Home Improvement Market By Project, By End Use & Global Forecast, 2025 – 2034

Home Improvement Market Size

The global home improvement market size was valued at USD 894.2 billion in 2024. The market is expected to grow from 931.7 billion in 2025 to 1.32 trillion in 2034 at a CAGR of 4%.
 

Economic factors, trends in the housing market, and shifts in consumer preferences influence the demand for home improvement products and services. The U.S. Census Bureau estimated the expenditure on home improvement projects to surpass USD 500 billion in 2022, indicating that this sector recorded rapid growth. Factors such as available income and economic confidence have great bearing on homeowners’ decisions to undertake renovations or upgrades. For example, the Bureau of Economic Analysis indicated that, in the year 2023, there was an estimated increase of 3.5 percent in disposable personal income, which might have resulted in increased expenditure on home improvements. With logistical improvement projects, a home’s functionality can be taken to the next level, especially when consumers feel good about their financial situation.
 

House renovation was in high demand for the past two years and that was influenced by the housing market overall. As per National Association of Realtors, the ownership rate of homes in the US was 65.9 in the second quarter of 2023 which means we have a wide range of members who will be willing to spend to enhance their property. On top of that, housing turnover is still one of the top factors since there are so many sales and purchases which gives the homeowners a reason to fix their house in order to get a better resale value. In the year of 2023, the Harvard Joint Center of Housing Studies stated that close to 80 percent of home buyers were focused on homes that cared recent renovations or were maintained well, which shows houses with improvements sell a lot more.
 

Interest rate is another factor that affects the demand for home improvement services. Looking at the data from Federal reserve, it shows mortgage rates went as high as 6.5% in 2023 which is a lot higher than the 3% average seen in 2021. Renovation demand is driven by lowered interest rates because they encourage homeowners to borrow funds via loans or credit lines, while higher interest rates stall such work from taking place because of the higher cost in borrowing funds. That helps us understand the trends in interest rates are equally important in determining the demand in that market.
 

Home Improvement Market Trends

• Due to advancements in technology, fluctuations in the economy, and the consistently evolving consumer base, the home improvement industry is accepting the challenge to adjust. As of the year 2023, renovations expenses across the United States were approximately $538 billion. Various trends have accelerated the pace of spending on home enhancement and improvement. All these trends have had a significant impact on the market
   
• The degree of environmental consciousness is among the main reasons for the increase in sustainable renovations. A homeowner can aid the environment by selecting solar panels, energy-efficient appliances, low cost green building materials, and further alternatives. The Department of Energy of the US claims that energy-efficient renovations, like Enhanced insulation and energy-efficient windows can lower household energy expenses by 25%. In addition, homeowners are initially driven to the enhancements of clean energy because of government incentives such as the federal Credit Clean Energy which increases the demand.
   
• Similarly, the integration of home technologies is another notable trend. Everything from thermostats, lighting, security cameras, and even voice assistants have transformed how homeowners approach renovations. The Consumer Technology Association revealed in 2023 that in America, 69% of households have at least one smart home gadget. It is forecasted that spending on smart home improvements could increase by ten percent by each subsequent year until 2028. This is especially true for younger adults, as they seek to improve convenience and security and energy utilization within their homes.
   
• Apart from the previously mentioned factors, these processes are also influenced by the economy. Though it is more nuanced, Americans have varying ranges of income and confidence which can foster or curtail renovation activity, per the report published by the National Association of Home Builders. It is one of those instances when the economy is doing well or consumers have confidence in their economic future, homeowners tend to carry out renovations. Take, for instance, when there is low unemployment and increasing wages, as was the case in 2023, when the unemployment rate was around three point eight percent in the United States, and consumers were more comfortable and willing to remodel the homes.
   
• The character of the market is modulated at a more delicate wiring by the interest rates. When the renovation financing through loans and credit lines is increased, the home decoration purchases tend to increase as well. On the other hand, because the Federal Reserve made efforts to curb inflation by raising interest rates four times in 2023, the cost of borrowing has increased and, as a consequence, large scale renovation projects are downsized.
   

• According to the U.S. Census Bureau, the homeownership ratio in the US, in Q3 of 2023, is at 65.9%. Maintain a robust statistic for the country means that there is a probable continuous demand for renovation services among homeowners who seek to improve their houses. Plus, an existing high activity real estate market should stimulate improvements in home renovations to boost the selling price. According to National Association of Realtors (NAR), there is a higher demand for a property that has recently undergone renovations and, as such, can be sold at a higher return, thus making it beneficial for the seller who is concerned with maximizing the output.
   

  Home Improvement Market Analysis

• The market is divided based on the project into two segments: DIY and DIFM. The DIFM segment alone generated revenue of USD 551.7 billion during 2023 and is expected to exceed the USD 808.5 billion mark by 2032.
   
• Addressing the DIY activities, generally, these activities tend to be more economical and affordable tasks like painting, gardening, or simple repairs opportunities where one would otherwise have to employ a professional. Moreover, these days, the availability of how-to-do resources on the internet has made it easier for people to undertake home improvement projects by themselves. Aligned with the ease of access to tools and materials, DIY as a concept becomes even more appealing.
   

DIFM means where professionals undertake projects that are usually crafted at home. Because of lack of time or interest but being good at accomplishing bigger tasks such as kitchen renovations, bathroom remodeling, or structural and electrical work, most people started hiring professionals. For this reason in particular, DIFM projects are carried out or done much more often.

 

• Based on end-use, the 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. Exterior replacements dominated the market in 2024, with revenue exceeding USD 160.9 billion and is expected to reach USD 228.1 billion by 2034.
   
• Frequently, homeowners undertake projects such as replacing roofing with durable, appealing siding and windows in order to enhance the appearance of the home or in some cases to solve insulation or weather damages.
   
• Additionally, change in climate is affecting weather patterns, and as a result, there is more investment in these weather resistive materials which contributes to the growing advancement in demand for home improvement.
   

• North America has established itself as the undisputed leader, earning a revenue of USD 482.8 billion which is predicted to be at USD 699.3 billion by 2032. Due to the significant ownership of homes, particularly in the United States and Canada, there is a constant market for Housing Improvement Services. With unsatisfied homeowners seeking repairs and renovations as well as upgrades to their properties, there always has and always will be a constant and steady need for remodeling works. Meanwhile, changes in the housing market greatly affect these demands; for example, during periods of rising home prices or low interest rates, homeowners are more likely to remodel in order to increase their property value which directly impacts the overall purchasing decisions.
   

• The most recent estimate shows that in 2024, the home improvement market revenue of the U.S. was around USD 409.7 billion, with estimates that this number will reach 603.3 billion by 2034. Americans are constantly looking to remodel their homes, hence the future forecasts show stunning growth. Keep in mind that traditional players such as Home Depot and Kohler continue to have an enormous market share. Americans are more focused on quantity rather than quality, but over time, innovative performance products for US basic needs will emerge.
   
• After America, Europe follows for the home improvement market. In this part, the market share is estimated at USD 54.1 billion for Germany alone. Many houses in Germany are older, particularly in cities with a long history. As these homes age, there is a higher demand for modernization and renovation services to improve energy efficiency, update outdated features, and ensure homes meet current standards.
   
• Asia Pacific: Within the Asia Pacific region, China’s market ranked number one with estimated revenue of USD 43 billion in 2024 and in all probability, this will drastically increase to USD 73 billion by 2034. On July 2023, the Chinese government announced neighborhood redevelopment investments as part of their urbanization objective which is aimed at making China the next global superpower. One of the strongest growth drivers in the home improvement industry in China remains the ongoing urbanization. As the urban population increases, there is a decreasing availability of low-priced housing which encourages more new building construction or renovation of existing houses. China’s middle-class population has expanded, and they are now spending more money, which supports the growing demand for increased living standards and conditions. Hence, there is a very strong investment tendency among urban homeowners to participate in home modernizing projects.
   

Home Improvement Market Share

• The top 7 companies in the home improvement industry include American Exteriors, Belfor, Coit Services, Crane Renovation Group, DKI Ventures, FirstService Corporation, Henkel Corporation, and they collectively held a share of 11% in the market
   
• American Exteriors focuses on home exterior works such as siding, windows and roofing. It is known for making direct to customer sales, as well as offering energy efficient products. They have a big share in the home exterior industry, but it is mostly regional to the U.S and semi-national as they primarily focus on residential home improvement.
   
• Belfor is one of the largest disaster restoration companies which has a diverse service portfolio that also includes home improvement after water, fire and storm damage. In the home improvement industry, most of their work focuses on restoration and repair rather than renovation.
   
• Coit Services caters to both commercial and residential services such as carpet cleaning, air duct cleaning, and other home improvement works which specialize in cleaning, restoration, and maintenance works. Rather than undertaking major renovations, in the home improvement industry, their work is more focused on home maintenance.
   

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
   

Key participants such as American Exteriors, Belfor, Coit Services, Crane Renovation Group and DKI Ventures LLC, FirstService Corporation, Henkel Corporation and Kohler command a global share of around 15%-20%. The Home Improvement industry is fairly competitive due to the involvement of both local and international businesses.
 

This sector is also witnessing increased market share due to consistent advancements in products, formation of new alliances, and increased distribution. For example, an American home improvement company, Lowe’s Companies Inc. partnered with an online grocery delivery company, Instacart in February 2022. After this partnership, the company offers same day delivery of home improvement products in the North American region.
 

In addition to partnerships, the major players providing these services are also opting for acquisition and mergers to provide enhanced services either as a single entity or as an additional service to their existing product offerings.
 

Home Improvement Industry News

• In March 2024, Kingfisher has opened a home improvement marketplace at Castorama France, which constitutes the latest level in the growth of its marketplace offering.
   
• In October 2023, MarketBlast went public with their intention of organizing a global search for product innovation within the sector of home improvement. The search will include tools, hardware, DIY inventions, Home Improvement innovations, as well as creative new products from manufacturers and distributors.
   
• In August 2022, Setle, a Belgian start-up, secured approximately US$ 15 million in funding, spearheaded by KBC, a prominent Belgian bank and insurer. Setle swiftly delivers accurate cost estimates for sustainable renovations, catering to both real estate agents and potential buyers.
   

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