Commercial Laundry Equipment Market Size & Trends Research [2033]

Commercial Laundry Equipment Market Overview

The Commercial Laundry Equipment Market size was valued at USD 2750.94 million in 2024 and is expected to reach USD 3647.27 million by 2033, growing at a CAGR of 3.1% from 2025 to 2033.

The commercial laundry equipment market is witnessing a significant surge in adoption across various industries including healthcare, hospitality, and multi-housing sectors. In 2024, over 1.9 million commercial washers and dryers were installed globally, reflecting an annual growth volume increase of more than 110,000 units.

The demand for energy-efficient machines is intensifying, with over 72% of newly installed machines rated as energy-efficient in North America. The on-premise laundry (OPL) segment accounted for approximately 52% of all installations globally in 2023. The market is also seeing rising demand for automatic dosing systems, present in over 34% of new commercial washers installed across Europe. With increasing water scarcity issues, machines equipped with water-recycling systems have grown by 41% in demand within two years.

As of 2024, approximately 60,000 laundromats are operational in the U.S. alone, employing over 72,000 people. Integration of IoT and cloud-based monitoring systems has reached nearly 29% of all new equipment purchases, particularly in Asia-Pacific. The average lifespan of commercial laundry equipment ranges between 10–14 years, pushing the replacement demand consistently.

Key Findings

DRIVER: Rising demand for energy-efficient and automated laundry solutions across industries.

COUNTRY/REGION: North America leads in adoption, with over 650,000 commercial laundry machines sold in 2023 alone.

SEGMENT: On-premises laundry (OPL) remains dominant, covering 52% of global installations.

Commercial Laundry Equipment Market Trends

The commercial laundry equipment market is rapidly adapting to automation, sustainability, and digital monitoring technologies. In 2023, more than 44% of new laundromats globally opted for smart washers and dryers with Wi-Fi connectivity and real-time usage analytics. This trend is especially dominant in urban areas across North America and Europe. Eco-friendly initiatives have led to the rise of low-water consumption machines, with over 180,000 units featuring water reuse capabilities sold in the past year. Energy conservation remains a central trend. Commercial washers using under 20 liters of water per kilogram of laundry have gained traction, particularly in countries facing water stress such as India and South Africa. In Europe, over 68% of new purchases were machines certified under strict energy efficiency guidelines. The demand for machines with inverter motors has also grown, with a 37% increase noted in the Asia-Pacific region due to reduced operational noise and enhanced performance. Another notable trend is the growth of multi-housing laundry installations. Properties with over 50 residential units accounted for 61% of all new commercial laundry setups in the U.S. during 2023. Coinless, app-based payment systems now feature in more than 50% of laundromats in North America, enabling cashless transactions and integrated maintenance notifications. Additionally, the refurbished equipment market remains resilient, particularly among small enterprises in Latin America and Africa, where refurbished commercial washers constitute nearly 28% of the market. Growing consumer awareness and need for hygiene post-pandemic have fueled adoption in healthcare and elder care facilities, increasing demand for high-temperature sterilization-capable machines by 33% since 2022.

Commercial Laundry Equipment Market Dynamics

The commercial laundry equipment market is primarily driven by the increasing demand for energy-efficient and automated systems. In 2023, over 64% of machines sold in developed regions were energy-efficient, with nearly half incorporating smart features such as auto-dosing, sensor drying, and remote diagnostics. These systems are helping facilities reduce labor costs by 26% and comply with tightening environmental regulations.

DRIVER

Rising demand for energy-efficient and automated laundry systems.

The adoption of energy-efficient and automated laundry systems has significantly driven market expansion. In 2023 alone, energy-efficient commercial washers accounted for 64% of new sales in developed countries. As regulations around energy and water consumption tighten, businesses are proactively upgrading outdated machinery. Automated features like sensor-based drying, auto-dosing detergents, and remote diagnostics have found wide acceptance. Approximately 48% of new machines shipped in 2024 offer some form of automation or smart functionality, reducing labor dependency by nearly 26% in large-scale operations.

RESTRAINT

Demand for refurbished equipment in price-sensitive markets.

While technological advancements are shaping the market, cost-sensitive regions continue to rely on second-hand machines. In Sub-Saharan Africa and parts of Southeast Asia, refurbished equipment fulfills over 35% of laundry equipment needs. This slows the penetration of modern machines. Moreover, refurbished equipment often lacks compliance with current water and energy efficiency standards, potentially increasing operational costs in the long term. However, for small businesses with limited capital, refurbished machines priced 40–60% lower than new equipment remain attractive.

OPPORTUNITY

Growth in hospitality and healthcare sectors.

Expansion of the hospitality and healthcare sectors provides substantial growth opportunities. Global hotel room supply grew by 6.1% in 2023, with large hotel chains investing in centralized and on-premises laundry facilities to cut outsourcing costs. Healthcare facilities, especially long-term care homes and hospitals, added 43,000 new laundry machines worldwide during 2023 to comply with hygiene protocols. Countries like Germany, Japan, and India have mandated in-house laundry systems for infection control, boosting demand for sterilizing washers and dryers. These sectors prefer machines that can handle loads exceeding 20 kg, further pushing industrial-grade equipment demand.

CHALLENGE

Rising costs and expenditures in machine upgrades.

One of the major challenges faced by commercial laundry operators is the high cost associated with machine upgrades. A high-capacity washer with IoT and auto-dosing capabilities can cost upwards of $12,000. Additionally, installation and maintenance expenses have increased by 15% in the last two years due to the need for specialized technicians and smart component integration. For small businesses and independent laundromats, such costs can delay upgrades. Moreover, increasing tariffs on imported components in countries like Brazil and the U.K. are further inflating equipment prices, affecting purchasing behavior.

Commercial Laundry Equipment Market Segmentation

The commercial laundry equipment market is segmented by type and application. Type-based segmentation includes multi-housing, on-premises, and vended machines, whereas application segmentation comprises healthcare, hospitality, educational institutions, and service industries. Each segment shows unique adoption patterns, influenced by volume requirements, operational budgets, and regulatory needs.

By Type

Multi-Housing: In 2024, over 320,000 multi-housing laundry units were installed across North America alone. These setups, prevalent in apartment complexes and residential buildings with 50+ units, accounted for 21% of global demand. Machines in this segment prioritize noise control, energy conservation, and app-based access. Wi-Fi enabled laundry units represent 46% of new installations in multi-housing projects in Canada and Germany.
On-Premises: On-premises laundry (OPL) dominates the market with over 1 million installations worldwide as of 2023. These machines are widely used in hotels, hospitals, and educational institutions, offering better control over wash cycles and hygiene standards. Over 60% of hospitals in Asia-Pacific operate OPL systems with load capacities exceeding 30 kg. These machines reduce reliance on third-party laundries and provide faster turnaround.
Vended: Vended laundry, or self-service laundromats, comprises over 270,000 operational outlets globally in 2024. The United States alone hosts around 60,000 laundromats, with an annual growth rate in new vended stores reaching 5.8%. Coinless payment systems are now available in 72% of newly established laundromats in Europe. Vended systems use durable, high-throughput washers with average load capacities between 12–20 kg.

By Application

Healthcare: The healthcare sector has shown a consistent rise in demand for high-capacity, hygienic commercial laundry equipment. In 2023, more than 43,000 machines were installed in hospitals, nursing homes, and eldercare centers globally.
Hospitality: Hospitality remains the largest end-use application, accounting for approximately 36% of global commercial laundry equipment installations in 2023. Large hotel chains and resorts increasingly prefer on-premises laundry setups to reduce outsourcing costs and turnaround times.
Educational Institutions: Educational campuses, especially those with residential facilities, represent a growing segment in the commercial laundry equipment market. Universities and boarding schools accounted for nearly 14% of equipment demand in 2023.
Service Industries (Gyms, Salons, Spas): Service industries, including gyms, salons, wellness centers, and spas, contribute to around 9% of the total market demand. In 2023, more than 78,000 machines were installed in these sectors globally.

Regional Outlook for the Commercial Laundry Equipment Market

The commercial laundry equipment market exhibits strong regional diversity, with North America leading in terms of installed base and technological adoption. In 2023, the U.S. and Canada together accounted for over 650,000 new machine installations, with more than 82% of laundromats featuring coinless, app-integrated systems. Europe followed closely with over 400,000 units sold, largely driven by demand in Germany, France, and the U.K., where 68% of machines adhered to energy-efficient standards. The region’s hospitality sector contributed to over 41% of total demand.

North America

North America is the dominant market, with the U.S. and Canada accounting for more than 38% of global commercial laundry installations in 2023. Over 650,000 new machines were sold in the region, driven by strong growth in multi-housing and healthcare segments. Coinless laundromats are now present in 82% of new U.S. establishments. Additionally, 57% of machines sold in Canada had in-built automation features.

Europe

Europe saw over 400,000 commercial laundry units installed in 2023, with Germany, the U.K., and France being top contributors. Over 68% of machines met eco-labeling standards, emphasizing sustainability. The region’s hospitality sector alone accounted for 41% of demand. Vended laundromats are growing in Spain and Italy, increasing at a rate of 6% annually.

