Global Hardware & Home Improvement Retailers market size 2025 was XX Million. Hardware & Home Improvement Retailers Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

This ranking depicts the leading hardware and home improvement retailers in the United States in 2024, based on retail sales. In 2024, The Home Depot generated approximately ****** billion U.S. dollars in retail sales in the United States.

Home improvement stores form a mature industry dominated by two major companies, Home Depot and Lowe's. Both companies share similar product lines, which fuels high levels of price competition. Home improvement stores serve various markets, including do-it-for-me (DIFM), do-it-yourself (DIY) and professional customers. The most prominent influence on the performance of stores is activity in the residential market. Starting in 2021, spikes in inflation have cut consumers' spending power, while rising interest rates have constrained residential construction spending. While inflation has been tempered, the recent tariff announcements by the Trump administration remain a threat to product prices. Revenue for home improvement stores is expected to swell at a CAGR of 1.7% to $292.8 billion through the end of 2025, including growth of 1.9% in 2025 alone. The residential market boomed in 2020 as consumers stayed inside, resulting in more consumers with time to spend looking at new homes. Sales of home appliances, lumber, tools, hardware and lawn equipment were boosted. However, mounting inflationary pressure in 2022 led the Federal Reserve to raise interest rates. Since home improvement stores are tied to residential sector growth, rising interest rates cut housing sales that year, leading to faltering revenue. Since the pandemic, exploding e-commerce sales have been a boon for the industry. Home improvement stores will continue to improve their online platforms to strengthen sales in the coming years. Growing economic uncertainty has lifted sales of DIY products while limiting profit growth. Moving forward, interest rates are expected to drop, benefiting home improvement stores. Tariffs could result in higher interest rates, potentially upending the industry. Still, consumer spending power will remain relatively low, suppressing residential activity. Although residential activity is expected to slow, rising disposable income will boost spending on appliances and gardening equipment. There will be a trend of consumers opting for smaller appliances and upgrades rather than making significant investments in new construction or renovations. Home improvement store revenue is expected to climb at a CAGR of 2.1% to $325.3 billion through the end of 2030. The growing efficiency of online operations will cause profit to swell.

Hardware Home Improvement Retailers Market Outlook 2032

The global hardware home improvement retailers market size was USD XX Billion in 2023 and is projected to reach USD XX Billion by 2032, expanding at a CAGR of XX% during 2024–2032. The market growth is attributed to the rising interest in outdoor living spaces across the globe.



Increasing interest in outdoor living spaces is a significant driver for the hardware home improvement retailer’s market. The desire among homeowners to expand their living spaces beyond their home interiors has led to a significant increase in the demand for outdoor improvement products such as patio furniture, grills, fire pits, and outdoor lighting. This trend is further fueled by the desire to have aesthetically pleasing and functional outdoor spaces for activities such as entertaining guests, dining, or simply relaxing. Consequently, hardware home improvement retailers that offer a wide range of outdoor improvement products are experiencing increased sales, thereby driving the market.

Impact of Artificial Intelligence (AI) in Hardware Home Improvement Retailers Market

Artificial Intelligence has a significant impact on hardware home improvement retailers market. AI technology enables retailers to streamline their operations, enhance customer experience, and make data-driven decisions. AI-powered inventory management systems allow retailers to accurately track their stock levels and predict future demand, reducing the risk of overstocking or understocking. AI personalize the shopping experience by analyzing customer data and providing product recommendations based on their preferences and purchase history.



AI chatbots provide instant customer service, answering queries and providing information round the clock. In terms of marketing, AI tools analyze customer behavior and market trends, enabling retailers to target their marketing efforts effectively and efficiently. The integration of AI in the hardware home improvement retailers market improves operational efficiency and enhances customer satisfaction and drives the market.

Hardware Home Improvement Retailers Market Dynamics

Hardware and home improvement stores’ revenue is forecast to rise at a compound annual rate of 1.4% over the five years through 2024 to reach €155.8 billion. Private spending on home renovation and maintenance, construction activity, environmental awareness and the number of households each play their part in determining sales. The EU and the UK enjoyed a housing market boom prior to 2023, when soaring mortgage rates deterred many from buying a new house. While demand for outfitting new houses is down, more Europeans are turning to repair, maintenance and renovation work on their existing properties, helping to raise sales of hardware and home improvement products. This trend accelerated during the COVID-19 pandemic, as people confined to their homes looked to refresh their surroundings and found themselves with more time to dedicate to DIY projects. Hardware and home improvement stores were deemed by many governments as essential businesses, allowing them to remain open during the lockdowns. In 2024, revenue growth is expected to be constrained by the cost-of-living crisis. Shoppers are increasingly price-sensitive and many are thinking twice before spending in response to intense inflationary pressures, cutting sales for many hardware and home improvement stores. Price inflation is expected to outweigh falling sales volumes, leading to revenue growth of 1% in 2024. Over the five years through 2029, hardware and home improvement stores’ revenue is slated to climb at a compound annual rate of 1.5% to reach €168 billion. Ever-growing levels of environmental awareness among Europeans will drive strong demand for sustainably sourced and energy-efficient products, like reclaimed wood and lithium-ion battery-powered hand tools. Competition from online-only retailers will continue to heat up, forcing hardware and home improvement stores to expand their in-store offerings to attract customers – augmented reality stations where shoppers can visualise their new products in their homes are one way retailers can try to do this.

