Commercial cleaning services accounted for the highest revenue in the overall cleaning services market size owing to huge demand for construction & post-construction cleaning services. Construction industries require cleaning services primarily for debris cleaning and pressure washing. Residential cleaning services segment is anticipated to witness faster during the forecast period, owing to its growing popularity among dual income households.
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Among the different cleaning services within the commercial segment, floor care accounted for the maximum revenue share. Popularity of floor care services has increased in the European market, owing to increased demand from various commercial sectors such as schools, hospitals, and large retail sectors. Vacuuming cleaning services is anticipated to witness the fastest growth due to its increased demand for dust cleaning from various commercial sectors such as stadium and event venues.
Maid services accounted for the largest market share in the overall residential cleaning services market, while carpet & upholstery segment is expected to exhibit highest growth rate among the different services covered under residential cleaning services segments.
A consistent demand for various commercial cleaning services is noticed among commercial consumers such as retails sectors, public institutions, hospitals, and event & stadiums. Construction and mining are the other sectors which showcased huge demand for debris cleaning. A consistent rise in demand for construction activities has been witnessed in the region, attributed to rise in construction of highways, streets, and bridges which has led to increase in demand for equipment refinement.
Large companies have better foothold in the market by serving customers with multiple locations, whereas small companies compete efficiently in local markets, especially for small businesses and residential customers. The market exhibits high entry barriers, owing to the presence of a large number of players.
Some of the leading industry leaders in the Europe Industrial Floor Cleaning Services Market include ABM Industries Inc., The Service Master Company, LLC, Clean Net, Anago Cleaning Systems, Aramark Corporation, Sodexo, Jani-King Inc., ChemDry and Pritchard Industries Inc.
Players have adopted partnership and acquisition as their key strategies to increase their market share. For instance, ABM Industries acquired the Westway Services of UK, to strengthen its prominence in the cleaning equipment market. Westway Services is a provider of technical and mechanical equipment used for cleaning services. The acquisition strengthened companys foothold in the market by reducing its dependency on other equipment suppliers. Local companies, such as Red Coats, UGL Unicco Services, Vanguard, and others primarily in developed markets, provide tough competition to the established players. Intense competition among various small and big players has posed major challenge for manufacturers.
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.
Author Credits: Anil Kumar, Ipsheeta Dash