Contractual Cleaning Services Overview
The global contractual cleaning services market is thriving on the back of the growing demand for specialized cleaning services from several commercial institutions, such as offices, hospitals and industrial plants among others, followed by the growing awareness for waste management amongst end users. Commercial institutions often face circumstances where carrying out a cleaning task is beyond their capabilities. As a result, there is an increasing demand for deploying contractual cleaning services. On the other hand, with the development of advanced and automated cleaning devices, that consumes less cleaning time, has significantly helped contractual cleaning service providers to offer timely services to their clients. Owing to such a factor, the adoption of contractual cleaning services amongst the end users have grown significantly over the years. Moreover, increasing awareness for contractual cleaning services owing to the need for workplace wellness and sustainability and the need amongst organizations to promote healthier working environment are some of the additional factors anticipated to promote towards the growth of the global contractual cleaning services market in the coming years.
The global contractual cleaning services market registered a value of USD 2,14,200.0 million in the year 2018 and is anticipated to garner a CAGR of 8.02% across the globe over the forecast period, i.e. 2020-2028. Additionally, the market is also anticipated to grow by 5.94% in the year 2020 as compared to the previous year and gain an incremental $ opportunity of USD 13732.3 million during the same period. On the other hand, the global contractual cleaning services market is also anticipated to grow by 1.85x and gain an absolute $ opportunity of USD 209041.1 million during the forecast period.
Growth Highlights Based on Region During 2018-2028
The global contractual cleaning services market is segmented by regions into North America, Latin America, Europe, Asia Pacific, Middle East and Africa. Among these regions, the market in North America registered the largest market share of 35.80% and a value of USD 76683.6 million in the year 2018. Growing adoption of advanced contractual cleaning services and the rising construction activities in the region are some of the major factors driving the growth of the contractual cleaning services market in the region. Additionally, the market in the region is also anticipated to gain an incremental $ opportunity of USD 4502.4 million in the year 2020 as compared to the previous year and further grow by a CAGR of 7.53% during the forecast period. The contractual cleaning services in North America is also anticipated to grow by 1.78x and gain an absolute $ opportunity of USD 68357.8 million during the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
Market Segmentation Synopsis
By Verticals
The global contractual cleaning services market has been segmented on the basis of verticals into residential, institutions, organizations and industrial. The organizations segment registered the largest market share of 43.98% along with a value of USD 94202.4 million in the year 2018. The segment is additionally anticipated to grow by attaining a CAGR of 8.08% during the forecast period. Additionally, the segment is anticipated to register an incremental $ opportunity of USD 6106.9 million in the year 2020 as compared to the previous year and further gain an absolute $ opportunity of USD 92893.1 million by growing at 1.86x during the forecast period.
Market Drivers and Challenges
Growth Indicators
Growing Demand for Contractual Cleaning Services from Residential and Commercial Consumers
The consistent demand for contractual cleaning services across commercial consumers such as public institutions, hospitals and healthcare facilities, coupled with the demand for contractual cleaning services across the residential sector is anticipated to boost the growth of the global contractual cleaning services market over the forecast period. There has been a significant growth in the number of construction activities including bridges, streets and highways, across various regions worldwide. These civil constructions require timely maintenance and cleaning, and therefore the need to deploy contractual cleaning service providers. Additionally, the growing industrial sector, along with the numerous benefits associated with contractual cleaning services for residential users, are some of the additional factors anticipated to drive the growth of the global contractual cleaning services during the forecast period.
Growing Awareness for Healthy Living Environment
Over the years, poor indoor environment quality has impacted various businesses and daily life of the people. Increasing awareness amongst people for the ill effects of living in a poor indoor environment has raised the need for proper hygiene and cleaning services. Moreover, a paradigm shift towards eco-friendly cleaning products and procedures worldwide by contractual cleaning service providers have also contributed majorly to the increasing adoption of such services. Several service providers have also rapidly transformed to using green cleaning initiatives as chemical cleansers are known to cause harm to the environment. Such factors are anticipated to drive the growth of the global contractual cleaning services market over the forecast period.
Barriers
Unavailability of Skilled Labour
Finding and keeping the skilled employees is a challenge faced by the contractual cleaning services market across the globe. Companies spend huge amount of resources and time on hiring and training their employees and retaining the skilled employee remains a major concern. On the other hand, the exponential rise in the number of contractual cleaning service providers operating is forcing local players to work at extremely lower rates which is anticipated to undermine the profits of established companies. Also, the rising cost of labor across the globe is anticipated to hinder the growth of the global contractual cleaning services market during the forecast period.
Top Featured Companies Dominating the Market
Some of the affluent industry leaders in the global contractual cleaning services market are Compass Group plc, ISS A/S, Sodexo, Aramark Co., Vanguard Cleaning Systems, Inc., The ServiceMaster Company, LLC, and CBRE Group, Inc.
