Commercial Cleaning Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: June 2024
ANZSIC N7311Revenue
$13.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
147k
Businesses
36,494
Wages
$X.Xbn
Commercial Cleaning Services in Australia industry analysis
The COVID-19 pandemic significantly disrupted the industry, as government restrictions required many retail and hospitality businesses to close and office staff to work from home. As commercial properties were left dormant, many companies cancelled their commercial cleaning services, leading to declining demand. As lockdowns and restrictions eased, ongoing work-from-home trends limited recovering demand for services. Despite falling demand, firms have raised prices in response to strong inflation and growth in upstream cleaning compound costs. Overall, industry revenue is expected to decline at an annualised 1.8% over the five years through 2023-24, to total $13.1 billion. This includes anticipated growth of 2.0% in the current year, driven by an ongoing recovery in demand and strong pricing growth.
Trends and Insights
- A tight labour market and global supply chain issues have increased costs for commercial cleaners. Rising average wages and increased input costs have weighed on industry profit margins.
- High-risk education and medical facilities have increased their requirements for commercial cleaning services. These facilities sought additional deep cleaning services as they reopened during the COVID-19 pandemic.
- Smaller retail and hospitality businesses often manage their own cleaning tasks. East coast states with large urban centres and more shopping malls, office complexes and public transport hubs account for over 80.0% of industry establishments.
- COVID-19 lockdowns and restrictions led to a number of offices and hospitality venues cancelling cleaning contracts. As restrictions eased and people returned to work, a flurry of new contracts encouraged small businesses to enter the industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.8 % over the past five years, to reach an estimated $13.1bn in 2024.
Trends and Insights
The COVID-19 pandemic led to temporary business closures, reducing demand for the industry
- Lockdowns and restrictions during the pandemic forced many workers to work from home rather than the office, and banned non-essential in-store shopping and hospitality activities. This forced many offices and retail and hospitality businesses to temporarily close and cancel their commercial cleaning contracts where possible to minimise costs.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Long-term growth in the number of businesses and amount of outsourcing will drive industry expansion
- Pandemic-related lockdowns and restrictions disrupted the industry's relatively stable long-term growth, but the industry is set to return to this trend over time.
Biggest companies in the Commercial Cleaning Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Downer | 458.3 | |
ISS Facility Services Australia | 288.1 | |
AMC Cleaning Pty Ltd | 117.1 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Interior building cleaning services, Exterior building and window cleaning services and Washroom services. Interior building cleaning services is the largest segment of the Commercial Cleaning Services in Australia.
Trends and Insights
The COVID-19 pandemic had limited effects on demand for industrial and street cleaning services
- These segments include cleaning public streets and roads, industrial equipment, tanks, transportation vehicles, mining equipment, and other industrial plants and equipment. Specialist cleaning companies usually supply these types of industrial cleaning services.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Laundry and Dry-Cleaning Services in Australia
Complementors
- Building Pest Control Services in Australia
- Gardening Services in Australia
- Catering Services in Australia
International industries
- Janitorial Services in the US
- Snowplowing Services in the US
- Janitorial Services in Canada
- Commercial Cleaning Services in New Zealand
- General Building Cleaning in the UK
Table of Contents
About this industry
Industry definition
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 in offices, factories, homes and other buildings. The industry excludes services such as carpet cleaning, shampooing services, steam cleaning and sandblasting building exteriors.
What's included in this industry?
Interior building cleaning servicesWashroom servicesExterior building and window cleaning servicesIndustrial cleaning servicesStreet and road cleaning servicesResidential cleaning servicesPublic transport cleaningCompanies
DownerISS Facility Services AustraliaAMC Cleaning Pty LtdPurchase this report to view all 3 major companies in this industry.
Related Terms
OUTSOURCINGFACILITIES MANAGEMENTDEEP CLEANINGIndustry Code
ANZSIC 7311 - Commercial Cleaning Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
A tight labour market and global supply chain issues have increased costs for commercial cleaners. Rising average wages and increased input costs have weighed on industry pro...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
High-risk education and medical facilities have increased their requirements for commercial cleaning services. These facilities sought additional deep cleaning services as th...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Smaller retail and hospitality businesses often manage their own cleaning tasks. East coast states with large urban centres and more shopping malls, office complexes and publ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
COVID-19 lockdowns and restrictions led to a number of offices and hospitality venues cancelling cleaning contracts. As restrictions eased and people returned to work, a flur...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Lockdowns and restrictions weighed on demand for commercial cleaning. Requirements and advice to work from home if possible led to office closures and reduced demand for clea...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Downer's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of ISS Facility Services Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of AMC Cleaning Pty Ltd's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Downer, and factors influencing its performance in the industry
- Description and key data for ISS Facility Services Australia, and factors influencing its performance in the industry
- Description and key data for AMC Cleaning Pty Ltd, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
A surge in new entrants to the industry has limited its post-lockdown revenue recovery. Newly unemployed cleaners have entered the industry as owner-operators to compete for ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
A tight labour market has supported wage costs. Weakening trading conditions have pushed firms to reduce staff numbers, but a tight labour market has raised wage costs as a s...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Commercial Cleaning Services industry in Australia in 2024?
The market size of the Commercial Cleaning Services industry in Australia is $13.1bn in 2024.
How many businesses are there in the Commercial Cleaning Services in Australia industry in 2024?
There are 36,494 businesses in the Commercial Cleaning Services industry in Australia, which has grown at a CAGR of 3.8 % between 2019 and 2024.
Has the Commercial Cleaning Services industry in Australia grown or declined over the past 5 years?
The market size of the Commercial Cleaning Services industry in Australia has been declining at a CAGR of 1.8 % between 2019 and 2024.
What is the forecast growth of the Commercial Cleaning Services industry in Australia over the next 5 years?
Over the next five years, the Commercial Cleaning Services industry in Australia is expected to grow.
What are the biggest companies in the Commercial Cleaning Services market in Australia?
The biggest companies operating in the Commercial Cleaning Services market in Australia are Downer, ISS Facility Services Australia and AMC Cleaning Pty Ltd
What does the Commercial Cleaning Services in Australia include?
Interior building cleaning services and Washroom services are part of the Commercial Cleaning Services industry.
Which companies have the highest market share in the Commercial Cleaning Services in Australia?
The company holding the most market share in Australia is Downer.
How competitive is the Commercial Cleaning Services industry in Australia?
The level of competition is high and increasing in the Commercial Cleaning Services industry in Australia.
