The commercial and residential cleaning services market in the U.S is estimated to grow by $36.81 billion from 2024-2028 at a compound annual growth rate (CAGR) of 6.05 percent, according to research from Technavio. Rising popularity of multifamily dwellings in US is driving market growth, with a trend towards increasing number of strategic alliances. However, fluctuations in labor wages poses a challenge.
Key Market Trends Fueling Growth
The commercial and residential cleaning services market in the U.S. is characterized by intense competition due to the presence of numerous local and international players. To stay competitive, vendors are focusing on enhancing their service offerings and expanding their customer base. Strategic partnerships have emerged as a popular strategy for gaining a competitive edge. For instance, ABM's partnership with the Arizona Diamondbacks and Chase Field in March 2024 for providing janitorial services as a single source. These collaborations enable vendors to broaden their reach and offer comprehensive services through new distribution channels. The formation of such strategic alliances is expected to increase in number, thereby boosting the availability of commercial and residential cleaning services in the US and driving market growth during the forecast period.
The market is thriving, with a focus on maintaining high hygiene standards for both business and home environments. General cleaning duties include various techniques and methods, such as deep cleaning, sanitizing, and disinfection, using specialized equipment and supplies. Customer experience is key, with trained cleaners ensuring dependability and cleanliness. Industry trends include electrostatic spray disinfection, green cleaning, and adherence to strict cleaning standards. Facility types, from offices to cleanrooms, medical facilities, schools, and commercial kitchens, have unique sanitary requirements and cleaning needs. Bonded and insured companies prioritize property damage prevention and effectiveness of cleaning. The market prioritizes health, hygiene, and customer experience, with specialized technology and trained cleaners ensuring cleanliness and dependability for various facility types.
Market Challenges
The U.S. market is subject to continuous fluctuations in labor wages, which can adversely impact market growth. Underpayment of labor results in low efficiency and challenges in hiring and training processes. Increasing labor costs are driven by supply-demand imbalances and government regulations on minimum wages. For instance, the U.S. government's frequent updates to minimum wage rules can lead to increased base salaries or employee benefits. According to the U.S. Bureau of Labor Statistics, wages and salaries rose by 0.9 percent and benefit costs increased by 0.7 percent in 2023. These wage increases will negatively affect the revenues of vendors in the commercial and residential cleaning services market in the US, hindering market growth during the forecast period.
The U.S. market faces unique challenges in delivering quality cleaning solutions for various facility types. Customer experience is key, with Foreman Pro Cleaning prioritizing trained cleaners, specialized technology, and tailored services to meet specific sanitary requirements and cleaning needs. Office buildings, cleanrooms, medical facilities, healthcare facilities, schools, commercial kitchens, and domestic dwellings all have distinct sanitize and hygienic conditions. Effectiveness and dependability are essential, with industrial-grade equipment and green cleaning practices ensuring both. Bonded and insured services protect against property damage. Layout differences, cleaning frequency, and cleaning intensity necessitate specialized equipment. Client expectations for cleanliness and adherence to standards are high. Electrostatic spray disinfection and green cleaning further enhance the quality of cleaning offered.
Read more on trends impacting the commercial cleaning market here.