Industrial Laundry Machine Market Size, Share & COVID-19 Impact Analysis, By Type (Industrial Washer, Industrial Dryer, Industrial Cleaner, Industrial Extractor, and Others (Garment Finishing, Ironing), By Application (Hospitality, Healthcare, Food & Beverages, Automotive, and Others (Marine)), and Regional Forecast, 2023-2030

The global industrial laundry machine market size was valued at USD 2.61 billion in 2022 and is anticipated to grow from USD 2.68 billion in 2023 to USD 3.86 billion by 2030, exhibiting a CAGR of 5.3% during the forecast period.

Laundry machines are designed and manufactured to clean heavy amounts of clothes and fabric with minimal time and optimal operational resources. The machines offer varied services to end users such as dry-cleaning & laundry services on a rental or contract basis. Industrial washer, industrial dryer, industrial cleaner, and industrial extractor are some of the equipment for laundry applications. In addition, the rising continual usage of work wear, clean linen, and uniforms in large industry domains such as hospital industry, healthcare, food and beverage, automotive, and other (marine) created a need for effective laundry machines in the market.

Due to the growing daily cloth cleaning and drying activities, consumers seek features such as proper tracking, process automation, and information management in industrial laundries. RFID tags and robotics are some technological advancements in laundry machines, which are surging the demand for laundry equipment in the market. However, electricity prices and the decline of resources such as water and treatment chemicals are restraining market growth. Trends and developments in the laundry sector enable cost reduction with minimal consumer environmental pollution, which enforces manufacturers to launch technological advanced industrial laundry systems are the key factors driving the market growth. For example, Kannegiesser, a leading laundry manufacturer, provides distinct and high-processing innovations such as washer extractor technology having advanced measuring and sensing technology. Such washing and hygiene managing features are trends in the market that offer long-term reliability. Furthermore, a steady shift of consumers toward tourism surges the demand for dry cleaning and laundry services in the market.

COVID-19 IMPACT

COVID-19 Pandemic Resulted in the Partial or Complete Closure of Manufacturing Activities 

COVID-19 pandemic negatively affected the business of washing machines manufacturers. Moreover, rising electricity tariffs and more operational costs are factors which restrain the growth of the market. Additionally, supply chain disruption and halted manufacturing activities directly impacted the sales of manufacturers, which is restraining for the growth of the market. For instance, the net sales of Girbau dropped by around -38.0% in fiscal year 2020 as compared to fiscal year 2019.

However, consumer rising potential savings during the pandemic changed the market shift toward traveling & tourism to hoist demand for laundry equipment in post-pandemic. Thus, factors such as hygiene and cleaning are the prime market motivators that raise the demand for commercial laundry solutions and will significantly grow in the forecast period.

LATEST TRENDS

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Automation Growth and Smart IoT Capabilities to Boost the Market Growth

Laundry operations are never a choice for anyone and time-bound work culture is an additional factor helping the growth of smart laundry solutions in the market. Consumers need more reliable, smart, and efficient laundry solutions that can solve hectic laundry operations with minimal guidance. Smart capabilities such as IoT and smart monitoring of the wash cycle are the features that dominate the market growth. For example, Danube International, a leading laundry solution provider in the residential and industrial segment, offers an IoT feature that actively contributes to the optimization and efficiency of machines. Moreover, Business Intelligence (BI) techniques and data-driven approaches to solve laundry business solutions and monitor the key performance indicator of the machines are dominating the market. All the above mentioned factors are boosting the Industrial Laundry Machine Market growth during the forecast period.

DRIVING FACTORS

Technological Advancements Across Laundry Services to Trigger Market Growth

Post-pandemic, consumers experienced the rising use of chemicals, detergents, or other essential resources in each wash cycle. Furthermore, many players in the laundry equipment manufacturing business also realize the concerns for such shortfalls. Hence, they are developing more smart laundry machines and tunnel washers that can work with minimum and fewer resources such as water, detergent, and chemicals to lessen the cost of operation. For example, Girbau industrial, a major laundry equipment manufacturer, provides TBS-50, a continuous batch tunnel washer that aims to solve end users rising labor and utility costs with minimum operation resources. Additionally, features such as Artificial Intelligence (AI) are new integration that enhances capabilities such as ease of interaction and command and also improves the customer experience. As per our analysis, such features in the market are enhancing the adoption of laundry machines and driving the sales of industrial laundry for the manufacturers in the market.

RESTRAINING FACTORS

Higher Investment, Growing Maintenance Costs, and Shortage of Resources to Obstruct Market Growth

Potential factors such as high initial expenditure and maintenance costs restrain end-users from shifting toward effective and efficient commercial laundry solutions. Consumers demand lower operational and maintenance costs, while current electricity tariffs and high labor wages have negatively impacted the operational cost of industries. The end-users are more concerned about the current raised cost of resources and significantly raising the cost of operation. Typically, the prices of industrial washer and dryer are ranging from USD 1000 to USD 3,500 for each machine. Also, on an average, around USD 150,000 to USD 400,000 are required for establishing a laundry business. Such a huge investment consists of the cost of maintenance, installation cost, and electricity prices, which is not bearable for small players, thereby restraining the growth of the laundry systems market. Moreover, the shortening of resources such as water, chemical, and detergents for treatment purposes is further putting a load on the consumer. Thus, solution providers have to work for more energy-efficient and impactful machines that can operate with minimal resources, which restraints the growth of the market.

SEGMENTATION

By Type Analysis

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Industrial Washers to Portray Highest CAGR owing to Benefits Associated With the Washers

Based on type, the market is classified into industrial washer, industrial dryer, industrial cleaner, industrial extractor, and others (garment finishing, ironing).

Industrial washer segment to dominate the market over forecast period, owing to increasing adoption of these systems in the hospitality, automotive, and marine sectors. Such factors drive the growth of the market. 

Industrial dryer exhibits strong growth as such products are largely utilized in hospitality, food & beverages, and automotive sectors, which led to its prominent market share.

Industrial extractor to grow with moderate growth, owing to features such as energy efficiency, saves time, and reduces cost of electricity. Additionally, these types of products are used in hotels, spas, hospitals, and automotive sectors.

Industrial cleaner to grow with decent growth owing to growing awareness of health and hygiene and surge in food & beverages activities. These systems are used in various industry verticals such as automotive, marine, and healthcare.

Others segment consists of garment finishing and ironing. This segment is set to grow with a decent rate owing to higher demand for ironing clothes from healthcare, hospitality, and marine industries.

By Application Analysis

Increasing Concerns for Cleanliness and Daily Health in Hospitality Sector to Stimulate Market Growth

Based on application, the market is divided into hospitality, healthcare, food and beverage, automotive, and others (marine).

Hospitality segment is growing with the highest CAGR owing to increasing demand for machines in hotels, restaurants, and related sectors. The growing need for industrial washers, industrial cleaners, and industrial extractors is projected to drive the revenue for industrial laundry services.

According to our analysis, healthcare and automotive segments are set to grow with moderate growth owing to growth in health concerns due to which it raised the usage of detergents in industrial applications. Also, the growing working population in growing economic countries and rising daily wash cycles impacted the growth of industrial washers in various industries. Such instances drive the market.

The food & beverages and marine sectors are set to witness decent growth owing to rising demand for cleaning equipment and industrial washers. Additionally, consumer awareness about industrial laundry services among industrial sectors and shift toward tourism and travel activities will grow the demand for dry cleaning services.

REGIONAL INSIGHTS

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Based on region, the market is segmented into North America, the Middle East & Africa, Europe, Asia Pacific, and South America.

Our findings suggest that Asia Pacific holds the largest Industrial Laundry Machine Market share in the global market due to rising health concerns and measures to minimize microbes or virus contact. Post-pandemic, rising consumer awareness about cleanliness and maintaining hygiene resulted in rise in the use of commercial washing solutions across commercial as well as industrial sectors, which drives the growth of the market. Furthermore, the ease of lockdown and consumer shift toward travel and tourism brought an additional push to the sales of industrial laundry in the market.

China dominates the market in the Asia Pacific region, with the highest CAGR during the forecast period (2023-2030). China has the largest working population in the Asia Pacific region. Moreover, consumers prefer daily wash over weekly wash owing to rising health concerns that significantly raise the demand for commercial laundries in the market. Considering that, washing clothes daily minimizes the virus’s spread and strengthens immunity. Consumers seek more effective and sustainable solutions that take less water and are more energy efficient. Thus, commercial laundry solutions are the best options. This enhances cost-saving and operational time in the commercial sector (hospitality, healthcare, mills, and others), helping the market to grow.

As per our findings, the North America region will witness substantial growth in the coming years, owing to features such as message updates and AI integration for the adoption and growth of the market in this region. In addition, consumers need more smart solutions to give live updates about the whole laundry process. Such factors boost the demand for laundry appliances in the North America region.

The Europe market growing with a fair growth rate in the market, owing to increasing demand for energy-efficient washers and industrial dryers with features such as minimizing their operational costs and enhancing cost savings, which enforce manufacturers to launch these systems. Such factors drive the growth of the Europe market.

The Middle East & Africa is growing with fairly moderate growth owing to water scarcity in the region. A post-pandemic rise in the tourism and travel sector and urban living has expanded the wash cycles in the industrial laundry sector. However, high spending hoists an additional push to invest in the commercial laundry facility on their own premise. Consumers are ready to invest more in sustainable laundry equipment using minimal water and providing better cleaning. Africa’s growing working population, mining activities, and rough regional operating conditions are some of the driving factors for the market.

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South America is growing with decent growth owing to rising disposable income of the working population and rising industrialization which is driving the growth of laundry equipment as most industries are focusing on arranging on-premise laundry solutions. This will consequently raise the investments in laundry facilities in sectors such as healthcare, hospitality, and food manufacturing facilities. Thus, as per our analysis, investments in developing an on-premise facility to expand the market.

KEY INDUSTRY PLAYERS

Prominent Players are Integrating Smart and IoT Capabilities to Solidify the Product Adoption

Key players such as Kannegiesser, MAG Laundry Equipment, and other players offering the Internet of Things (IoT) in their industrial product solutions that enable a wide variety of controls at the user’s end. The control at the user’s end allows them to manage the wash cycle time and the wash cycle with just a small app. Furthermore, growing automation and AI integration as an advancement to the machines has brought a push to the demand in the market. Furthermore, key players try to launch products with IoT capabilities, which drives the growth of the market. For instance, Vega Systems, a leading washing solution provider, offers technological innovations such as VEGA Finishing Technology, VEGA Washing Technology, VEGA Garment Technology, and VEGA Material Handling Technology, and other companies are also adopting new technology advances to maintain their significant presence in the market.

List of Key Companies Profiled:

• MAG Laundry Equipment (U.K)


• Laundrylux Inc (U.S.)


• Herbert Kannegiesser GmbH (Germany)


• Vega Systems Group (Netherlands)


• Lavatec Laundry Technology GmbH (Germany)


• Girbau Group (Spain)


• Jensen Group (Belgium)


• Ferrotec Holding Corporation (Japan)


• Domus (Italy)


• Pellerin Milnor Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2022: Domus, a laundry solution provider, presented its newly patented complete connected laundry solution, with the company now offering heat pumps and dryers from 8-10 kg up to 22 kg. These are compact machines with 180-degree doors for easy operation, and all are connected through IoT.


• February 2022: Domus, a laundry solution provider in South America, exhibited its newly developed facility in Vic, Barcelona. The development was especially clustered as laundry solutions for hospitality, health care, and the self-service sector.


• February 2022: Girbau launched integrated ironing system Compact PRO. The machine allows five different functions in a single machine and at a speed of 25 meters per minute. It also allows to set up 1, 2, or even 4 lanes at a time.


• February 2022: Kannegeiser, a leader in the laundry market, launched an automated logistics and robotics program to revolutionize the laundry operations. Under this, the company showcased eVue a single control interface for industrial operations and Robofeed for automatic dry work lines.


• October 2021: Jensen, an industrial laundry solution expert, introduced its Kalor ironer, which enables features such as durability and rigidity from the flexible chest ironer. It also offers the high evaporation capacity of a semi-flexible chest ironer that enables higher output.

REPORT COVERAGE

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The report provides a deep-dive analysis of the market dynamics and competitive landscape. It provides various key insights, including recent industry developments in the market such as mergers & acquisitions of key industry players, market-supporting macro and micro economic factors, SWOT analysis of the industry, and company profiles of major players.

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