The global online on-demand home services market is racing toward massive growth, with Technavio forecasting an increase of USD 15.11 trillion from 2023 to 2028, driven by a compound annual growth rate (CAGR) of 68.02%. A remarkable 43% of this growth will originate from Asia-Pacific (APAC) by urbanization, smartphone penetration, and demand for on-demand home services like online cleaning services and home repair booking. Regions like APAC, North America, and Europe shape home service market growth, with leaders like Amazon.com Inc., TaskRabbit leveraging home service apps and online booking platforms.
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Asia-Pacific (APAC) is set to dominate the online on-demand home services market, contributing 43% to global growth. China, India, and Japan fuel this surge with urban populations demanding housekeeping services, plumbing services online, and online pest control. Technavio underscores APAC’s digital boom, where home service apps like Urban Company enable seamless lawn care booking and home maintenance platforms. Tech-savvy consumers and expanding internet access amplify home service market growth in this region.
Urban Company thrives in APAC, offering tailored digital home solutions for urban needs. Economic growth and rising incomes boost smart home services, though rural infrastructure gaps may slow expansion compared to cities.
North America is a key player in the online on-demand home services market, led by the U.S. A mature digital ecosystem and high spending power drive adoption of TaskRabbit and Handy App, offering electrician on-demand and handyman services app solutions. Technavio highlights North America’s innovation, with AI and tracking enhancing online cleaning services and home repair booking.
Urban consumers rely on Thumbtack Services for on-demand home services, but North America trails APAC in growth share due to a smaller population and market saturation. Its focus on premium smart home services keeps it vital.
Europe maintains a solid stance in the online on-demand home services market, with Germany, the UK, and France leading. Urbanization drives demand for housekeeping services and on-demand beauty services, supported by platforms like Helpling GmbH. The region’s infrastructure aids online booking platforms, delivering efficient online pest control and maintenance.
Technavio notes Europe’s eco-friendly and contactless focus, aligning with post-pandemic trends. Its growth lags APAC’s rapid rise due to maturity and slower population increases, but steady demand ensures a strong presence for digital home solutions.
South America is an emerging force in the online on-demand home services market, with Brazil leading growth. Urbanization and smartphone use spur demand for lawn care booking and plumbing services online, with Airtasker Pty Ltd. tapping this potential. Home maintenance platforms cater to growing urban needs.
South America’s growth is smaller than APAC’s, but its urbanization signals opportunity. Economic challenges and rural digital gaps slow progress, yet home service market growth remains promising.
The Middle East and Africa (MEA) form a smaller, evolving segment of the online on-demand home services market, with the UAE and South Africa as hubs. Rising incomes drive on-demand beauty services and electrician on-demand via home service apps. Technavio sees MEA’s niche potential as internet access grows.
MEA lags due to uneven infrastructure and lower digital adoption outside cities, but its shift to smart home services marks it as a future contender in home service market growth.
The market segments by service into home care and design, repair and maintenance, health, wellness and beauty, and others, with home care and design leading in 2024 via online cleaning services and online pest control. Repair and maintenance, including plumbing services online, follows, while health, wellness, and beauty grows with on-demand beauty services.
By platform, mobile applications lead, outpacing websites with a dominant share in 2023 and beyond. Handy App and Thumbtack Services drive this segment with smartphone-enabled home repair booking.
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Drivers include internet access and startups offering on-demand home services, boosting convenience. Trends like AI personalization in home service apps and eco-friendly housekeeping services shape the market, while challenges like MEA awareness gaps and traditional competition pose hurdles.
Trends: AI personalization in home service apps improves user experiences, while eco-friendly housekeeping services gain traction, especially in Europe and North America. Contactless delivery via online booking platforms, subscription models for recurring online cleaning services, and integration of smart home services like automated scheduling reflect evolving consumer preferences, accelerating home service market growth.
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APAC’s 43% growth offers volume via home maintenance platforms, North America drives innovation with TaskRabbit, and Europe ensures stability. South America and MEA hold potential as home service apps expand. Technavio’s report guides strategies for tapping these dynamics.
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