USA Coin-operated Commercial Laundry Market Outlook to 2030

USA Coin-operated Commercial Laundry Market Overview

• The USA Coin-operated Commercial Laundry Market, based on a thorough five-year historical analysis, was valued at USD 1.35 billion. The market has shown steady growth due to the rising urban population, particularly in multifamily housing units and student accommodations, where the convenience of coin-operated laundry machines is a preferred choice.

• The USA market is dominated by major urban centers such as New York, Los Angeles, and Chicago, which are home to dense populations and extensive multifamily residential buildings. These cities have a high concentration of renters and transient populations, including students and tourists, who rely heavily on self-service laundry facilities.
• Water conservation mandates are a critical factor in regulating the U.S. coin-operated laundry market, particularly in drought-prone regions. California, Nevada, and Arizona have strict water usage regulations that commercial laundry operators must comply with. In 2023, California introduced Assembly Bill 1628, which aimed to require all new washing machines sold in the state to include a microfiber filtration system by January 1, 2029. These mandates are reshaping operational standards in the industry, particularly for laundromats in regions with limited water resources.

USA Coin-operated Commercial Laundry Market Segmentation

By Equipment Type: The market is segmented by equipment type into top-load washers, front-load washers, coin-operated dryers, and smart laundry systems. Among these, front-load washers hold the dominant market share due to their higher energy and water efficiency, which appeals to both laundromat operators and environmentally conscious consumers. Front-load machines are also preferred for their larger load capacities and gentler treatment of fabrics, making them suitable for a variety of customer needs, from small apartments to large residential complexes.

By End-user: In terms of end-user segmentation, the market is classified into multi-family residential buildings, student housing, military barracks, and RV parks/campgrounds. Multi-family residential buildings dominate this segment with the largest market share due to the growing number of rental properties in urban areas. These buildings typically rely on on-site laundry facilities as a value-added service for tenants. This trend is further fueled by the increasing preference for apartment living in metropolitan areas, where space for in-unit laundry is limited.

USA Coin-operated Commercial Laundry Market Competitive Landscape

The USA Coin-operated Commercial Laundry Market is dominated by key players such as Alliance Laundry Systems and Whirlpool Corporation. These companies have solidified their presence through long-term partnerships with property management firms and by offering advanced, energy-efficient machines. The presence of newer entrants like LG and Samsung, which provide innovative smart laundry systems, is also reshaping the competitive dynamics by increasing customer demand for convenience and technological integration.

USA Coin-operated Commercial Laundry Industry Analysis

Growth Drivers

• Urban Population Growth (Increase in renters and multifamily units): The USA's urban population continues to grow, with more than 80% of Americans living in urban areas, according to the U.S. Census Bureau. As of 2024, there is a steady rise in multifamily housing units, driven by increasing demand for rentals. This growing number of renters, who often lack in-unit laundry facilities, significantly boosts demand for commercial laundry services.
• Rising Laundry Service Demand (Time-saving, convenience trends): The shift towards time-saving and convenient services has fueled demand for commercial laundry facilities. Over 45% of U.S. renters prioritize access to laundry services as an essential amenity in their apartments, according to a 2023 survey by the U.S. Department of Housing. Coin-operated laundry services, particularly in busy urban areas, cater to this need for convenience. The increasing number of professionals in urban regions, further supports the rising demand for such services.
• Technological Innovations (Smart laundry systems, IoT integration): Technological innovations, such as smart laundry systems and IoT-enabled machines, are reshaping the commercial laundry industry. These systems allow users to control washers and dryers via mobile apps, enhancing convenience. For operators, IoT technology provides real-time data for better machine management and maintenance, optimizing energy and water usage, and improving operational efficiency, making laundry operations more seamless and cost-effective.

Market Challenges

• High Initial Capital Requirements (Equipment and maintenance costs): Starting a coin-operated laundry business requires substantial upfront capital. The costs include purchasing commercial-grade equipment, securing a suitable location, and covering ongoing maintenance expenses. These financial commitments can be a significant burden, especially for new operators. Additionally, ongoing maintenance is essential to ensure machines remain operational and efficient, adding further to long-term costs. Access to financing can also be a challenge for small businesses, limiting growth opportunities in this sector.
• Declining Laundry Footfall in Rural Areas: Rural areas face challenges with decreasing foot traffic in coin-operated laundries due to population decline and the growing use of in-home laundry setups. As fewer people live in these regions, laundromats experience reduced customer visits, impacting revenue. This trend has led to the closure of many facilities in smaller towns, as maintaining profitability becomes increasingly difficult. The shift away from laundromats in rural areas is largely due to convenience and accessibility of alternative laundry solutions.

USA Coin-operated Commercial Laundry Market Future Outlook

Over the coming years, the USA Coin-operated Commercial Laundry Market is anticipated to show continued growth driven by urbanization, advancements in laundry technology, and the increasing demand for more energy-efficient and eco-friendly equipment. The introduction of mobile app-controlled systems is expected to further streamline operations for laundromat owners and enhance customer experiences, creating new revenue streams for the industry.

Market Opportunities

• Increasing Adoption of Cashless Payment Systems: The adoption of cashless payment systems in coin-operated laundries is becoming more widespread. Many laundromats are integrating card and mobile payment options into their machines, offering customers greater convenience. This shift appeals to tech-savvy users and simplifies operations for owners by reducing the need to handle physical coins. Cashless systems also streamline financial management, making operations more efficient and secure for business owners.
• Expansion into Student Housing and Co-living Spaces: Student housing and co-living spaces present strong opportunities for coin-operated laundry services. Many students and co-living residents rely on shared laundry facilities due to the lack of in-unit options. Expanding into this market provides laundromats with a consistent customer base, as these environments typically have high demand for laundry services. Coin-operated laundries in such spaces benefit from regular usage, contributing to stable revenue streams.