According to the Market Statsville Group (MSG), the global laundry factory market size is expected to grow from USD 13,103.69 million in 2022 to USD 22,178.08 million by 2033, growing at a CAGR of 4.9% from 2023 to 2033. Various factors such as growing technology advancements coupled with sustainable process adoption saving cost and supporting positive environmental health. Further, growing medical tourism and hospital industry will form a huge pile of soiled linen. To fulfill the demand for the hospital industry and cater to the needs, laundry factory come into play and provide effective services to the industry. Such factors will propel the growth of the market in forthcoming years.
Consumers are looking for features such as accurate tracking, process automation, and information management in industrial laundries as their daily textile washing and drying operations increase. RFID tagging and robots are two technology developments in washing machines that are increasing market demand for laundry equipment. However, rising power prices and the depletion of resources such as water and treatment chemicals are stifling industry expansion. The primary drivers driving market expansion are trends and advances in the laundry industry, which enable cost reduction with little consumer environmental degradation, forcing manufacturers to offer technologically superior industrial laundry systems.
Laundry factory offers a range of services such as cleaning linen, washing, dry cleaning, and folding, among others. The operations took place not at retail but at bulk level or industrial level. Clients may include hotels, hospitals, railways, spas, and others.
A laundry factory refers to a factory that takes out the whole laundry process at the bulk level. For instance, companies that run laundry factories or operate as laundry factories use to dry clean, wash, and fold bulk of laundry from a client, kind of wholesale services. Laundry refers to the washing of clothing and other textiles, and, more broadly, their drying and ironing as well. Laundry factories are highly equipped with advanced technologies, further, minimum or no water usage for washing techniques have pushed laundry factories to adopt such technologies to clean huge piles of soiled linens. The factories may clean linen including bed sheets, pillow covers, curtains, blankets, and others. On-site pickup, cleaning, and delivery are some additional services offered by service providers.
The COVID-19 had a negative impact on the growth of the market, as tours and travels were completely closed during the pandemic. Further, in railways the linen was not supplied amid pandemic to eliminate the onset of cross-contamination and spread of COVID-19. The healthcare industry also discarded or burned the soiled clothes of COVID-19 positive patients. Such factors reduced the demand for the market during the COVID-19, hampering markets’ growth in 2020.
However, with ease in COVID-19, the increasing health awareness among people opted for more clean and new bed sheets and other linens with timely changing services. This increased the pile of the linen for which the need for the laundry factory increased, resulting in high growth potential for the market’s growth.
In the railway sector for long journeys, the railways provide linen such as a blanket, bedsheets, and pillows to their passengers, especially in AC compartments. Also, trains for sole tourism purposes to enhance the aesthetic beauty of the train curtains, seat covers, and tablecloths were used. As per the policies, the dirty linen is to be washed at a regular interval or sometimes twice a day.
The growing count of trains and investment in it, for instance, according to the data of the Indian Brand Equity Foundation (IBEF), India has the fourth largest railway network with over 13,452 passenger trains, and still growing. During FY20, passenger traffic in the country reached 8,086 million and is estimated to reach 12 million by 2031. In FY22 (until March 2022), passenger traffic stood at 3.23 billion, as per the IBEF. The growing and evolving railways will demand more linens for use and for aesthetic beauty, which leads to the growing demand for their bulk washing, cleaning, and folding. This, in turn, fuels the growth of the market.
The laundry factory requires huge machinery and platforms with proper water inlets and outlets, and ventilation. Overall, it requires a proper infrastructure and safety measures, before coming into operation. This, in turn, increases the cost and affects the profitability of the owners. This resulted in hampered market growth. Further, the licensing and waste treatment policies add to the cost of the establishment of the factory. Such factors negatively impact the market’s growth across the globe in forthcoming years.
In addition, the depreciation cost of the machinery coupled with their maintenance cost is all-inclusive in latent costs, that owners bear with time. This, in turn, reduces the service providers' profitability in the long term. This leads to the hampered market's growth at the global level in forthcoming years.
Laundry factory technological developments trail only the rate of demand for these services. However, by leveraging the benefits of the aforementioned hardware and software solutions, businesses may not only enhance their performance and value addition, but also boost efficiency, savings, and profitability. In this manner, the technologies mentioned allowing laundry factories to maintain sustainable operations while meeting new industry regulations and the challenges of the market.
Additionally, Laundry Robotics designs, develops, and creates robotic solutions for human challenges in the laundry business. For instance, Mira Robotics, located in Kawasaki, Japan, has debuted Ugo, a laundry robot that will handle everything from wash to fold. Users may rent the laundry robot, which is then controlled in real time by qualified operators. Ugo will eventually be entirely autonomous and will not need to be managed by a person offshore. This, in turn, reduces the demand for the workforce by the laundry factories and manages the regular operations efficiently. This will pave the way for the market’s growth in upcoming years at global level.
The study categorizes the laundry factory market based on type, and application area at the regional and global levels.
Based on the application, the market is divided into B2C and B2B. The B2B segment is expected to dominate the market share in 2022 in the global laundry factory market. The B2B segment currently dominates in 2022, gaining a revenue share of around 89.4%. It is expected to grow at a CAGR of 5.7% throughout the forecast period in the laundry factory market. Machines are in high demand in hotels, restaurants, and other similar industries. The increased need for industrial washers, cleaners, and extractors is expected to generate revenue for the industrial laundry factory market. In addition, the expanding working population in developing economies, as well as increased daily wash cycles, have influenced the expansion of industrial washers in a variety of sectors.
Based on the regions, the global laundry factory market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. Asia Pacific is projected to account for the highest market share of 44.5% in 2022. Throughout the projected period, the market is anticipated to be driven by the presence of expanding economies like China and India, a growing working population, and increased expenditure on dry cleaning and laundry services. Due to the existence of a sizable population opting for quick dry-cleaning and laundry services, China is anticipated to continue to be a significant stakeholder in the Asia Pacific region.
The laundry factory market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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