Frost & Sullivan officially releases the '2025 China Home Improvement Installation and Maintenance Services Market White Paper'

The 'White Paper on the Installation and Maintenance Service Market for Chinese Residential Buildings' starts with an overview of the development history of the market, analyzes the advantages of platform service models in the Chinese residential building installation and maintenance service market, as well as the market's industrial chain and major participants. It then further examines the in-home service market for Chinese residential buildings, compares the advantages and disadvantages between in-home and out-of-home markets, the driving factors of the in-home service market, and its social influence and value. Finally, it provides a detailed introduction to the competitive landscape of the in-home service market for Chinese residential buildings and offers references through typical case studies of related enterprises.

Analysis of the Market and Competitive Landscape of Home Improvement Installation and Maintenance Services in China

The development process of the installation and maintenance service market for home appliances can be mainly divided into three stages: ① Initial development stage (1990-2004): This period marked the initial transformation of China's economy into a market-oriented system. The supply of home appliance products gradually increased, but the categories were relatively limited. Installation and maintenance services mainly relied on enterprises recruiting masters through labor dispatch or outsourcing, with services delivered offline. There was a lack of unified management, and industry chaos was frequent; ② Early expansion stage (2005-2012): During this period, consumers' demand for service experience continued to rise, but the industry's service efficiency and quality struggled to keep up. Although the emergence of information platforms improved recruitment efficiency to some extent, the service delivery process lacked standards and supervision, remaining in a management blind spot, and the industry as a whole did not undergo fundamental improvement; ③ Standardized development stage (2013-present): The rapid development of mobile internet and digital technology during this period promoted the platform-based transformation of home appliance installation and maintenance services. The rise of third-party service platforms became the core driving force for industry change, not only achieving efficient connections between enterprises, masters, and consumers but also enabling all links from demand matching to service delivery to be completed in one stop within the platform. At the same time, by aggregating master resources and establishing service processes and standards, platforms have significantly improved service efficiency and user experience, promoting the industry towards standardization and specialization.

Data source: Analysis by Frost & Sullivan

In the installation and maintenance industry of large-scale residential buildings, there are mainly two typical business models: one is the traditional offline service model, and the other is the third-party service platform model that has emerged in recent years. Under the offline model, consumers usually connect directly with service personnel or companies through store visits, referrals from acquaintances, etc. The entire service process is disconnected from online platforms and is relatively decentralized.

With the popularization of the Internet and continuous progress in digital technology, the industry has gradually developed a more integrated third-party platform model. Such platforms not only improve service efficiency by constructing unified service processes and standardized price systems but also significantly optimize user experience, thereby effectively enhancing the satisfaction of both enterprises and consumers.

The supply side (technicians and service platforms) and demand side (channel partners, home appliance brands, and end consumers) of China's home appliance installation and maintenance services jointly construct an ecological closed loop in the market. The service supply side mainly integrates blue-collar technician teams through internal recommendations, job fairs, school-enterprise cooperation, and other channels to provide labor resources for the platform; the service hub includes one-stop delivery platforms, service contracting models, logistics expansion models, e-commerce platforms, and independent brand after-sales services, forming a service matrix to undertake demand and achieve standardized distribution; while the demand-side drive is driven by e-commerce platforms, home appliance brands, and end consumers jointly pulling service demand, ultimately completing the ecological closed loop through the 'labor output - service matching - fulfillment delivery' link. The entire chain relies on digital management and resource integration to promote the standardization of services and the efficiency of supply-demand matching.

The market for installation and maintenance services for large-scale residential buildings in China is in a stage of rapid development, with the market size continuously expanding. The main driving forces behind this include an increase in internet penetration, the rise of third-party service platforms, and the growing demand for renovation of existing housing. In 2024, the market size for installation and maintenance services for large-scale residential buildings in China reached 700 billion yuan, a year-on-year increase of 5.3%. With the continuous rise in consumer demand for renovating old houses, family aging-friendly renovations, and the promotion of product updates through the old-for-new policy, it is expected that the annual compound growth rate of the market for installation and maintenance services for large-scale residential buildings in China will reach 5.1% from 2024 to 2029, and the overall market size will reach 896.1 billion yuan by 2029.

Data source: Analysis by Frost & Sullivan

The competition in the installation and maintenance service market for large-scale residential buildings in China is fierce and highly fragmented, mainly including third-party service platforms, independent after-sales service platforms under brands, offline repair stores, individual operators, etc. Among them, third-party service platforms include (i) one-stop service platforms; (ii) service contracting platforms; (iii) logistics expansion platforms; and (iv) e-commerce platforms.

There are many cooperation models between the aforementioned third-party service platforms and the independent after-sales service platforms under the brand. For example, independent after-sales service platforms and logistics platforms under the brand may outsource some of their services to third-party service platforms, especially in areas where they do not cover end points or service types (such as master craftsmen skills).

Measuring the scale of third-party service platforms typically includes quantitative indicators such as order volume, transaction amount, average order value, service coverage area, number of masters registered, and various home furnishing categories and service types served, as well as qualitative indicators like appointment rate, on-time arrival rate, service timeliness rate, and service satisfaction rate.

Based on different calibers, order volume can be divided into order placement volume and service order volume. The former includes the total number of all orders initiated by users through the platform, including canceled/refunded/untpaid/service rejected orders, etc., which reflect the platform's traffic scale and user demand breadth but contain a large amount of 'phantom data' from uncompleted transactions; the latter refers to the actual number of effective service deliveries completed by the platform after deducting unfulfilled orders, which can truly reflect the platform's delivery capability.

Based on research into the installation and maintenance service market for Chinese residential homes, Luban Home's national service order volume ranks first on the residential installation and maintenance platform (2024).¹.

source¹Shanghai Branch of Frost & Sullivan (Beijing) Consulting Co., Ltd., based on research into the installation and maintenance service market for residential homes in mainland China (excluding Hong Kong, Macao and Taiwan regions), calculated by the service order volume of each residential installation and maintenance service platform in 2024. Residential installation and maintenance services refer to a series of after-sales services including installation, repair and maintenance for three major categories of residential products: furniture, household appliances and building materials. The research was completed in April 2025.

Lu Ban receives the Market Positioning Statement Certificate upon returning home

Analysis of the Interior Service Market for Chinese Home Furnishings

The service markets for in-home and out-of-home services differ in terms of fee payment entities, process standardization, timeliness, service types, and risk control. Both types of services have their own characteristics and focuses. In terms of fee payment entities, the costs of in-home services are borne by the home brand and are included in the product price as part of the enterprise's after-sales costs. To maintain brand reputation and customer satisfaction, enterprises bear installation, repair, replacement, and other costs during the warranty period. The costs of out-of-home services need to be borne by consumers themselves, directly paid to service platforms or home repairmen. After the product exceeds the warranty period, enterprises no longer have the obligation to provide free services. In terms of service process standardization, the in-home service process is more standardized and unified. The platform will reasonably allocate tasks based on the technical expertise of service personnel and their location, and monitor service quality throughout the process through digital means. Out-of-home services are mainly aimed at individual customers, and due to significant differences in demand, in-depth communication with customers is required before service. Customer service will match suitable repairmen based on customer expectations and special requirements. Service quality largely depends on the personal experience and technical level of the repairmen.

In-house services are brand-led and standardized, suitable for routine issues during the warranty period; outsourced services are user-driven and flexible, suitable for products beyond warranty or personalized needs. The advantages and disadvantages of in-house and outsourced services highlight the complexity of the home service market. Only by coordinating in-house and outsourced services across the entire market can we more comprehensively meet consumers' diverse needs and promote the improvement of industry service systems.

Data source: Analysis by Frost & Sullivan

The state is promoting the upgrading of the home consumption structure through a combination of policies, activating the potential of the in-home service market. The demand for renovation of old residential areas and spaces suitable for the elderly has also become a major driving factor.

Intelligent home products are technically complex, and maintenance relies on the professional skills of technicians. The development and transformation from individual items to whole-house intelligence are driving the rapid development of the home service market.

Urban-rural consumption upgrading and the potential release of the underserved market drive the expansion of the domestic service market. The insufficient after-sales service capabilities in the underserved market force brands to improve their service network. Population return promotes the continuous expansion of the consumer market.

Service standardization (transparent pricing, ticket tracking, etc.) combined with specialized training provided by the service enterprise for master craftsmen, jointly build a better service experience and drive the healthy and orderly development of the domestic service market.

The installation and maintenance service platform of Dajiaojianbao has created a large number of flexible and stable employment positions for Chinese society by providing diversified labor services such as installation, maintenance, handling, and cleaning. It has contributed to social stability and economic development. Taking the Lubanjiaotang platform as an example, it has created job opportunities for more than 3 million blue-collar workers, significantly improving their income levels and living security. Through flexible employment models, the service platform has provided more re-employment and income-growth opportunities for blue-collar workers of all ages and backgrounds (such as retirees, veterans, urban and rural part-time workers, etc.). In addition, as Dajiaojianbao's services cover more third- and fourth-tier cities and remote areas, the overall development of the industry has effectively driven local employment and promoted balanced regional economic development.

As the domestic service market enters a period of standardized development, the industry places increasing emphasis on the standardization, professionalization, and rights protection for blue-collar workers. Taking Lubanjia as an example, the platform has established a complete standardized service process, a scientific and reasonable pricing system, and multi-level blue-collar rights protection mechanisms, including safety guidance and salary settlement guarantees. These measures have effectively improved the labor security level of blue-collar workers and helped create a more fair and safe employment environment. At the same time, industry development is also actively promoting the service platform to provide systematic training for blue-collar masters, continuously enhancing their skill levels, service awareness, and professional qualities, helping technicians broaden their skill scope and enhance market competitiveness. In addition, the platform continuously conveys positive values to society, further improving the professional identity and social respect of blue-collar workers.

Analysis of Market Competition Pattern and Typical Cases of Home Insurance Services within the Big Family Insurance Group

The home interior service market in China is highly standardized, with installation being the main type of service, and personalized services are not common. As consumers' requirements for after-sales experience continue to rise, service capabilities have gradually become a new high ground for brand competition.

Current competition, in addition to price, mainly revolves around five core elements: service coverage breadth, master management efficiency, service standardization level, digital dispatching system, and customer experience management. The market is evolving from brand self-built systems towards platform-based collaboration. Third-party service platforms are rapidly emerging with the help of digitization and nationwide networks. The industry is accelerating towards integration, specialization, and standardization.

Data source: Analysis by Frost & Sullivan

The current market for in-home services for major home appliances in China presents a pattern of numerous players, fragmented overall shares, and differentiated category concentrations: on one hand, categories with a higher degree of standardization such as home appliances and kitchen appliances are dominated by home appliance brands and their service systems, with market shares concentrated in the hands of a few enterprises; on the other hand, non-standard service areas such as furniture, doors and windows, and customized products are highly dispersed, with service providers mainly operating regionally or individually, lacking unified standards and scale capabilities. Third-party platform-based service providers are attempting to enter these low-concentration areas through digitalization and standardization measures, aiming to reconstruct industry order and service capability boundaries.

Data source: Analysis by Frost & Sullivan

Lubanjiaojia is a brand under Shenzhen Lubanjiaojia Technology Group Co., Ltd. As a leader in the after-sales service field for home improvement materials, since its launch in 2017, it has been focusing on providing efficient and professional "last-mile" services for the home improvement industry. The platform adopts a S2B2C model, integrating millions of blue-collar skilled workers nationwide, covering services such as delivery, installation, repair, and cleaning for multiple categories including furniture, appliances, bathroom fixtures, and lighting. Through digital management and strict master control systems, it ensures the efficiency and quality of services. Lubanjiaojia has won the trust and cooperation of many well-known brands with a service satisfaction rate of 99.91%, becoming a key force in promoting the standardization and professional development of the after-sales service industry for home improvement.

Anjia has built upon Midea's supply chain resources and brand endorsement, focusing on creating an efficient, highly compliant, and full-linkage 'send-to-install' service system. It serves as the logistics and delivery middle platform connecting home furnishing brands with consumers. The platform's core competitiveness lies in its installation and distribution coordination capabilities. It widely serves leading brands such as Lin's Wood Industry, Midea, Sofya, and GAC in categories like furniture, home appliances, and smart homes, and has become a key support for the after-sales service systems of many brands.

Anstar, formerly known as the User Service Department of Skyworth Group, has been deeply involved in home appliance after-sales service for many years. With a nationwide service network, a professional and efficient technical team, and the service philosophy of "customer first," it continuously provides high-quality service guarantees for tens of millions of families. The company has passed the ISO9001 international quality management system certification and the NECAS five-star service certification, and has launched differentiated services such as "Seven-Star Exclusive Service" to meet consumers' diverse needs. Anstar also improves service efficiency and quality through digital management, ensuring that every customer can enjoy a professional, efficient, and convenient service experience. Anstar has now become an ecological chain enterprise covering fields such as warehousing, logistics, installation, commissioning, e-commerce, and information services.