Top 13 Service Industries Driving the On-Demand Economy

Chirag Vaghasiya
July 04, 2023
8 min read

Evolution is crucial for all living organisms; likewise, technology is essential in human society. Today, the convenience of hiring plumbers, stylists, and therapists right from our smartphones has become a reality. On-demand services have transformed our lives by offering seamless food delivery, reliable cab services, efficient laundry solutions, and convenient grocery shopping experiences, among many others.

According to industry experts, the rise of the sharing economy is set to bring about a significant transformation. Entrepreneurs across various industries recognize the immense potential, and consumers wholeheartedly embrace the numerous benefits of the on-demand economy.

The on-demand economy is a rapidly growing sector globally, and it shows no signs of slowing down. Here are some statistics that show just how big and how important this sector is becoming.

On-Demand Economy Statistics

According to PwC report, the on-demand economy will reach a value of $335 billion by 2025.
In 2022, consumers spent an average of $56.7 billion on on-demand services.
The on-demand labor market is expected to grow by 18.5% annually in the next 5 years.
49% of on-demand users are millennials.
The on-demand food delivery market is expected to reach 161.74 billion USD by 2023. (Source)
The on-demand transportation market is expected to be worth 285 billion USD by 2025.
The on-demand home cleaning market is expected to be worth 40 billion USD by 2025.

Let’s look at the top industries altering the lives of individuals and fueling on-demand app development services.

Top 13 Service Industries That Drive On-Demand Economy

1. Ride-hailing and Transportation

Ride-hailing platforms like Uber and Lyft have revolutionized the transportation industry by connecting passengers with drivers through mobile apps. These services offer convenient, affordable, and on-demand transportation options, transforming the way people travel.

The global ride-hailing market was valued at approximately $61.3 billion in 2020 and is projected to reach $379 billion by 2027.
The number of ride-hailing users worldwide is expected to reach 1.45 billion by 2027.
The United States is the largest ride-hailing market, followed by China and India.
The global transportation market is worth $9.7 trillion. This is enough to speak of its profitable scope. So, if you are yet to make a mark here, get a custom taxi app development solution to achieve this.

2. Car Wash Services

Gone are the days of waiting in long queues at the car wash. On-demand car wash services have made it incredibly convenient for owners to keep their cars clean and polished. With a mobile app, I can request a professional car wash at my preferred location, home, office, or anywhere else. These services typically offer a variety of packages, including exterior wash, interior cleaning, and detailing. On-demand car wash services promote sustainability by using eco-friendly methods and water-efficient techniques.

The global car wash services market size was valued at $29.3 billion in 2021 and is anticipated to grow at a CAGR of 3.1% from 2022 to 2030. (Source)
The United States is the largest car wash services market, followed by China and Japan.

Also check: Guide to Develop an On Demand Car Wash App

3. Fuel Delivery Services

Running out of gas for an important meeting or during a road trip can be a nightmare. Fortunately, on-demand fuel delivery apps have come to the rescue. With these services, consumers like us can request fuel delivery directly at the location. Use a mobile app to place your order and have peace of mind knowing that help is on the way. On-demand fuel delivery services provide a safe and convenient solution, saving us from the inconvenience of searching for a gas station or carrying heavy gas canisters.

The global fuel delivery market size was valued at $4.8 billion in 2022 and is expected to hit $9.3 billion by 2032.(Source)
The Asia Pacific region is expected to be the largest market for fuel delivery, followed by North America and Europe.

4. Grocery Delivery Services

The advent of on-demand grocery delivery services has transformed how we shop for groceries. Instead of navigating crowded aisles and standing in checkout lines, we can order groceries from our homes. These services offer several products, from fresh produce to household essentials, and deliver them to our doorstep. Many platforms provide real-time updates, allowing us to track orders and ensure timely delivery. On-demand grocery delivery services have become particularly popular during the COVID-19 pandemic, as they offer a safe and convenient alternative to in-person shopping.

The worldwide grocery delivery market size was valued at $285.70 billion in 2021 and is expected to reach $1.14 trillion by 2027, at a CAGR of 25.3% during the forecast period (2022–2027).
The Asia Pacific region is expected to be the largest market for grocery delivery, followed by North America and Europe.
The average customer spends USD 1,200 per year on grocery delivery.

This depicts its profitable scope. And, If you wish to make a mark in this market, our readymade grocery delivery app is here to assist.

5. Salon Services

Imagine having the power to access top-notch beauty services whenever and wherever you desire. On-demand salon services apps offer the best solution by allowing people to access beauty and grooming services at their place and convenience. These apps cater to the needs of busy individuals, ensuring that even those with the tightest schedules can maintain their flawless appearance effortlessly.

This trend of salon app development has gained tremendous popularity in recent years. It’s not just a win for customers seeking convenience but salon owners. With reduced labor and real estate costs, salon owners can focus on delivering exceptional services while maximizing their profits.

The global beauty & salon market size was valued at $215.65 billion in 2022 and is projected to reach $383.88 billion by 2030, exhibiting a CAGR of 7.55%. (Source)
The Asia Pacific region is expected to be the largest market for beauty and salon services, followed by North America and Europe.
The rising adoption of online booking and payment options is also driving the growth of the market.

6. Healthcare Services

On-demand healthcare services have emerged as a boon for patients seeking convenience and accessibility. With telemedicine platforms, individuals can connect with healthcare professionals remotely, eliminating the need for in-person visits for minor ailments and consultations. These services offer various medical services, including online doctor consultations, prescription refills, and mental health support. On-demand healthcare has expanded access to top-notch services, particularly for those in remote areas or with limited mobility. It has also played a significant role in providing healthcare during emergencies and natural disasters.