Among the key retailers competing within the home improvement and do it yourself (DIY) industry in the United States, Menards was the most satisfying home improvement retail store for customers. The company scored *** out of 1,000 customer satisfaction points in 2023. Home improvement retail in the United States The U.S. home improvement industry has witnessed steady sales growth over the past years, and this trend is expected to continue in the coming years. The value of improvements and repair expenditure by U.S. homeowners also highlights the fact that people are putting substantial sums of money into home repair, home improvement, and remodeling projects. Major players Apart from Ace Hardware, The Home Depot, Lowe’s, and Menards are other big names in home improvement retail market in the United States. The Home Depot and Lowe’s dominate the U.S. market, with retail sales dwarfing those of Ace Hardware and Menards. On the other hand, Ace Hardware was the market leader in terms of number of hardware and home improvement retail stores in operation in the country.

Hardware and home improvement stores' sales are primarily sensitive to the property market and home renovation trends. The UK enjoyed a housing market boom for over a decade until 2023-24, with homeowners turning to retailers to source materials for redecorating or performing construction work on their new properties. House price hikes and a stamp duty surcharge pained some consumers out of the market, prompting them to undergo renovation activity at their current property, lifting sales. Homeowners are targeting cost reductions through better insulation and smart technology as energy prices rise. Retailers providing these solutions are benefitting, seeing increased revenue due to the demand for quality, though smaller shops lacking these products aren't faring as well. Competition has been fierce in recent years, with price wars challenging profit. Large chains use low prices to attract customers, squeezing independent retailers. Securing a stable, long-term material supply has become crucial for mitigating cost increases. Over the five years through 2024-25, revenue is forecast to contract at a compound annual rate of 1% to £14.5 billion. As e-commerce continues to bloom in the coming years, retailers need to adapt by focusing on online shopping trends and offering integrated services like click-and-collect. They should consider scaling down large stores in favour of conveniently placed outlets. However, rising material costs are a concern, squeezing profit in the construction supply chain. While broader construction challenges exist, the DIY market shows resilience as homeowners opt for maintenance and value-boosting projects. Retailers should consider diversifying their eco-friendly and smart product offerings and back them with supportive services, drawing in renovation-focused customers. Revenue is forecast to swell at a compound annual rate of 3.6% to reach £17.3 billion over the five years through 2029-30.

The global hardware and home improvement retail market is experiencing robust growth, driven by a confluence of factors. Rising disposable incomes, particularly in emerging economies, coupled with increasing urbanization and a surge in homeownership are fueling demand for home improvement products and services. The market is further bolstered by the ongoing trend of home renovation and remodeling, spurred by evolving lifestyles and a desire for enhanced living spaces. E-commerce's rapid expansion has fundamentally reshaped the retail landscape, with online giants like Amazon and Alibaba significantly impacting market dynamics. While established players like Home Depot and Lowe's maintain strong market positions, they face increasing competition from smaller, specialized retailers and online marketplaces. The market is segmented by product type, including door hardware, building materials, kitchen and toilet products, and others, each exhibiting varying growth rates. North America and Europe currently hold significant market shares, but Asia-Pacific is emerging as a key growth region, driven by rapid economic development and rising consumer spending in countries like China and India. However, fluctuating raw material prices, economic downturns, and supply chain disruptions pose potential challenges to market growth. The long-term outlook remains positive, anticipating sustained expansion fueled by consistent growth in both developed and developing economies. The competitive landscape is highly fragmented, featuring a mix of large multinational corporations and smaller regional players. The dominance of large chains like Home Depot and Lowe's is challenged by the growing presence of online retailers, which offer convenience and a wider product selection. Differentiation strategies are crucial for success, with retailers focusing on specialized product offerings, superior customer service, and omnichannel strategies to cater to evolving consumer preferences. Industry consolidation is also likely, as larger players seek to expand their market share through mergers and acquisitions. Sustainable and eco-friendly products are gaining traction, reflecting growing consumer awareness of environmental issues. This trend necessitates retailers to adapt their product portfolios and sourcing strategies to meet the evolving demand for sustainable building materials and home improvement products. Technological advancements, such as virtual reality and augmented reality tools, are being increasingly adopted by retailers to enhance the customer experience and drive sales.