Asia-Pacific

Asia-Pacific is experiencing rapid growth, with over 510,000 machines sold in 2024. China leads regional demand with 180,000 units sold, followed by Japan and India. The region has witnessed a 31% increase in the adoption of IoT-enabled machines. Japan’s aging population has driven growth in healthcare laundry, while India’s hospitality boom is responsible for over 29% of regional demand.

Middle East & Africa

In the Middle East & Africa, over 110,000 commercial machines were sold in 2023. The UAE and South Africa lead the market with a combined 52% share. The region’s hospitality sector, particularly in tourist-heavy regions, continues to fuel demand. However, 35% of machines are refurbished units due to capital constraints in several African economies.

List of Top Commercial Laundry Equipment Companies

Alliance Laundry Systems
Electrolux Laundry Systems
GE Appliances
Qualitex
Unipress

Alliance Laundry Systems: With over 2,800 commercial installations monthly across North America, Alliance holds the largest share of the global market. Their Speed Queen brand is used in more than 23,000 laundromats worldwide.

Electrolux Laundry Systems: Dominating the European market, Electrolux’s commercial laundry division sells over 200,000 machines annually across 120 countries. Their solutions are prevalent in hospitality and healthcare.

Investment Analysis and Opportunities

Investments in the commercial laundry equipment market are focusing heavily on automation, digital integration, and energy efficiency. In 2023, global investment in commercial laundry tech startups surpassed $520 million, emphasizing cloud-based diagnostics and AI-driven cycle optimization. Industrial laundromats in Japan and South Korea invested over $85 million in retrofitting machines with IoT modules. Moreover, the rise of contactless operations post-COVID has encouraged laundromats in North America to invest $145 million in app-based machine access systems. In terms of manufacturing expansion, Electrolux invested $110 million in upgrading its Poland-based facility, aiming to boost production by 36%. Alliance Laundry Systems announced a $92 million investment to set up a new production line in Wisconsin, adding 480 new jobs. Meanwhile, demand for eco-friendly machinery in the EU prompted regional governments to provide subsidies up to 25% for certified energy-efficient laundry equipment, driving investments in R&D by over 19% among top manufacturers. Opportunities also exist in mobile laundry services. In India, over 1,500 startups have entered the mobile laundry delivery market in the last two years, increasing demand for compact and transportable commercial washers. Africa presents investment potential in low-cost, solar-powered laundry machines, as over 42% of sub-Saharan laundromats rely on off-grid power.

New Product Development

Product innovation in the commercial laundry sector has accelerated. Alliance introduced a new 30 kg front-load washer in 2023 with AI cycle adjustment and predictive maintenance alerts. This machine uses 18% less water per load and has reduced average cycle time by 11 minutes. Electrolux released a modular stacking dryer capable of 36% higher throughput in constrained spaces. GE Appliances launched a commercial washer integrated with UV sterilization, capable of 99.8% bacterial elimination—ideal for healthcare. Qualitex revealed a smart dosing system compatible with any detergent type, reducing chemical use by 21%. Meanwhile, Unipress introduced a high-speed commercial shirt press that completes one shirt in under 20 seconds with 97% crease accuracy. Touchless interfaces have also gained momentum. In 2024, over 48,000 machines shipped globally featured capacitive touch sensors and Bluetooth connectivity for operation via smartphone. Machines with noise outputs below 52 dB have increased in demand by 22% in the hospitality industry.

Five Recent Developments

Alliance Laundry Systems expanded its manufacturing facility in Ripon, Wisconsin, increasing production capacity by 27%.
Electrolux launched a water-saving washer model in France that reduces water usage by 19 liters per cycle.
GE Appliances introduced a commercial laundry line with Wi-Fi and AI stain detection.
Qualitex signed a strategic partnership with hotels in Southeast Asia, delivering over 8,000 machines in 2023.
Unipress upgraded its ironing equipment with 20% faster heating elements.

Report Coverage of Commercial Laundry Equipment Market

This report on the commercial laundry equipment market provides a thorough examination of current trends, segmentation, regional outlook, and key business insights. It analyzes over 20 data sources covering equipment types, global installations, automation trends, and sector-specific demand. The report covers major product types including multi-housing machines, on-premises washers, and vended systems. Applications across healthcare, hospitality, educational, and service sectors are individually examined with market penetration rates. Regional analysis spans North America, Europe, Asia-Pacific, and Middle East & Africa, offering detailed insights with figures on equipment units sold, usage trends, and regulatory influences. Company profiling is focused on leading brands with large market presence. Key growth drivers such as automation, sustainability, and digital connectivity are discussed, along with obstacles like capital expenditure and refurbished market impact. The investment section includes real-world capital flows, production expansions, and startup trends. Innovation and new product development are detailed using 2023–2024 product launch data.