Home Care Service Market

Market Overview

The global home care service market size was valued at USD 18,272 million in 2021. It is expected to reach USD 39,034 million by 2030, growing at a CAGR of 8.8% during the forecast period (2022-2030).

Home care businesses offer various services through their product portfolio for daily tasks in the home or workplace, such as laundry, errands, medication, cleaning, cooking, maintenance, and medical care services. Home care services are offered for both the business and residential sectors. Residential cleaning services include personnel handling household chores like carpet and window cleaning and several additional cleaning services like personal care and companionship, private duty nursing care, and home health care services needed less frequently. Cleaning firms like carpet and window cleaners are among the commercial cleaning services. While rising nations like China, Brazil, and India are swiftly catching up, the adoption of home care services has been relatively strong in established regions like the United States, Canada, and Germany.

The demand for home care services has increased significantly over time, and this trend is anticipated to continue during the forecast period. This can be ascribed to increased consumer use of home care services, including cleaning, cooking, and medical care, and increased awareness of cleanliness and the environment. Additionally, urbanization-related economic growth has increased the need for home care services. The rising affinity of consumers in emerging economies toward hygiene and the environment, with development in disposable income and an improvement in living conditions, allows them to spend more on upscale services, which further increases the need for home care services. The lack of local service providers and a lack of sufficient manpower, however, limit the expansion of the worldwide market.

Market Dynamics

Global Home Care Service Market Drivers

Economic Growth and Increased Disposable Income Plus Hygiene Consciousness

Urbanization brought on by economic expansion is a factor in the rise in demand for home care services. In 2014, 54% of people worldwide lived in urban areas. By 2050, 68% of people worldwide are estimated to reside in urban areas, according to the United Nations Department of Economic and Social Affairs, Population Division. The most urbanized regions, with significant populations of consumers and a corporate lifestyle, are North America, Latin America, and Europe. Furthermore, it is anticipated that the shift of consumers into metropolitan regions will raise the demand for home care services.

The home care services market is also expected to be driven by a rise in disposable income among Asia Pacific’s enormous population. For instance, China's disposable income climbed rapidly, reaching USD 4,615 million in 2015, according to the National Bureau of Statistics of China. The disposable income was estimated at USD 4,267 million in prior years. India's disposable income climbed to USD 21,77,505 million in 2015 from USD 20,15,006 million in 2014, according to the Ministry of Statistics and Program Implementation (MOSPI). This was the most significant recorded level of disposable income. As a result, there is much room for innovation in the home care services sector, and investors are likely to change their priorities to increase their market share in these nations.

Global Home Care Service Market Restraints

Competitive Environment

The world's developed regions face intense competition in the market for home care services. The market study indicates that the US janitorial services market is fragmented, with the top 50 companies accounting for 30% of total revenue. While small businesses compete effectively in local marketplaces, particularly for small companies and household clients, large corporations have a strong market position thanks to their many locations supplying customers.

ABM Industries Inc. and The Service Master Company, LLC, two significant players, produced revenue of USD 4,898 million and USD 2,594 million in 2015, accounting for over 15% of the total worldwide revenue and fiercely competing with smaller businesses. As a result, it limits the growth of small and medium-sized companies that want to compete in the market.

Global Home Care Service Market Opportunities

The Growth in Working Women Percentage

Millions of women previously dependent on men are now in charge of their financial situations. The availability of higher education improved women's employment opportunities. Changing their role models from housewives to successful professional women has increased their value in the employment market. Around 62% of women in the United States are self-employed, per the OECD Employment and Labor Market Statistics. Between the ages of 20 and 64, part-time employment climbed gradually, from 16.5% in 2005 to 19% in 2015. Most women working are found in nations like Denmark, the Netherlands, Iceland, Norway, and Sweden.

Around 80% of dual-income households employ an outside cleaning service for their homes, which includes wiping and cleaning cupboards, appliances, tables, chairs, and other home decorations, dusting walls, ceilings, furniture, baseboards, window sills, and railings. Furthermore, as stated in the US Department of Labor report, the proportion of dual-income households in North America increased from 1996 to 2006, reaching 31%. According to statistics produced by Statistics Canada, the proportion of families with two earners has increased dramatically over the past 40 years, nearly doubling. This significantly impacts market expansion and creates dozens of new prospects.

Regional Analysis

The region-wise segmentation of the global home care service market includes North America, Europe, Asia-Pacific, and LAMEA.

