CONTRACT CLEANING SERVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

Global contract cleaning services market is estimated to be valued at US$ 273.2 billion in 2024 and is expected to reach US$ 402.1 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.

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Technological advancements in cleaning equipment and services along with increased focus on hygiene post-COVID pandemic are expected to boost demand for contract cleaning services. Adoption of eco-friendly cleaning solutions and focus on productivity and efficiency through outsourcing of cleaning services to specialized players can drive the market growth.

Growing Demand for Commercial Cleaning Services

The commercial real estate sector has expanded rapidly in the past decade with new malls, shops, IT parks, and other office spaces coming up across major cities. This has boosted demand for cleaning and maintenance services from property developers and managers. As the portfolio of commercial properties and spaces under management grows, there is an increasing need for professional outfits that can take up regular cleaning, waste disposal and other facility management tasks on a long-term contractual basis. Individual cleaning staff hired at each location cannot offer the same assurance of quality, process standardization and capacity for scale that large contract cleaning companies provide. These factors work in favor of outsourcing non-core facility services to specialized external agencies.

Businesses now prefer to focus internal resources only on their core competencies rather than spend valuable time and energy on ancillary functions. By handing over the cleaning contract to an outside firm, managers can ensure their workplace environment is properly maintained without disrupting the daily workflow. Commercial establishments also recognize the safety, health and productivity benefits of engaging a contractor that has strict protocols and employs properly trained cleaning personnel. The contractual arrangement brings greater transparency since performance parameters and costs are clearly defined upfront in the agreement. Overall, the outsourcing model has gained popularity as it allows companies to relieve administrative burden and receive consistent, professional services at a predictable monthly fee.

For instance, in October 2022, SBFM waste management service provider, signed a five-year contract with PureGym, the largest gym operator in the U.K., to provide comprehensive commercial cleaning services across all its U.K. locations. PureGym aims to double its number of clubs to over 1,000 worldwide by 2030.

Market Concentration and Competitive Landscape

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There has been growing social awareness around the importance of hygiene, cleanliness and infection control even in public and workplace settings, COVID-19 pandemic has further highlighted this by compelling governments and organizations to impose strict disinfection standards. Citizens are now more hygiene-conscious and focused on the upkeep of sanitary conditions in their surrounding environment including areas like shopping malls, schools, hospitals and others. As a result, the demand for specialized commercial and institutional cleaning services has increased to achieve these elevated cleanliness and safety benchmarks.

Industry players recognize an opportunity in this trend as these can promote tailored disinfection packages, specialized cleaning chemicals, and even employ digital technologies and audits to track enhanced safety and hygiene protocols for clients. Progressive facilities are voluntarily seeking out contract cleaners that can help them install protective measures and standard operating procedures beyond just general tidying. For instance, in July 2022, Gausium a provider of AI-powered autonomous cleaning and service robots and Diversey-TASKI which offers industry leading fleet management software, formed a multi-year global partnership to integrate cleaning robotics and advanced cleaning technologies, aiming to meet the rising standards of commercial hygiene and cleanliness.

Key Takeaways from Analyst:

Global contract cleaning services market growth is driven by increasing demand for hassle-free commercial and residential cleaning. More organizations are outsourcing their cleaning needs to specialized contract cleaning firms to focus on their core operations. Growing hygiene awareness among consumers boosts demand for professional cleaning of homes and office spaces, and this can drive the market growth  

However, pricing pressures remain a challenge as contractors try to offer competitive rates. Strict government regulations around labor laws also introduce complexity for contract cleaners regarding wages and employee benefits. Contractors operating in multiple locations face the difficulty of maintaining service quality standards regionally.

While developed markets in North America and Western Europe continue dominating, Asian countries like India and Southeast Asian markets are emerging as fast-growing regional markets. Within these regions, the healthcare, hospitality and food & beverage sectors are predicted to generate strong demand. Contractors are leveraging technology for monitoring cleaners, scheduling optimizations and data-driven services stand to benefit the most.

Market Challenges: Margin Pressures and Price Sensitivity

Global contract cleaning services market operates on low margins with price being the main decision factor for most customers. Retaining trained cleaning staff is difficult as the work involved is physically demanding and pays relatively low wages. Finding and retaining talented managers also poses a challenge with high staff turnover. Regulatory compliance around matters like minimum wage, workplace health and safety further increases operating costs.

Market Opportunities: Green Cleaning Initiatives for Environmental Awareness

There has been rising demand for cleaning services due to aging population and increasing focus on hygiene post pandemic. Industrial and office hubs expanding into new areas opens up untapped regional markets. Adopting green cleaning products and practices allows companies to tap into customers' rising environmental consciousness. Implementing productivity tools and technology like management systems and robots can help reduce costs and improve service quality. Outsourcing of non-core facilities activities also drives opportunities in commercial

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In terms of service type, exterior segment is estimated to contribute  29.1% of the market share in 2024 due to high-maintenance requirements of commercial and industrial properties' exteriors. Whether it is routine cleaning, pressure washing, or complex restoration jobs, exterior surfaces often require regular cleaning and upkeep to maintain aesthetics and functionality. Harsh weather conditions like heavy rain, snow, UV light exposure, and air pollution put significant wear and tear on building exteriors over time. Proper exterior maintenance is crucial to prevent cosmetic deterioration, structural damage, and other costly issues down the line.

For commercial properties, maintaining an attractive, well-kept exterior appearance is important for attracting and retaining tenants, customers, and business. Customers form initial impressions based on the curb appeal and visual quality of a building or facility. Any signs of neglected maintenance could negatively impact perceptions of the property and tenant satisfaction. Hiring exterior contract cleaning specialists allows commercial property managers to focus on their core operations while ensuring the exterior maintenance needs are consistently addressed to standard. This helps maximize property values and occupancy rates.

The industrial sector also relies heavily on exterior contract cleaning services. Industrial facilities have large surface areas exposed to outdoor conditions as well as industrial pollutants from operations. Proactive cleaning helps remove potentially hazardous grime, grease, and chemical buildup from machinery, equipment, rooftops, and other exterior assets. It prevents premature deterioration and corrosion that could compromise safety, productivity and equipment lifespans if left unaddressed. Routine exterior cleaning also supports regulatory compliance for industries with strict environmental standards.

Insights, By End Users - Commercial segment account for largest share of contract cleaning services

Among End Users, commercial segment is estimated to contribute 49.7% of the market share in 2024due to the unique and extensive cleaning demands from commercial properties. Whether its offices, retail stores, hotels, restaurants or other facilities, commercial spaces witness very high foot traffic and daily use that results in accumulated dirt and contaminants.

Keeping common areas, guest rooms, trade fixtures, signage and other touchpoints in pristine condition is a top priority for commercial operators. It directly impacts the customer experience, occupancy rates, and overall brand perception if spaces appear worn, unhygienic or unkempt. Many commercial cleaning tasks also require specialized equipment, products and training to address unique soiling issues. For example, deep carpet cleaning, tile and grout restoration, grease trap cleaning and window washing are complex functions better handled by professional cleaning contractors.

Outsourcing non-core functions allows commercial property managers and business owners to focus resources on their business activities. Contract cleaners can take on responsibilities like daily trash removal, restocking, disinfecting high-touch surfaces and event cleanups. This provides consistency in hygiene and appearance standards while controlling labour costs for commercial operators. The contract model also gives flexibility to scale cleaning schedules up or down depending on seasonal occupancy fluctuations.

The extensive and mission-critical nature of cleaning for commercial end user has made it the largest clientele segment for the contract cleaning services industry.

Regional Insights

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North America has established itself as the dominant region in the global contract cleaning services market. The region is estimated to account for 34.7% of the market share in 2024 due to high spending on commercial real estate and facilities management across various industry verticals in the U.S. and Canada. It has the largest number of international contract cleaning brands as well as domestic providers who have strong presence across major states. Furthermore, the region is an early adopter of advanced cleaning technologies and green cleaning services. This gives clients access to customized and value-added services, thus, leading to customer retention.

The European market follows North America in terms of market share, valued at over 25% currently led by Western Europe. Countries such as Germany, France, and the U.K. have mature markets due to robust economic growth over the past decade. Cleaning services are an integral part of facilities management in major commercial hubs. Service providers offer multi-year contracts with clients across diverse end-use sectors like corporate offices, healthcare, F&B, and aviation. The regional market also witnesses significant cross-border mergers and acquisitions activity that help larger brands expand service portfolios and geographic footprint.

Asia Pacific is the fastest growing region. Countries like India and Indonesia are witnessing double-digit annual spending increase on contract cleaning services. The emerging markets are experiencing expansions in the real estate, hospitality, retail, and IT/ITeS industries. These sectors form over 60% of the total demand. Furthermore, demographic tailwinds of a rising middle class with greater disposable incomes and changing consumer lifestyles are promoting cleanliness and hygiene. Local and international players are investing heavily in developing full-fledged operations as well as new decentralized service delivery models to cater to the growing needs of these dynamic economies. This makes Asia Pacific the fastest growing regional market globally with CAGR of 6.37% in 2024.

Market Report Scope

Key Developments

• In May 28, 2024, Guardian Saints Commercial Cleaning launched, offering high-quality cleaning services to the Dallas-Fort Worth area. The company focuses on large-scale commercial offices and professional buildings across various industries.
• In January 2024, Clean Craft, laundry and drycleaning service providers, announced the launch of its innovative laundry and dry-cleaning stores designed to simplify customers' lives. With state-of-the-art facilities, Clean Craft aims to revolutionize the laundry industry by providing exceptional service and convenience.
• In October 2023, Cleanster.com launched its innovative cleaning service platform in Florida, inspired by the Uber model. The platform caters to property owners, homeowners, and short-term rentals, offering a seamless and convenient cleaning solution.
• In September 2023, ESP Cleaning Services in Singapore unveiled its revamped website, enhancing user experience for businesses seeking top-tier commercial cleaning services
• In September 2023, Urban Company expanded its services to include wall paneling, woodwork, wallpaper application, premium wall painting, and a subscription-based bathroom cleaning service, alongside introducing a smart water filter
• In March 2022, Office Pride Commercial Cleaning Services, in partnership with Trivest Partners and Three20 Capital Group, set a development goal to reach 300 units and US$ 300 million in system sales. The franchise network, covering 25 states with over 145 locations, plans to drive growth through acquisitions and new units.
• In February 2022, Clean Space acquired Abelian United Kingdom Ltd., a U.K.-based cleaning firm, to enhanced its competitiveness and resources in the city
• In November 2021, Pinnacle acquired Lancashire, a cleaning service firm, to expand its service options and technical capabilities
• In January 2021, Excellerate Services acquired CCM Facilities Ltd., a national contract cleaning expert, to broaden its service offerings

*Definition: The contract cleaning services market consists of companies that provide commercial cleaning services to businesses, offices, retail stores, healthcare facilities, educational institutions, hospitality venues, and more on a contractual basis. These professional cleaning companies take care of daily, weekly or monthly cleaning tasks like vacuuming, mopping, dusting, disinfecting, washroom maintenance etc. allowing their clients to focus on their core business activities while maintaining clean and hygienic premises through outsourced cleaning services.

Market Segmentation

• Service Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Exterior
    • Parking Lot
    • Street
    • Window
    • Other Exterior
  • Interior
    • Floor & Corridor
    • Lobby
    • Other Interior
  • Fabric Cleaning
    • Carpets
    • Upholstery
  • Restoration & Remediation Services
  • Swimming Pool & Maintenance
•  End Users Insights (Revenue, USD Bn, 2019 - 2031)
  • Residential
    • Individual Houses
    • Apartments
  • Commercial
    • Educational Institutions
    • Hotels and Restaurants
    • Healthcare and Medical
    • Retail Outlets
    • Corporate Offices
    • Others (Financial Institutions)
  • Industrial
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • South Africa
    • GCC Countries
    • Rest of Middle East & Africa
• Key Players Insights
  • ABM Industries Incorporated
  • Anago Cleaning Systems
  • Aramark Corporation
  • ChemDry
  • Cleaning Services Group, Inc.
  • CleanNet USA Inc.
  • Compass Group plc
  • Duraclean International Inc.
  • Harvard Maintenance
  • ISS Facility Services, Inc.
  • Jani-King International Inc.
  • Jan-Pro Systems International
  • Mitie Group plc.
  • Pritchard Industries Inc.
  • Sodexo Group
  • Stanley Steemer International Inc.
  • Steamatic Inc.
  • Terminix International Company Limited
  • The Clean Space
  • The ServiceMaster Company, LLC
  • Vanguard Cleaning Systems Inc.