Explore Market Research Intellect's Hardware Home Improvement Retailers Market Report, valued at USD 500 billion in 2024, with a projected market growth to USD 750 billion by 2033, and a CAGR of 5.5% from 2026 to 2033.

The global hardware and home improvement retail market is experiencing robust growth, driven by increasing homeownership rates, rising disposable incomes in developing economies, and a surge in home renovation and improvement projects. The market, valued at approximately $850 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 5.5% from 2025 to 2033, reaching an estimated value of $1.3 trillion by 2033. This growth is fueled by several key trends, including the rise of e-commerce, the increasing popularity of DIY projects, and a growing preference for sustainable and eco-friendly building materials. Major players like Home Depot, Lowe's, and Ace Hardware are leveraging omnichannel strategies to cater to the evolving consumer preferences, investing heavily in both online and offline retail experiences. However, the market also faces challenges, including supply chain disruptions, fluctuations in raw material prices, and increasing competition from smaller, specialized retailers. The segmentation of the market by product type (door hardware, building materials, kitchen and toilet products, etc.) and marketing channels (online and offline) reflects the diverse nature of this dynamic industry. Regional variations exist, with North America and Europe currently dominating the market share, but strong growth is anticipated in Asia Pacific regions driven by urbanization and economic development. The success of hardware and home improvement retailers hinges on adapting to changing consumer behavior and technological advancements. Companies are increasingly incorporating data analytics to personalize marketing efforts, improve inventory management, and optimize pricing strategies. Focus on customer experience, including personalized service, convenient delivery options, and seamless omnichannel integration, is paramount. Furthermore, the growing awareness of environmental sustainability is pushing the industry towards more eco-friendly products and practices, creating new opportunities for retailers who embrace sustainability initiatives. This will require continuous investment in logistics, technology, and sustainable sourcing practices. The competitive landscape is fiercely contested, requiring retailers to innovate, differentiate their offerings, and strategically adapt to stay ahead in this dynamic market.

The market size of the Hardware & Home Improvement Retailers Market is categorized based on Retail Type (DIY Stores, Hardware Stores, Home Centers, Online Retail, Warehouse Clubs) and Product Category (Tools, Building Materials, Paints & Coatings, Plumbing Supplies, Electrical Supplies) and Customer Type (Professional Contractors, DIY Enthusiasts, Commercial Customers, Institutional Customers, Residential Customers) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The global hardware and home improvement retail market is experiencing robust growth, driven by increasing disposable incomes, rising homeownership rates, and a surge in home renovation and improvement projects. The market, estimated at $500 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 5% from 2025 to 2033, reaching an estimated value of approximately $700 billion by 2033. This growth is fueled by several key trends, including the rise of e-commerce, the increasing popularity of DIY projects, and a growing emphasis on sustainable and eco-friendly building materials. Major players like Home Depot, Lowe's, and Ace Hardware are leveraging omnichannel strategies, enhancing their online presence, and expanding their product offerings to cater to evolving consumer preferences. However, challenges remain, including fluctuations in raw material prices, supply chain disruptions, and intense competition within the sector. The market is segmented by product type (door hardware, building materials, kitchen & toilet products, and others), providing opportunities for specialized retailers and manufacturers. Geographic growth varies, with North America and Europe currently dominating market share, but significant growth potential exists in developing economies within Asia-Pacific and South America driven by urbanization and rising middle classes. The competitive landscape is fiercely competitive, featuring both large multinational corporations and smaller regional players. Successful strategies will involve a balance of physical store presence and robust online platforms, strong supply chain management to mitigate disruptions, and a focus on customer experience and tailored product offerings catering to diverse consumer needs. The market’s growth is further influenced by governmental regulations on building codes and sustainable practices, prompting innovation in eco-friendly materials and energy-efficient products. This trend will likely further stimulate growth as consumers become increasingly environmentally conscious. Future growth projections will depend on the global economic climate, technological advancements in the sector and consumer spending habits.

Home Depot was the leading home improvement retailer in Canada in 2023, with sales amounting to around **** billion Canadian dollars. Home Hardware and Rona stores ranked in second and third places, with sales of around *** and *** billion Canadian dollars respectively. Home Depot origins Home Depot, the American home improvement retailer, was founded in 1978. The company’s original aim was to build retail superstores larger than any of their competitors and the first two stores were opened in Atlanta, Georgia in the next year. In 1981, the retailer branched out of Georgia and began to open more stores in different states and later entered neighboring markets. By 2023, Home Depot operated over ***** big-box home improvement stores across the whole of North America and Mexico. Fierce competition in the global home improvement sector In terms of sales, Home Depot is by far the leading home improvement retail company worldwide. Lowes, however, remains competitive. Home Depot only had about 400 more stores than Lowes worldwide in 2023, and on average that year, consumers actually spent more money at Lowes.

