Home Improvement Market Size By Project (DIY, DIFM), By End-use (Kitchen Improvement & Additions, Bath Improvement & Additions, System Upgrades, Exterior Replacements, Interior Replacements, Property Improvements, Disaster Repairs, Other Room Additions & Alterations), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, COVID19 Impact Analysis, Competitive Market Share & Forecast, 2021 - 2027
The home improvement market is projected to witness a lucrative rate of growth by 2027 due to increasing government investments, shifting consumer preferences towards environment-friendly products, and increasing number of primary and secondary property among consumers.
Home improvement means the addition to or conversion, modernization, improvement, remodeling, alteration, replacement or repair of a part of a building that is used or specifically designed to be used as a dwelling or residence place or an enhancement to land next to to the building.
The home improvement market is bifurcated in terms of project, end-use, and regional landscape.
Talking of end-use, the home improvement market is categorized into disaster repairs, property improvements, interior replacements, exterior replacements, system upgrades, bath improvements & additions, kitchen improvement & additions and other room additions & alterations. The kitchen improvement & additions segment will exhibit a 5.8% CAGR over the forecast time period.
Kitchen improvements includes various components like storage cabinets, kitchen flooring, lighting, cabinets, kitchen devices & appliances, counter tops, and cupboards. With the increase of disposable income of customers, there is a rise in remodeling as well as refurnishing of households among which kitchen improvements has always been the most popular method.
Considering the requirement for available space and family size, the decision to select the improvement items are made. The rising customer awareness toward sustainable living is expanding the market for renewable resources of home improvements, which will aid in lessening carbon footprints.
The system upgrades segment is projected to show around 4.9% CAGR through the analysis timeline. System upgrades provide the opportunity to upgrade the electrical systems of households, which include home security cameras, smart security options, motion sensors, and built in speakers.
Nowadays the consumers demand smart technologies to be installed in their luxury homes to stem the benefits of whole home automation. The surge in customer awareness concerning sustainable home as well as climate change is growing the demand for components that provide energy efficiency.
The home improvement market size from interior replacements segment is poised to grow at a CAGR of 3.1% over the assessment time period. Interior replacements are renovation projects that require to change the inner look of the housing space, which includes the creation of playroom, removal of walls to free up space, removal or addition of furniture items, or other major changes like addition of an extra space or floors. The mounting energy expenses in both developed and developing economies are boosting the demand for housing insulation.
The disaster repairs segment to showcase a CAGR of over 3.2% through the forecast period. Disaster repairs are vital mainly to repair damage caused due to natural calamities, water, fire restoration among others. The repairs are extensively used in parts which experience high number of calamities, for example, Japan, which will drive the market since the country has a high calamity rate. In fact, the commercial and residential space is required to be renovated owing to the increasing calamities in a short period. Meanwhile, insulated concrete forms are also trending in the market due to its properties such as permanence, safety, and energy efficiency of walls.
The other room additions & alterations segment will exhibit more than 3.9% CAGR through the forecast time. The sector is largely driven by an increase in the home prices coupled with lack of affordability by consumers to own new housing space. The customers are inclined to renovate their dwellings rather than going for replacements option.
The spending on healthy homes as well as indoor air quality is rising since users are more concerned about the health impact their homes are having on family members. Due to this fact there is a rise in sustainable home development projects. The consumers are now getting smart and are highly demanding products, which are environment-friendly and are as per the government standards.
On the geographical front, home improvement market in APAC region is expected to expand at a CAGR of 4.5% over the forecast timeframe. Shifting consumer preferences and shift in demographic including ageing consumers, female, and millennials will foster the market expansion. Asian customers prefer complete installation packages for home improvements due to its greater convenience, which in turn is driving the demand for DIFM segment.
Growing number of renovation projects will also boost the market for furniture, floor coverings and wall paints in home improvement industry. Moreover, increasing number of primary and secondary property will be the key factor augmenting Asia Pacific home improvement market.
The LATAM home improvement market is slated to grow at a CAGR of 5.2% over the analysis timeline. Increasing government investments & new policies framed to increase private sector investments in the housing & apartment sector will propel the overall business growth. An increase in the structural reform projects owing to the initiatives of government in normalizing energy performance of building envelope will provide positive scope for the market.
Changing trends towards home renovation owing to the increasing real estate prices in the country will further drive the overall industry size. This in turn will surge product demand and will positively influence the overall concrete admixture market size by the end of 2026. Citing an instance, in January 2018, nearly six highways PPP’s were announced, with capital expenditure of $6 billion in the region. In addition, the future bid rounds of road projects are likely to attract a total of $12 billion in the coming years.
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