Online On-Demand Laundry Service Market to Grow by USD 460.6 Billion (2025-2029), Rising Washing Machine Costs Boosting Market, Report on AI's Role - Technavio

NEW YORK, Jan. 31, 2025 /PRNewswire/ -- Report on how AI is driving market transformation - The global online on-demand laundry service market size is estimated to grow by USD 460.6 billion  from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 53%  during the forecast period. Increasing costs associated with use of washing machines is driving market growth, with a trend towards adoption of technology to automate laundry and delivery processes. However, high risk-reward ratio and low-margin business  poses a challenge. Key market players include American Dry Cleaning Co., ByNext Inc., CSC ServiceWorks Inc., Delivery.com LLC, Elite DhobiLite Laundry Pvt. Ltd., EXPERTO URBANTECH PVT LTD, ihateironing.com Ltd., JUSTCLEAN GENERAL TRADING Co. W.L.L, Laundrology Comprehensive Services, Laundryheap Ltd., LaundryWala, Mr. Laundrywala, Mulberrys Franchising LLC, PML Solutions Pvt. Ltd., Rinse Inc., The Laundry Basket, The Procter and Gamble Co., Washmen Laundry LLC, Wassup On Demand, and WishWash Laundry.

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Market Driver

The on-demand laundry service market is experiencing significant growth as more and more people opt for the convenience of having their clothes washed, dried, and delivered to them at their doorstep. Companies like Mulberrys Garment Care in Germany and Laundryheap in Canada are leading the charge in this industry, offering on-demand laundry services through mobile apps and platforms. The market is expected to grow at a CAGR of X% between 2021 and 2026, with an increasing number of users and consumers turning to on-demand laundry services for their time-saving and efficient needs. Dry cleaning and washing services are also seeing in demand, with innovation in digital on-demand laundry businesses, such as on-demand laundry apps, becoming a key trend in the industry. Pricing and quality remain important factors for customers, with subscription models and flexible pricing options becoming popular. Overall, the on-demand laundry landscape is transforming the way people live their lifestyles, providing a convenient solution for washing, cleaning, and delivering clothes. 

Online on-demand laundry services are streamlining their operations through technological advancements. Providers such as Cleanly use software to automate sorting in fulfillment centers, enabling quick issue resolution and personal requests via apps. The software also assists cleaners in batching, sorting, and labeling clothes, reducing turnaround time to an impressive 24 hours. Cleanly's in-house technology enhances efficiency and customer satisfaction. 

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 Market Challenges

• The on-demand laundry service market is experiencing significant growth as more people opt for the convenience of having their clothes picked up, washed, and delivered right to their doorstep. Companies like Mulberrys Garment Care, Laundryheap, and others are leading the charge in this industry. However, players in Germany, Canada, France, China, and other countries face challenges such as pricing, subscription models, and quality control. Consumers are asking for innovation in the form of mobile apps and platforms for easy scheduling and on-demand service. The on-demand laundry industry, including dry cleaning and washing, is expected to grow at a CAGR of X% by 2025. The landscape of this business is changing with time-saving, digital solutions becoming increasingly popular. On-demand laundry services offer a time-efficient alternative to traditional laundry methods, making them an attractive option for busy consumers.
• In the on-demand economy, on-demand laundry services face low profit margins and require quick expansion to cover costs. The laundry business comes with higher risks than rewards. Trust is crucial in this sector as customers entrust their valuable garments to service providers, expecting no damage. Providing consistent, error-free quality service is challenging. Profits may not be enough to cover damages caused by faulty services, making customer satisfaction crucial. Companies must balance affordability, speed, and quality to succeed in the competitive on-demand laundry market.

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Segment Overview 

This online on-demand laundry service market report extensively covers market segmentation by  

• End-user
• Residential
• Commercial
• Service
• Laundry
• Dry Clean
• Duvet Clean
• Geography
• North America
• APAC
• Europe
• Middle East And Africa
• South America

1.1 Residential-  The online on-demand laundry service market has experienced notable growth due to the increasing adoption by residential users. This convenience-driven solution caters to busy individuals who lack the time or resources to do their laundry. With a few smartphone taps, users can schedule pickup and delivery, saving them precious time. Urbanization, changing lifestyles, a growing working population, and technological advancements in online laundry services are primary growth drivers. The global urban population, according to The World Bank Group, increased from 54% in 2015 to over 57% in 2023, with a corresponding rise in Internet users. Rising disposable income and the convenience of online services have led more consumers to opt for this solution. Key players, like Cleanly Inc., offer additional benefits, such as free pick-up and delivery, proper handling, and discounts, further enhancing the consumer experience. As consumers' lives become more time-pressed, the demand for online laundry services is expected to increase, fueling market growth.

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Research Analysis

The Online On-Demand Laundry Service market has experienced significant growth in recent years, driven by the consumer lifestyle evolution towards convenience and time savings. Societal adoption of technology and the increasing popularity of luxury lifestyles have fueled the demand for laundry services that can be ordered online and delivered back to customers' doors. The working-class population and working women, in particular, have embraced this trend due to their busy schedules. Bedding and other bulky items are popular choices for online laundry services, which offer affordable prices and patching services for damaged clothes. The market caters to various segments, including residential and commercial applications, laundry care, and dry clean. Eco-friendly laundry detergents and the WaterSense label have gained popularity due to growing concerns about water conservation and skin diseases. Business models such as Tide Cleaners and Laundry Care offer different pricing structures and services, including organic laundry detergent and duvet clean. Skin allergies have led to an increased demand for hypoallergenic detergents and patching services. The dry clean segment also offers eco-friendly alternatives to traditional methods, making the industry more sustainable.

Market Research Overview

The on-demand laundry service market is experiencing significant growth as more and more people turn to the convenience of having their clothes washed, dried, and folded at the click of a button. This digital innovation has transformed the traditional laundry industry, allowing users to schedule pickup and drop-off through mobile apps or websites. The market landscape is diverse, with players in various regions including Germany, Canada, France, China, and more, offering services such as dry cleaning, washing, and subscription-based pricing. The growth of this industry can be attributed to the time-saving and efficiency benefits it offers, as well as the increasing demand for high-quality and innovative services. Consumers are no longer limited by the constraints of physical laundry facilities or rigid scheduling, making on-demand laundry a popular choice for busy individuals and families. The market is expected to continue growing at a CAGR of [X]% in the coming years.

Table of Contents:

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

• End-user
• Residential
• Commercial
• Service
• Laundry
• Dry Clean
• Duvet Clean
• Geography
• North America
• APAC
• Europe
• Middle East And Africa
• South America

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