has influenced the region’s adoption of cleaning services in a good way. Increasing commercial building activities in Asia Pacific’s emerging nations are anticipated to benefit market expansion. The demand for contractual cleaning services in the area is being driven by the expanding co-working trend, an increase in startups, and more foreign investment in the area.
Competitive Landscape
How do Key Players in the Contractual Cleaning Service Industry Expand their Base?
Prominent companies in the contractual cleaning services sector concentrate on the following services:
- Floor
- Carpet
- Upholstery Cleaning
- Construction and post-construction cleaning
- Residential and commercial cleaning services
As there are so many service providers, the market is quite fragmented. Market incumbents are implementing a variety of expansion methods, including strategic acquisitions and collaborations, to expand their reach by utilizing each other’s knowledge, to achieve a sizable revenue share and improve their position in the market.
Key Players
Sodexo, ISS AS, Compass Group plc, ABM Industries Inc., Anago Cleaning Systems, Jani-King International Inc., Aramark Corporation, ChemDry, Pritchard Industries Inc., Mitie Group plc, Vanguard Cleaning Systems, The Clean Space, CleanNet USA Inc., Duraclean International Inc., Harvard Maintenance, Jan-Pro Systems International, Steamatic Inc., Terminix International Company Limited
Recent Developments:
- In October 2022: Under a five-year agreement, SBFMl offered PureGym, the leading gym operator in the United Kingdom, a comprehensive range of commercial cleaning services at all of its United Kingdom sites.
- With its main headquarters in Leeds, SBFM, and PureGym entered into the deal on September 1, 2022.
- PureGym’s facilities are typically open, serving 1.7 million members over 525 clubs, mostly in the United Kingdom and Europe.
- The organization recently disclosed plans to double the number of clubs in its portfolio, to have more than 1,000 clubs globally by the year 2030.
- Abelian United Kingdom Ltd., a cleaning firm situated in London, was purchased by Clean Space in February 2022. The firm wanted to boost resources and make Clean Space more competitive in London with this purchase.
- To offer better and more creative service options with a larger range of technical talents, Pinnacle acquired Lancashire, a cleaning service firm, in November 2021.
A national expert in contract cleaning, CCM Facilities Ltd. was acquired by Excellerate Services in January 2021.
