Home Improvement Market Size & Share 2026-2035

Home Improvement Market Size

The global home improvement market was estimated at USD 1.2 trillion in 2025. The market is expected to grow from USD 1.3 trillion in 2026 to USD 1.8 trillion in 2035, at a CAGR of 3.8% according to latest report published by Global Market Insights Inc.

• The median age of existing housing stock has risen considerably in North America and Europe over the past two decades, fueling a continuous flow of renovation projects focused on maintenance, replacements, and energy efficiency upgrades that create a consistent demand irrespective of the level of consumer spending.
• The rapid growth of smart homes solutions such as connected lighting, HVAC management and security systems which has created high demand for upgrades that pushes the average value of each renovation above the level predicted by unit volume growth.
• The rise of green renovations as an investment category based on energy codes, governmental funding and a rising number of consumers making purchasing decisions based on environmental credentials has also influenced market growth.
• According to the National Association of Home Builders, there were 128,000 remodeling firms at the start of 2025, up from 69,000 in 2000, in the U.S. Home improvement spending share increased from 33% in 2007 to 44% in the first quarter of 2025.
• Home improvement spending has shown correlation with rates of turnover within the housing market, consumer sentiment indicators, and income growth trends. The economic recovery after 2024 will be consistent regarding the trend towards a gradual normalization of mortgage rates in the US and Europe, thus stimulating housing transactions.
• The OECD expects real household disposable incomes to begin showing growth after 2025, which would offer additional motivation for home renovations. However, there exists an important underlying determinant for home renovation activities, which is related to the necessity of renovating older houses, an aspect of structural demand for home renovations that is independent of interest rate normalizations and offers floor-level demand resilience.
• As per the North American Hardware and Paint Association annual report, retailers are responding by concentrating investments in core categories including paint and sundries (48%), lawn and garden (43%) and hardware and fasteners (38%). Many plan more aggressive inventory strategies as they anticipate improving demand.

Home Improvement Market Trends

• The DIY market has shifted from traditional knowledge-sharing methods to a platform-driven approach, significantly broadening the range of projects accessible to non-professional homeowners.
• Insights from the home improvement industry show that digital tools such as video tutorials, augmented reality (AR) visualization, and project-planning apps have streamlined the decision-making process. These tools have reduced uncertainties around design and technical execution, enabling quicker purchases in categories like flooring, paint, and lighting.
• The key transformation lies in how instructional content is now integrated into the purchasing process, bridging the gap between inspiration and purchase, and driving higher engagement across these categories.
• The integration of online research with in-store shopping is another major shift in the DIY market. Homeowners are increasingly turning to instructional videos, which are now becoming an integral part of the commercial purchase process. This development bridges the gap between project inspiration and the point of purchase, driving greater category adoption and growth.
• According to the Home Improvement Research Institute (HIRI) report released in 2025, in the U.S, Gen Z homeowners have the highest intention of increasing their home improvement spending over the next 12 months, followed by millennials and then Gen X homeowners. Meanwhile, boomers are intending to spend a little less. Additionally, this generation of homeowners possesses intermediate DIY experience than older homeowners, which includes tasks like installing hardwood flooring or replacing a window.
• As per the Harvard University (Joint Center of Housing Studies) report published in 2025, the growing frequency and intensity of hazard events like hurricanes, wildfires, and flooding increased spending for disaster repairs to USD 49 billion in 2022–2023, an astonishing leap from USD 16 billion in 2002–2003. Additionally, the average homeowner insurance premium jumped 17% between 2021 and 2023. In 2023, homeowners also spent USD 139 billion on improvements impacting home energy use, nearly four times the amount in 2003.

Home Improvement Market Analysis

Based on product type, the market is classified into structural & building materials, fixtures, fittings & cabinetry, mechanical systems & equipment, lighting & electrical accessories, flooring & surface finishing materials, paints, coatings & wallcoverings, tools & hardware, outdoor & landscaping products, and home décor & soft furnishings. The structural & building materials segment accounted for revenue of around USD 263.6 billion in 2025 and is anticipated to grow at a CAGR of 3.5% from 2026 to 2035.

• The segment encompasses roofing systems, insulation assemblies, window and door units, exterior cladding, structural lumber and engineered wood panels, and foundation and masonry materials. The demand is repair-and-replace driven, meaning it correlates closely with the age and condition of existing housing stock than with consumer confidence or discretionary spending cycles.
• Fixtures, fittings & cabinetry segment is driven by premiumization, consumer willingness to invest in premium cabinetry, engineered stone countertops, and precision-finish plumbing fixtures even in periods of broader spending moderation.
• Outdoor & landscaping products is driven by the emergence of outdoor living as a distinct lifestyle investment category and the crossover of smart home electronics into garden, terrace, and deck environments.

• In North America and Northern Europe, the DIY industry is driven by a strong cultural preference for self-executed projects. Home improvement retailers play a significant role in supporting this trend by offering a wide range of project materials, tool rental services, and accessible guidance both in-store and online.
• Paints and coatings are among the most popular DIY products, as they are easy to apply and allow consumers to personalize their spaces, with digital tools enhancing the experience by enabling color visualization.
• Floating-format flooring, especially luxury vinyl planks, is another key category, as its click-lock installation system simplifies the process by removing the need for adhesives or nails, allowing homeowners to complete installations within a single day.
• Tools, hardware, and outdoor landscaping products remain essential contributors to the growth of the DIY segment.

North America Home Improvement Market

The U.S dominates the North America market and valued at USD 494.6 billion in 2025 and is estimated to grow at a CAGR of 3.5% from 2026 to 2035.

• In the U.S, the Midwest and Northeast regions, characterized by older residential constructions, are experiencing a strong demand for renovations. This demand remains steady, even when housing transactions fluctuate.
• As the US Federal Reserve maintained higher interest rates through 2023 and into 2024, mortgage rates increased significantly. This rise led to a notable decline in home sales, which also impacted renovation projects that typically witness the highest spending shortly after home purchases.
• Homeowners who had built equity during recent property value increases turned to alternative financing options, such as home equity lines of credit. This approach helped sustain renovation activities, particularly for projects like kitchen remodels, bathroom upgrades, and HVAC replacements.
• Some leading home improvement retailers, with an extensive network of stores across North America, have made significant investments. These include contractor service platforms, digital tools for project facilitation, and capabilities for same-day professional services.

Europe Home Improvement Market

In the Europe market, Germany is expected to experience significant and promising growth from 2026 to 2035.

• The European renovation market is undergoing a transformation, driven by the EU's Energy Performance of Buildings Directive (EPBD), Recast 2024. This directive sets a clear goal: by 2028, all new buildings across member states must achieve zero-emission status. It also prioritizes upgrading the least energy-efficient buildings through mandatory national renovation plans, ensuring compliance with minimum energy performance standards.
• Public funding has played a pivotal role in supporting these initiatives. In France, the government revamped the MaPrimeRénov package in 2024 to focus on holistic home renovations rather than isolated upgrades. The program supports projects such as home insulation, heat pump installations, and window replacements.
• Germany’s KfW Energy Efficient Buildings program provides loan subsidies to encourage insulation and HVAC system upgrades. German contractors have reported a growing pipeline of energy renovation projects, with commitments extending through 2026.

Asia Pacific Home Improvement Market

In the Asia Pacific market, the China held a significant market share in 2025 and is projected to grow at a CAGR of 5.8% during the forecast period.

• China's urban housing market, particularly apartments built during the 1990s and early 2000s, is seeing a rising demand for renovations, especially in bathrooms and kitchens. This reflects a significant upgrade cycle as these properties enter their first major reinvestment phase, a scale of activity unmatched globally. In recent years, a slowdown in new construction activity has shifted investment focus toward renovating existing properties. This change is creating more opportunities for home improvement product suppliers compared to those catering to new construction, and this trend is expected to gain momentum in the coming years.
• India's growing urban housing sector is driving demand for home improvement and fit-out solutions, including flooring, paint, fixtures, and basic mechanical systems. These offerings are tailored to meet the needs of first-time homeowners in key urban markets. Asian Paints, a leading player in the architectural coatings market, has identified a shift in consumer behavior. With increasing incomes and changing design preferences, urban consumers are moving toward premium multi-coat paint systems, prioritizing quality and aesthetics over traditional economy options.

Latin America Home Improvement Market

In the Latin America market, Brazil held a significant market share in 2025 promising growth from 2026 to 2035.

• The age profile of the residential housing stock in Brazil represents the primary demand driver across the home improvement value chain. Moreover, the launch of Reforma Casa Brasil, the Federal Government's new housing program aimed at improving urban residences, further drives the market growth.
• This initiative will allow Brazilian families to finance amounts starting at ~USD 1000 (R$ 5,000) for renovations, expansions and adaptations of housing throughout the country.

Home Improvement Market Share

• In 2025, the top five companies such as Floor & Decor Holdings Inc, Fortune Brands Innovations Inc, Masco Corporation, The Sherwin-Williams Company and Compagnie de Saint-Gobain S.A., collectively captured ~25% of the market share.
• Floor & Decor Holdings Inc has established a high-growth specialty hard-surface flooring retail model in the U.S, combining contractor-targeted warehouse stores with comprehensive online research, product configuration, and fulfillment capabilities. The company's SKU depth across ceramic and porcelain tile, engineered and solid hardwood, laminate, and luxury vinyl plank and tile, supplemented by professional installation network partnerships through its Pro Premier program.
• Fortune Brands Innovations Inc manages a portfolio of premium brands across water, outdoors, and security categories, including Moen (faucets, bath accessories, and connected water management products), House of Rohl (luxury plumbing fixtures serving the architectural specification channel), Therma-Tru (entry door systems distributed through specialty building products dealers), and Fiberon (composite decking and railing systems).
• Masco Corporation operates as a focused manufacturer of branded home improvement and building products, with a portfolio concentrated in plumbing fixtures and decorative architectural coatings two categories with structurally favorable repair-and-replace demand characteristics.

Home Improvement Market Companies

Major players operating in the home improvement industry include:

Global Players

• The Home Depot Inc
• Lowe's Companies Inc
• Compagnie de Saint-Gobain S.A.
• Masco Corporation
• The Sherwin-Williams Company
• Stanley Black & Decker Inc
• Mohawk Industries

Regional Players

• Floor & Decor Holdings, Inc.
• Kingfisher plc
• Groupe Adeo SA
• HORNBACH Holding AG & Co. KGaA
• PPG Industries Inc
• KGC Group
• Lindner Group
• Gebrüder Schneider

Emerging Players & Innovators

• Tostem
• Fortune Brands Innovations, Inc.
• James Hardie Industries plc
• Silvadec
• JAF Group
• Trex

PPG Industries Inc. is a global leader in paints, coatings, and specialty materials, serving architectural, industrial, protective, and marine end markets across more than 70 countries. Within the home improvement segment, PPG's Glidden, Olympic, and PPG Premium brands anchor the North American retail paint market across DIY and professional contractor channels, while Sigma Coatings and Histor serve equivalent roles in European architectural coatings markets. The company offers residential paints and coatings through its Comex brand portfolio.

Sherwin-Williams is the largest coatings manufacturer in North America and one of the largest globally, operating a uniquely integrated channel model that combines a proprietary ~5,000-store retail network with broad distribution through home improvement retail and professional painting contractors.

Home Improvement Industry News

• In May 2026, Fortune Brands Innovations, Inc. announced the initiation of a formal strategic review of its Fiberon composite decking business for portfolio exploration and expansion, in collaboration with the Board of Directors.
• In April 2026, Floor & Decor announced the opening of its warehouse store and design center in the Portland metro area, Oregon, and Mount Vernon, New York, in the U.S.
• In June 2025, Stanley Black & Decker’s DEWALT partnered with SkillsUSA to support America's Future Tradespeople. As part of the partnership, DEWALT donated USD 100,000 in tools to The SkillsUSA Championships, the largest longest-running gathering of America's future skilled workforce, taking place this week in Atlanta.
• In June 2025, Floor & Décor announced an official partnership with Habitat for Humanity International to support long-term stability for families through affordable and resilient housing. As part of the partnership, Floor & Decor stores nationwide will donate products (flooring, tile and installation material) to local Habitat for Humanity affiliates.            
• In January 2025, Kingfisher plc announced the launch of a home improvement e-commerce marketplace at Castorama Poland, a milestone in the rapid development of its marketplace offers. The launch follows the success and rapid growth of Kingfisher’s marketplaces at B&Q in the UK, Brico Dépôt in Spain and Portugal, Castorama in France, and its Koçtaş joint venture in Turkey.

The home improvement market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) and volume (Units) from 2022 to 2035, for the following segments:

Click here to Buy Section of this Report

Market, By Product Type

• Structural & building materials
• Fixtures, fittings & cabinetry
• Mechanical systems & equipment
• Lighting & electrical accessories
• Flooring & surface finishing materials
• Paints, coatings & wallcoverings
• Tools & hardware
• Outdoor & landscaping products
• Home décor & soft furnishings

Market, By Project Mode

• Do-It-Yourself (DIY)
• Professional

Market, By Technology

• Conventional
• Smart/Connected

Market, By Application

• Exterior
• Interior
• System upgrades
• Outdoor & landscaping
• Others

Market, By Property Type

• Single-family homes
• Multi-family residential 
• Modular homes
• Others

Market, By Distribution Channel

• Online 
• Offline

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

• North America
  • U.S
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia

• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA 
  • Saudi Arabia
  • UAE
  • South Africa