Home Improvement Market Introduction

The home improvement market refers to the industry involved in the renovation, remodeling, and upgrading of residential properties. Home improvement projects can range from simple DIY projects like painting and wallpapering to more complex projects like kitchen and bathroom renovations or major structural changes. The market includes a wide range of products and services, such as building materials, tools and equipment, appliances, fixtures, and furnishings, as well as professional services like construction and design services, installation and maintenance services, and financing options.The home improvement market is driven by a variety of factors, including changing consumer preferences and lifestyles, the need for repair and maintenance of existing homes, increasing disposable incomes, and the availability of innovative products and technologies. The market is highly competitive, with a large number of players operating in both the online and offline channels. The trend towards eco-friendly and sustainable home improvement solutions is also gaining traction, with a growing focus on energy-efficient products and practices.

Home Improvement Market Size

The global home improvement market size was valued at USD 762.6 billion in 2020 and is projected to reach USD 1,120.6 billion by 2028, growing at a CAGR of 4.8% during the forecast period (2021-2028). The growth of the market is attributed to the rising demand for home renovation and remodeling, fueled by the increasing disposable income, growing urbanization, and changing consumer preferences for modern and comfortable living spaces. Additionally, the increasing popularity of DIY home improvement projects, coupled with the availability of innovative and eco-friendly home improvement solutions, is expected to further drive the market growth. The market is also expected to benefit from the growing e-commerce industry, which provides easy access to a wide range of home improvement products and services online.

Home Improvement Market Share

The home improvement market is highly fragmented, with several players operating in the global market. The market share of each player may vary depending on their product offerings, geographical presence, and other factors. Some of the key players in the global home improvement market include Home Depot, Lowe's Companies, Inc., Kingfisher plc, OBI Group Holding SE & Co. KGaA, and Bauhaus, among others.In 2020, Home Depot and Lowe's Companies, Inc. held the largest market share in the home improvement retail industry in the United States, with 24.7% and 18.8% respectively. In Europe, Kingfisher plc is a leading player in the home improvement market, operating under several brands, including B&Q, Castorama, and Screwfix.In addition to these major players, there are also several regional and local players operating in the market, especially in emerging markets. These players may have a significant market share in their respective regions. The market share of each player may change depending on factors such as market trends, consumer preferences, and competitive landscape.

Home Improvement Market Trends

Some insights into the home improvement market trends.

1. Increasing Demand for Home Renovation: The home improvement market is expected to witness significant growth in the coming years, driven by the increasing demand for home renovation. Factors such as aging housing stock, increasing disposable income, and changing consumer preferences are expected to fuel market growth.
2. Growing Popularity of DIY Projects: The do-it-yourself (DIY) trend is becoming increasingly popular among consumers. The availability of online tutorials and videos, coupled with the growing interest in home improvement projects, is driving the growth of the DIY market.
3. Focus on Sustainable and Energy-Efficient Products: There is a growing focus on sustainability and energy efficiency in the home improvement market. Consumers are increasingly looking for products that are environmentally friendly, energy-efficient, and reduce their carbon footprint.
4. Increased Adoption of Smart Home Technology: The adoption of smart home technology is on the rise, and this trend is expected to continue in the coming years. Smart home technology allows consumers to control and monitor their home appliances and systems remotely, improving energy efficiency and home security.
5. Growing Online Sales: The shift towards e-commerce and online shopping is also impacting the home improvement market. The convenience of online shopping, coupled with the availability of a wide range of products, is driving the growth of online sales in the home improvement market.

Overall, the home improvement market is expected to continue its growth trajectory in the coming years, driven by the increasing demand for home renovation, growing popularity of DIY projects, focus on sustainability and energy efficiency, increased adoption of smart home technology, and growing online sales.

Home Improvement Market Driving Factors

Some insights into the driving factors of the home improvement market.

1. Aging Housing Stock: One of the main driving factors of the home improvement market is the aging housing stock. Many homes in developed countries were built several decades ago and require renovation and repair. This creates a strong demand for home improvement products and services, including appliances, fixtures, and building materials.
2. Economic Growth and Consumer Confidence: Economic growth and consumer confidence play a significant role in the home improvement market. When the economy is strong, consumers are more likely to invest in home improvement projects, and they have the financial means to do so.
3. Low Interest Rates: Low interest rates make it easier for consumers to finance home improvement projects. This encourages them to invest in their homes and can increase the demand for home improvement products and services.
4. Changing Consumer Preferences: Changing consumer preferences also drive the home improvement market. Consumers are increasingly looking for products and services that align with their lifestyle and values, such as energy-efficient appliances, sustainable building materials, and smart home technology.
5. DIY Trend: The growing popularity of the do-it-yourself (DIY) trend is another driving factor of the home improvement market. Consumers are increasingly interested in taking on home improvement projects themselves, which creates demand for tools, materials, and instructional resources.

Overall, the home improvement market is influenced by a range of factors, including the aging housing stock, economic growth and consumer confidence, low interest rates, changing consumer preferences, and the DIY trend. These factors are expected to continue driving the growth of the home improvement market in the coming years.

Home Improvement Market Regional Analysis

The home improvement market is segmented into various regions, including North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.North America is a significant market for home improvement, owing to the high disposable incomes and the increasing popularity of home renovation and remodeling projects among homeowners. The presence of major players and their focus on online and offline channels also contribute to the growth of the market in this region.Europe is another significant market for home improvement, driven by the increasing demand for energy-efficient and sustainable solutions, as well as the growing trend of DIY home improvement projects among consumers. The region also benefits from government initiatives promoting energy efficiency in buildings and providing financial incentives for home renovation and upgrading.Asia-Pacific is expected to witness significant growth in the home improvement market, driven by the increasing urbanization, rising disposable incomes, and the growing popularity of modern and comfortable living spaces among the middle class. The region is also witnessing a trend towards eco-friendly and sustainable home improvement solutions, driven by government initiatives promoting green building and sustainable development.Latin America and the Middle East & Africa regions are also expected to witness steady growth in the home improvement market, driven by the growing demand for affordable and innovative home improvement solutions, as well as the increasing focus on energy efficiency and sustainability. However, the market in these regions may face challenges such as economic instability and limited availability of skilled labor and resources.

Home Improvement Market Forecasts 2030 

The global home improvement market is expected to continue its growth trajectory over the next decade, driven by several factors such as an increase in home renovation projects, growing popularity of DIY projects, focus on sustainability and energy efficiency, and increased adoption of smart home technology.The global home improvement market was valued at USD 849.31 billion in 2020 and is projected to reach USD 1,144.19 billion by 2028, growing at a CAGR of 3.9% during the forecast period.The global home improvement products market size was valued at USD 737.5 billion in 2020 and is expected to grow at a CAGR of 5.3% from 2021 to 2028.Additionally, the COVID-19 pandemic has accelerated the demand for home improvement products and services, as people spent more time at home and looked to improve their living spaces. This trend is expected to continue even after the pandemic, further driving the growth of the home improvement market.

Overall, the home improvement market is expected to continue its growth trajectory in the coming years, driven by several factors, including the aging housing stock, economic growth and consumer confidence, low interest rates, changing consumer preferences, and the DIY trend.

Home Improvement Market Key Industry Players

Some of the key players in the global home improvement market include:

1. Home Depot Inc.
2. Lowe's Companies, Inc.
3. Kingfisher plc
4. OBI Group Holding SE & Co. KGaA
5. Bauhaus
6. Menard, Inc.
7. Ace Hardware Corporation
8. Travis Perkins plc
9. Wickes Furniture Company, LLC
10. Sears Holdings Corporation

These players operate in various segments of the home improvement market, including building materials, tools and equipment, appliances, fixtures, furnishings, and professional services. They compete on the basis of product quality, pricing, brand recognition, customer service, and innovation. Additionally, several emerging players are also entering the market, offering innovative and eco-friendly solutions to cater to the growing demand for sustainable home improvement products and practices.