Home Improvement Market

Home Improvement Market Outlook (2022-2030)

The global home improvement market in 2022 is valued at US$ 342 billion and is predicted to exhibit expansion at a CAGR of 6.7% over the next eight years. Fact.MR predicts the market to attain a revenue of US$ 575.5 billion by the end of 2030.

DIY home remodelling and renovations are anticipated to witness high demand owing to the rising availability of DIY home improvement products and the increasing adoption of easy add-ons.

Report Attributes	Details
Home Improvement Market Size (2022)	US$ 342 Billion
Projected Market Value (2030F)	US$ 575.5 Billion
Global Market Growth Rate (2022-2030)	6.7% CAGR
MEA Market Growth Rate (2022-2030)	3.5% CAGR
Market Share of Exterior Replacements (2030F)	~20%
Key Companies Profiled	Sherwin-Williams Company DuPont de Nemours Watsco Inc. Robert Bowden ABC Supply Co. Neil Kelly Company Henkel Corporation Andersen Corporation The Home Depot American Exteriors Lutron Electronics Dreamstyle Remodeling Steves and Sons Roxul Builders FirstSource Masco Corporation Ferguson Enterprises Keller Supply Company Case Design/Remodeling Beacon Roofing Supply Pella Corporation Kohler APCO Industries Boral Building Products M S International Kingfisher Harvey Building Products State-wide Remodeling Owens Construction Power Home Remodeling Group

Home Improvement Revenue Analysis (2017-2021) in Comparison to Industry Growth Forecasts (2022-2030)

Urbanization has increased across the world and is now changing consumer trends in developing and under-developed economies. Sustainability is also a key factor that is influencing global growth statistics. The aforementioned factors are expected to crucially shape the growth of the home improvement market through 2030.

High prices of new homes and an increasing rate of transfer of ownership are the key factors that are expected to favor home improvement demand over the years to come. Increasing investments in the modernization of aging infrastructure by consumers to improve the standard of living are also expected to promulgate sales of home improvement products.

Rising popularity of smart kitchens, growing adoption of smart home technology, rising home loan and mortgage interest rates, and increase in per capita disposable income are other factors that could potentially uplift home improvement market growth over the years to come.

However, the limited availability of a skilled workforce for changing consumer demand and fluctuating raw material costs are anticipated to restrain demand for home improvement over the next eight years.

From 2022 to 2030, the home improvement market is anticipated to progress at a CAGR of 6.7%.

How is the Real Estate Sector Augmenting Demand for Home Improvement?

“High Mortgage & Interest Rates Promulgating Demand for Home Improvement”

Housing has become a major issue across the world with an exponentially fast expanding real estate market. Increasing inflation has resulted in high mortgage and interest rates across the world, which make it all the more difficult to own a home.

To avoid spending more on new homes and eliminate the payment of high interest rates, consumers are opting for home renovations and home improvement projects that cost less and keep their homes up to date with the latest trends. Home improvement industry statistics suggest that consumers are projected to spend more on home renovations than they ever before did over the coming years.

What Opportunities in Home Improvement Industry Could New Entrants Cash In?

“Start-ups Cashing in on New Funding to Scale their Home Improvement Businesses”

Home improvement and renovation have become popular trends across the world as the standard of living of people is being elevated with higher disposable income in their pockets to spend. A flourishing home improvement marketplace has created has attracted many new companies to create innovative services and solutions for consumers.

New companies are acquiring new funding to expand their business scope and enhance their stance in the global home improvement industry landscape.

• In August 2022, Setle, a Belgian-based start-up, announced that it had raised around US$ 15 million and this investment was led by KBC, a Belgian bank insurer. The start-up almost instantly provides a realistic cost for sustainable renovations for real estate agents and prospective buyers.
• In March 2022, Weaver, a London-based start-up founded in 2017, closed a seed round at US$ 4 million led by European VC btov Partners. The company offers a SaaS contract negotiation platform that matches contractors and homeowners to simplify the renovation process.
• In November 2021, Block Renovation, a start-up founded in 2017, raised US$ 50 million in a Series C funding round. The company planned to use this funding to take its offerings and business across the United States. The company’s platform digitizes and automates renovation to provide ease to customers.

Which Trends in the Home Improvement Industry are Being Seen in Europe?

“Increasing Focus on Sustainability & Adoption of Green Construction Practices”

The Europe home improvement market is anticipated to provide highly lucrative opportunities for home improvement product manufacturers owing to changing consumer preferences, rising focus on green construction practices, demand for integration of energy-efficient technologies, and increasing investments in remodeling and refurbishment by consumers.

The United Kingdom, Germany, France, Spain, and Italy are anticipated to be the prime markets for home improvement in this region over the coming years.

A detailed regional assessment of the global home improvement market trends has been listed in this new market study by Fact.MR, a market research and competitive intelligence provider.

Country-wise Insights

How Will the U.S. Home Improvement Market Evolve?

“Rising Expenditure on Home Renovation & Remodeling”

The real estate market in the United States is one of the most expensive ones in the world and this results in high prices of new homes in the country. High mortgage and interest rates coupled with the high prices of new homes push homeowners to spend on remodeling and renovation which is expected to drive the home improvement market in the country.

U.S. home improvement market size is also dependent on changing consumer preferences, per capita disposable income, expansion of the e-commerce industry, high demand for appealing finishes, and installation of smart home technologies. The presence of leading home improvement product suppliers such as The Home Depot, Ace Hardware, and Menards is also expected to drive growth in the country over the years to come.

The Home Depot led the U.S. market in terms of sales in 2020 and generated an estimated revenue valuation of US$ 120 billion.

Category-wise Insights

Why Do Most People Prefer DIY Home Improvement?

“Personalization & Self-satisfaction Provided by DIY Projects”

The global home improvement market, based on type, is segmented into DIY and DIFM.

DIY trend has gained massive popularity over the past decade and this trend is anticipated to be rife over the coming years as well. Increasing availability of DIY products and expansion of the e-Commerce industry are expected to influentially drive the demand for DIY home improvement solutions.

Factors such as self-satisfaction and personalization are expected to be prime factors that propel the DIY home improvement market potential over the next eight years. Consumers opt for DIY as it also helps save money that is otherwise spent on third parties such as contractors, fabricators, architects, etc. The DIY segment currently accounts for a dominant market share and is expected to maintain a similar stance across the forecast period.

Which End Use Will Spearhead Revenue Generation in This Market?

“Changing Consumer Trends Driving Demand for Exterior Replacements”

The global home improvement market, based on end use, is segmented into kitchen improvement & additions, bath improvement & additions, system upgrades, exterior replacements, interior replacements, property improvements, disaster repairs, and other room additions & alterations.

Exterior replacements are anticipated to dominate the global home improvement market and are expected to lead the market’s revenue generation potential. Changing consumer trends toward outdoor leisure activities are expected to propel the demand for exterior replacements over the coming years. Increasing use of vinyl sidings and polymer sidings by consumers to create a similar look to wood finish is also expected to favor growth in the exterior replacements segment through 2030.

Exterior replacements are anticipated to account for an estimated share of nearly 20% of the global market by the end of the forecast period.

Competitive Landscape

Companies in the home improvement market are expected to improve their business scope by deploying new services such as same-day delivery for home improvement products. For instance,

• In February 2022, Lowe’s Companies Inc., an American company specializing in home improvement, announced a new partnership with an online grocery delivery platform, Instacart. Through this partnership, the company will provide same-day delivery of its home improvement products in the North American region.

Key Segments in Home Improvement Industry Research

• By Type :

  • DIY
  • DIFM

• By End Use :

  • Kitchen Improvement & Additions
  • Bath Improvement & Additions
  • System Upgrades
  • Exterior Replacements
  • Interior Replacements
  • Property Improvements
  • Disaster Repairs
  • Other Room Additions & Alterations

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA