Companies in the business services sector provide a wide variety of B2B services such as security, commercial landscaping, waste management, pest control, and cleaning, as well as administrative services such as temporary staffing, business consulting, and payroll processing.
According to a report by Euromonitor International, business services is among the fastest growing industries globally, and the Asia Pacific region is expected to exhibit the highest growth rate in the business services market.
In this article, we’ll explore the latest market research from a variety of firms to better understand the different types of business services and examine potential challenges, opportunities, and trends within this sector.
A broad range of businesses require multiple layers of security services, including offices, retailers, financial institutions, casinos, and lodging facilities, to name a few. The demand for security services is rising alongside the growth in nonresidential building construction, particularly in industrializing countries such as India. The global and industrial security services market is expected to grow 4.5% per year from 2022 to 2026, according to a recent report by The Freedonia Group.
However, the rise of remote work could temper sales growth. In the aftermath of the COVID-19 pandemic, “occupancy rates of offices and other commercial real estate are expected to improve, but the possibility of a sustained shift toward remote work poses a long-term threat to the commercial market base,” the report explains.
Like security services, the market for commercial landscaping services is also driven by the rise of nonresidential construction and the overall state of the economy. Landscaping encompasses everything from lawn care and maintenance to arborist services to constructing retaining walls and walkways.
“Nonresidential construction activity, which took a tumble in 2015 and 2016, is expected to grow more dynamically, making this market the point of emphasis for growth over the next five years,” according to the report Landscaping Services in the US by IBISWorld.
Landscaping for commercial markets such as corporate campuses often commands premium prices. IBISWorld explains that while a bounce back is expected from commercial demand, labor shortages will remain an ongoing issue.
Another large, growing business services market is waste management. Companies in the waste management industry collect and dispose of garbage and run recycling and composting operations. The waste includes hazardous waste, e-waste, plastic waste, biomedical waste, and other types of waste.
The global commercial waste management market is projected to rise at a compound annual growth rate (CAGR) of 4.2% from 2021 to 2026, increasing from $62.5 billion in 2021 to reach $77 billion in 2026, according to the report Waste Management Market by Waste, Service, End User, and Region – Global Forecast to 2026 by MarketsandMarkets.
“Globally, rapid urbanization and the thriving hospitality sector are likely to drive the demand for waste management services from commercial users,” MarketsandMarkets states.
A wide range of businesses also require the use of pest management products and services to prevent the spread of ants, mosquitos, rodents, and cockroaches. The global pest control market is expected to reach an estimated $29.9 billion by 2028 with a CAGR of 5.3% from 2023 to 2028, according to a recent report by Lucintel.
“Commercial is expected to witness the highest growth over the forecast period due to the spreading of infections by insects in public and commercial spaces and an increasing number of government projects, which support a variety of pest management programs in commercial places,” Lucintel explains.
North America will remain the largest regional market due to growing demand for pest control approaches that use less chemicals and are more environmentally friendly.
Commercial cleaning services are the top product segment within the janitorial services industry. During the past five years, the demand for commercial cleaning services has grown alongside rising corporate profits, and this revenue expansion has prompted many small business owners to set up new operations with few barriers to entry in this industry.
“While increasing demand for industry services has led to price growth for residential and commercial cleaning contracts, rising competition, driven by growth in the number of janitorial services companies, has dampened industry profit margins,” according to the report Janitorial Services in the US by IBISWorld.
Despite increasing competition, U.S. janitorial services industry revenue is expected to increase due to the strength of the economy and rising demand.
Additional Business Services Market Research
The business services sector also includes accounting, human resources, leasing, and consulting, among other areas. To learn more about these industries or to research other related topics, browse market studies on MarketResearch.com.
About the Author: Sarah Schmidt is a Managing Editor at MarketResearch.com, a leading provider of global market intelligence products and services.