Home Services Market to grow by USD 1.03 Trillion (2025-2029), fueled by increasing urbanization, Report on how AI is driving market transformation - Technavio

NEW YORK, Jan. 27, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global home services market size is estimated to grow by USD 1.03 trillion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  10.5%  during the forecast period. Increasing urbanization is driving market growth, with a trend towards introduction of new services. However, regulatory and compliance issues  poses a challenge. Key market players include Amazon.com Inc., American Home Shield Corp., Angi Inc., AskforTask 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, and Urbanclap Technologies India Pvt. Ltd..

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Market Driver

The Home Services Market is experiencing significant trends with the rise of digitalization and e-commerce platforms. Companies like Ginger and One Medical lead the way in healthcare, offering virtual versions of physical entities for non-emergency consultations. In the mobile segment, apps like Zimmber and Timesaverz provide homeowners, renters, and property managers with on-demand services for maintenance, repair, and improvement activities. Home cleaning, landscaping, plumbing, electrical work, and remodeling are popular services, catering to homeowners' and renters' needs for safety, comfort, and aesthetic appeal. The ageing housing stock and DIY trends call for innovative solutions, with technological disruptions like cloud-based solutions on Microsoft Azure transforming the industry. Regulatory difficulties, labour shortages, and seasonal variations pose challenges, but price wars and environmental considerations keep companies competitive. Plumbing services, electrical repairs, HVAC maintenance, appliance repairs, home improvement, renovations, and remodeling, carpentry, and woodworking are all in demand. Cleaning services, including house cleaning, carpet cleaning, window cleaning, and gutter cleaning, remain essential for maintaining homes' cleanliness and hygiene. Overall, the Home Services Market is changing lives by providing convenient, affordable, and efficient solutions for homeowners and renters alike. 

The home services market is experiencing a notable trend with companies introducing new offerings to expand their businesses and increase market share. On March 1, 2023, Blinkit, a quick commerce platform owned by Zomato, announced plans to launch a new vertical for home services, including plumbing, electrical work, beautician services, and electronics repair. This move aims to broaden Blinkit's revenue streams and position it as a competitor to established providers like Urban Company, backed by Tiger Global. In another development, The Home Depot introduced a New Homeowners Hub on August 23, 2023, to cater to homeowners' needs with comprehensive home improvement solutions. These strategic initiatives reflect the dynamic nature of the home services market. 

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 Market Challenges

• The Home Services Market encompasses various sectors including home cleaning, maintenance, repair, improvement activities, and healthcare. Key players like Ginger and One Medical focus on health and welfare, offering digital solutions through e-commerce platforms and cloud-based solutions. The mobile segment, driven by smartphones and m-commerce platforms, is disrupting traditional business models. Companies like Zimmber, Timesaverz cater to homes requiring cleaning, landscaping, plumbing, electrical work, and more. Homeowners, renters, and property managers seek safety, comfort, and aesthetic appeal. However, challenges include regulatory difficulties, labour shortages, price wars, seasonal variations, and technological disruptions. Ageing housing stock, DIY trends, and environmental considerations also impact the market. Providers of plumbing services, electrical repairs, HVAC maintenance, appliance repairs, home improvement, renovations, and remodeling face these challenges. Microsoft Azure's virtual version and physical entity solutions offer potential solutions.
• In the home services market, adhering to regulatory and compliance requirements is essential for businesses. Compliance issues encompass various regulations, including licensing, insurance, safety standards, and environmental practices. For instance, in sectors like plumbing, electrical work, and HVAC, obtaining specific licenses and certifications is mandatory for legal operation. In the United States, plumbers and electricians must meet state or local requirements to secure their licenses. Failure to comply with these regulations can result in legal penalties, reputational damage, and consumer trust loss. Ensuring regulatory compliance is a significant challenge for home service providers in the global market.

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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. Deployment 
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Home care and design-  The home care and design segment of the global home services market consists of various services such as interior designing, pest control, cleaning, laundry services, deep cleaning, sofa masonry, woodwork, waterproofing, glasswork, and carpentry. This segment exhibits a high level of fragmentation, with both local and international players offering diverse services to cater to homeowners' varying needs. Companies like TaskRabbit Inc. From the US and Helpling GmbH and Co. KG from Germany provide specialized services, while Serviz.com Inc. Offers a comprehensive range of cleaning services. The entry of multinational corporations, such as Amazon.com Inc., intensifies competition, bringing additional resources and technological advancements. Consumer demand for professional and reliable home maintenance services drives the segment's growth, ensuring homeowners can find tailored solutions for their specific needs.

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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 revolutionizing the way homeowners manage maintenance, repair, and improvement activities. The mobile segment, powered by smartphones and m-commerce platforms, is driving innovation in this space. Home cleaning, landscaping, plumbing, electrical work, remodeling, and other home services are now easily accessible through digital marketplaces. Non-cellular devices like computers and tablets also provide an avenue for customers to book services online. Health and welfare services are also joining the trend, with virtual versions of healthcare and wellness offerings available on e-commerce platforms. Microsoft Azure and other cloud solutions enable these digital services to operate seamlessly, ensuring a smooth experience for customers. Whether it's a physical entity or a virtual service, the home services market is embracing digitalization to meet the evolving needs of consumers.

Market Research Overview

The Home Services Market is a growing industry that caters to the needs of homeowners, renters, and property managers for various maintenance, repair, improvement, and welfare activities. Services range from home cleaning and landscaping to plumbing, electrical work, and remodeling. With the increasing trend of digitalization, the market has seen the emergence of e-commerce platforms and m-commerce solutions, allowing for easier booking and management of services. The market is also witnessing technological disruptions through cloud-based solutions and virtual versions of physical entities. Factors driving the market include the ageing housing stock, changing lifestyles, and DIY trends. However, regulatory difficulties, labour shortages, and price wars pose challenges. Technological advancements in areas like HVAC maintenance, appliance repairs, and home improvement are transforming the industry. Environmental considerations are also becoming increasingly important, with a focus on sustainable and eco-friendly solutions. Services like plumbing, electrical repairs, and HVAC maintenance are in high demand due to the importance of safety, comfort, and aesthetic appeal. The market caters to both residential and commercial properties, with seasonal variations in demand. Overall, the Home Services Market is an essential sector that continues to evolve with the changing needs of consumers and the advancements in technology.

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
• Deployment
• Offline
• Online
• Geography
• North America
• Europe
• APAC
• 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

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio