How does DeepSeek View the Current Development of the Global Self-service Laundry Market?

In February 2025, DeepSeek became popular around the world. In just two weeks, this Chinese artificial intelligence startup has gone viral. It topped the free App Store charts in both the US and China, becoming the first AI assistant app to surpass OpenAI ChatGPT. Western media used “shaking Silicon Valley” to describe the industry shock DeepSeek brought to the United States. Its main low-cost open-source model concept has hit Wall Street, and Nvidia’s market value has shrunk by more than $500 billion in a week.

So what does DeepSeek have to say about the global self-service laundry industry? I asked it a question: What do you think about the self-service laundry markets around the world? The Deepseek’s answers are as follows.

Analysis

The global self-service laundry market has undergone significant changes in recent years, mainly driven by technological upgrades, evolving consumer needs, the COVID-19 pandemic, and sustainable trends. The following is an analysis of its development status and changes:

I. Market status and Growth drivers

❑ Market Size and Regional Characteristics

The global self-service laundry market reached $12.4 billion in 2022 and is expected to continue expanding at a compound annual growth rate of 6.8% to exceed the $20 billion mark by 2030 (source: Grand View Research). Regional markets show significant differences:

● North America 

North America holds the largest market share of 37% (2022), with more than 35,000 laundromats in the United States and $5 billion in annual industry revenue. (Coin Laundry Association data)

● Europe

The European market is driven by the Green Deal. The renewal rate of energy-saving equipment has increased by 12% per year, and the average per-store energy consumption of German laundromats has decreased by 28% compared with 2019.

● Asia Pacific

Asia Pacific led the market growth (9.2% CAGR), with Chinese city coverage increasing from 17% in 2018 to 34% in 2022. The self-service laundry orders grew 470% in three years, according to Meituan Platform data.

❑ Consumption structure evolution

● Single economic contribution rate:

Japanese single users accounted for 61% (2023 survey of the Ministry of Economy, Trade and Industry). In China's first-tier cities, single laundry orders account for 63% of the Meituan platform.

● Comparison of equipment holding costs:

The average annual cost of buying washing machines in London (purchase + maintenance) is about £580, while the average annual expenditure on self-service laundry is only £240. Consumer Reports)

●Generational preference differences:

89% of US Gen Z users make mobile payments, 54 percentage points higher than baby boomers (Clover payment system data)

Ⅱ. Significant Changes from the Past Few Years

❑ Intelligent technology upgrade

● Payment system iteration:

Global mobile payment penetration increased from 28% to 79%, and 24% of U.S. laundries have deployed IoT prepaid systems.

● Improved operational efficiency:

Stores with intelligent management systems increased average equipment utilization by 22%. Spain’s Lavanderias Autoservicio 24H achieved an 18% increase in revenue through dynamic pricing.

●Typical case:

In South Korea’s Washswat, a single store has a configuration of 12 sensors so the failure response time can be reduced to 1.8 hours. It won the Red Dot Design Award.

❑ Hygiene and Safety Standards upgrade

● Post-pandemic needs:

The average cost of disinfection for operators in North America increased by 15%, and the purchase of EN 16798 sanitary-certified equipment in Europe increased by 340%.

● Contactless service:

Complete the whole process through the mobile terminal to reduce physical contact.

❑ Environmental protection and sustainable development

● The popularization of energy-saving equipment:

Energy-efficient washers/dryers reduce water and electricity consumption and comply with green policies (such as the EU Energy efficiency label).

● Eco-friendly detergent options:

Biodegradable or hypoallergenic detergents are available to appeal to environmentally conscious users.

❑ Diversified business models

● Multi-functional space integration:

Combine coffee bar, book bar, or shared office area to extend user stay time and increase additional consumption.

● Chain brand expansion:

Standardized services and brand effects squeeze the self-employed, such as the United States “LaundroLab” and other chain brands through membership to enhance adhesion.

❑ Evolution of competition pattern

● Alternative service impact:

O2O laundry (pick-up and delivery) diverts demand in some markets, but laundromats maintain their advantage with low prices and immediacy.

● Cost pressure:

Rising energy prices are pushing operators to adopt renewable energy sources such as solar or pass on some of the costs through dynamic pricing.

Ⅲ. Challenges and Future Trends

❑ Main challenges 

● Equipment maintenance costs:

High utilization rates lead to accelerated wear and tear. Maintenance investment needs to be balanced with profitability.

● Regional cultural differences: There are health concerns about shared laundry in some markets. (e.g., parts of Asia) Consumers need to be educated.

❑ Future trend outlook  

● AI and Automation:

Predictive maintenance and dynamic pricing algorithms can optimize operational efficiency.

● Community services:

Combined with local life services (parcel collection, community activities) to enhance user stickiness.  

● Green transformation:

The concept of zero-carbon laundry room rises. Recycled water use or carbon-neutral certification is likely to become a new selling point.

Conclusion

The global self-service laundry market is transforming from traditional basic services to intelligent, environmentally friendly, and diversified experiences. Despite alternative services and cost pressures, its on-demand nature as an urban living infrastructure, coupled with technological empowerment and sustainable development trends, still has long-term growth potential. Increased penetration in emerging markets and service upgrades in mature markets will become key growth points in the future.