The landscaping industry is experiencing remarkable growth in 2025, with new technologies, labor challenges, and shifts in homeowner preferences contributing to the industry’s changing shape.

Staying ahead of the latest industry statistics helps you make responsive, data-backed business decisions. This article shares key landscaping industry statistics for 2025, covering various industry aspects from market size to workforce trends.

For more insight into the state of the landscaping industry, download the 2025 Aspire Landscaping Industry Report.

Landscaping industry overview for 2025

The landscaping industry in 2025 is fueled by rising demand for sustainability and outdoor living spaces. This section covers high-level statistics on growth rate, market size, employment, and economic impact.

The landscaping market continues to experience steady growth

In 2025, the U.S. landscaping industry reached an estimated market size of $184.1 billion, as reported by IBIS WORLD. The industry has grown at a 6.0% compound annual growth rate (CAGR) between 2020 and 2025. 

For 2025 alone, revenue is projected to grow by 3.2%, reflecting steady demand. 

Despite the rising cost of materials crucial to landscaping projects, the industry’s profit margin remains healthy at 11.9% this year. 

Residential clients remain a key driver of the landscaping industry’s growth. As inflation declines and housing interest rates stabilize, homeowners' disposable income increases, enabling them to spend on landscaping services. 

The number of landscaping businesses is on the rise

There were almost 700K landscaping businesses in the U.S. in 2024. By 2025, the number grew to 726,565 landscaping services, a 4.3% increase from the previous year. 

The majority of these are operated by local independent small business owners who largely succeed because of:

• Proximity to clients

• Strong local reputation

• Personalized service

• Flexible pricing compared to national chains

• Word-of-mouth referrals

But even though small businesses dominate numerically, large companies still wield influence when it comes to securing large contracts. Plus, they benefit from fleet standardization and route optimization.  

BrightView Holdings, for instance,is one of the largest landscaping companies with $3 billion and over 250 branches, can easily acquire small businesses and become niche specialists. 

In a nutshell, there’s more competition among small landscaping businesses and more opportunities for large players scaling to keep acquiring smaller companies.

Employment in the landscaping sector is rebounding and evolving

The average landscaping business in the United States employs two people. IBIS World further reports that the average lawn care service hires more than it did five years ago.

The number of people now employed has grown by 4.2% on average between 2020 and 2025. 

In fact, almost 1.5M people were employed by landscaping services in 2025. Although staffing in the industry is at an all-time high, there’s still an increase in demand for skilled workers. 

51% of landscaping businesses classify staffing challenges as one of their biggest risks of 2025, according to Aspire. 

Key market trends shaping the landscaping industry

While growth statistics give you insight into how the industry is performing, trends show what direction your business should take. 

Here are some major trends shaping the landscaping space… 

Sustainable landscaping is gaining significant momentum

With many states in the U.S. (California, Colorado, etc.) facing water shortages, landscaping companies are set to lose revenue. 

Less watering means less grass growth, leading to fewer maintenance projects. 

This challenge, however, has created new sustainable opportunities for companies affected. Here are some of them:

• Smart irrigation installation is on the rise in North America, driven by increasing environmental awareness, growing water scarcity issues, and regulations promoting sustainable water use. It is projected to reach $5.8 billion by 2033 at a 12% CAGR (IMARC Group).

  • This new trend is gaining traction due to its potential to save an average of 15,000 gallons of water per household yearly, leading to an estimated annual saving of $4.5 billion in water expenses (EPA).

• Xeriscaping is gaining traction as it involves using low-water plants and efficient irrigation practices to create landscapes requiring very little water. California, for instance, is tilting towards this and other low-water alternatives (Mordor Intelligence).

• Using native plants to reduce the effort of landscaping service techs. These plant species require less fertilizer, water, and pesticides. They attract pollinators and naturally prevent pests. Seventeen percent of U.S. adults are purchasing plants local to their region. Twenty-eight percent are purchasing plants that benefit native bees, birds, and butterflies (National Wildlife Federation). 

Residential and commercial client needs are diverging

Homeowners have always prioritized basic lawn maintenance and aesthetics, while commercial clients focus on curb appeal and minimal maintenance costs.

However, a report by Mordor Intelligence reveals a trend shift for both parties. 

Homeowners now want to invest in:

• Edible plantings

• Meditation gardens

• Shaded entertainment zones with lightning, pergolas, and audio

The focus is on lifestyle, wellness, and remote work preferences that maximize the yard throughout the week. 

When it comes to service options, residential clients show a strong preference for subscription contracts mainly because of predictable budgeting.

Commercial clients, on the other hand, want to be environmentally, socially, and governance (ESG) compliant. They focus on converting water-intensive lawns to drought-tolerant landscapes to secure leadership in energy and environmental design (LEED) points.  

LEED is a green building certification system that allows owners to charge higher rent and attract better tenants. Converting from water-driven lawns also helps reduce irrigation bills and save costs. 

