Cleaning up: The trend of outsourcing cleaning services has boosted industry revenue

The Commercial Cleaning Services industry has performed well over the past five years. Industry revenue is expected to grow at an annualised 5.0% over the five years through 2018-19, to $12.0 billion. This includes anticipated growth of 3.3% in the current year. Demand growth for cleaning services has been strong over the five-year period, largely driven by outsourcing trends and the growing number of businesses across the economy. Client organisations have increasingly outsourced cleaning activities to concentrate on core activities and seek out cost efficiencies. Rising demand for residential cleaning services from high- and dual-income households, especially ageing residents, has also aided the industry’s more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Higher business numbers and business confidence have driven industry revenue
  • High industry competition has contributed to profitability declining over the past five years
  • Industrial cleaning and washroom services will likely benefit from increased outsourcing trends
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low concentration level with the four largest firms expected to account for less than 10% of industry revenue in 2018-19. This low industry concentration mainly stems from the large number of small business operators and the fragmented nature of the industry. However, larger operators that provide related business activities (including facilities management, security and catering), such as Spotless Group, ISS Facility Services and Compass Group are maintaining their position in the industry through winning and retaining contracts, and acquisition strategies.Franchised operations are a small but growing segment for the industry, accounting for a projected 8.8% of industry revenue in the current year. Thi...purchase to read more.

    Additional Insights for the Commercial Cleaning Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Cleaning Services Industry are

  • Ability to compete on tender
  • Ability to effectively communicate and negotiate
  • Use of production techniques that add value to base product(s)
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Business confidence index in the Commercial Cleaning Services industry impact industry performance..

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    What's in this report

    What is the Commercial Cleaning Services Industry?

    Industry firms provide a range of commercial and domestic cleaning services. These services include specialised commercial and industrial cleaning services and the general cleaning of floors, windows and blinds within offices, factories, homes and other buildings. The industry’s services exclude carpet cleaning, shampooing services, steam cleaning and the sandblasting of building exteriors.

    Industry Products
  • Interior building cleaning services
  • Exterior building and window cleaning services
  • Washroom services
  • Street and road cleaning services
  • Residential cleaning services
  • Industrial cleaning services
  • Other cleaning services
  • Industry Activities
  • Bathroom and toilet cleaning
  • Building interior and exterior cleaning (excluding sandblasting and steam cleaning)
  • Chimney and duct cleaning
  • Gutter cleaning
  • Janitorial services
  • House and residential building cleaning
  • Office and commercial building cleaning
  • Road and street cleaning
  • Transport equipment cleaning
  • Window cleaning
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Business confidence index
  • Demand from business process outsourcing in Australia
  • Average weekly hours worked
  • Total employees in the labour force

  • Current Performance
  • Operating conditions
  • Employment

    and profit

  • Public and private opportunities
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue growth
  • Employment and opportunities
  • Other industry trends
  • Table: Commercial Cleaning Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Cleaning Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Education and Training
  • Administrative and Support Services
  • Consumer Goods Retailing
  • Health Services
  • Consumers

  • Key Selling Industries
  • Industrial Machinery Manufacturing
  • Soap and Cleaning Compound Manufacturing

  • Products & Services
  • Interior building cleaning services
  • Washroom services
  • Exterior building and window cleaning services
  • Industrial cleaning services
  • Street and road cleaning services
  • Residential cleaning services
  • Other cleaning services
  • Chart: Commercial Cleaning Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial building and office operators
  • Education and medical providers
  • Other sectors
  • Retailers and wholesalers
  • Industrial companies
  • Households
  • Hospitality operators
  • Governments
  • Chart: Major Market Segmentation for the Commercial Cleaning Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Cleaning Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Cleaning Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Cleaning Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commercial Cleaning Services Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Facilities Management
  • Hired to undertake the maintenance of multiple aspects of a company's infrastructure and services, including cleaning.
  • Outsourcing
  • The hiring of outside companies to carry out services that traditionally were managed or conducted internally. Government and the corporate sector are increasingly outsourcing.
  • Spring-Cleaning
  • A thorough cleaning of a house that usually takes place once a year.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Commercial Cleaning Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commercial Cleaning Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commercial Cleaning Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commercial Cleaning Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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