Global Cleaning Services Industry
The global cleaning services industry can be divided into two main segments: consumer and commercial. Consumer cleaning services involve home cleaning for individual households, with industry players providing both general and more specialized services, such as window and carpet cleaning. On the other hand, the commercial cleaning market involves cleaning services on a larger scale, usually involving the maintenance of corporate premises of various sizes. Providers of commercial cleaning services often have contracts with businesses, and seek to build longer-term ties with their clients.
With many family households having two parents in the workforce, people have less and less time for cleaning. This creates constant demand for services that cover daily domestic cleaning tasks and laundry as well as less-frequent services like window cleaning. Meanwhile, commercial cleaning service providers offer highly specialized services to suit the changing needs of various clients. Some clients have cleaning needs that necessitate specific tools and expertise that require cleaning and sterilization of surfaces and machines.
Companies operating in both residential and commercial cleaning segments seek to put contracts in place to maintain relationships with their clients. However, competition remains intense as individuals and businesses may favor short-term contracts so as to be able to change from one cleaning services provider to another should they find the services unsatisfactory.
Key Market Segments
Though the global business janitorial cleaning services market witnessed a decline due to falling demand from businesses eager to cut back spending during the economic recession, IBISWorld predicts an increase in demand in the coming years. Factors contributing to growth in the janitorial cleaning services market include increasing levels of non-residential construction and economic recovery. Apart from building interiors, business janitorial cleaning service providers also clean the interiors of transportation equipment such as trains, ships and airplanes. The types of businesses that use these services range from retail outlets and shopping malls to factories, offices, homes and airlines.
The residential cleaning services market is fuelled by demand from high-income single parent households and duel-income families with little time for domestic chores. The main part of this market consists of maid services and cleaning services for windows and carpets. Demand for domestic cleaning services from those aged more than 55 years in particular is also fuelling overall demand.
Regional Market Share
Demand for contract cleaning services in the US market is forecast to climb almost 5% yearly through 2016, according to research from Freedonia. Contract cleaning service revenue is expected to witness the same yearly rate of increase to exceed $71 billion in 2016. Market growth will be fuelled by economic recovery, boosting demand for household and commercial cleaning services.
Revenue gains in the commercial and residential cleaning services industry will also be fuelled by their affordability, following price cuts by industry players to stimulate growth during the economic downturn. Though this affordability along with the wider range of services being offered has helped drive demand, industry growth will be slowed somewhat by this price competition.
Revenue gains are expected to be strongest in the interior cleaning market, which generated three quarters of industry revenue in 2011. Growth will be fuelled by concern over the quality of indoor air and the risk of cross-contamination, with businesses investing in cleaning services in an effort to limit illnesses to avoid employee sick days and increase productivity. Other trends in the nonresidential cleaning market include a shift toward outsourcing, which represented over 75% of the industry in 2011.
Growth in the global cleaning services industry is set to pick up following the slowdown prompted by the economic recession. As the economy continues to recover, businesses and homeowners alike are expected to more readily invest in cleaning services.
One significant trend likely to continue over the coming years in the cleaning services industry concerns the use of green cleaning products. Companies are become increasingly aware of the importance of environmental protection and consumer demand for more natural products. In a similar vein, dry cleaners will be affected by increasingly strict water supply regulations in certain regions as governments enforce tighter environmental standards.