Aug 30, 2017
8 Key Projections on Future of Home Improvement Spending Market for Forecast Period 2017 to 2022
by Team Fact.MR
A recently published report by Fact.MR projects the global home improvement spending market to register a steady growth over the forecast period 2017 to 2022. The global market for home improvement spending is estimated to reach approximately US$ 2,000,000 Mn in revenues by 2022-end.
The home improvement spending is expected to experience a sustained momentum in the near future. The home costs, which are exhibiting a healthy increase, are encouraging home owners to make investments in remodeling activities. Increasing home equity, and low mortgage rates are playing a crucial role in provoking home owners in refinancing, which in turn will influence growth of the market. A new trend “nesting is investing” is becoming increasingly popular across the globe, as home owners are more interested in making investments in home improvement as well as remodeling operations. On the back of increasing disposable income of population in developing and developed countries, several home owners are shifting their focus towards renovation and repair work. Millennials and baby boomers lead this charge, with millennials aiming for integrated technology & personalization, and baby boomers concentrating on updating their houses for accessibility. These factors are expected to fuel expansion of the global home improvement spending market.
Demographic trends will buoy the market in the upcoming years. Although, the huge millennial generation will shape the future of home improvement spending, younger homes are expected to register a sluggish pace in breaking into homeownership, and remodeling activities. Moreover, many investors are now backing out from providing capital to the home improvement sector, as they expect the sector to exhibit a decline in its expansion in the years to come. This possible hindrance in growth of home improvement is highly attributed to slacking sales trends associated with bigger ticket categories, such as home furnishings. These factors might impact the market growth during the forecast period.
8 Key Takeaways from Fact.MR’s Report on Home Improvement Spending Market
- Europe will continue to be the most lucrative region for growth of the home improvement spending market, in terms of revenues. Revenues from the market in this region is poised to exceed US$ 700,000 Mn by 2022-end.
- Asia-Pacific excluding Japan (APEJ) will remain the second largest market for home improvement spending throughout the forecast period.
- North America is expected to witness the fastest expansion in the global market through 2022.
- In terms of revenues, Roofing is expected to remain the dominant product segment in the global market for home improvement spending.
- Room Additions, and bathroom remodeling are estimated to register the highest CAGRs in the market through 2022.
- Heating, ventilation, & air conditioning, and disaster repairs are anticipated to exhibit steady expansion at similar CAGRs through 2022.
- Departmental stores are projected to remain the most lucrative distribution channel in the global home improvement spending market. Revenues from sales in departmental stores are expected to account for more than one-fourth share of the market over the forecast period.
- Homeware stores, and franchise stores are poised to collectively account for roughly 50% market share, in terms of revenues. Franchise stores will remain comparatively more lucrative than homeware stores in the home improvement spending market during 2017 to 2022.