The global healthcare market size was valued at USD 8.45 trillion in 2018 and is projected to reach USD 11.9 trillion by 2025, exhibiting a CAGR of 7.4% during the forecast period (2019-2025).
The United States is the largest healthcare market, followed by Germany and Switzerland.
The Asia Pacific region is expected to be the fastest-growing market for healthcare, followed by Latin America and the Middle East.
The rising adoption of innovative technologies such as Artificial Intelligence and IoT is driving the growth of healthcare app development.

7. Laundry Services

The laundry industry has embraced the on-demand economy, making washing, drying, and folding clothes more accessible. On-demand laundry services allow you to schedule a pickup and drop-off at your convenience, saving time and effort. These services typically offer professional cleaning, stain removal, and delicate fabric care. On-demand laundry platforms often partner with local laundromats or have their facilities to ensure high-quality service. They also provide transparent pricing and real-time updates, making the laundry process hassle-free.

Also check: Cost To Develop a Laundry and Dry Cleaning App

8. Logistics Services

From small local companies to e-commerce giants, the logistics industry has witnessed a significant boom. On-demand app development for the logistics sector offers a seamless solution for last-mile delivery. These platforms connect businesses with a network of drivers who can swiftly pick up and deliver packages to customers. Through advanced tracking systems, businesses and customers can monitor the progress of their shipments in real time.

On-demand logistics services have played a vital role in the growth of e-commerce and have enabled businesses to provide fast and efficient delivery options to their customers. The whole credit solely goes to on-demand app development.

9. Education Industry

What could be a more practical approach to learning than having immediate access to the resources you need when you need them? The landscape of education has undergone significant transformations in recent years. The conventional one-size-fits-all approach to learning is now considered outdated. Undoubtedly, on-demand learning is the future. Both corporate training for employees and educational institutions are embracing e-learning applications to align with the current trends.

According to GlobeNewswire, the global US education market size was valued at $1.2 Trillion in 2022 and is expected to hit $1.5 trillion by 2028.
The Asia Pacific region is expected to be the largest market for education, followed by North America and Europe.
The increasing demand for online education is one of the key drivers of the growth of the education market.
The rising adoption of innovative technologies such as AI and VR is driving the growth of developing E-learning app like Byju’s or Coursera.

10. eCommerce Industry

While not a specific service, the eCommerce industry deserves a special mention for driving the on-demand economy. The rise of online shopping platforms has transformed how we shop for products, from clothing and electronics to home goods and groceries. With just a few clicks, consumers can browse an extensive range of products, compare prices, read reviews, and deliver their purchases directly to their doorsteps. The convenience and accessibility bought by online shopping have reshaped consumer behavior, making it an integral part of the on-demand economy.

According to Statista, the global eCommerce market revenue is projected to reach USD 3.58 trillion in 2023 and USD 5.47 trillion by 2027.
The United States is the largest e-commerce market, followed by China and the United Kingdom.
The fastest-growing e-commerce markets are in Southeast Asia, Latin America, and Africa.
The most popular product categories for E-commerce are apparel, electronics, beauty & personal care, and home & garden.
The most common reason people shop online is for convenience and to save money.

11. Doctor On-Demand

Remember scrambling for a last-minute doctor’s appointment, only to face a crowded waiting room and long wait times? Doctor on-demand apps are revolutionizing healthcare accessibility. These platforms connect you with qualified physicians for virtual consultations, perfect for routine check-ups, medication refills, or addressing minor health concerns.

Here’s why it rocks:

Convenience: Skip the long commutes and waiting rooms. Schedule appointments that fit your busy schedule, from the comfort of your own home.
Increased Access: Living in a remote area with limited healthcare options? Doctor on-demand services connect you with specialists you might not have access to locally.
Mental Health Support: These platforms are making mental healthcare more accessible than ever, offering virtual consultations with therapists and counselors.

12. Travel Industry

Gone are the days of pouring over travel brochures and spending hours on generic booking websites. On-demand travel booking apps put the power of planning in your hands. These platforms connect you with travel advisors who create personalized itineraries based on your interests and budget. Whether you’re seeking a spontaneous getaway or a meticulously planned adventure, on-demand travel app simplifies the process.

13. Fitness services

Let’s face it, carving out time for the gym can be a struggle. But what if your gym came to you? On-demand fitness services are here to revolutionize your workout routine, no matter how busy your schedule.

Imagine this: you wake up feeling sluggish, but the thought of packing a gym bag and fighting traffic just zaps your motivation. With on-demand fitness, you can participate in live or pre-recorded classes led by certified instructors – all from the comfort of your living room! Choose from a variety of exercise styles, from high-intensity interval training to calming yoga, and find the perfect workout to fit your mood and energy level.

On-demand fitness service isn’t just about convenience, it’s about personalized training. On-demand fitness apps connect you with virtual trainers who create customized workout plans based on your fitness goals and equipment availability.

Final Thoughts

Like you and me, today’s consumers crave instant gratification and have abandoned the idea of waiting. For budding entrepreneurs venturing into uncharted territories beyond the on-demand economy is essential and presents a remarkable opportunity for success.

While it’s true that some on-demand startups may face challenges in generating profit initially, there is still a positive trend in their revenue streams, indicating growth and promising opportunities for success in the future.

Even within established sectors of the economy, there is still ample room to excel by offering superior personalization and speedy service. Embracing these qualities will undoubtedly make you a true champion in the field. Sooner or later, this will be the ultimate determining factor for success.

About: Chirag Vaghasiya

Chirag Vaghasiya is a Sr. SEO Executive at XongoLab Technologies LLP and PeppyOcean having skills in on-page optimization, off-page optimization, website promotion on major search engines, competitor research, internet marketing, quality link building, content optimization, and SMO.

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