Your Shopping Cart Is Empty
| ✷ Report Code: A03506 | Feb 2023 | Pages: 341 | ||
| Tables: 149 | Charts: 58 |
| |
The global hyperlocal services market was valued at $1.5 trillion in 2021, and is projected to reach $5.9 trillion by 2031, growing at a CAGR of 14.4% from 2022 to 2031.
Hyperlocal utility services are expected to gain major traction in developing countries during the forecast period; this is majorly attributed to growing disposable income, high working age population, and high inclination to have comfort providing services which creates demand for the various utility services including home services, logistic, and personal tuitions services.
The hyperlocal services market is segmented into Nature and Type.
Hyperlocal services market companies provide delivery of a goods and utility services to consumers, goods delivery including groceries, food, medicines, personal items and others, and utility services includes plumbing, home cleaning, lawn care, electrical and drainage. All these goods and services are provided through network of boys from business or individuals in local areas.
Hyperlocal services industry platforms help restaurants, hotel, fast food outlets, fruit or vegetable, seafood, meat, and other retailers to effectively engage & manage their business without worrying about delivery. Easy accessibility to the internet, smartphones proliferation has been primarily boosting the demand for hyperlocal services. Growing working population and rising income levels are propelling the online food and grocery delivery market. Furthermore, owing to increase in cases of COVID-19, some of the leading players such as McDonald's Corporation, Domino’s Pizza Inc. and Zomato, have introduced contactless delivery services.
This is expected to boost the demand for the hyperlocal services market. E-commerce and M-commerce platforms are increasing adopting and acquiring the hyperlocal services industry to reduce delivery cost and time. Growth in e-commerce business creates extensive demand for the hyperlocal services. For instance, according to India Brand Equity Foundation, The Indian e-commerce market is expected to grow to $200 billion by 2026, which significantly helps the hyperlocal services market growth.
Home utility services include home cleaning, home remolding, roofing, lawn care, personal care, electrical, and appliance repair. These home utility services are in huge demand in developed countries owing to lack of time and domestic help but in developing countries its demand is significantly growing during the forecast period.
Changes in food habits and busy lifestyle of consumers have led to an increase in demand for various hyperlocal services such as food delivery, grocery ordering, home utility services, furniture delivery, and drug delivery. For instance, Uber Eats accounted for $4.8 billion in 2020, a 152% growth year over year. As of May 2021, the company controlled over 25% of the food delivery market in the U.S. with the average delivery time of 30 minutes. Therefore, quick delivery and busy lifestyle is driving the market growth altogether. In addition, rapid changes in the supporting factors such as disposable income, consumer preferences, and digitization result in rise in demand for hyperlocal services market share.
Moreover, Consistent increase in the female working population in developing economies has fueled the demand for online food, grocery and home utility services. Furthermore, rise in number of working women has led to lack of time for cooking food and other home services including, home cleaning, plumbing, lawn care, moving, and carpet cleaning, which creates immense demand for hyperlocal services market forecast.
The increase in number of smartphone users serves as the major growth enabler for hyperlocal services market size to grow. This is attributed to increase in dependency on smartphones for daily activities and needs such as billing, money transfer, and other service such as bus booking and movie ticket booking. The demand for various hyperlocal services including food ordering, grocery ordering, drug delivery, home services has increased considerably, due to surge in number of netizens across the globe, which is anticipated to offer lucrative opportunities for new entrants who plans to deal in hyperlocal market.
As often mentioned, reason for consumers not purchasing from internet vendors, is the lack of trust. It is very difficult for people trust online shopping without physical clues and physical interaction in the online environment market. Additionally, growing cybercrimes, fraud are led to decrease the trust on online shopping or purchasing, which in turn hampers the growth of hyperlocal service market during the forecast period. Growing cybercrime leads to huge financial losses for every company and consumers, which limits the sales of goods and services through internet. For instance, in November 13 2020, Cyber security Ventures predicted that cybercrime will cost the world $6 trillion annually by 2021, up from $3 trillion in 2015 and is likely to cost $10.5 trillion by 2025.
Based on nature, the utility services segment was valued at $862.8 billion in 2021, and is expected to reach $3298.7 billion by 2031, registering a CAGR of 14.1% from 2022 to 2031. Utility services include home services, logistic services, and tuition services. For instance, home moving, plumbing, lawn care, appliance repair, house cleaning, roofing, fencing and electrical are some of the home services gaining huge demand from consumer end. Growing urbanization, busy lifestyle and increasing working age population leads to high demand for home utility services, whereas, increasing working population of women has triggered the growth of the hyperlocal-based utility services.
Furthermore, increased utility of smartphones and its user base is projected to offer lucrative opportunities for offline services providers to use online platforms to boost their business. Based on region, Europe has gained significant market share in hyperlocal service in 2021 and is expected to continue its market holding during the forecast period. This was attributed to the presence of international brands in the region, and growing funding for the start-up business. Big giants in Europe have been consistently expanding their market share by acquiring hyperlocal services business, which further adds to the growth of the Europe hyperlocal service market.
Based on type, the food ordering segment was valued at $306.3 billion in 2021, and is projected to reach $1189.7 billion by 2031, registering a CAGR of 14.3% from 2022 to 2031. This is majorly attributed to extensive promotion of the online food delivery platforms through discounts, referring awards, and TV and social media advertisements. Many companies are expanding their market share by applying various strategies such as merger, acquisitions, and partnership, which likely to boost the growth of the online food delivery market during the forecast period. For instance, Zomato, an Indian food delivery service company, acquired Indian penetration of Uber Eats for $350 million. This acquisition deal is expected to help Zomato to cover more than 50% of market share in India.
The North America online hyper-local service market held the dominant share in 2021, and is anticipated to hold its position throughout the forecast period. Increasing adoption of advanced technology in daily life is the major driving factor in North America and is expected to fuel the overall market growth of the online hyper-local services market during the forecast period. In the U.S., UberEats is the fastest-growing meal delivery service, reaching out to industry leader GrubHub. Growing number of start-up business and their funding partners in U.S. is expected to boost the growth of the hyperlocal service market during the forecast period. For instance, according to NASSCOM, in 2020, number of unicorns accounted in USA was 203.
The players in the hyperlocal services market have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Delivery Hero, Just-Eat, Takeaway.com, GrubHub, Grofers, Instacart, Housekeep, Uber Technologies Inc., Handy, and AskForTask.
For Stakeholders
Hyperlocal Services Market Report Highlights
| Aspects | Details |
|---|---|
| Market Size By 2031 | USD 5.9 trillion |
| Growth Rate | CAGR of 14.4% |
| Forecast period | 2021 - 2031 |
| Report Pages | 341 |
| By Type |
|
| By Nature |
|
| By Region |
|
| Key Market Players | Housekeep Limited, Just Eat Takeaway N.V., Uber Technologies, Inc., Urban Company, Zomato Ltd., Instacart, Angi Inc., Delivery Hero SE, AskforTask Inc., Grofers India Private Limited |
Innovation in services is key for the growth of global hyperlocal services market in terms of value sales. Customers are increasingly inclined to have comfortable, convenient and hustle free shopping, which is anticipated to fuel the growth of the hyperlocal services during the forecast period. Online food and grocery ordering platforms are enhancing the shopping experience by using improved technologies in logistic including online tracking system which allows customers to track their order from ordering to delivery. In addition, discounts, combo offers, referring rewards and first-time ordering discounts are increasing customers on the online ordering platforms.
Growing utility of smartphones and its user base is lucrative opportunities for the new entrants and growing funding for the start-ups through government and big giants are further adding to the growth of the hyperlocal services market. Key players in the market have adopted new product launch, continuous innovation, and acquisition as their key developmental strategies to fulfill the rising demand for hyperlocal services including online food, grocery, furniture, home services, and drugs Jugnoo acquired SubKuchFresh, an online grocery store in 2021, to strengthen hyperlocal services India. Jugnoo is India's 3rd largest ride-hailing company, operating in 50+ cities pan-India.
However, unorganized retail sector, improper transportation facilities, growing cybercrimes and digital illiteracy, has been hampering the growth of the hyperlocal services market during the forecast period. Additionally, customer’s lack of trust on online shopping is big challenge for the online business operating firms.
A. Growing smartphone user base and internet accessibility is majorly driving the growth of the hyperlocal service market.
A. Home utility service is the leading nature of Hyperlocal Services Market.
A. The North America is the largest regional market for Hyperlocal Services.
A. The global hyperlocal service market was valued at $1,484.8 billion in 2021, and is projected to reach $5,851.7 billion by 2031, registering a CAGR of 14.4% from 2022 to 2031.
A. The major players operating in the market are Delivery Hero, Just-Eat, Takeaway.com, GrubHub, Grofers, Instacart, Housekeep, Uber Technologies Inc., Handy, and AskForTask.
Start reading instantly.
This Report and over 67,404+ more Reports, Available with Avenue Library. T&C*.
Enterprise
License/PDF
Library
Membership
*Taxes/Fees, if applicable will be added during checkout. All prices in USD
To ensure high-level data integrity, accurate analysis, and impeccable forecasts
For complete satisfaction
On-demand customization of scope of the report to exactly meet your needs
Targeted market view to provide pertinent information and save time of readers
Get insights on topics that are crucial for your business. Stay abreast of your interest areas.
Get Industry Data AlertsTo ensure high-level data integrity, accurate analysis, and impeccable forecasts
For complete satisfaction
On-demand customization of scope of the report to exactly meet your needs
Targeted market view to provide pertinent information and save time of readers
Contact Details
Need to talk to an expert? Book your free consultation and let our research experts help you with your needs/problems.
Global Report 
Regional Report
Country Report
Related Report