Contractual Cleaning Services Market
Segmentation By Verticals (Residential, Institutions, Organizations and Industrial) – Global Industry Demand Analysis and Opportunity Assessment 2018-2028
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Segmentation By Verticals (Residential, Institutions, Organizations and Industrial) – Global Industry Demand Analysis and Opportunity Assessment 2018-2028
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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.
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
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.
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.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: 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, hos
Ans: The market is anticipated to attain a CAGR of 8.02% over the forecast period, i.e. 2020-2028.
Ans: The market in Europe is anticipated to display significant business opportunities in the future.
Ans: The major players in the market are Compass Group plc, ISS A/S, Sodexo, Aramark Co., Vanguard Cleaning Systems, Inc., The ServiceMaster Company, LLC, and CBRE Group, Inc.
Ans: The major players in the market are Compass Group plc, ISS A/S, Sodexo, Aramark Co., Vanguard Cleaning Systems, Inc., The ServiceMaster Company, LLC, and CBRE Group, Inc.
Ans: The organizations segment, which is a sub-segment of the verticals segment, held the largest market share of 43.98% in the year 2018 and is anticipated to display significant growth opportunity.
Ans: Growing competition that is hampering the profits of the service providers is one of the major factors anticipated to act as a barrier towards the growth of the global contractual cleaning services market.
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