Online Home Services Market By Application (Repairs & Maintenance, Wellness, Home Cleaning, Food and Others), and Platform (Mobile & Web), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global Online Home Services Market was valued at approximately USD 4.82 billion in 2022 and is expected to grow to USD 28.15 billion by 2032, with a projected compound annual growth rate (CAGR) of 19.3% from 2023 to 2032.

Online home services are provided through digital platforms that connect customers with service providers and allow for easy and secure transactions. The convenience and simplicity of these platforms have led to a growing demand for online home services globally.

The market for online home services has expanded significantly in recent years, especially in North America, Asia Pacific, and Europe. This growth can be attributed to the increasing availability of products and services, as well as the introduction of fast and secure payment options. The Asia-Pacific region has seen particularly strong growth due to the widespread use of the internet and the emergence of technologically advanced applications that provide timely services.

In addition to the growth of the market, there has also been a significant increase in marketing and promotional efforts. Suppliers are using a variety of channels to raise brand recognition and maintain their customer base, while also attracting new customers. Key players in the industry are also implementing strategies to ensure the quality of services provided. These efforts have helped to establish the online home services market as a reputable and reliable source for household services.

Key Insights

• Based on application, the home cleaning segment held the largest market share
• Based on platform, the mobile segment generated the highest revenue
• On the basis of region, North America accounted for the largest market share

Professional Service Providers Making Home Services More Convenient for Consumers

The availability of professional home service providers has created numerous opportunities for consumers. Online platforms have made it easier for people to access professional home services with ease. To provide the best services, key market players provide additional training to their staff. The easy accessibility of professional and convenient home services has set a trend for the growth of the online home services market, which is expected to continue in the future.

The fast evolution of digitalization will produce opportunities for the market

The online home services market has experienced significant growth due to the increasing digitization of society. The widespread adoption of digital technology has made it possible for people to access services via mobile phones or web portals, making it easier for them to reach out to companies. This has created opportunities for the online home services market, which has benefited from the simplified process for accessing services. The trend towards digitization is expected to continue, providing further growth opportunities for the global market in the future.

Availability of Services Limited to Urban Location Pose a Challenge Market Growth

The online home services market is limited by the availability of services in urbanized cities only. The demand for these services is lower in rural areas, restricting the market's reach to only major cities. Even in rural areas where services are available, the associated costs are often higher compared to urban areas due to the high competition faced by key players in major cities. This limited availability of services in rural areas poses a challenge to business growth.

To overcome the challenge posed by limited availability in rural areas, some market players have started to explore new ways to expand their reach. For example, some companies have begun partnering with local service providers in rural areas to offer their services in these areas at a lower cost. Others have invested in technology and logistics to streamline their operations and reduce the costs associated with providing services in rural areas.

Recent Development

November 2021: Call Jeffrey, a Munich-based home service-providing company was acquired by Helpline Group with the aim of expanding business reach in Europe. This acquisition was the 8^th of Helpline Group’s acquisitions.

November 2021: Homely acquired Aliada, a startup company that was a strong competitor. The acquisition includes the staff and technology of Aliada, which would further expand Homely's business reach.

April 2021: NearU acquired Happy Home Services, a provider of electrical, plumbing and HVAC services in North Carolina.

Segmentation Analysis

The home cleaning segment dominated the online home services market, accounting for 45% of the market share. This segment is estimated to grow at the fastest rate during the forecast period, due to the regular need for cleaning services. Companies that provide house cleaning services register with online platforms to increase their business opportunities. Mobile applications also provide additional opportunities, as they allow consumers to book services on demand.

The wellness segment is expected to experience significant growth following home cleaning services, driven by the availability of professional health and wellness services on demand. Increased health awareness is a key factor driving demand for this segment. Consumers can book various wellness activities and sessions through online platforms to prioritize their health. Some leading market players have already introduced support for mental and physical health programs on their platforms.

Based on platforms, the mobile segment dominated the market share. The mobile application segment held more than 64% of the revenue through the platform and is expected to grow at a CAGR of 19% during the forecast period. The growing popularity of smartphones is the key factor driving the growth of this segment. Consumers find it more convenient to book services through mobile applications compared to websites, leading to a decline in the use of websites over the years. The development of mobile applications has also contributed to this trend. 

Regional Landscape

North America leads the online home services market with a revenue share of over 47%. The region's growth can be attributed to the easy availability of services and secure payment methods, as well as the high disposable income of consumers. Regular services such as home appliance maintenance and renovation are in high demand, and North America's advanced economy has made it easier for individuals to outsource these tasks.

The convenience of accessing these services through smartphones has further boosted the market, and intense competition among market players has led to an increase in available services. The fast-paced lifestyle of North Americans has driven the demand for on-demand services, making the market ripe for growth in the forecast period.

Asia Pacific has observed a substantial rise in the demand for online home services market owing to major scenarios such as the urbanization of developing countries in the region, rising population, penetration of developed applications through the help of smartphones, and easy availability of services. Fast-paced professional life is making individuals opt for spending free time in other recreational activities. Asia Pacific is estimated to show the fastest CAGR. The region has attributed to rapid digitalization which in turn is providing opportunities for home service providers to expand their service lines.

Europe observed steady growth in 2022 and is estimated to maintain its steadiness throughout the forecast period. Initiatives offered by European countries has helped in maintaining its growth.

Competitive Landscape

• A-1 Quality Cleaning Service
• A&K Ventures OÜ
• Amazon.com
• Angi.
• ASKFORTASK & PUREROUTINE
• ByNext
• Cleaners of London
• HOMEADVISOR
• Helpling-Group
• Laurel & Wolf
• Swan Inc.
• UrbanClap Technologies India Pvt. Ltd.

The global Online Home Services market is segmented as follows:

By Application

• Repairs & Maintenance
• Wellness
• Home Cleaning
• Food
• Others

By Platform

• Mobile
• Web

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
    • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America