Home Improvement Market Size

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.