Outsourced Cleaning Services Market Size (USD 117756.04 M) by 2032 By Types(Building Interior Cleaning, Building Exterior Cleaning, Waste Management) , Applications(Business & Industry, Government, Health & Care, Schools, Others) and Regional Forecast to 2032

OUTSOURCED CLEANING SERVICES Size

outsourced cleaning services market was valued at USD 62,631.01 million in 2023 and is projected to reach USD 67,203.07 million in 2024, with significant growth expected in the US market. By 2032, the market is anticipated to expand to USD 117,756.04 million, exhibiting a compound annual growth rate (CAGR) of 7.3% during the forecast period from 2024 to 2032. 

This growth in the US outsourced cleaning services market is driven by increasing demand for professional cleaning services across various sectors, including commercial, residential, and industrial environments.

OUTSOURCED CLEANING SERVICES MARKET Growth and Future Outlook

The outsourced cleaning services market is witnessing substantial growth globally, driven by a wide range of factors including the increasing demand for professional cleaning services across various sectors such as commercial, industrial, and residential. The market is poised for significant expansion over the coming years due to the heightened emphasis on hygiene and cleanliness, especially in the post-pandemic era. With businesses, healthcare facilities, educational institutions, and retail establishments placing greater focus on maintaining sanitized environments, outsourced cleaning services are becoming indispensable. 

Moreover, the cost-efficiency offered by outsourcing cleaning services as opposed to managing in-house cleaning teams is a crucial factor influencing the decision of many companies. By outsourcing, businesses can save on hiring, training, and managing staff while still benefiting from professional-grade cleaning. This is particularly appealing for small and medium-sized enterprises (SMEs) that often have limited budgets for non-core activities like cleaning. Additionally, advancements in cleaning technology, including automated cleaning solutions, are expected to further fuel the demand in the coming years. 

In terms of geographical expansion, the outsourced cleaning services market is growing rapidly in developing economies, where the demand for commercial spaces and institutional facilities is on the rise. Regions such as Asia-Pacific and Latin America are expected to see the highest growth rates due to rapid urbanization, the growth of industries, and increasing disposable incomes. In contrast, developed regions like North America and Europe already have mature markets, but they continue to see steady growth due to the introduction of innovative cleaning technologies and the shift towards green and sustainable cleaning solutions. The future outlook for the outsourced cleaning services market looks promising, with experts forecasting sustained growth due to ongoing urbanization, rising healthcare needs, and an overall global shift towards outsourcing non-core services.

OUTSOURCED CLEANING SERVICES MARKET Trends

Several key trends are shaping the future of the outsourced cleaning services market, significantly impacting its growth trajectory. One major trend is the increased focus on sustainability and eco-friendly cleaning practices. As environmental awareness grows, both consumers and businesses are opting for cleaning services that use green cleaning products and sustainable practices. This trend is driven by the rising demand for healthier work environments, especially in sectors like healthcare, where the use of harsh chemicals may pose risks to patients and staff.

Another trend that has emerged is the growing popularity of automated and robotic cleaning solutions. With advancements in AI and machine learning, the cleaning industry is seeing a shift towards automation to improve efficiency, reduce labor costs, and maintain consistent cleaning standards. These robotic cleaners are particularly useful in large commercial spaces such as airports, shopping malls, and hospitals, where human cleaning staff may struggle to meet the high demand for cleanliness. Additionally, the integration of the Internet of Things (IoT) in cleaning services is gaining traction, allowing for real-time monitoring of cleaning activities, ensuring thoroughness and accountability.

Market Dynamics

The outsourced cleaning services market is influenced by several dynamic factors that drive its growth and shape its evolution. One of the critical dynamics is the rising demand for specialized cleaning services, especially in industries with stringent hygiene standards like healthcare, pharmaceuticals, and food processing. This demand is leading to the emergence of specialized cleaning providers who cater to niche markets, offering services that require a high level of expertise and compliance with regulations.

Furthermore, the rising cost of in-house cleaning operations is prompting many businesses to outsource their cleaning needs. This shift towards outsourcing allows companies to focus on their core business activities while leaving cleaning responsibilities to external professionals. Additionally, economic factors such as the fluctuating costs of labor and cleaning supplies also affect the pricing strategies of outsourced cleaning services, creating a competitive market where providers need to offer cost-effective and value-driven solutions to retain clients.

Drivers of Market Growth

Several factors are driving the growth of the outsourced cleaning services market. First, the increasing need for maintaining high standards of cleanliness in commercial and public spaces is pushing organizations to seek professional cleaning services. Businesses, especially in sectors like retail, hospitality, and healthcare, are under pressure to ensure safe and hygienic environments for both their employees and customers. 

Additionally, the rising awareness about the importance of maintaining a healthy indoor environment, free from contaminants, has led to more organizations investing in outsourced cleaning services to improve employee well-being and reduce absenteeism. Moreover, government regulations and policies related to workplace cleanliness and safety further compel businesses to maintain high standards, fueling the demand for professional cleaning services.

Technological advancements are also playing a crucial role in driving market growth. The introduction of innovative cleaning solutions, such as robotic cleaners and eco-friendly products, is transforming the industry and making outsourced cleaning services more attractive to businesses looking for efficient and sustainable cleaning practices.

Market Restraints

The outsourced cleaning services market, despite its strong growth potential, faces several restraints that could hinder its expansion. One of the significant restraints is the cost of outsourcing services, especially for small and medium-sized enterprises (SMEs). Many businesses may find the ongoing cost of outsourcing cleaning services to be prohibitively high, particularly during periods of economic downturn. SMEs, in particular, may opt to keep cleaning in-house to reduce operational expenses, thus limiting the overall demand for outsourced services.

Another restraint is the increasing competition in the market. With more cleaning service providers entering the industry, price wars are becoming common, forcing companies to lower their service rates. While this may benefit customers in the short term, it puts pressure on cleaning service providers to maintain profit margins, which could lead to lower service quality. Additionally, stringent government regulations related to the cleaning industry, particularly in terms of environmental compliance and worker safety, add to operational costs and may pose a challenge to smaller companies in the industry.

Market Opportunities

The outsourced cleaning services market presents several opportunities that can be tapped for future growth. One key opportunity lies in the increasing focus on specialized cleaning services. Industries such as healthcare, pharmaceutical, and food processing require highly specialized cleaning protocols to maintain regulatory standards. Service providers that can offer tailored solutions for these sectors are likely to see a rise in demand.

Another significant opportunity is the growing adoption of green and sustainable cleaning practices. As environmental consciousness grows among businesses and consumers, the demand for eco-friendly cleaning services is expected to increase. Companies that can offer sustainable solutions, such as using biodegradable cleaning products and energy-efficient equipment, will likely have a competitive advantage in the market. Furthermore, the rise of automation and smart cleaning technologies, including robotic cleaners and IoT-based monitoring systems, offers opportunities for service providers to differentiate themselves by offering more efficient and tech-driven solutions.

Market Challenges

While the outsourced cleaning services market is on a growth trajectory, it is not without its challenges. One of the major challenges facing the industry is the shortage of skilled labor. The cleaning industry relies heavily on labor, and finding workers who are both skilled and reliable can be difficult. High employee turnover rates further exacerbate this issue, as companies must invest in continuous training and recruitment efforts.

Another challenge is the increasing pressure to adopt sustainable and eco-friendly practices. While there is a growing demand for green cleaning solutions, implementing these practices can be costly for service providers, especially when it comes to sourcing eco-friendly cleaning products and upgrading equipment to meet sustainability standards. Additionally, the advent of automation and technology in the cleaning industry poses a challenge to traditional service providers who may lack the resources to invest in new technologies and processes.

Segmentation Analysis

The outsourced cleaning services market can be segmented based on several factors such as type, application, and distribution channel. Segmenting the market provides valuable insights into the specific needs of different customer groups and allows service providers to tailor their offerings accordingly. By understanding the different market segments, cleaning service providers can more effectively target their marketing efforts and offer solutions that meet the unique requirements of each segment.

Segment by Type:

The outsourced cleaning services market can be divided into two main types: commercial cleaning services and residential cleaning services. Commercial cleaning services account for a significant share of the market, as businesses in sectors like retail, healthcare, and hospitality require consistent and professional-grade cleaning to maintain a safe and sanitary environment. These services often include tasks such as floor cleaning, restroom sanitation, waste management, and surface disinfection.

Residential cleaning services, on the other hand, cater to households and individual clients, offering a range of services such as deep cleaning, window washing, and carpet cleaning. While residential cleaning services are typically less frequent than commercial services, there is growing demand in urban areas where busy lifestyles and rising disposable incomes have led more households to seek external help for cleaning tasks.

Segment by Application:

Outsourced cleaning services are widely applied across several sectors, each with its unique requirements. In the healthcare sector, for instance, there is a high demand for specialized cleaning to maintain sterile environments and comply with hygiene standards. Hospitals and medical facilities outsource their cleaning needs to ensure that stringent health and safety regulations are met, minimizing the risk of infections.

The commercial sector, including retail stores, office buildings, and hospitality businesses, represents another key application area for outsourced cleaning services. In these environments, cleanliness is essential for both customer satisfaction and employee productivity. Meanwhile, the industrial sector, which includes factories and manufacturing facilities, often requires more heavy-duty cleaning services due to the presence of machinery, chemicals, and hazardous waste.

By Distribution Channel:

The distribution channels for outsourced cleaning services include direct contracts, third-party service providers, and online platforms. Direct contracts between businesses and cleaning service providers are the most common distribution channel. In this model, businesses enter into long-term agreements with cleaning companies to ensure that their premises are maintained on a regular basis.

Third-party service providers, such as facility management companies, also play a significant role in the market by offering outsourced cleaning as part of a broader range of services. This model is often used by large corporations that want to streamline multiple non-core functions, including cleaning, into a single contract.

Online platforms are an emerging distribution channel, particularly in the residential cleaning sector. These platforms offer on-demand cleaning services, allowing customers to book cleaning professionals at their convenience through websites or mobile apps. This model provides flexibility for customers and is particularly popular among households in urban areas.

OUTSOURCED CLEANING SERVICES MARKET Regional Outlook

The regional outlook for the outsourced cleaning services market reveals diverse trends across different geographical areas. North America and Europe are established markets with steady demand, driven by the presence of large commercial spaces, regulatory standards, and a focus on maintaining clean environments in public spaces. The demand for outsourced cleaning services is particularly high in sectors such as healthcare, retail, and corporate offices in these regions.

North America:

North America holds a substantial share of the outsourced cleaning services market, with high demand from sectors like healthcare, corporate offices, and retail. The emphasis on maintaining clean and safe environments has driven growth, particularly in the U.S. and Canada.

Europe:

In Europe, the outsourced cleaning services market is mature, with strong demand from commercial sectors such as hospitality, retail, and office spaces. Countries like Germany, the UK, and France are leading the market, with a focus on sustainability and green cleaning practices.

Asia-Pacific:

Asia-Pacific is witnessing rapid growth in the outsourced cleaning services market due to urbanization and industrialization. Countries like China, India, and Japan are key players, with increasing demand for both commercial and residential cleaning services.

Middle East & Africa:

The Middle East & Africa region is seeing moderate growth in the outsourced cleaning services market, with the construction of new commercial and industrial facilities driving demand. Countries in the Gulf region are particularly prominent in the market, with high demand for cleaning services in newly developed spaces.

List of Key OUTSOURCED CLEANING SERVICES MARKET Companies Profiled

• Sodexo – Headquarters: Issy-les-Moulineaux, France; Revenue (2022): $22 billion
• JLL – Headquarters: Chicago, U.S.; Revenue (2022): $19.4 billion
• CBRE Group – Headquarters: Los Angeles, U.S.; Revenue (2022): $31.8 billion
• Aramark – Headquarters: Philadelphia, U.S.; Revenue (2022): $16.2 billion
• Cushman & Wakefield – Headquarters: Chicago, U.S.; Revenue (2022): $9.4 billion
• Coor – Headquarters: Kista, Sweden; Revenue (2022): $1.2 billion
• ABM Industries – Headquarters: New York, U.S.; Revenue (2022): $7.8 billion
• Allied Universal – Headquarters: Santa Ana, U.S.; Revenue (2022): $18 billion
• Colliers – Headquarters: Toronto, Canada; Revenue (2022): $4.5 billion
• Savills – Headquarters: London, U.K.; Revenue (2022): $2.9 billion
• ISS World – Headquarters: Copenhagen, Denmark; Revenue (2022): $9.7 billion
• Emcor Group – Headquarters: Norwalk, U.S.; Revenue (2022): $10.8 billion
• Anago Cleaning Systems – Headquarters: Fort Lauderdale, U.S.; Revenue (2022): $550 million
• Buildingstars – Headquarters: St. Louis, U.S.; Revenue (2022): $45 million
• CleanNet USA – Headquarters: McLean, U.S.; Revenue (2022): $80 million.

Covid-19 Impacting OUTSOURCED CLEANING SERVICES MARKET

The COVID-19 pandemic has had a profound impact on the outsourced cleaning services market, causing a surge in demand for cleaning and sanitation services worldwide. As the virus spread across the globe, the need for heightened cleanliness in public spaces, healthcare facilities, and businesses became critical. Organizations were required to adopt stringent hygiene protocols to prevent the spread of the virus, and this led to an increased reliance on professional cleaning services, particularly those that specialize in disinfection and deep cleaning.

In the immediate aftermath of the pandemic’s outbreak, businesses from all sectors, including retail, hospitality, healthcare, and manufacturing, sought outsourced cleaning services to maintain sanitized environments for their employees and customers. Cleaning service providers had to quickly adapt to the new normal by incorporating more rigorous cleaning procedures, such as frequent surface disinfection, the use of electrostatic sprayers, and UV-C light technologies. 

