Global Maintenance & Cleaning Services Industry Analysis
The global maintenance and cleaning services (another segment of the wider business services sector) can be divided into two sectors, namely consumer and commercial. The former encompasses home cleaning services and outfits specialized in cleaning for which there is less demand, such as window and carpet cleaning. The commercial sector involves outfits providing a wider range of services that are usually geared towards businesses for long-term service provision.
The cleaning service market has been benefiting from rising demand as people have busier lives and less time to clean and tend to domestic chores. The industry caters to a wide range of customers with various demands such as laundry service, oven cleaning and a host of specialized cleaning solutions. Successful market players tailor their services to meet the specific demands of private and corporate clients. Cleaning needs may be suited to services on a daily, seasonal or occasional basis.
Within both the consumer and commercial cleaning market segments, service providers seek to secure long-term cleaning contracts and strong long-term relationships with their customers.
Key Market Segments
The global facilities management industry is expected to reach almost $395 billion by 2017, according to research from Global Industry Analysts. Though negatively impacted by the economic recession, it is predicted the facilities management market will recover due to greater focus on office space modernization and recovery in the real estate and construction sectors. Facilities management seeks to bolster core business processes and boost return on investment through superior use of services, activities and resources. Facilities management affords companies many advantages, including better facilities and asset management, economies of scale and cost advantage. It also takes care of peripheral activities, which frees businesses up to concentrate all of their efforts on core business activities. The economic recession has driven the need for business restructuring and cost-effective practices. Facilities management allows business to better survive changes in the marketplace.
The global environmental and facilities services market generated $223 billion in 2010, according to research from MarketLine. Market growth is expected to accelerate to reach a yearly rate of 2% between 2010 and 2015 to exceed $246 billion. Solid waste management services represent the leading market segment in the global environmental and facilities services market, generating $120 billion in 2010, which represents close to 54% of the overall market in terms of value.
The global commercial and residential cleaning services market is expected to reach $67 billion in 2013, according to Freedonia. Market growth will be driven by demand for professional cleaning services, in particular for swimming pool cleaning and interior cleaning. Growth may, however, slow in the short-term due to drops in disposable personal income. Factors fuelling market growth include a rising number of dual-income homes and an aging population.
Non-residential demand for commercial and residential cleaning services is fuelled by the need to cut overall costs through outsourcing cleaning to boost profitability, in particular in commercial, industrial and office sectors. Demand from the institutional side is driven by budgetary restrictions, particularly in state, correctional and educational sectors. Medical market demand for cleaning services boosts profitability and aids the sector to meet regulatory standards in cleanliness.
It is forecast there will be 680,000 cleaning service outfits in the US by 2013, bringing overall employment in the sector to 1.7 million. There are currently around 500,000 cleaning firms operating in the US.
The household robot market is driven by the need to cut down on time spent cleaning to leave people with more spare time to pursue social and personal pursuits. The industry is taking its cue from the automation of communications and business processes in the wider market, reports WinterGreen Research. Innovation is key, with companies concentrating on introducing new products and improving on existing products. Improvements in terms of batteries are facilitating longer running times for products. Competition is influenced by purchase cost, system operation fees, battery efficiency and overall product performance.
Demand for facilities management tends to rise and fall in harmony with economic trends in the wider market. Facilities Management activity is largely dictated by public spending and corporate health in general, according to Global Industry Analysts. The economic recession, therefore, took its toll on the industry as private and commercial customers sought to cut costs.
Overall revenue generated by facilities management players has fallen due to contract renegotiations brought about by the economic recession. Though the crisis has certainly affected the industry’s short-term growth prospects, it is set to recover in tandem with the wider market.
Leading Industry Associations
- The Worldwide Cleaning Industry Association
- International Janitorial Cleaning Services Association
- National Contract Cleaners Association
- National Cleaning Suppliers Association
- Cleaning and Support Services Association
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