Technology adoption is transforming operations

Another growing trend in landscaping is the pivot to automated tools and software to streamline operations. 

Here’s what’s currently popular with automated tools, per Mordor Intelligence:

• Smart irrigation controllers make irrigation scheduling more water-efficient. 

• Robotic mowers for trimming several acres with minimal supervision.

• Fleet-telemetry systems to monitor idle time and fuel efficiency.

There has also been a high software usage among landscaping companies, as reported by Aspire. 

• 93% of surveyed businesses use digital software in their daily operations. 

• 51% of landscapers prioritize all-in-one software solutions like Aspire for improved productivity and streamlined operations.

Source: Aspire

Aspire’s report reveals that management software has become a strategic tool in boosting operational efficiency and driving revenue growth within the industry. 

Financial benchmarks for landscaping companies

The landscaping industry shows promising growth. But how do you evaluate your performance against other landscaping businesses? 

Below are industry benchmarks to help you assess your business and make informed decisions.

Average revenue per landscaping company varies by size

According to Aspire’s 2025 Landscape Industry report, landscaping companies earning more than $1 million annually are distributed as follows:

• 15% earn between $1M and $4M

• 32% earn between $5M and $10M

• 33% earn between $10M and $24M

• 20% earn $25M or more

This distribution reveals that most high-revenue landscaping businesses fall within the $5M to $24M bracket, highlighting a strong mid-market presence in the industry. It also shows what’s possible for landscapers looking to scale up.

Profit margins are improving with better business management

Industry benchmarks place the net profit margin of a healthy landscaping business between 10% and 14%, per FieldCamp.

Here’s what to keep in mind:

• 10% is the lowest acceptable margin.

• 20%+ margin enables small businesses to scale easily without debt. 

• 45% is ideal for rapidly growing landscaping companies seeking to expand. 

To increase your profit margin, you need to invest in: 

• Business management to control costs like fuel use and non-billable time, as well as identify upsell opportunities. Aspire’s report reveals that landscaping companies are using software to drive revenue strategically. 

• Employee training to improve productivity and outperform competitors. This approach is one of the ways landscapers aim to achieve their business goals in 2025.

Labor remains the largest expense for most landscaping businesses

Despite the all-around growth in the landscaping industry, labor remains a significant concern for many companies. It is the single largest expense for landscaping businesses, taking up 30 to 50% of the total revenue.

Labor cost typically covers wages, benefits, and workers' training. This expense has become a significant operating cost because of:

• Rising wages: With the increased cost of living and H-2B visa caps limiting the number of workers contractors can hire during peak season, finding skilled workers has become difficult. As such, landscaping companies need to increase their wages to attract workers, raising labor costs. 

Aspire’s report reveals that: 

• 31% of companies plan to increase wages by two to three percent 

• 14% intend to raise salaries by four to five percent 

• 10% plan to increase wages by between six and nine percent

• Inaccurate time tracking: Businesses that rely on traditional timesheets to log hours are prone to errors or manipulation. Workers can round up hours, forget to clock in/out, log incorrect work hours, or clock in for a friend. These minor issues add up over time, resulting in increased payroll costs.

• Inefficient scheduling: Businesses that rely on traditional scheduling methods to assign tasks and organize projects risk: 

  • Understaffing or overstaffing a job site

  • Sending crews to the wrong location

  • Unoptimized routes increasing drive time

This results in poor productivity, delays, and increased payroll expenses.

Here’s how companies are tackling the increased costs:

• Cross-training employees so they can perform more tasks without extra hands, reducing spend on labor.  

• Adopting time-saving equipment like an autonomous mowers enabling the crew to get more done with fewer people. 

• Incorporating landscaping management solutions like Aspire into their workflow. This enables them to accurately track time, improve workforce scheduling, and ensure payroll is calculated based on actual hours worked. 

Challenges and opportunities in the 2025 landscaping market

The landscape industry is expanding, and trends are popping up, driven by evolving customer demands and new technology. 

While the industry still offers good opportunities, they come with fresh challenges. Understanding both can help position your business for long-term success.

Source: Aspire

Labor shortages and retention issues persist

A significant labor shortage is impacting the landscaping industry, with 51% of surveyed respondents identifying staffing as a major risk in 2025, according to Aspire. 

Seventy-two percent of business owners say labor availability and retention are their biggest barriers to growth. 

Mordor Intelligence also reveals that labor shortage is reducing the landscaping industry’s growth rate by one percent, making it the worst of all restraints.

A major reason for this is the immigration restriction and H-2B visa cap, preventing businesses from finding workers during peak seasons. This has resulted in companies curtailing spring workload and increasing pay.

Here’s how landscaping businesses are responding:

• 55% of landscapers plan to implement wage hikes this year (Aspire)

• Cross-training crews to get more done with existing workers (Mordor Intelligence)

• Prioritizing high-value accounts (Mordor Intelligence)

• Referral bonuses to attract local workers (Mordor Intelligence)

• Providing clear career paths (Aspire)

Demand is seasonal but increasingly predictable

Demand for landscaping services in the U.S. is seasonal and varies greatly by region. This means there are certain seasons when there’s high demand in one area compared to another.

