What Industry is Home Services?

The home services industry describes various businesses, products, and services. The home service market is so broad that many homeowners who regularly engage with a home service business are unaware. The home improvement market, construction, maintenance, and even the review sites that help homeowners discover home service businesses account for some market share within this vast industry.

So, what industry is home services?

Beneath this umbrella term of diverse businesses, the most simple definition of the home services industry is any service that builds, maintains, repairs, or otherwise services your home and property.

Valve+Meter Performance Marketing works with several home service businesses and executes ongoing research into consumer spending, home sales, and new construction trends in the coming years. Business leaders need to verify market research to develop a complete plan to help grow within the home services market. Contact our team for a free analysis if you want a complete marketing assessment.

In this in-depth article, Valve+Meter dissects the various sectors within the home service industry, examines the growth drivers, and discusses potential opportunities for service providers and customers. It is important to know that there are many examples of home service businesses so even this highly researched article cannot cover every specialty within the industry.

In today’s fast-paced world, homeowners and renters alike rely heavily on various home services to ensure their living spaces are well-maintained, functional, and comfortable.

The home services market plays a crucial role in meeting the needs of residential properties—the vast array of services that cover every aspect of residential homes and property care.

From home repair and maintenance to highly skilled labor and trades, this complex industry must stay ahead of technology and product manufacturing growth that fills homes nationwide.

To better understand the intricacies of the home services industry, it is essential to delve into the very definition of home services and explore the unique characteristics, such as its fragmentation, that set this industry apart from others.

Defining Home Services

The term “home services” refers to the obvious need for upkeep, maintenance, repair, and improvement of residential properties. However, it also refers to secondary services like home security and even tertiary industries like in-home health care. Due to the broad range of services within this term, there is no clear definition of a home services business.

Many of the services are designed to make the lives of homeowners and renters more comfortable and convenient, including:

• Home repair and maintenance: Generally, home repair refers to basic maintenance services like fixing broken appliances, but can also refer to repairing structural issues. Basement waterproofing, concrete repair, foundation services, and masonry are some of the services that ensure the functionality and safety of a residential property.
• Landscaping and lawn care: Mowing grass and turf management is the simplest service. Landscaping and lawn care services also involve designing, installing, and maintaining outdoor spaces, including gardens, lawns, and other green areas. Plants, tree care, fertilizer application, and irrigation systems are common sub-categories.
• Cleaning services: Cleaning services provide comprehensive solutions to maintain the cleanliness and hygiene of residential spaces, including routine house cleaning, deep cleaning, and specialized services such as carpet cleaning and window cleaning.
• Pest control: Pest control services specialize in the prevention, management, and elimination of unwanted pests, such as insects, rodents, and other critters, from homes and surrounding areas.
• Plumbing: Installing plumbing in new construction, remodeling projects, and repairing plumbing within a home is one of the most important home services. Within the home service market, plumbing requires skilled labor and special training.
• Heating, ventilation, and air conditioning (HVAC) services: One of the most common home service providers is heating and cooling contractors. While some businesses within the home service industry are optional, heating and air conditioning are a primary home service that protects families and property. HVAC includes installing, repairing, and maintaining essential systems within a residential property.
• Electrical services: Another skilled labor segment, electricians operate another essential home service business. Electrical services involve installing, repairing, and maintaining electrical systems, wiring, and components in a home to ensure safety and proper functioning.
• Home security and automation: The home services market may change with consumer spending and technology trends. Home security and automation services represent some of the most advanced tech of any home service provider. Cameras, smart devices, and old technologies like door locks merge within this industry.
• Moving and storage: Professional moves, storage facilities, and even closet organization fit into this category. Moving and storage services assist with the packing, transportation, and storage of household items during relocation, ensuring a smooth and organized transition from one living space to another.
• Home improvement: An even more broad segment of the home service industry falls into home improvement. This includes roofing, painting, siding, gutters, fences, hardscapes, flooring, interior decorators, and far more home service providers.
• People-Focused Home Service businesses: Yet another segment includes the part of the home service market that cares for homeowners themselves. This includes home health aides, pet care, personal shoppers, and other professionals who perform services for homeowners within their homes.

The Fragmentation of the Home Services Industry

As this list above demonstrates, one of the key characteristics of the home services industry is its fragmentation. Unlike some industries dominated by a few major players, the home services market consists of numerous small and medium-sized businesses, freelancers, and independent contractors. This fragmentation is due to the localized nature of the services, the variety of skills required, and the relatively low barriers to entry.

An individual with a passion for business and a drive to enter the economy can join the home service market with a service as simple as dog walking. Customer loyalty and positive reviews can quickly turn a business idea into a money-making success.

Some areas within the market did not exist just a few years ago. For instance, some businesses specialize only in installing EV charging in homes. The electrification of homes is an emerging sector, including IT specialists who only work with homeowners and even energy efficiency auditors who help reduce your carbon footprint.

Navigating the Competitive Landscape

Given the fragmentation of the home services industry, businesses must find ways to differentiate themselves and stay competitive. Some key strategies include:

1. • Embracing technology and online platforms
   • Focusing on customer service and satisfaction
   • Building a strong local reputation
   • Offering specialized or niche services

Benefits for Customers

Customers also stand to gain from the evolving landscape of the home services market. Some of the key advantages for customers include:

1. • Convenience and time savings: Online platforms and on-demand services make it easier for customers to find, book, and manage home services, ultimately saving time and effort.
   • Greater choice and flexibility: The vast array of service providers in the market allows customers to compare and choose the best-suited option for their specific needs.
   • Access to specialized services: As businesses seek to differentiate themselves, customers can access a wider variety of niche and specialized services that cater to their unique requirements.

The Role of Startups and Disruptors

The home services industry has seen the emergence of various startups and disruptors that are challenging traditional business models and introducing innovative solutions. These companies are leveraging technology, data, and unique service offerings to reshape the industry and create new opportunities for growth. Established businesses should be open to collaborating with these newcomers and learning from their innovative approaches.

The Importance of Industry Partnerships

To overcome the challenges facing the home services industry and capitalize on emerging opportunities, businesses must recognize the value of collaboration and partnerships. By working together with other industry players, technology providers, and educational institutions, businesses can pool resources, share knowledge, and drive innovation that benefits the entire industry.

The home services industry is a diverse and expansive sector that encompasses a wide range of businesses catering to the various needs of homeowners and renters. Driven by factors such as technology, changing demographics, and environmental awareness, the industry continues to grow and evolve, presenting numerous opportunities for both service providers and customers.

As the market becomes increasingly competitive, businesses must adapt and innovate to stay relevant, while customers can enjoy greater convenience, choice, and access to specialized services.