Home Improvement Market - Global Industry Size, Share, Trends, Competition, Opportunity and Forecast, Segmented By Product (Building and Remodeling, Home Décor, Tools and Hardware and Outdoor Living), By Project (DIFM and DIY), By Sourcing (Homeware Stores, Franchised Stores, Specialty Stores, Online Sales Channel and Others {Direct Sellers, General Merchandised Retailers, etc.}) and By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 995.12 Billion
CAGR (2026-2031)	5.95%
Fastest Growing Segment	Building and Remodeling
Largest Market	North America
Market Size (2031)	USD 1407.61 Billion

Market Overview

The Global Home Improvement Market will grow from USD 995.12 Billion in 2025 to USD 1407.61 Billion by 2031 at a 5.95% CAGR. The Global Home Improvement Market encompasses the sale of building materials, appliances, and decor utilized for the renovation, maintenance, and remodeling of residential properties, catering to both Do-It-Yourself and professional service segments. The primary drivers sustaining this market include an aging global housing stock that necessitates structural repairs and high levels of homeowner equity, which incentivize investment in existing assets rather than relocation. Additionally, government incentives and rising consumer demand for energy-efficient living spaces are accelerating the adoption of sustainable retrofitting solutions, further underpinning industry demand.

However, the sector encounters a significant obstacle regarding skilled labor shortages and volatile supply chain costs, which inflate project expenses and delay completion timelines. These operational constraints create economic headwinds that limit the industry's ability to fully capitalize on consumer demand, particularly in mature markets. According to the Home Improvement Research Institute, in 2025, the home improvement products market was projected to experience a moderated growth rate of 2.5% due to these persistent macroeconomic challenges.

Key Market Drivers

Escalating real estate prices and high mortgage rates have fostered a significant "lock-in" effect that favors renovation over relocation. Rather than trading up in a volatile housing market, property owners are increasingly leveraging record levels of home equity to upgrade existing assets, adapting their current living spaces for long-term needs. This structural shift has anchored industry demand, as families choose to improve their properties to bypass the prohibitive costs associated with buying new homes. According to Angi, May 2025, in the '2025 State of Home Spending Pulse Report', homeowners now expect to remain in their current properties for an average of five years longer than originally planned due to these persistent economic headwinds. This extended tenure incentivizes comprehensive remodeling projects, contributing to massive market scale; according to the National Association of Realtors, in 2025, Americans spent an estimated $603 billion on home remodeling projects during the previous year.

Simultaneously, a rising consumer preference for energy-efficient and sustainable home solutions is reshaping product development and service offerings. Homeowners are continuously prioritizing retrofits that lower utility costs and improve climate resilience, moving green building practices from a niche segment to a standard expectation. This trend is further accelerated by government incentives and the growing availability of eco-friendly materials, which encourage investments in insulation, high-efficiency appliances, and renewable energy systems. The widespread adoption of these green technologies is evident in recent consumer surveys. According to Houzz, May 2025, in the '2025 U.S. Houzz & Home Study', 90% of renovating homeowners incorporated at least one sustainable feature into their kitchen projects, underscoring the critical role of environmental sustainability in driving modern market expansion.

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Key Market Challenges

The persistent shortage of skilled labor constitutes a severe operational impediment that is directly stifling the growth trajectory of the Global Home Improvement Market. This scarcity of qualified tradespeople, including carpenters, electricians, and installers, creates a critical bottleneck where the industry's capacity to deliver services lags significantly behind consumer interest. As the available workforce dwindles relative to demand, project timelines are inadvertently extended, and labor costs rise precipitously. These inflated operational costs force contractors to increase service prices, which subsequently deters price-sensitive homeowners from initiating optional renovation projects and reduces the overall volume of market transactions.

This workforce deficit effectively caps the industry's ability to convert high consumer demand into realized revenue. According to the National Kitchen & Bath Association, in 2025, 58% of design and remodeling firms reported experiencing a moderate or severe skilled labor shortage. This widespread unavailability of talent compels companies to restrict their project intake and extend backlogs to unsustainable lengths. Consequently, the market is prevented from fully capitalizing on the renovation needs of an aging housing stock, resulting in missed revenue opportunities and a constrained growth rate for the broader sector.

Key Market Trends

The integration of AI-driven smart home ecosystems is fundamentally altering the residential renovation landscape, moving beyond standalone gadgets to fully interconnected home management networks. Homeowners are increasingly prioritizing cohesive systems that centralize security, lighting, and climate control through predictive artificial intelligence, which enhances convenience and operational efficiency. This technological shift is driving significant market activity as consumers retrofit existing properties with advanced infrastructure capable of supporting complex automation. The scale of this adoption is substantial; according to the Association for Smarter Homes & Buildings, October 2025, in the '2025 Smart Home Trends & Technology Adoption' report, smart home adoption among households in the United States and Canada rose to 59% in 2025, driven largely by the demand for intuitive, app-controlled living environments.