In northeastern states, for instance, demand peaks during summer, spring, and early fall thanks to their dense urban areas. However, there’s a significant slowdown during winter (Mordor Intelligence).

Companies in regions like this face the challenge of maintaining revenue by diversifying their services or focusing on year-round markets. 

But while this seasonality can pose a challenge, savvy business owners can leverage its predictability. It lets you know what services or regions your business can expand to. 

For example, the Sun Belt states deliver the fastest growth for landscaping businesses because of their year-round vegetation cycles, consistent in-migration, and robust residential construction (Mordor Intelligence).

The Midwestern region experienced balanced seasonality, which means strong summer revenue and a need to diversify into snow removal for steady revenue (Mordor Intelligence).

New regulations and environmental standards create both hurdles and opportunities

There are several new laws and environmental regulations that landscaping businesses must be aware of, as they present risks and opportunities. Here are some of them:

• Water/drought regulations: With drought conditions affecting several states like California and Nevada, state governments have introduced new water conservation regulations. California, for example, requires water agencies to trim water supply to 39% by 2040 with a fine of $10k per day for non-compliance. This translates to less watering, grass growth, and income for landscapers. But there’s an upside: regulations provide an opportunity for businesses to: 

  • Charge premium fees for drought-resistant landscaping.

  • Expand into new service offerings, such as xeriscaping, smart irrigation, and native plant installation (Mordor Intelligence).

• ESG compliance standards: Companies seeking to offer ESG-compliant services need to invest in high-end equipment and staff training in sustainable practices. This is a costly investment as the sustainable materials and equipment required are typically expensive. However, the return is worth the risk as: 

  • Corporate customers usually pay higher rates for ESG-compliant services.

  • Landscaping companies that adopt this early stay ahead of the curve, which means opportunities for more business.

  • ESG requirements provide long-term contracts—i.e., stable ongoing revenue (Mordor Intelligence).

Regional and demographic insights

While the landscaping market shows a 6.0% CAGR growth rate, geographic location and demography are among the strongest predictors of landscaping business performance. 

Below are insights into the regional and demographic dynamics in the U.S. to help you make informed business decisions.

The southern and western U.S. lead in landscaping demand

Landscaping businesses in the southern states of Florida, Texas, and Arizona deliver the fastest growth. This is due to population growth through migration, year-round vegetation cycles, and ongoing residential construction. Plus, there are lower snow-related downtimes. 

This adds up to consistent year-round demand for landscaping companies in the region, ensuring consistent revenue. 

The western U.S. also prides itself on consistent seasonality, which means substantial ongoing revenue, especially in California, the largest single-state market in this region. 

The Golden State, however, is confronted with water constraints and conservation rules that disrupt traditional landscaping revenue, e.g., lawn maintenance or mowing.

While it can be considered a forced service evolution, this opens up a new, in-demand opportunity for landscaping companies—drought-resistant landscaping, xeriscaping, and native planting. 

Millennials and Gen Z homeowners are shaping new landscaping trends

It used to be mainly Generation X and baby boomers who cared about gardening or landscaping. Now, the narrative is changing.

Axiom Gardening Outlook Survey revealed that:

• Gen Z (69.2%) and Gen Y (51%) are the top two segments expecting to spend more time gardening in 2025.

• Gen Z (46.2%) and Gen Y (43.9%) are also the top two segments expected to spend more money on gardening in 2025. 

These generations aren’t just spending money, their lifestyle and choices are forming new trends in the industry. According to Mordor Intelligence, there’s been an upsurge in:

• Wellness-focused outdoor spaces, e.g., meditation gardens and entertainment zones.

• Sustainability and environmental consciousness, e.g., water-efficient landscaping, native planting, and edible plants. 

• Digital-native behavior, e.g., use of mobile apps for payment, service reminders, and subscription contracts. 

Aspire helps landscaping companies use data to grow smarter

As a landscaping business, industry data helps you position for growth and track trends. But what drives real scaling and informed decisions is your operational data—the numbers from your actual business.

For instance, industry data shows that the most successful landscaping companies have a 14% profit margin. 

If you’re at 10%, it shows there’s room to improve—but that data doesn't tell you whether the problem is inefficient routing, slow crews, or unprofitable accounts. 

Real-time business data from Aspire provides those insights and more. It’s a landscaping business management platform that empowers you with real-time performance and job-costing data. 

Aspire simplifies how you allocate and track crew hours, time spent on a project, and employee performance. 

With Aspire, business owners are able to forecast trends, plan effectively, and allocate resources efficiently. It also comes with features for streamlined scheduling, managing customer relationships, route optimization, equipment monitoring, reporting, and financial management. 

Want to see how Aspire helps you do all that?

Schedule a live demonstration to see how it contributes to business efficiency.