The pandemic also accelerated the adoption of cleaning technologies, such as automated cleaning robots and IoT-enabled devices, which allowed service providers to offer contactless and efficient cleaning solutions. Robotic cleaners were deployed in hospitals, airports, and large commercial facilities to meet the growing demand for cleanliness without risking the health of human workers. The use of real-time monitoring systems to track cleaning activities became crucial in ensuring that high cleanliness standards were maintained.

Investment Analysis and Opportunities

The outsourced cleaning services market presents a wide range of investment opportunities, driven by the growing demand for professional cleaning solutions across industries. Investors are increasingly showing interest in this market due to its resilience, particularly during times of crisis like the COVID-19 pandemic. The market’s ability to thrive during economic downturns makes it an attractive option for both private equity firms and individual investors.

One key area of opportunity is the rise of green and sustainable cleaning services. With the growing focus on environmental sustainability, companies offering eco-friendly cleaning solutions are poised for significant growth. This includes the use of biodegradable cleaning products, energy-efficient equipment, and waste reduction practices. Investors looking to capitalize on the sustainability trend should consider backing companies that are innovating in this space, as the demand for green cleaning services is expected to rise steadily in the coming years.

Technological advancements are another lucrative area for investment. Automation in cleaning, including the use of AI-powered robots and IoT-based monitoring systems, is revolutionizing the industry. These technologies not only improve efficiency but also provide real-time data and ensure accountability. Investing in companies that are developing or implementing these technologies offers significant growth potential as the adoption of tech-driven cleaning solutions increases across industries.

5 Recent Developments

1. Increased Focus on Green Cleaning: Many cleaning service providers are transitioning to eco-friendly products and sustainable practices, in response to growing environmental awareness and customer demand for greener solutions.

2. Growth of Automated Cleaning Technologies: The adoption of cleaning robots, AI, and IoT-enabled devices has accelerated in commercial sectors, providing more efficient and contactless cleaning solutions, particularly in large spaces like hospitals and airports.

3. Post-COVID Sanitation Protocols: Cleaning companies are incorporating advanced disinfection methods such as UV-C light and electrostatic spraying, as clients continue to prioritize cleanliness and safety in the post-pandemic era.

4. Expansion into Emerging Markets: Outsourced cleaning services are experiencing rapid growth in developing economies, particularly in the Asia-Pacific region, where urbanization and industrial growth are driving demand for professional cleaning solutions.

5. Partnerships and Mergers: The market has seen an increase in partnerships and mergers, as cleaning companies seek to expand their service offerings and improve their market reach, particularly in the technology and sustainability segments.

REPORT COVERAGE of OUTSOURCED CLEANING SERVICES MARKET

The report on the outsourced cleaning services market provides comprehensive coverage of the various factors influencing the market’s growth, including market drivers, restraints, challenges, and opportunities. It offers a detailed analysis of the market's segmentation, including by type, application, distribution channel, and region, giving insights into the specific demands of different sectors. The report also provides an in-depth look at key market players, their financial performance, and strategies, offering valuable insights into the competitive landscape.

The report includes coverage of technological advancements and trends, such as the rise of automation and green cleaning practices, and how these developments are shaping the future of the market. In addition, the report highlights the impact of the COVID-19 pandemic on the cleaning services industry and provides an outlook on the post-pandemic market landscape. Investors, stakeholders, and businesses can use this report as a guide to make informed decisions and capitalize on emerging market trends.

NEW PRODUCTS

The outsourced cleaning services market is seeing the introduction of new products and solutions aimed at improving cleaning efficiency and meeting the evolving needs of businesses and consumers. One notable trend is the development of eco-friendly cleaning products that are both effective and sustainable. These products, which include biodegradable detergents, plant-based cleaners, and non-toxic disinfectants, are gaining traction among environmentally conscious businesses seeking to reduce their carbon footprint.

In addition to eco-friendly products, new technologies are also being introduced in the market. For example, robotic cleaning devices equipped with AI capabilities are becoming more common in commercial spaces such as offices, shopping malls, and hospitals. These robots can navigate complex environments and carry out tasks such as floor cleaning, window washing, and disinfection without human intervention. Other innovations include IoT-enabled cleaning systems that allow real-time monitoring of cleaning activities, ensuring thoroughness and adherence to standards.

REPORT SCOPE

The scope of the report on the outsourced cleaning services market encompasses a thorough analysis of various aspects of the market. This includes market size estimations, growth projections, and revenue forecasts for different segments, such as commercial, residential, and industrial cleaning services. 

The scope also extends to an analysis of the competitive landscape, featuring profiles of key players, their market share, and strategies. The report is designed to provide stakeholders with actionable insights to help them make strategic decisions in a rapidly evolving market.