Simultaneously, the expansion of outdoor living and entertainment areas has emerged as a dominant priority, with property owners treating exterior spaces as functional extensions of the primary residence. This trend is characterized by the installation of sophisticated outdoor kitchens, weather-resistant lounge areas, and architectural features that blur the boundary between indoor and outdoor environments. Renovations now frequently include high-value structural changes, such as the removal of exterior walls to install wide-span opening systems that facilitate seamless transitions. This design preference is reshaping project scopes; according to Fixr.com, June 2025, in the '2025 Outdoor Living Trends Report', 46% of industry experts identified pocket sliding doors as the leading emerging trend utilized to create these fluid connections between interior and exterior entertainment zones.

Segmental Insights

The Building and Remodeling segment is currently the fastest-growing category within the Global Home Improvement Market. This rapid expansion is primarily driven by the aging condition of existing housing stock, which necessitates significant structural upgrades and modernization to ensure safety and functionality. Furthermore, high real estate prices have encouraged a "stay and improve" trend, where homeowners opt for extensive renovations rather than relocating. The segment is also bolstered by stringent sustainability goals, as regulatory frameworks from institutions like the European Commission actively incentivize energy-efficient retrofitting, fueling demand for green building solutions.

Regional Insights

North America holds a dominant position in the global home improvement market due to extensive investments in residential renovation and a growing preference for personalized living spaces. The market expands as homeowners modernize aging properties and adopt energy-efficient solutions supported by programs from the United States Department of Energy. High property ownership rates and a well-established do-it-yourself culture further fuel demand for construction materials and interior enhancements. These factors, combined with stable economic conditions, ensure the region continues to generate the majority of demand within the global sector.

Recent Developments

• In December 2024, Lowe's Companies, Inc. unveiled its comprehensive "2025 Total Home Strategy" alongside a new AI-driven framework designed to enhance customer experiences and drive productivity. During its analyst and investor conference, the retailer announced the relaunch of its loyalty program for professionals, MyLowe’s Pro Rewards, aiming to deepen its penetration in the critical Pro market. The company’s new strategic phase focuses on leveraging generative AI to improve personalized marketing and inventory management, positioning the brand to capture a larger share of the recovering home improvement market through advanced technology and strengthened professional partnerships.
• In July 2024, HGTV Home by Sherwin-Williams introduced a new Cabinet & Furniture paint, a product innovation sold exclusively at Lowe’s. This new acrylic urethane enamel was developed to provide a durable, factory-like finish for high-traffic surfaces such as kitchen cabinetry and furniture, allowing homeowners to reimagine their spaces without the high cost of full renovations. The launch addressed a growing consumer trend where homeowners sought to refresh existing interiors amid economic factors that made large-scale remodeling less accessible. The product features stain and scratch resistance, catering to both DIY enthusiasts and professionals seeking professional-grade results.
• In March 2024, The Home Depot entered into a definitive agreement to acquire SRS Distribution Inc., a leading residential specialty trade distribution company, in a transaction valued at approximately $18.25 billion. This strategic acquisition was designed to accelerate the retailer's growth with the residential professional customer by expanding its offering and capabilities. The collaboration enables the company to better serve complex project purchase occasions for renovators and remodelers while establishing itself as a leading specialty trade distributor across multiple verticals, including roofing, landscaping, and pool contractors.
• In January 2024, Bosch Power Tools announced the launch of over 30 new cordless products to expand its extensive lineup of tools and accessories for the home improvement and construction sectors. This major product rollout highlighted the company's strategic commitment to advancing cordless technology and optimizing solutions for efficiency on jobsites. The new additions included specialized tools designed to conquer concrete applications as well as versatile options for general construction tasks. By introducing these innovations, the manufacturer aimed to meet the evolving needs of hard workers and professionals seeking greater mobility and power in their daily operations.

Key Market Players

• The Home Depot, Inc.
• Lowe’s Companies, Inc.
• Kingfisher plc
• W.W. Grainger, Inc.
• Tractor Supply Company
• Masco Corporation
• Bed Bath & Beyond Inc.
• Ace Hardware Corporation
• Havells India Limited
• Bunnings Group Limited

By Product	By Project	By Sourcing	By Region
Building and Remodeling Home Décor Tools and Hardware and Outdoor Living	DIFM and DIY	Homeware Stores Franchised Stores Specialty Stores Online Sales Channel and Others {Direct Sellers General Merchandised Retailers etc.}	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Home Improvement Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Home Improvement Market, By Product:

• Building and Remodeling
• Home Décor
• Tools and Hardware and Outdoor Living

• Home Improvement Market, By Project:

• DIFM and DIY

• Home Improvement Market, By Sourcing:

• Homeware Stores
• Franchised Stores
• Specialty Stores
• Online Sales Channel and Others {Direct Sellers
• General Merchandised Retailers
• etc.}

• Home Improvement Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE