Remodeling Market - By Type (Interior Remodeling, Exterior Remodeling, Structural Remodeling), By End Use (Residential, Commercial, Industrial), Forecast 2024 - 2032

Remodeling Market Size

Remodeling Market size was valued at around USD 4 trillion in 2023 and is estimated to register a CAGR of around 4.2% between 2024 and 2032. The need for renovation services to modernize infrastructure, increase energy efficiency, and satisfy modern lifestyle demands is fueled by the upkeep and updating of older homes.
 

For instance, national spending on owner-occupied home renovation and repairs is expected to reach USD 485 billion in 2023, a 2.6% increase as compared to the previous year, according to LIRA release projections. The aging baby boomers and millennials starting to own homes are two demographic developments that are driving the demand for remodeling projects, catering to various lifestyle preferences and accessibility needs.
 

Remodeled spaces might become more difficult and take longer to complete due to strict building norms, zoning regulations, and permit procedures. Project prices may go up if environmental laws, such as those governing waste disposal and energy efficiency, are followed. Remodeling projects may become more complex and expensive to comply with workplace health and safety laws.
 

Remodeling Market Trends

An increasing focus on sustainability is encouraging homeowners to make investments in green remodeling practices such as eco-friendly construction methods, renewable materials, and energy-efficient equipment. There is a strong desire among homeowners to update bathrooms and kitchens with modern styles, smart appliances, and energy-saving fixtures. By incorporating elements such as spacious layouts, ample storage, and premium materials, homeowners can enhance functionality. Additionally, homeowners recognize that remodeling their kitchens and bathrooms can significantly increase the value of their properties.

Remodeling Market Analysis

Based on type, the market is segmented into interior remodeling, exterior remodeling, and structural remodeling. In 2023, the interior remodeling segment accounted for a revenue of around USD 2.1 trillion and is expected to reach USD 3.1 trillion by 2032. Large-scale interior remodeling projects are being driven by the desire for flexible and open living areas. The utility and flow of homes are improved when the walls are removed to create open floor layouts, making them more suited for modern living. The need for home-offices has increased due to the rise in remote work, which has fueled renovation projects that upgrade or transform areas to make them useful workspaces.
 

Based on end use, the remodeling market is segmented into residential, commercial, and industrial. In 2023, the residential segment emerged dominant, commanding a market share of around 73%, and is expected to reach 74% by 2032. The need for renovation projects that include features, such as grab bars, walk-in showers, and ramps, to make homes safer and more accessible for seniors is rising due to the aging population. Remodeling projects focused on long-term usability are propelled by the adoption of universal design principles, which produce houses that are usable for people of all ages and abilities.
 

North America held the largest market share of around 37% in 2023 and is anticipated to reach USD 2.2 trillion by 2032. The U.S. has a large percentage of elderly housing, many of which need to address issues including modernization, energy efficiency, and structural issues. There is a constant need for remodeling to preserve and increase the value of homes in the U.S. as the median age of these structures is more than forty years.

The U.S. dominated the North America remodeling market with a revenue of over USD 1.1 trillion in 2023 and is expected to grow at a CAGR of 4.6% during the forecast period. The U.S. government provides a range of financial aid and refunds for energy-saving home upgrades. Homeowners are encouraged to invest in energy-efficient renovation projects that reduce energy usage and utility costs through programs such as tax incentives for installing solar panels, replacing old windows with new ones, and adding insulation.
 

Homeowners in the U.S. are being encouraged to renovate their properties by technological advancements in smart home technologies and home renovation items. Energy-efficient lighting, home automation systems, and smart thermostats are a few examples of modern technologies that increase home value in addition to improving comfort.
 

Germany dominated the Europe remodeling market with a revenue of around USD 288 billion in 2023 and is expected to grow at a CAGR of 4.6% from 2024 to 2032. The nation has put in place a number of policies and financial incentives to encourage energy-efficient home remodeling. Energy-efficient renovation loans and subsidies from the KfW Bank have greatly encouraged homeowners to make investments in energy-efficient upgrades that improve sustainability and lower energy usage. Homes must meet the energy performance requirements set by the Energieeinsparverordnung (EnEV), one of the nation's strictest energy regulations. This requires significant expenditure in renovations aimed at enhancing insulation, heating systems, and overall energy efficiency.
 

China dominated the Asia Pacific remodeling market with a revenue of around USD 296 billion in 2023 and is expected to reach around USD 430 billion by 2032. The need for updated and modern housing in Chinese urban areas has surged due to the country’s rapid urbanization. Millions of people are moving into cities, driving the need for existing housing stock renovations to keep up with rising living standards. Innovations in smart home technologies and building technology are driving China's renovation business expansion further. Prefabricated building elements, energy-saving appliances, and smart home technology are examples of innovations that make renovations more complex yet efficient, drawing in homeowners seeking to update their living areas.
 

Remodeling Market Share

The remodeling industry is fragmented, with several regional companies operating on a global scale. In 2023, Masco Corporation, Lowe's Companies, Inc., The Home Depot, Inc., Andersen Corporation, and Saint-Gobain S.A. led the market. These corporations strategically deploy mergers, acquisitions, partnerships, and facility expansions to expand their customer base, broaden their product portfolio, and establish a stronger foothold in the market. They also leverage their vast distribution networks and resources to explore new markets.
 

Remodeling Market Companies

Major players operating in the remodeling industry are:

• Andersen Corporation
• CertainTeed Corporation
• CRH plc
• Fletcher Building Limited
• James Hardie Industries
• Jeld-Wen Holding, Inc.
• Kohler Co.
• Lowe's Companies, Inc.
• Masco Corporation
• MasterBrand Cabinets, Inc.
• Owens Corning
• Pella Corporation
• Saint-Gobain S.A.
• The Home Depot, Inc.
• Velux Group
   

Remodeling Industry News

• In November 2023, The Home Depot acquired International Designs Group (IDG), a company that owns and operates Construction Resources and several other design-focused subsidiaries. Construction Resources is a prominent distributor of design-oriented surfaces, appliances, and architectural specialty products, catering to professional contractors engaged in renovation, remodeling, residential home building, and multi-family projects.
   
• In July 2023, Masco Corporation completed the acquisition of Sauna360 Group, a step intended to broaden its line of products in the home renovation and wellness industries. Masco's market presence improved by this strategic acquisition as it incorporated Sauna360's sauna and steam solution expertise. The acquisition is consistent with Masco's expansion strategy and dedication to providing a wide array of superior products.
   

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

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Market, By Type

• Interior remodeling
  • Kitchen remodeling
  • Bathroom remodeling
  • Living areas
  • Basement finishing
• Exterior remodeling
  • Roofing
  • Siding
  • Landscaping
• Structural remodeling

Market, By End Use

• Residential
• Commercial
• Industrial

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

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