The home improvement industry is enjoying global growth. Here we condense the data from industry analysis by Brand Essence Research and Global Market Insights to present key statistics on the size of the home improvement market and how it is trending.
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Globally, in 2021, the home improvement market size was USD $798.1 billion.
It is estimated to show a CAGR (Compound Annual Growth Rate) of more than 4.3% from 2021 - 2027.
HOME IMPROVEMENT MARKET SIZE
WHAT'S THE SIZE OF THE HOME IMPROVEMENT MARKET?
Globally, the home improvement market size reached USD $798.1 billion in 2021.
KEY STATISTICS
- Globally, the home improvement market size was USD $798.1 billion in 2021.
- The market was USD $762.9 billion in 2020.
- The market saw a $35.2 billion year on year increase from 2020 - 2021, defying the COVID-19 crisis, fluctuating material costs, and worker shortages.
Online sales drive a significant share of home improvement growth, especially with individual homeowners. The ease and security of ordering online, convenient deliveries, and simplified applications encourage customers to try DIY projects that formerly belonged to professional service providers only.
WHAT IS THE U.S. MARKET SHARE?
In 2021, the U.S. home improvement market size was USD $537.9 billion. A 67% share of the global market.
Overall, the home improvement market in the U.S. has experienced steady growth between 2008 and 2021.
One notable exception was the market drop of USD $29.3 billion, from $294.5 to $265.2 billion, between 2008 and 2009 following the financial crisis of 2008.
The most significant leap in the U.S. home improvement industry occurred between 2019 and 2020 when the U.S. market expanded from USD $406.6 to $497.1 billion, an impressive growth of USD $90.5 billion. Leading studies attribute this unprecedented surge to the COVID-19 pandemic, which prompted Americans to modify their living spaces to accommodate remote work and learning.
That period started a shift towards DIY renovations, while professional services suffered a temporary setback due to social distancing and travel restrictions. A boom of e-commerce channels, together with the wish to save money and gain flexibility, prompted many American homeowners to try DIY home improvements.
HOME IMPROVEMENT MARKET TREND
WHAT TREND IS EXPECTED FOR THE HOME IMPROVEMENT MARKET?
From 2021 to 2027 the global home improvement market is estimated to show a CAGR (Compound Annual Growth Rate) of over 4.3%. The market size is estimated to reach USD $1009.9 billion by 2027.
KEY STATISTICS
- The global home improvement market is estimated to show a CAGR of over 4.3% from 2021 - 2027.
- The market size is estimated to be USD $1009.9 billion by 2027.
Forecasts for 2027 by analysts at Global Market Insights predict that:
- In 2027, the North American home improvement market will still occupy over half of the global market, but other countries will claim a larger market share compared to today.
- Out of the projected market size of roughly USD $1,010 billion in 2027, the DIFM (Do It For Me) segment will occupy USD $620.7 billion, or over 61%. The DIY home improvement industry will continue enjoying powerful growth.
- The European home improvement market should surpass USD $315.5 billion in 2027, reaching just under one-third of the global market. Most of the European market growth will be in Tier 1 countries, such as Germany, France, and the U.K., with an emphasis on green building, safety, and disaster repair.
- Industry experts project that exterior renovations, a rapidly growing market segment, will account for roughly 18.6% of the total home improvement market in 2027.
Exterior renovations include door and window replacements, exterior painting, garden decking, and other details that accommodate the consumer trend of investing in outdoor spaces. Upgrades, such as exterior wall cladding, will encourage this segment’s growth.
A major industry growth driver is the rise in housing prices across the world, including North America, Europe, Asia Pacific, the Middle East, and Africa. Government financing options and energy incentives make up another significant growth factor. Additionally, many baby boomers are investing in improving outdated infrastructure.
The two main industry drawbacks are supply chain difficulties and limited skilled labour, which may lead to demand outstripping supply.
CONCLUSION
The home improvement market is thriving, and leading industry experts project that by 2027, this major global market will reach nearly USD $1,010 billion - a growth of over $211.8 billion from 2021.
Today, the U.S. occupies about two-thirds of the global home improvement market. By 2027, the North American market share should be little more than half, while the European home improvement industry will likely undergo rapid growth due to an emphasis on smart infrastructure and energy efficiency.
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