AI Redefining the Home Services Market, Growth of USD 6.54 Trillion from 2024-2028 with Digital Media's Impact - Technavio Report

NEW YORK, Dec. 6, 2024 /PRNewswire/ -- Report with market evolution powered by AI- The global home services market  size is estimated to grow by USD 6.54 trillion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  40.34%  during the forecast period.  Increasing influence of digital media is driving market growth, with a trend towards increasing number of startups entering the market. However, high competition among vendors  poses a challenge. Key market players include Amazon.com Inc., Angi Inc., AskforTask Inc., Frontdoor Inc., Gapoon Online Consumer Services Pvt. Ltd., Helpling GmbH and Co. KGA, Home Depot Inc., Home Reno Pte. Ltd., Johns Lyng Group Ltd., MyClean Inc., Oneflare Pty Ltd., Paintzen Inc., Porch.com Inc., SC Pointer Systems Srl, Super Home Inc., TaskEasy Inc., Taskrabbit Inc., The ServiceMaster Co. LLC, Urbanclap Technologies India Pvt. Ltd., and Zauba Technologies and Data Services Pvt. Ltd..

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Key Market Trends Fueling Growth

The home services market is experiencing significant growth due to an increase in seed funding for startups. For instance, Urban Company and Housejoy, both tech-enabled home services marketplaces, have raised substantial investments in recent years. Urban Company secured Series F funding of USD255 million in June 2021, while Housejoy raised USD35 million in 2020. These funds are being used to expand their business operations. Startups are attracting consumers with attractive offers and interactive platforms. Airtasker, Askfortask, and Housejoy are some startups offering general services, connecting consumers to service providers for short-term, non-professional projects. Handy, Helpling, and MyClean are examples of startups providing on-demand home cleaning services through online booking. Houzz Inc., The Porch Company, and Pro.com help consumers connect with professional contractors for various household improvement projects. The rise in the number of startups is a major factor driving the growth of the home services market. These companies are offering innovative solutions, making it more convenient for consumers to access home services. The availability of a wide range of services under different categories is also contributing to the market's growth. Overall, the home services market is expected to continue growing due to the increasing number of startups and the investments they are receiving.

Home services market is witnessing significant trends with the rise of virtual versions of physical entities on platforms like Microsoft Azure. This includes maintenance, repair, and improvement activities for homes, covering cleaning, landscaping, plumbing, electrical work, remodeling, and more. Homeowners, renters, and property managers prioritize safety, comfort, aesthetic appeal, and energy efficiency. Ageing housing stock and DIY trends call for technological disruptions, regulatory difficulties, labour shortages, and price wars. Seasonal variations impact demand for services like plumbing, electrical repairs, HVAC maintenance, appliance repairs, home improvement, renovations and remodeling, carpentry and woodworking, and cleaning services. Environmental considerations are a growing concern, with eco-friendly practices and energy-efficient solutions gaining popularity. 

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Market Challenges

• The home services market is characterized by intense competition among regional and international players. Factors driving competition include acquisitions, expansions, and marketing efforts. New startups entering the market are expected to intensify competition. The market is highly fragmented with numerous unorganized vendors, leading to issues such as inconsistent service quality, lack of transparency, and delayed performance. These challenges, along with price wars among vendors, may erode profit margins and force smaller businesses to exit. Additionally, local brick-and-mortar stores pose significant competition. These factors may hinder the growth of the global home services market.
• In the Home Services Market, providing safety, comfort, and aesthetic appeal to consumers' homes is crucial. However, challenges such as ageing housing stock, DIY trends, changing lifestyles, and regulatory difficulties persist. Labour shortages and technological disruptions also impact the industry, with environmental considerations and price wars adding to the complexities. Plumbing services, electrical repairs, HVAC maintenance, appliance repairs, home improvement, renovations, and remodeling, carpentry and woodworking, cleaning services, and healthcare offerings continue to be in demand. Digitalization, through e-commerce platforms and cloud-based solutions, has disrupted traditional business models. Companies like Ginger, One Medical, Zimmber, Timesaverz, and others have entered the fray, offering non-cellular healthcare, internet-based services, and m-commerce platforms. Smartphones have become essential tools for consumers and businesses alike, enabling on-demand services and real-time communication.

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Segment Overview

This home services market report extensively covers market segmentation by

1. Type 
• 1.1 Home care and design
• 1.2 Repair and maintenance
• 1.3 HWB
• 1.4 Others
2. Geography 
• 2.1 APAC
• 2.2 North America
• 2.3 Europe
• 2.4 South America
• 2.5 Middle East and Africa

1.1 Home care and design-  The home care and design segment generates revenue through services including interior designing, pest control, deep cleaning, sofa cleaning, laundry services, glasswork, woodwork, waterproofing, masonry, and carpentry. This market is fragmented with numerous small and large players offering various home care and design services. For instance, TaskRabbit Inc. Provides house cleaning and furniture assembly, Helpling offers cleaning and furniture assembly in multiple cities, Cleanly specializes in laundry and dry-cleaning, and Serviz offers a wide range of cleaning services. Amazon also entered the market with offerings in deep cleaning, carpet cleaning, tile cleaning, grout cleaning, and gutter cleaning. The market's growth is driven by an increasing number of vendors and their business expansions in the segment.

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Research Analysis

The Home Services Market is experiencing significant growth in the digital age, with the rise of online platforms and cloud-based solutions transforming the industry. Services such as home cleaning, landscaping, maintenance, repair, and improvement activities are now easily accessible through non-cellular and m-commerce platforms. The Internet and digitalization have made it possible for consumers to book appointments, track progress, and manage their homes more efficiently. Homeowners can now avail of services like plumbing, electrical work, and remodeling through e-commerce platforms, offering convenience and transparency. Companies have embraced cloud-based solutions like Microsoft Azure to offer virtual versions of their services, allowing for remote consultations and virtual assessments. The physical entity of home services is being complemented by these digital offerings, providing a more comprehensive and convenient experience for consumers. Services like Ginger, One Medical, and Zimmber, among others, are leading the charge in this digital transformation. They cater to various needs, from health and welfare to home cleaning and maintenance. Timesaverz and similar platforms are making it easier for homeowners to manage their homes and schedules, while healthcare providers are leveraging technology to offer telemedicine and remote consultations. The future of home services is a blend of physical and digital offerings, providing consumers with greater convenience, accessibility, and value.

Market Research Overview

The Home Services Market is a dynamic and growing industry that caters to various needs of homeowners, renters, and property managers. This market includes a wide range of services such as home cleaning, landscaping, plumbing, electrical work, remodeling, and maintenance activities. With the increasing trend of digitalization and e-commerce, the market has seen the emergence of mobile and m-commerce platforms, cloud-based solutions, and virtual versions of physical entities. Non-cellular devices like smartphones have become essential tools for booking appointments and managing services online. The market serves diverse customer segments, including homeowners, renters, and property managers, who seek to ensure safety, comfort, aesthetic appeal, and maintenance of their homes. The Ageing Housing Stock and DIY trends present opportunities for growth, while regulatory difficulties, labour shortages, and technological disruptions pose challenges. Environmental considerations and price wars are also significant factors influencing the market. Services offered include plumbing, electrical repairs, HVAC maintenance, appliance repairs, home improvement, renovations and remodeling, carpentry and woodworking, and various cleaning services such as house cleaning, carpet cleaning, window cleaning, and gutter cleaning.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Home Care And Design
• Repair And Maintenance
• HWB
• Others
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio