Home Improvement Market Size, Share, Growth, Trends, and Forecast 2030

Home Improvement Industry Prospective:

The global home improvement market size was worth around USD 340.81 billion in 2022 and is predicted to grow to around USD 490.13 billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.65% between 2023 and 2030.

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Home Improvement Market: Overview

Home improvement is a segment of the broader building & construction industry. It deals with undertaking projects that aim to improve or enhance the functional features of an existing home. The aspects of a housing facility covered in home improvement projects can range from improving the home exterior to upgrading plumbing systems and lighting. Home improvement and interior design are two separate segments of the building industry. However, they may work coherently to deliver a house with better appeal and functional attributes. The main reason for undertaking a home improvement project may differ from one person to another.

For instance, some may invest in home improvement as the housing facilities are aging while some may wish to invest in a more functional space that accommodates their requirement such as the installation of a stairlift for elderly citizens. The demand for home improvement projects has gained considerable momentum since COVID-19 as people are investing in building a house that accommodates specific working spaces with the increase in remote work culture trend. However, the changing prices of raw materials could act as a growth barrier.

Key Insights:

• As per the analysis shared by our research analyst, the global home improvement market is estimated to grow annually at a CAGR of around 4.65% over the forecast period (2023-2030)
• In terms of revenue, the global home improvement market size was valued at around USD 340.81 billion in 2022 and is projected to reach USD 490.13 billion, by 2030.
• The home improvement market is projected to grow at a significant rate due to the surging rate of new home units to push higher demand
• Based on home section segmentation, exterior replacements were predicted to show maximum market share in the year 2022
• Based on type segmentation, Do It for Me (DIFM) was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Home Improvement Market: Growth Drivers

Surging rate of new home units pushes higher demand for home improvement

The global home improvement market is expected to grow as a direct consequence of the surging rate of new homes or residential units. In the last few years, real estate prices have grown exponentially. Several factors have been responsible for increased real estate prices. For instance, certain countries are suffering from the impacts of social and political tension while some nations are registering slow economic growth and high inflation rate. The cost of buying a new house in developed countries is exceedingly high. In such situations, the general population considers home improvement as the ideal way since they can achieve a well-structured home at lower costs.

As per research, the average real estate cost in the UK was over 700,000 euros in 2022. The primary reasons for the increase in real estate prices are a reduced number of homes for sale along with record low mortgage rates at a global scale.

Changing climate conditions and their effects on the home environment cause more demand in the market

The global climate conditions are changing rapidly. This includes extreme temperatures during winter and summer. In addition to this, the growing incidents of floods, landslides, and heatwaves to name a few. The general population and regional governments are working toward developing housing facilities that can withstand extreme environmental conditions and keep housemates safe from any form of harm.

The latest trend is the installation of solar panels in housing facilities since energy demand has rapidly grown especially in nations that exhibit colder winters. Since more energy is required to keep the homes warm, electricity consumption levels have surged. Installation of solar panels has become a common aspect of the global home improvement market.

Home Improvement Market: Restraints

Changing prices of raw materials to restrict market growth

The global home improvement industry growth is projected to be restricted due to the highly volatile prices of raw materials used in building & construction. The most common materials used were stone, concrete, wood, steel, and masonry among others. The prices of these materials are extremely sensitive to the external global environment.

In May 2022, the Indian government undertook the help of cement suppliers from Southern India to bridge the gap between cement supply and demand in other parts of the country. Additionally, as per the latest reports, the US is witnessing a shortage in cement supply that is expected to impact the country’s war efforts and infrastructure development projects.

Home Improvement Market: Opportunities

Growing access to home improvement loads and other financial assistance to create growth opportunities

The global home improvement market is anticipated to gain higher momentum due to the increasing access to loans and financial aid for home improvement. The assistance is either provided by private companies or regional governments. In October 2023, the Finance Ministry of India announced the approval of a new interest subsidy scheme worth Rs 60,000 crore. The plan is launched for the benefit of the urban poor population and will be used toward home loan initiatives.

In May 2023, the Australian government offered AUG 1 billion to its population for the installation of measures that can help save energy. As per official estimates, more than 100,000 households are expected to benefit from the announcement as low-cost loans will be provided for the installation of solar panels. Around AUD 2 billion has been reserved for hydrogen projects. In November 2023, it was reported that China is expected to invest USD 137 billion in the coming years for the renovation of the urban villages in the country.

Innovation-led growth strategy adopted by home improvement service providers may deliver expansion possibilities

Companies or businesses that provide services related to home improvement are increasingly investing in innovation-led strategies. They are consistently working with new materials to deliver exceptional results that meet the expectations of the modern consumer. Apart from using new materials, service providers are also experimenting with new construction techniques so that they produce exclusive designs with minimum waste and damage to the environment.

Home Improvement Market: Challenges

Rapidly changing industry trends to challenge market growth

The global market growth is expected to be challenged by the rapidly changing trends in the industry for home renovation. As new technologies and styles or patterns get introduced in the commercial world, home improvement service providers must ensure that their teams are trained in the latest home improvement demands. Lack of access to skilled professions may further inhibit the market growth rate.

Home Improvement Market: Segmentation

The global home improvement market is segmented based on home section, type, and region.

Based on home section, the global market is divided into disaster repairs, bath improvement & additions, kitchen improvement & additions, disaster repairs, exterior replacements, system upgrades, property improvements, and others. In 2022, the highest growth was witnessed in the exterior replacements segment. As more people have started spending a large part of their day at home as a result of higher adoption or remote work culture, they are increasingly spending in creating a safe exterior environment for themselves and their families. This includes curating lush gardens, installing security systems, and seating areas. As of 2023, prices of landscaping range between USD 2500 to USD 14000.

Based on type, the global market is divided into Do It for Me (DIFM) and do it yourself (DIY). In 2022, the highest growth was registered in the Do It for Me segment. However, it is important to note that both the DIY and DIFM segments are important contributors. In some countries, consumers prefer to undertake home improvement projects themselves by incorporating DIY techniques while in other countries, DIFM is more popular. Large-scale projects are generally assigned to contractors since they include extensive work. As per the current market, the average salary of an average contractor in the UK is around £50,000 per year.

Home Improvement Market: Report Scope

Home Improvement Market: Regional Analysis

Asia-Pacific to emerge as the fastest-growing region during the forecast period

The global home improvement market will be led by Asia-Pacific during the forecast period. The reason for the higher growth rate is the large-scale development of rural populations in emerging Asian countries. The regional governments are spending heavy resources on the steady urbanization of the region while also aiding improvements in rural housing structures. In July 2023, the Chinese government announced investments toward urban redevelopment as a means to achieve its vision of emerging as the next superpower on a global scale.

Furthermore, the regional growth is strengthened by the presence of a robust ecosystem that supplies raw materials used for home improvement projects. China and India are home to some of the leading concrete suppliers that cater to domestic and international audiences. For instance, in a recent move, Ultratech Cement, a company owned by India’s Aditya Birla Group, announced that it will increase its cement production capacity in Rajasthan state to 0.8 million tonnes per annum (mtpa). North America is growing steadily. The increasing number of solar installation projects and higher demand for DIY-style home improvement are expected to drive regional growth.

Home Improvement Market: Competitive Analysis

The global home improvement market is led by players like:

• Lowe's Companies Inc.
• The Home Depot
• Masco Corporation
• Lumber Liquidators
• Stanley Black & Decker
• D.R. Horton
• Sherwin-Williams
• Fortune Brands Home & Security
• Valspar
• Trane Technologies
• Whirlpool Corporation
• Owens Corning
• Mohawk Industries
• Andersen Corporation
• Ecolab.

The global home improvement market is segmented as follows:

By Home Section

• Disaster Repairs
• Bath Improvement & Additions
• Kitchen Improvement & Additions
• Disaster Repairs
• Exterior Replacements
• System Upgrades
• Property Improvements
• Others

By Type

• Do It For Me (DIFM)
• Do It Yourself (DIY)

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa