Market Size for Laundromat in 2026 [Example]

The total available market (TAM) for laundromats globally can be estimated by considering the total population living in urban areas, where laundromats are most relevant. In 2023, about 4.3 billion people live in urban settings, and assuming 70% of them might require laundromat services, that gives approximately 3 billion people. If we estimate that only 10% of these use a laundromat, that gives us 300 million people. With an average spending of $300 per year on laundry services, the total market value comes to $100 billion.

This TAM includes all urban dwellers who don't have access to in-home laundry facilities, which consists of renters, students, and busy professionals across the world. It addresses a fundamental need for clean clothing, and laundromats serve a diverse customer base regardless of income levels or geography, thus presenting a broad and significant market opportunity.

The serviceable addressable market (SAM) for a laundromat can be more realistically estimated by focusing specifically on urban areas where services are likely to be utilized. Out of the estimated 300 million potential users, let's consider that the target audience for your laundromat is mid- to lower-income families and individuals who are most likely to rely on laundromats. This narrows down the potential customer base to approximately 5% of TAM. Hence, we estimate about 15 million users.

If these customers each spend about $350 annually (taking into account special services or higher demand in certain environments), the SAM value equals approximately $5 billion. It's a more achievable market that considers local market conditions, competition, and accessibility, thereby representing a realistic segment of the global laundromat market.

The serviceable obtainable market (SOM) reflects the share of the market that a laundromat could realistically capture within its first year of operations. Assuming that your laundromat can attract around 1% of the SAM, that translates to about 150,000 active customers each year.

If each customer spends about $350 on average, the expected revenue for the first year would be around $50 million. This estimate takes into account the high competition in the laundromat business and realistic operational capabilities as a new player in the market, allowing for a conservative and attainable first-year target.