Home Improvement Market Size

Home Improvement Market Size

Home Improvement Market size surpassed USD 762.9 billion in 2020 and is estimated to exhibit a CAGR of over 4.3% from 2021 to 2027. Shifting preferences of homeowners for energy-efficient and luxurious living spaces are significantly contributing to the industry expansion. Rapid urbanization along with government initiatives to provide incentives & tax credits on green building construction has stimulated the market growth. Moreover, the prominence of e-commerce and availability of technologically advanced systems upgrades will propel home remodeling activities globally.

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The increasing adoption of smart kitchens in home renovation is due to escalating demand for easy add-ons such as self-regulating dispensers, motion-sensing water faucets, and one-touch feature of chillers. Additionally, effective storage cabinetry, new styles & preferences in appliances, hardwood flooring, backsplash trends, and an efficient connection with the outdoors will further provide a positive scope to the overall industry. Factors including rising mortgage & interest rates and surging new home prices are driving millennial spending in home improvement activities.

Integrated home control systems are one of the fastest adopted technology by homeowners. The system boosts convenience, accessibility & safety, and allows users to access their homes completely through a single touch screen panel system. The integration of IoT has facilitated interconnection of lighting, audio, video, cameras, HVAC, and door access from conveniently located panels inside the premises. In addition, with connectivity to security systems, it is possible to monitor an entire property using smartphones and tablet apps from any remote location. Hence, these factors will propel the home improvement market .

Online sales have emerged as the fastest-growing channel for home improvement components, particularly for individuals, small-scale companies, and service providers. As per a study conducted by ABN AMRO on online transactions, the utilization of online channels to sell remodeling components & materials has nearly doubled over the past two years. It utilizes web, mobile phones, and applications to place orders and get products delivered on-site. The facility enables online customer support in accessing product information, purchase decisions, price comparison, and real-time tracking.

The fluctuating cost of raw materials and limited availability of skilled workforce will hamper the market growth by 2027. However, the rising COVID-19 infections have adversely affected the industry landscape. An extensive demand-supply gap coupled with a decline in consumption is also hampering the industry. Furthermore, the imposition of national lockdown has led to delayed remodeling projects, scarcity of materials & subcontractors, barriers in the supply chain network, etc.