TL;DR: The U.S. landscaping market is worth $184 billion and growing, but it’s facing a serious labor crisis that’s changing how companies operate. Younger homeowners are spending more on their yards, sustainability is driving major growth, and most companies still haven’t adopted AI. For marketers, this means huge opportunities in a fragmented market where online reviews matter as much as word-of-mouth and the right digital strategy can deliver massive ROI.
The Market Is Massive (And Getting Bigger)
The U.S. landscaping services industry isn’t small. The market hit $184.1 billion in 2025, making it the largest in the world. (youraspire.com)
Growth has been steady too. The industry expanded at a 6.0% annual rate between 2020 and 2025, with another 3.2% growth expected this year. (youraspire.com)
There are now 726,565 landscaping businesses operating in the U.S., up 4.3% from last year. (youraspire.com) But here’s the interesting part: no single company owns more than 5% of the market. (workyard.com) Even the top 50 companies combined only control about 20% of total revenue. (dojobusiness.com)
This fragmentation creates real opportunities. Local companies can compete on service quality and community connections, while larger players are actively buying up successful regional businesses to expand.
Where The Money Actually Comes From
Average profit margins sit at 11.9% across the industry. (youraspire.com) The best operators push that number past 15% by controlling costs and focusing on higher-margin services. (fieldcamp.ai)
Revenue splits between commercial and residential clients vary, but commercial typically takes the bigger share at around 70% of revenue. (dojobusiness.com)
When you break down where new business comes from, the numbers tell a clear story:
- 35% comes from repeat customers
- 26% comes from word-of-mouth referrals
That’s 61% of revenue coming from reputation and relationships. For marketers, this means your job isn’t just lead generation – it’s building systems that turn customers into advocates.
Not All Services Are Created Equal
Different service types bring in different margins. Here’s what matters:
Maintenance and Lawn Care is the foundation. It accounts for 43-45% of revenue for most companies. (dojobusiness.com) The U.S. lawn care market alone will generate between $60 billion (mordorintelligence.com) and $114 billion this year. (order.siterecon.ai)
Profit margins are modest at 10-20%, but 67.1% of the business model runs on subscriptions, which means predictable monthly revenue. (mordorintelligence.com)
Design/Build and Hardscaping is where companies make real money. These services bring in 25-40% of revenue with margins of 25-40%. (dojobusiness.com) That’s double or triple the margins on maintenance work.
The global hardscape market was worth $35 billion in 2023 and is growing at 6.2% annually. (dataintelo.com)
Popular trends include biophilic design that blends natural and built environments (unilock.com), permeable pavers for water management (envisionlawnandtree.com), and large format slabs for modern looks. (greenindustrypros.com)
Tree Care is a specialized segment worth $15 billion with steady 6% annual growth through 2033. (archivemarketresearch.com) The client split is 45% residential, 35% commercial, and 15% municipal. (archivemarketresearch.com)
Sustainability Isn’t A Trend Anymore
Eco-friendly landscaping is now a $40 billion segment growing at 10% per year. (dojobusiness.com) This isn’t niche anymore – it’s mainstream.
Smart irrigation technology is exploding. The market is jumping from $2 billion in 2024 to a projected $5.8 billion by 2033, a 12% annual growth rate. (fieldcamp.ai) These systems cut outdoor water use by up to 50%. (workyard.com)
Consumers are paying attention too. In 2025, 28% of U.S. adults are buying plants that help pollinators, up from just 17% in 2020. (fieldcamp.ai)
For marketing, this means positioning your clients as environmentally responsible isn’t optional – it’s expected. Companies that lead with sustainability messaging are capturing a valuable and growing market segment.
The Labor Crisis Is Real
Here’s the biggest challenge facing the industry: 80% of landscaping firms can’t find qualified workers. (dojobusiness.com)
51% of business owners say staffing is a top risk to their company. (youraspire.com) In 2024, 76% of contractors had at least one unfilled position. (workyard.com)
The industry employs between 1.3 million (dojobusiness.com) and 1.5 million people (youraspire.com) and is projected to add 65,200 jobs by 2033. (workyard.com)
Wages reflect the tight market:
- Entry-level crew: $14-16 per hour
- Median groundskeeper: $18.50 per hour
- Experienced crew leaders: $20+ per hour
This labor shortage is forcing companies to modernize faster. They’re investing in technology to do more with fewer people, raising prices to cover higher wages, and working to professionalize the industry to attract better talent.
What Customers Actually Want
The average homeowner spends about $300 per month on routine maintenance. (getjobber.com) Bigger renovation projects typically run $2,600 to $13,700. (workyard.com)
Younger generations are driving growth. 69.2% of Gen Z and 51% of Millennials plan to spend more time gardening this year. (engagecoders.com) More importantly, 46.2% of Gen Z and 43.9% of Millennials are increasing their financial investment in their yards. (youraspire.com)
These younger customers expect:
- Online booking
- Digital payments
- Quick communication via text and email
- Sustainable practices
- Transparent pricing
They’re also heavily influenced by online presence. 90% of consumers read reviews before hiring a landscaping service, and 88% trust those reviews as much as a personal recommendation. (amraandelma.com)
Marketing ROI That Actually Works
Companies should allocate 5-10% of annual revenue to marketing. (amraandelma.com)
The returns can be significant:
- Email marketing: $36 return for every $1 spent
- SEO: $22.24 return for every $1 spent
Given that 35% of revenue comes from repeat customers and 26% from referrals (downloads.ctfassets.net), the most scalable marketing strategy is turning satisfied customers into online advocates. Positive reviews are the digital version of word-of-mouth, and they work just as well.
The Technology Gap Is An Opportunity
93% of landscape businesses use software for basic operations. (yourgreenpal.com) The most common tools handle:
- Accounting (77%)
- Invoicing (72%)
- Estimates (61%)
But here’s where it gets interesting: 83% of landscaping professionals haven’t adopted any AI tools yet. (yourgreenpal.com)
The barriers are:
- Cost (50%)
- Time to implement (49%)
- Learning curve (43%)
For landscaping marketing agencies, this represents a major opportunity. Companies that adopt smart technology early – whether that’s AI-powered route optimization, automated customer communication, or predictive maintenance scheduling – will have a significant advantage over competitors still doing things manually.
Equipment Is Going Electric
Gas-powered equipment still dominates, holding between 51.9% (coherentmi.com) and 70% (precedenceresearch.com) of the market. But battery-powered tools are the fastest-growing segment. (precedenceresearch.com)
Over 100 U.S. cities have restricted gas-powered leaf blowers due to noise and emissions. (fieldcamp.ai) Customers prefer quieter, emission-free equipment, and the market is responding.
What This Means For Marketing
The landscaping industry in 2025 is full of contradictions. Demand is high but labor is scarce. The market is huge but fragmented. Technology adoption is widespread for basics but almost nonexistent for advanced tools.
For marketers working with landscaping clients, a few things are clear:
Online reputation is everything. With nearly 90% of customers trusting online reviews as much as personal recommendations, managing and generating positive reviews should be a core part of every strategy.
Sustainability sells. The eco-friendly segment is growing at 10% annually and appeals directly to younger, high-spending homeowners. Companies that lead with sustainable practices have a clear positioning advantage.
Digital experience matters. Younger homeowners expect online booking, digital payments, and responsive communication. Companies that feel “modern” in their customer experience will win with this demographic.
The technology gap is your opportunity. Most companies have embraced basic software but not advanced automation or AI. Early adopters will gain significant efficiency advantages, which in a labor-constrained market translates directly to competitive advantage.
The labor crisis is reshaping pricing. As companies raise wages to compete for workers, prices are going up across the industry. Marketing needs to focus on value, not just cost, and help companies justify premium pricing through superior service and convenience.
The companies that win over the next few years won’t just be the ones that do great work – they’ll be the ones that market themselves effectively, build strong online reputations, and position themselves as modern, professional, and environmentally responsible businesses.
