Pest Control Service Market Size, Share & Trends Analysis Report By Application (Residential, Commercial), By End Use (Insect, Termite), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global pest control service market size was valued at USD 19.7 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.5% from 2020 to 2027. Growing economic activities, increasing population, and the effects of insects, coupled with intolerance for pests, are fueling the market growth. Climate change is acting as a major catalyst for the rise in demand for pest control services across the globe. According to a statement by the World Health Organization, using recently predicted values for warmer temperatures, Goulson and colleagues predicted a potential increase in fly populations of 244% by 2080, compared with current levels. If this is true, concomitant increases in fly-borne diseases would be expected. In order to avoid the worst scenario, consumers in the market are expected to be more inclined towards pest control services, along with precautionary measures to avoid the potential damage.

Increasing focus on the usage of biocides is also acting as a major factor for market growth. These are increasingly being used to replace traditional pesticides as they are more environmentally friendly. For instance, Rentokil has registered CO2 for use in the control of rodents under EU biocidal regulations. The company is continuing to work in the areas of insect and rodent control.  

In order to gain share in the mature market, companies are developing new technological solutions to improve service efficiency. Areas include route optimization, online sales, use of smartphone apps to identify pests, mobile communication technologies to bring real-time technical support to the field, and smarter extranets to offer greater management information for consumers.

Moreover, companies are increasingly focusing on merger and acquisition activities in order to increase their service footprint. For instance, as per The Potomac Company, in 2018, Rentokil, ServiceMaster, and Rollins have spent USD 359, 254, and 77 million, respectively on pest control acquisition. The trend of M&A is estimated to further increase competition in the market.

Various government rules and regulations are acting as a major challenge for the market. Europe is at the center of most of this change currently, such as within the pest control market, include the recent introduction of the REACH and Biocidal Products Regulation. These regulations are designed to ensure that products can be used safely whilst minimizing the risk of exposure to humans, food, wildlife, and the environment. Failure to comply often involves penalties, including fines, corrective action, and license revocation.

Application Insights

The commercial category dominated the market with a share of 57.8% in 2019. Rising economic activities and zero tolerance for pests in commercial spaces, such as offices, hospitality, healthcare, food and beverage, and foodservice industries. Increasing infrastructure in commercial space and strict regulation for hygiene maintenance are acting as major factors for market growth. Commercial business typically has a multi-year contract with the service providers, leading to a secure revenue stream generation. This factor is driving the demand for pest control services in the commercial segment.

In terms of revenue, the residential segment is expected to expand at a CAGR of 4.2% from 2020 to 2027. Increasing urbanization is acting as a major factor in the growth of the segment. According to the United Nations (UN), 54% of the world’s population lives in urban areas, a proportion that is expected to increase to 66% by 2050. Rising demand for higher standards of hygiene in the face of increasing pressure on space and resources is acting as a major factor for the segment growth. Moreover, as per the research conducted by the National Pest Management Association, in 2018, 91% of pest professionals encountered bed bugs in single-family homes, which is boosting segment growth.

Moreover, according to the Insurance Information Institute, the standard homeowners’ insurance policy does not cover damage caused by termites, rats, or other pest infestations. Costs associated with pest damage and removal are considered a part of home maintenance.

End-use Insights

In terms of revenue, the insect segment dominated the market with a share of 42.0% in 2019. A growing number of insects, especially bed bugs, is acting as a major factor for the segment growth. As per a research conducted by the National Pest Management Association (NPMA), in 2018, 97% of the pest professionals have treated bed bugs, 69% of them said that the overall bed bug service was effective, and 66% said that the demand for these services is increasing. Moreover, 89% of pest professionals encountered bed bugs in apartments/condominiums, 68% in hotels/motels, 59% in nursing homes, 46% in office buildings, 45% in college dorms, and 36% in hospitals.

The termite segment is expected to expand at the fastest CAGR of 5.4% from 2020 to 2027. According to the United States Department of Agriculture (USDA), the U.S. residents spend at least USD 1 billion on Formosan termite control and repairs each year. Homeowners spend an average of USD 3,000 to repair the damage caused by termites. In order to avoid this, consumers in the market are more inclined towards pest control services for termite treatment. In the U.S., there are over 50 species of termites. The annual cost of termite damage to timber in Australia is greater than the damage caused by fire and flood and the damage may not be covered by household insurance. This is acting as a major factor for segment growth.

Regional Insights

North America dominated the market with a share of 48.3% in 2019. As per a report published by Rentokil in 2018, 29% of all Americans have, at some point experienced a rodent pest issue, 35% in the Northeast. Moreover, 80% of U.S. hotels and motels reported some presence of bed bugs in the past year. Yellow fever mosquito is now found in 23 U.S. states - West Nile, Dengue, and Chikungunya viruses are now present in the U.S. These factors are fueling the market growth in the region.

Asia Pacific is expected to expand at the fastest CAGR of 5.3% from 2020 to 2027. While termites and mosquitoes are significant threats, other pests such as ants, cockroaches, rodents, and flying insects are the major pests in Asia. With increasing pest risks within the Asian supply chain, large food-related businesses are sharing the responsibility for pest control with their suppliers and requiring management information to support certification needs. In the Asia Pacific, major revenue is generated from Japan. Strengthening of the housing market and a steadily improving economy appeared to aid the termite and commercial market segments of the professional pest control industry in the country.

Key Companies & Market Share Insights

The global market is characterized by high competition. Companies are focusing on expanding their service footprint and are adopting strategies, such as mergers and acquisitions, to meet consumer demand for pest control service. For instance, in 2019, Rentokil Initial PLC had carried out 41 acquisitions in 23 countries. The company had acquired 30 pest control, 8 hygiene, and 3 Ambius businesses, generating annualized revenues in the year prior to purchase of USD 155.2 million (Euro 137 million). The company has carried acquisitions in Australia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Dutch Antilles, Finland, France, Greece, Indonesia, Malaysia, Peru, Poland, Spain, Tanzania, Thailand, the U.K., and the U.S. Moreover, company has entered new markets of Jordan, Sri Lanka, and Uruguay. Some of the prominent players in the pest control service market are:

• Rentokil Initial PLC

• Rollins, Inc.

•  ServiceMaster Global Holdings, Inc.

•  Anticimex Group

• Arrow Exterminators Inc.

•  Asante Inc.

•  Dodson Pest Control Inc.

•  Ecolab

•  Massey Services Inc.

•  SANIX INC.

Pest Control Service Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global pest control service market report on the basis of application, end-use, and region:

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Residential

  • Commercial

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Insect

  • Rodents

  • Termite

  • Mosquito

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

  • Europe

    • Germany

    • France

    • The U.K.

  • Asia Pacific

    • Japan

    • Australia

  • Central and South America

    • Brazil

  • The Middle East & Africa