Home Improvement Market Size, By Project (DIY, DIFM), By End Use, Region, and Forecast 2024 - 2032

Home Improvement Market Size

Home Improvement Market size was valued at USD 867.6 billion in 2023 and is estimated to grow at a CAGR of 6% from 2024 and 2032 due to rapid urbanization in developing economies, rising disposable income, and changing consumer preferences for energy efficient & luxurious living spaces.
 

Rapid urbanization and the growing demand for modern, smart homes are key drivers of the home improvement market. As cities grow and the standard of living improves, there is a greater demand for homes that incorporate cutting-edge technology and modern design. For instance, The United Nations Development Program predicts that over two-thirds of the global population will reside in urban areas by 2050.
 

Furthermore, with increasing disposable incomes, homeowners have more financial resources available to invest in their homes. This financial flexibility allows them to pursue home improvement projects that improve comfort, appearance, and utility. Homeowners wish to enhance their homes with smart home systems, energy-efficient appliances, and cutting-edge materials that provide convenience and sustainability.
 

The fluctuating cost of raw materials and the scarcity of skilled labor are projected to stifle market expansion. Furthermore, a severe demand-supply gap, along with a drop in consumption, is impeding the business.
 

Home Improvement Market Trends

The home improvement industry is experiencing a rise in the adoption of smart home technology, including voice-activated assistants, smart thermostats, security cameras, and automated lighting, with the goal of improving convenience and efficiency. At the same time, there is a growing focus on sustainability, as more homeowners are choosing eco-friendly materials and energy-saving options such as solar panels, energy-efficient windows, and recycled construction materials. These patterns indicate a shift toward living spaces that are more advanced technologically and environmentally conscious.
 

Home Improvement Market Analysis

Based on the project, the global market is classified into DIY and DIFM. The DIY segment is expected to grow at the highest CAGR of 6.2% during the forecast period from 2024-2032. DIY projects allow individuals and homeowners to do various tasks on their own using a variety of tools, equipment, and appliances, while also saving money. These can be used by cost-conscious customers looking for a budget-friendly but visually beautiful home area. These projects are solely focused on end users, with no third-party involvement.
 

Based on end use, the global home improvement market is classified into kitchen improvement & additions, bath improvement & additions, system upgrades, exterior replacements, interior replacements, property improvements, disaster repairs, and other room additions & alterations. The exterior replacements end-use segment dominated the market, accounting for 18.1% of the market in 2023, due to changing customer preferences for outdoor leisure activities. Exterior improvements, such as newly painted walls, improved windowpanes and doors, and garden accessories, offer unique value to a home's appearance while also improving performance and structure.
 

For example, siding is a popular exterior renovation among homeowners since it improves the appearance and outlook of their homes. Consumer preferences for polymer and vinyl sidings that resemble true wood grain will fuel segment expansion.
 

In the global home improvement market, North America held a significant market share of USD 464.3 billion in 2023, maintaining its dominant position throughout the analysis period. It is projected to reach USD 669.6 billion by 2032 as homeowners are increasingly spending on renovations and enhancements as property values rise and the housing stock ages. This trend is accelerated by the introduction of smart home technologies and energy-efficient solutions, which are increasing the demand for modern home improvement items.
 

The U.S. accounted for USD 392.9 billion in 2023, due to expanding construction sector and the rise in construction expenditure attributed to the increasing disposable income in the U.S. According to the Federal Reserve Bank of St. Louis, the state's per capita personal income raised from USD 64,174 in 2019 to 77,036 in 2022.
 

China dominates the Asia Pacific home improvement market, accounting for 48% of market share in 2023 and is expected to grow at a CAGR of 8.2% during the forecast period from 2024-2032. This expansion is fueled by expanding urbanization, rising disposable incomes, and a burgeoning middle class. Furthermore, growing government investments in infrastructure and housing, along with a strong trend toward homeownership, are driving up the demand for home renovation products and services.
 

Home Improvement Market Share

The home improvement industry is highly fragmented in nature due to the presence of local and global players. In 2023, the market players, such as The Home Depot, Lowe's Companies, Masco Corporation, Stanley Black & Decker and Sherwin-Williams, collectively held around 5%-10% market share. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions and facility expansions & collaborations, to expand their product portfolios, extend their reach to a broader customer base, and strengthen their market position.

Home Improvement Market Companies

Major players operating in the home improvement industry are:

• American Exteriors
• Belfor
• Coit Services, Inc.
• Crane Renovation Group
• DKI Ventures, LLC
• FirstService Corporation
• Henkel Corporation
• Kohler
• Lowe's Companies
• Masco Corporation
• Mr. Handyman
• Neil Kelly Company
• Sherwin-Williams
• Stanley Black & Decker
• The Home Depot
• Venturi Restoration
   

Home Improvement Industry News

• In March 2024, Kingfisher launched a home improvement e-commerce platform at Castorama France, marking the latest stage in the rapid expansion of its marketplace offering
   
• In October 2023, MarketBlast announced the launch of a global product innovation search in the growing home improvement industry. The hunt will include innovations in tools, hardware, DIY, and home improvement, as well as manufacturers and distributors looking for new and imaginative products. 
   

The home improvement market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Project

• DIY
• DIFM

Market, By End-use

• Kitchen improvement & additions
• Bath improvement & additions
• System upgrades
• Exterior replacements
• Interior replacements
• Property improvements
• Disaster repairs
• Other room additions & alterations

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA