Commercial Laundry Equipment is Estimated to Witness High Growth Owing to Opportunity of Increasing Demand from Hospital

Commercial laundry equipment includes washing machines, dryers, and ironing equipment used in laundromats, hospital facilities, and hotels among others. They are efficient, durable, and able to process large volumes of laundry in an hour. The equipment helps save time and reduce energy and water consumption significantly.

The global Commercial Laundry Equipment Market is estimated to be valued at US$ 1.04 Bn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity of increasing demand from the hospitality industry is expected to boost the growth of the commercial laundry equipment market during the forecast period. The hospitality industry including hotels, restaurants, resorts, and motels generates large volumes of soiled linen on a daily basis that needs to be cleaned efficiently. Commercial laundry equipment with features such as high processing capacity and minimal space requirement are well-suited for laundromats installed at hotels and other hospitality establishments. The growing tourism industry worldwide is also driving expansion of the hospitality sector which in turn is estimated to fuel the demand for commercial laundry equipment from 2023 to 2030.

Porter's Analysis
Threat of new entrants: The commercial laundry equipment market requires high capital investment for R&D, manufacturing facilities, and distribution channels. Established brands have strong brand recognition and customer loyalty which poses significant barriers for new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of multiple established brands. However, switching costs associated with training and maintenance services provide some bargaining power to suppliers.

Bargaining power of suppliers: Major suppliers have modest bargaining power due to the availability of alternative component manufacturers and suppliers. However, proprietary technologies developed by OEMs increase suppliers' dependence.

Threat of new substitutes: Minimal threat from substitutes as commercial laundry equipment has no close substitutes for commercial and industrial laundry needs.

Competitive rivalry: Intense rivalry among key global players to gain market share through product innovation, brand building, and competitive pricing.

SWOT Analysis
Strengths: Established brands with global presence, strong R&D capabilities, proprietary technology, and durable product quality.
Weaknesses: High capital requirements, long replacement cycles, dependence on economic cycles.
Opportunities: Growth in laundry needs of hotels, hospitals and laundromats. Rising demand in developing countries.
Threats: Trade barriers, fluctuating raw material prices, and increasing environmental regulations. Intense price competition.

Key Takeaways
The global Commercial Laundry Equipment Market Demand is expected to witness high growth during the forecast period. Rapid urbanization, rising disposable incomes, and increasing hygiene standards from public places are fueling market growth globally.

The North American region currently dominates the market owing to early technology adoption and presence of global market leaders. However, the Asia Pacific region is expected to grow at the fastest pace due to rising washing needs of a burgeoning middle class in countries like China and India.

Key players operating in the commercial laundry equipment market are Medtronic plc, Abbott Laboratories, Boston Scientific Corporation, Biotronik SE & Co. KG, MicroPort Scientific Corporation, LivaNova PLC, Nihon Kohden Corporation, Schiller AG, Johnson & Johnson, GE Healthcare. These players are focusing on new product launches, mergers and acquisitions to gain market share. For instance, in 2022 Biotronik partnered with Medtronic to strengthen their cardiovascular portfolios.