The Asia Pacific and North America will prevail in the regional market

The Asia Pacific will presumably command the regional market while advancing at a CAGR of 9.65%. Home care services are a fantastic fit to serve the current generation, given the limited time available, the advent of cell phones, and the internet. Consumers are looking for home care services even when every product on the market is available online. Due to its large population, rising disposable income, and growing awareness of healthy living among consumers, Asia-Pacific is a promising market for the home care services industry growth. Due to the region's expanding economy and increased commercial and non-commercial building construction, the market for cleaning services is growing in the Asia-Pacific region. Additionally, it is anticipated that raising female awareness of higher education and rising disposable money will open up new commercial prospects for rivals.

With the help of these services, elderly or geriatric persons can continue to live in their comfortable homes without experiencing the stress that comes with moving into a nursing facility. The Asia Pacific home care services industry is growing due to rising public awareness of health and cleanliness. The need for home care services is rising as there are more elderly patients with health problems. Additionally, the region's home care services market is driven by rising living standards, increased disposable income, rapid urbanization, and an increase in nursing homes.

North America is expected to have a shareholding of USD 8,725 million by 2030, growing at a CAGR of 5.45%. Due to the widespread usage of home care services and the rise in dual-income households, North America held a substantial market share. The expansion of the home care services industry in the United States has been attributed to an increase in families with two incomes, which has altered residential consumers' lifestyles and raised demand for home care services. With various other microeconomic reasons connected to it, such as an increase in women's general working population and lifestyle changes, it is predicted that rising trends in females pursuing higher education will fuel the market's expansion.

Segmental Analysis

The global home care service market is classified across the service, duration, and region.

According to service, the segments are maid services, carpet & upholstery, and other cleaning services.

The maid service section is presumed to have the highest shareholding, expanding at a CAGR of 8.57%. A significant market share for maid services is projected due to changing consumer lifestyles and the increasing number of working women, particularly in developing nations. Cooking services are a large portion of maid services offered at residential properties. It also involves smaller tasks like cleaning the refrigerator, sink, photo frames, and appliances. The demand for these services was fueled by the increase in work options for women due to their higher levels of education. Due to the improvement in the economy and the rise in both commercial and non-commercial building construction, these services have increased. The market for home care services is expected to expand due to an increase in disposable income.

The carpet & upholstery section will hold the second-largest share. Players in the market offer carpet and upholstery services, such as cleaning floor carpets and furniture upholstery of dust, pollen, bacteria, stains, and food fragments. These services are becoming more prevalent among clients with high incomes. Increased building activity and rising use of carpet and upholstery cleaning equipment, such as carpet extractors, vacuum cleaners, automatic polishers, and scrubbers, are the main factors propelling the market expansion and opening up new potential opportunities. Furthermore, adopting green and sustainable home care techniques has been prompted by the rise in consumer, business, and industrial knowledge of the advantages of eco-friendly, green products.

According to duration, the segments are daily, weekly, monthly, quarterly, and annually.

The daily section is presumed to hold the largest revenue share, advancing at a CAGR of 8.11%. The maid services that are provided daily are included in the daily duration. Household families require cooks and maids who can perform everyday clerical tasks. The home care service market has expanded due to urbanization and a fast-paced way of life. Due to the present life form, where every family member works daily, everyday cleaning is impossible. So whereas businesses need their own housekeeping personnel for the daily upkeep, families need cleaning staff on a daily/weekly basis for their houses. As a result, the market for home care services is anticipated to rise throughout the projected period as urbanization continues to increase.

The quarterly section will hold the second-largest share. Services like heavy repair, furniture, carpet cleaning, house cleaning, and washing are included in quarterly home care services. Home cleaning and washing are often done every two to three months; thus, the services are used every three months. Customers' needs for cleaning and maintaining their homes drive this market. Due to the rise in disposable income over the past few years, families' living standards have increased. This element is having a favorable impact on the market for home care services.

Recent Developments

• In 2022, ABM announced a five-year partnership with the City of Chicago. The city recently informed ABM that its proposal to offer complete window cleaning, janitorial, and related hygiene and disposal services on the secure side of Terminals 1, 2, and 3 were accepted. The agreement reflects a substantial increase in ABM's current scope of activity at O'Hare.
• In 2022, ABM unveiled the ABMVantage Integrated Mobility Solution. The new data-enabled, driver-first mobility solution from ABM seeks to speed up industry innovation with a fully integrated, cutting-edge product that boosts parking operators' profitability.