Landscaping Services Market Insights - Fall 2025

Drive Density in Existing Footprint & Increase Penetration

Leverage local market presence and customer relationships to capture additional maintenance contracts through word-of-mouth referrals with existing customers and geographic specific marketing strategies.

Additional Service Offering Development

Offer additional services through cross-selling, such as seasonal enhancements including flowers or mulching, in addition to irrigation, snow removal, and more, to expand wallet share with existing landscaping customers.

Strategic M&A

Acquire regional operators in high-growth markets to broaden geographic reach and accelerate scale.

Hub-and-Spoke Growth

Establish organic branch expansions around existing operations to increase route density, improve labor efficiency, and strengthen regional market share.

• Immigration policy shifts and workforce availability remain critical, as landscaping is labor-intensive and highly reliant on seasonal and immigrant labor pools.
• Persistent skilled labor shortages and rising wage pressures highlight the importance of operators with strong recruiting pipelines and retention programs.
• Increased focus on technology adoption is expanding across scheduling, route optimization, and customer management platforms, improving efficiency and client service to offset labor pool impact.
• The Dignity Act of 2025 was introduced in the U.S. House of Representatives on July 15, 2025. The bipartisan immigration reform bill proposes to enable long-term undocumented workers to earn legal status, subject to meeting requirements.

• Transaction activity in the US and Canada remained strong YTD through September 2025, with 108 reported transactions completed vs. 138 during the same period in 2024. Both private equity and strategic acquirers remain highly active, attracted to the sector’s recurring revenue model and its defensive, non-discretionary characteristics.
• Notably, 78 of the 108 transactions involved private equity activity, underscoring the sector’s attractiveness as investors pursue opportunities to build scale and expand geographic reach.
• The market continues to be highly fragmented, with regional and local operators dominating, which creates a substantial runway for consolidation and supports ongoing roll-up strategies.
• Acquirers continue to prioritize maintenance contracts and multi-site relationships. However, more private equity sponsors are showing increased interest in installation-focused companies, given the competition and the potential multiple arbitrage opportunity upon exit of shifting toward a higher maintenance-based revenue mix.

• Demand supported by steady non-discretionary maintenance needs (lawn care, irrigation, snow removal), providing resilience through cycles.
• Growing adoption of sustainable landscaping solutions (native plants, water conservation systems, electric equipment) aligning with ESG and client sustainability goals, enabling landscaping service providers opportunity to drive additional revenues through system upgrades.
• Climate and weather patterns (droughts, water restrictions, extreme heat) driving innovation in irrigation, drought-resistant turf, and resource-efficient services.
• Regional growth opportunities are strongest in high-population, fast-growing markets such as the Southeast, Southwest, and Sunbelt, where both residential and commercial demand are accelerating.