Commercial Hand Dryer Market

Market Overview

The global commercial hand dryer market size was valued at USD 1.34 billion in 2022. It is estimated to reach USD 2.58 billion by 2031, growing at a CAGR of 7.57% during the forecast period (2023–2031).

A hand dryer refers to an electronic device utilized in public bathrooms as an economical alternative to paper towels for drying hands. Commercial hand dryers are industrial electric warm-air hand dryers. Businesses and institutions purchase and install these items in their showers, washrooms, and executive break rooms to save money, reduce waste, and prevent the spread of germs. An ideal degree of cleanliness and hygiene is maintained by reducing the possibility of cross-contamination and the spread of diseases. The new generation of high-speed commercial hand dryers would be advantageous for all these buildings public washrooms, commercial structures, stadiums, airports, and schools.

Commercial air hand dryers are extremely durable and constructed to last. These items are designed for frequent use in areas with high foot traffic throughout the day. Business enterprises nationwide have the potential to substantially reduce 90 percent of their expenditures related to paper towel procurement. Hand dryers are activated by pressing a button, which activates a sensor that detects motion and enables the motor to generate warm air for drying purposes. Commercially available hand dryers include push-button, high-speed, and automatic varieties.

Market Dynamics

Global Commercial Hand Dryer Market Drivers

Product Innovation

The commercial hand dryer industry has witnessed continuous innovation since the invention of hand dryers. Initially, in the 1920s, Airdry Corporation of New York invented blowers powered by a controlled floor pedal, known as Airdry electric towel. In addition, a leading Japanese manufacturer, Mitsubishi Electric, developed and launched one of the key advancements in the hand dryer market, jet-speed hand dryers, in the 1990s.

The first hand-in dryer revolutionized technology, but it took until early 2000 for this type of hand dryer to gain significant traction in the American and European markets. Since 2000, the global commercial hand dryer market has witnessed continuous advancements in utility and technology. For instance, Dyson Airblade, released in 2006, gained popularity across the globe in a very short time after its launch. Therefore, ongoing product innovation is one of the key growth drivers in the global commercial hand dryer market.

Rising Installations of Hand Dryers

The demand for commercial hand dryers has risen significantly over the past few years. The rising adoption of commercial hand dryers is also attributed to rising disposable income and global living standards. Similarly, as the global incidence of coronavirus continues to rise in various geographical areas, there is a notable surge in the demand for hand dryers.

Considering shopping malls as one of the key sectors where the high use of commercial hand dryers is seen, studies show that shopping malls have witnessed a significant rise in footfall over the past few years. For instance, Dubai Mall achieved record numbers of more than 80 million visitors annually over the past four years. This huge footfall in malls leads to an increase in washroom traffic, which creates demand for commercial hand dryers.

Global Commercial Hand Dryer Market Restraint

Rising Health Concerns

Health concerns are one of the key aspects restricting commercial hand dryers' market growth in recent years. The emergence of several studies dealing with bacterial contamination with the use of commercial hand dryers has raised concerns among end-users. Some studies suggest that the number of bacteria in the air and bathroom surfaces is much higher where jet-air hand dryers are used than paper towels. This phenomenon primarily arises due to individuals' inadequate adherence to proper hand hygiene practices. Therefore, the bacteria left on their hands are blown into the air and spread on bathroom surfaces through hand dryers.

Global Commercial Hand Dryer Market Opportunities

Partnerships with Hospitality Sector

The hospitality sector is one of the key end-users of commercial hand dryer products. The tourism industry, which is expanding quickly due to the high demand for hospitality services globally, has contributed significantly to the sector's recent growth. For instance, the UK hospitality sector is expected to grow by establishing 130,000 new hotel rooms by 2025. Several factors, including rising disposable income, new travel trends, improved work-life balance, green travel, and others, have contributed to the growth of the hospitality industry. All these factors contribute to the growth of the tourism industry.

In this regard, partnerships with players in the hospitality sector will likely create a strong demand for commercial hand dryers. For instance, Mediclinics SA capitalized on the demands in the North American markets via strategic channels. Therefore, partnerships with large players in the hospitality sector will likely provide vast opportunities to vendors catering to the commercial hand dryer market.

Regional Analysis

Based on region, the global commercial hand dryer market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Europe Dominates the Global Market

Europe is the most significant global commercial hand dryer market shareholder and is estimated to exhibit a CAGR of 7.01% during the forecast period. The commercial hand dryer market in Europe is expected to exhibit a surge in demand owing to the population's steady economic growth and high living standards, which maximizes infrastructure in the region. One of the major reasons for the high adoption of commercial hand dryers among European households is an increasing per capita disposable income among the people. The improving economy in many European countries has increased the disposable income among the population. Further, higher living standards across regional societies and a favorable trade environment regarding imports and exports are expected to drive the market for commercial hand dryers in Europe.

In addition, end-users in these nations are known to have a high annual savings ratio. For example, an average Western European save over 10% of their annual income, three times more than an average US national. The higher saving translates into opportunities to adopt gadgets that add convenience and maintain hygiene in homes and offices, driving the commercial hand dryers market demand during the forecast period.

Asia-Pacific is predicted to exhibit a CAGR of 8.31% over the forecast period. China and Japan are the two most significant economies in the Asia-Pacific region. It is anticipated that China's economy will rebalance, moving away from the manufacturing and investment sectors and toward the consumption sector. Hence, robust economic growth coupled with the influx of capital is expected to propel the real estate market in the Asia Pacific region. Investors are emphasizing real estate businesses for consistent income returns. In today's scenario, the real estate sector in Asia-Pacific is witnessing tremendous growth in emerging real estate trends and developing economies. Commercial retail spaces, residential spaces, logistics infrastructure, the hospitality industry, and other sectors are expected to grow rapidly over the next few years due to the region's growing real estate businesses. With the robust expansion in these segments, the need for maintenance and hygiene is also expected to increase, further propelling the demand for commercial hand dryers.

North America is a huge market for commercial hand dryers. The growth of urbanization and industrial development has provided vast opportunities for the major vendors in this region. However, the competitive landscape in the region has witnessed intense rivalry to exploit the market demand. Major players are looking to develop strategic channels and a robust distribution network to gain a competitive edge in the market. The other market driver that is boosting growth is the high internet penetration. In addition, the US and Canada have more than 90% internet penetration. This further helps vendors to create and spread product awareness. Moreover, vendors strategically place their products via the Internet through blogs, case studies, and many more. The US nationals have become more aware of the need to sanitize their hands given the ongoing COVID-19 pandemic, which has led to high demand for hand dryers.

In the Middle East and Africa, the commercial hand dryer market has vast opportunities for consumption and sales. An analysis of the overall region suggests that key nations in the Middle East and Africa, such as the GCC nations, have increased their focus on developing smart and sustainable infrastructure, including academic institutions and commercial places. For example, Saudi Arabia's target for 2030 regarding ownership in housing properties. Therefore, a factorial analysis of the region suggests that opportunities and demand are likely to rise further in the coming years.

Segmental Analysis

The global commercial hand dryer market is bifurcated into product, operation, application, and distribution.

Based on the product, the global market is bifurcated into hot air and jet air hand dryers. 

The hot air hand dryer segment owns the highest commercial hand dryer market share and is predicted to exhibit a CAGR of 7.09% over the forecast period. Hot air hand dryers use heating evaporation technology to dry the hands. This is the conventional hand-drying technology, mostly developed around the 1920s. Hot air hand dryers are most commonly used globally, accounting for the largest market share in revenue. However, there are rising concerns about hygiene and bacterial infection related to hot-air hand dryers. For instance, the multiplication of bacteria within the hot-air dryers or from the atmosphere into the hand dryer in bathrooms could spread diseases. High-efficiency particulate air (HEPA) tanks are connected to dryers to remove most bacteria from the water flowing through the dryers.

Based on operation, the global market is bifurcated into hands-under and hands-in dryers. 

The hands-under dryer segment dominates the market and is projected to grow at a CAGR of 7.91% over the forecast period. Hands-under dryers are mostly conventional products. This type of operation is mostly seen in hot-air hand dryers. However, over the years, hand-under-hand dryers have witnessed technological advancements. Despite this, many end-users are replacing conventional hand-under dryers with jet-air hand dryers. Given the shift in consumer preferences, vendors manufacturing hands-under dryer products have started emphasizing innovations and technological advancements. One of the key innovations in this segment is the launch of automatic sensor-based dryers with heat advancements.

According to numerous reports and data from the Electric Hand Dryer Association, hand dryers in bathrooms do not aid in the spread of COVID-19 during the current pandemic. Moreover, it has been found that warm air hand dryers (which are generally hands-under in operation type) are safe to use during the current pandemic. Therefore, using hot air hand-under-hand dryers is safe, ultimately driving new sales of hands-under-hand dryers during the forecast period.

Based on application, the global market is divided into education, hospitality, healthcare, commercial spaces, corporate spaces, government spaces, industrial, and others. 

The commercial spaces segment is the most significant contributor to the market share and is anticipated to exhibit a CAGR of 8.04% over the forecast period. Real estate is still attracting capital, proving to be better than other asset classes in a volatile investing climate that is starting to show signs of nervousness over inflation and rising interest rates. Several commercial places are being constructed across the globe. Airports from Asia and Europe to the US have ambitious growth plans to accommodate more passengers, get more planes flying, and make travel more comfortable and efficient.

The growth in other commercial spaces has also witnessed a significant rise over the past few years. For instance, there is a huge opportunity for the installation of commercial hand dryers in railway stations, considering the rail network. Therefore, the construction of new commercial places offers huge scope for the commercial hand dryer market growth during the forecast period.

Based on distribution, the global market is divided into offline and online channels. 

The offline segment accounts for the largest market share and is anticipated to exhibit a CAGR of 7.53% over the forecast period. Commercial hand dryers are primarily distributed through dealer channels and retail establishments, including specialty stores, supermarkets, hypermarkets, mass-market retailers, and electronic stores. The long-established retail channels of commercial hand dryer manufacturers such as Dyson have promoted sales of commercial hand dryers through retail stores such as specialty stores and electronic stores. In addition, the mass market players segment constitutes supermarkets and hypermarkets. They have started to stock and sell various types of commercial hand dryers.

Recent Developments

• March 2023- Central Marketing Group (CMG), a division of Central Retail Corporation (CRC) and an industry leader in the distribution and management of more than 40 world-class brands in the technology, beauty, and lifestyle categories, introduced the "Dyson Airblade" hand dryer in Thailand, which incorporates cutting-edge innovations for superior hygiene.

• April 2022- In India, Euronics introduced the NERO series. It is equipped with a sensor faucet, an automatic detergent dispenser, and a hand dryer.