Janitorial Service Market

Market Overview

The global janitorial service market size was valued at USD 290 billion in 2023 and is projected to reach USD 410 billion by 2032, registering a CAGR of 4% during the forecast period (2024-2032). The decreasing office vacancy rates and the growing commercial operations primarily drive the market growth.

Janitorial services encompass expert cleaning and upkeep services for commercial, industrial, or institutional structures. Typically, janitors or custodians are responsible for performing these tasks, which involve maintaining the premises' cleanliness, sanitation, and overall condition. Specialized organizations can be hired to provide janitorial services, which typically encompass a variety of duties aimed at maintaining the cleanliness and hygiene of a building.

The growing apprehension regarding employee health and hygiene, coupled with the rising prevalence of airborne infections, is fueling the need for cleaning services in the industry. The increasing need to preserve environmentally friendly and sustainable workplace environments will drive the need in the forecast period.

Highlights

• Commercial generates the highest revenue share based on application. 
• Standard cleaning accounts for the largest market share by end-use.

Market Dynamics

Global Janitorial Service Market Drivers

Regulatory Compliance

The significance of cleanliness and hygiene in commercial, industrial, and institutional environments is a primary catalyst for expanding the janitorial service market. Businesses and organizations emphasize ensuring a hygienic and germ-free environment for the health and safety of individuals who occupy, work in, or visit their premises. Various sectors are obligated to adhere to regulatory norms and cleanliness criteria. The industry is significantly influenced by increasing consumer awareness regarding hygiene and workplace wellbeing. Based on the 'Cleaning Costs and Frequencies Report' released by Contracting Profits, Facility Cleaning Decisions, and BSCAI, a significant majority of different types of facilities maintain a high frequency of floor mopping. Specifically, 65% of multi-tenant workplaces, 80% of K-12 schools, 85% of colleges/universities, and 90% of hospitals have their floors washed numerous times daily.

Consequently, there is a significant increase in the need for janitorial services. Janitorial facilities are essential for organizations to adhere to health and safety laws and maintain the required cleaning standards. Many businesses delegate janitorial services to specialist suppliers to guarantee professional and efficient cleaning. Outsourcing enables firms to concentrate on their primary activities while entrusting cleaning and maintenance responsibilities to specialists.

Growing Demand for the Real Estate Industry

The increasing demand for the real estate sector is anticipated to drive the expansion of the janitorial market. Real estate refers to any structure or object permanently attached to or built on land, regardless of whether it occurs naturally or is artificial. Janitorial services ensure the construction environment is clean and free from dirt, dust, and unpleasant smells. They address problems such as dirty appliances, torn carpets, and discolored surfaces to ensure homes are ready for thorough inspection.

In November 2022, the National Association of Realtors, a US-based commercial organization, reported that in 2020, a total of 5.64 million pre-existing dwellings and 822,000 newly built homes were sold. Additionally, the median gross income of realtors increased from USD 43,330 in 2020 to USD 54,330 in 2021. Hence, the increasing need for the real estate sector is propelling the expansion of the janitorial market.

Global Janitorial Service Market Restraint

Economic Downturns or Recessions

In economic downturns or recessions, businesses may encounter financial limitations and decrease expenditures on non-essential services, such as janitorial services. This can result in a decrease in the demand for commercial cleaning services. Specific organizations, especially smaller enterprises, may function with limited financial resources and prioritize strategies to reduce expenses. In such instances, janitorial services may be perceived as an area where costs can be minimized or effectively handled internally. Large firms may form and oversee their in-house cleaning teams, particularly if they have substantial and regular cleaning requirements. This can affect the market for outsourced janitorial services.

Global Janitorial Service Market Opportunity

Technological Advancements

The janitorial service business is also embracing ecologically sustainable practices. Clients looking for environmentally responsible solutions are attracted to green cleaning procedures, which utilize eco-friendly products and methods. The growth of commercial and industrial establishments drives the need for cleaning services. The need for professional cleaning and maintenance services is rising, with additional buildings and office spaces being constructed. Integrating technology into janitorial facilities improves their efficiency and efficacy. Smart cleaning equipment, remote monitoring, and data analytics are innovative technologies that enhance service delivery and resource management.

In June 2022, Ecovacs Robotics, a technology firm in China, introduced the DEEBOT T10 robotic vacuum cleaner, which is driven by artificial intelligence (AI). This updated DEEBOT has advanced technologies, such as AIVI 3.0, an enhanced artificial intelligence system that can recognize and avoid objects. This improves the accuracy of recognizing items in a single frame by 20% and increases the speed of recognizing objects in a single frame by 20 times, allowing for identifying and avoiding objects on the floor. The device is equipped with a starlight camera to identify and avoid obstacles on the floor, eliminating the need to clean them beforehand. This ensures a meticulous cleaning experience that prioritizes the safety of the property. Additionally, the device utilizes artificial intelligence and visual interpretation to enhance its functionality.

Additionally, Diversified Maintenance Systems, LLC, a US-based janitorial and maintenance services company, acquired Millers Cleaning Services in August 2022 for an unknown sum. The acquisition enhances the company's strategic expansion path, increases its customer base, and strengthens its market position. Millers Cleaning Services is a British firm specializing in cleaning services for commercial and residential properties. Emphasized by occurrences like the COVID-19 pandemic, health and safety considerations have been paramount. Janitorial facilities have modified their practices to address these issues by providing specialized cleaning, disinfection, and sanitization services. Janitorial facility providers progressively offer tailored solutions to cater to the distinct requirements of various sectors and clientele. Customizing services to meet organizations' specific needs boosts clients' value proposition.

Regional Analysis

The global janitorial service market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global janitorial service market shareholder and is estimated to grow at a CAGR of 4.2% over the forecast period. The janitorial service markets in the United States have a value above USD 97.6 billion and employ more than two million individuals nationwide. The market growth is primarily driven by the presence of multinational corporations and the increasing adoption rate in the region. ABM Industries is the largest janitorial firm in the United States, with sales of USD 7.8 billion and employing 140,000 individuals. 

Furthermore, the increasing need for environmentally friendly treatments is fueling the demand in the market. According to the White House Office of Management and Budget, firms can save over USD18 billion throughout a project by investing in LEED initiatives and ensuring regular janitorial upkeep. This is increasing demand in the region. The United States retains its position as the primary stakeholder due to the presence of prominent corporations and a robust demand for cleanliness and wellbeing in the workplace.

Asia-Pacific is anticipated to exhibit a CAGR of 4.7% over the forecast period.  Market growth is predicted to be positively influenced by the increasing commercial construction activity in developing countries in the Asia Pacific region. The Jing'an Zhongxing Plot C070202 Unit 322-09 Mixed-Use Development Project entails the creation of mixed-use facilities spanning 160,000m2 GFA in Shanghai. The construction commenced in the fourth quarter of 2023, with an anticipated completion date in the fourth quarter of 2026. The project seeks to improve the residential and commercial amenities in the area. The increasing number of startups also contributes to the growth of the market.

For example, the Asia-Pacific area houses over 400 unicorn companies and startups with a valuation exceeding 100 billion U.S. dollars. China is home to several of the world's most valuable startups in the region. Moreover, the surging popularity of co-working spaces, coupled with the rising influx of investments from global corporations, is fueling the need for cleaning services in the region.

Europe holds a significant market share. Various significant factors impact the European janitorial services market. First and foremost, economic expansion and urbanization result in a higher need for both commercial and household cleaning services. Furthermore, the presence of strict rules about cleanliness and hygiene in public areas necessitates the requirement for professional janitorial services. Technological improvements significantly influence the industry, including implementing environmentally friendly cleaning methods and automation.

Additionally, the increasing practice of businesses outsourcing non-essential tasks to concentrate on their primary areas of expertise contributes to the expansion of janitorial service providers. Furthermore, the COVID-19 epidemic has emphasized the significance of cleanliness, leading to an increased need for disinfection services across many industries.

Segmental Analysis

The global janitorial service market is segmented based on application and end users.

Based on application, the global market can be categorized into Commercial and Residential.

The commercial segment dominated in 2023. The increasing expansion of business operations and reduced availability of vacant areas are leading to a surge in the need for janitorial services within the commercial industry. The demand is mainly driven by healthcare, office space, and retail companies. Additionally, the segment comprises private educational facilities, federal, state, and municipal government buildings, and not-for-profit organizations, which are the primary users.

The residential segment is the fastest growing. The janitorial services market on a global scale is experiencing substantial expansion, driven in part by a surge in demand for residential cleaning services. Due to evolving lifestyles and an increased emphasis on hygiene, many households are delegating cleaning responsibilities to professional janitorial services. This phenomenon is especially noticeable in cities with a high prevalence of time limitations and households with two incomes. Furthermore, the COVID-19 pandemic has increased cleanliness consciousness, amplifying the need for residential cleaning services.

Consequently, janitorial service providers are diversifying their services to meet the needs of residential customers, thereby fueling the expansion of the worldwide janitorial services market. The need for cleaning services in the residential sector is mainly driven by High Net Worth Individuals (HNWIs). According to the World Ultra Wealth Report 2017, 226,450 persons had a net worth of USD 30 million or more. The global growth rate of 3.5% is a significant driver of the expansion in the residential segment. 

Based on end-use, the market is segmented into Standard Cleaning, Floor Care Services, Damage Restoration Cleaning, Exterior Window Cleaning, and Others.

The standard cleaning segment dominated in 2023. The growing need for standardized cleaning techniques fuels the worldwide janitorial services industry. With the increasing emphasis on hygiene and sanitation, businesses and institutions seek expert cleaning services that strictly follow industry standards. This phenomenon is especially noticeable in healthcare, hospitality, and commercial real estate industries, where maintaining cleanliness is paramount.

Additionally, an increased recognition of the significance of hygiene in preventing the transmission of illnesses, along with more stringent laws, contributes to expanding the janitorial services industry. As a result, organizations that provide standardized cleaning solutions are well-positioned to take advantage of substantial prospects and expand their market presence.

The damage restoration segment is the fastest growing. The surge in demand for damage restoration cleaning services is driving the growth of the worldwide janitorial services market. Given the increasing occurrence of natural catastrophes and accidents, there is a greater demand for specific cleaning solutions to restore impacted areas effectively. Damage restoration cleaning includes a variety of services, such as cleaning up after water and fire damage, as well as removing mold. The need for professional janitorial services providers offering damage restoration cleaning is increasing as businesses and homeowners look for swift and practical solutions to lessen the effects of such disasters. This tendency is anticipated to persist in propelling market growth in the foreseeable future.

The floorcare services segment is the second largest. Floorcare services are expected to drive growth in the worldwide janitorial services industry. The demand for specialist floorcare solutions is rising due to the growing emphasis on cleanliness and hygiene, particularly in commercial and healthcare settings. The progress in floor care technology, including robotic cleaners and environmentally friendly cleaning solutions, is further driving this trend. These innovations are improving both efficiency and sustainability.

Moreover, with businesses placing a high importance on ensuring hygienic and secure surroundings to attract clientele and adhere to laws, there is a projected increase in the need for expert floor care services. This will, therefore, lead to the overall growth of the global janitorial services market.

Recent Developments

• April 2024 - Corvus Janitorial Systems, a prominent company in commercial cleaning services, announced its notable accomplishments, as acknowledged by Entrepreneur Magazine. A prestigious journal has ranked Corvus Janitorial Systems as the 6th fastest-growing franchise and the 8th franchise opportunity under USD 50K for 2024. The renowned rankings emphasize Corvus Janitorial's commitment to offering excellent business prospects and substantial growth chances in the commercial cleaning sector.
• December 2023 - ABM (NYSE: ABM), a prominent company that offers a wide range of facility services, infrastructure solutions, and parking management, declared the extension of its partnership with LaGuardia Gateway Partners (LGP), the organization responsible for developing and overseeing LaGuardia Terminal B. This expansion aims to provide all-encompassing integrated facility services and exceptional traveler experiences at TERMINAL B.