Over the past five years, the DIY and home improvement sector has recorded an average annual decline in turnover of 2.4 %. This is due to the fact that the coronavirus pandemic initially led to a temporary increase in sales in the reference year 2020, as consumers invested more in home improvement projects during the lockdowns. However, a clear downward trend has been observed since 2020, which has been exacerbated by increased staff costs and high investments in digitalisation and cross-channel strategies. The major DIY chains are increasingly relying on apps and online platforms to meet the growing competitive challenges and also attract price-sensitive customers to DIY stores.Slight sales growth of 0.1% to €31.6 billion is expected for the current year, which could be interpreted as a potential trend reversal if important external factors signal stability. The large DIY chains continue to dominate the sector, particularly due to their price leadership. Nevertheless, small and regional chains score highly in customer satisfaction surveys thanks to their excellent customer service. One notable event is the switch of four entrepreneurs from Hagebaumarkt to OBI, which can be attributed to OBI's better digital infrastructure and stronger DIY focus. This could have a signalling effect for future developments in the sector.In the next five years, annual sales growth of 3.4% is expected, which could increase the industry's turnover to 37.4 billion euros in 2030. This growth is heavily dependent on developments in residential construction, net incomes and the consumer climate. DIY stores have the opportunity to establish themselves as holistic providers of smart home solutions, potentially creating new revenue streams. Investments in cross-channel strategies will increase and lead to new shop concepts by linking apps, online stores and bricks-and-mortar retail. The Austrian provider Let's Do it shows an example of how this can be achieved with its shop concept, which has been rolled out and further developed since 2019. Such developments could be crucial in order to meet changing customer needs and competitive pressure in the digital age. IBISWorld expects the profit margins of German DIY stores to be slightly below the level of previous years in the coming years due to the necessary investments in modern shop concepts and cross-channel solutions.

The United States hardware stores retail market is a robust and expanding sector, projected to reach a value of $56.12 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 4.89% from 2019 to 2033. This growth is fueled by several key factors. The increasing focus on home improvement and DIY projects, driven by a combination of rising homeownership rates and a preference for personalized spaces, significantly contributes to market expansion. Furthermore, the growth of e-commerce and omnichannel strategies employed by major players like Home Depot and Lowe's are enhancing accessibility and convenience for consumers, boosting sales. Economic factors such as steady housing market growth and increasing disposable incomes further support the market's positive trajectory. However, challenges exist, including potential fluctuations in lumber and other raw material prices, supply chain disruptions, and competition from online marketplaces offering a wider range of products. The market segmentation reveals a diverse landscape, with major players like Home Depot, Lowe's, Menards, and Ace Hardware dominating the scene. These large retailers benefit from economies of scale and extensive supply chain networks. However, smaller, specialized hardware stores continue to thrive by catering to niche markets and offering personalized customer service. The geographical distribution is likely skewed towards regions with higher population densities and robust housing markets. Future growth will likely be driven by continued innovation in product offerings, the integration of technology (such as augmented reality for product visualization), and sustainable practices becoming increasingly important to consumers. The forecast period of 2025-2033 promises continued expansion, though potential economic downturns or unforeseen global events could influence the trajectory of growth. Key drivers for this market are: Rise in Home Improvement and Renovation Projects. Potential restraints include: Rise in Home Improvement and Renovation Projects. Notable trends are: Increased Focus on Home Improvement and Renovation Projects.

The DIY home improvement retailing market is experiencing robust growth, driven by several key factors. Increasing disposable incomes, particularly in developing economies, are fueling consumer spending on home renovation and improvement projects. The rise of the "do-it-yourself" culture, empowered by readily available online tutorials and resources, encourages more individuals to undertake home projects themselves rather than hiring professionals. This trend is further amplified by a growing awareness of sustainable living and the desire to personalize living spaces, leading to increased demand for DIY materials and tools. Furthermore, technological advancements, such as smart home technology integration and innovative building materials, are creating new opportunities within the market. While supply chain disruptions and inflationary pressures present challenges, the long-term outlook remains positive, with a projected steady growth trajectory fueled by ongoing consumer demand and market innovation. However, the market also faces significant restraints. Fluctuations in raw material prices, particularly lumber and other building materials, can impact profitability and consumer spending. Competition among established players and the emergence of online retailers are intensifying the market dynamics. Furthermore, regulatory changes and environmental concerns regarding sustainable sourcing and waste management pose further challenges. Despite these obstacles, the market segmentation by application (e.g., kitchen remodeling, bathroom renovation, landscaping) and product type (e.g., paint, hardware, power tools) allows for targeted market penetration and strategic growth opportunities for businesses. The geographic distribution of market share is expected to remain largely concentrated in developed regions such as North America and Europe initially, but growth in emerging markets offers significant future potential. A strategic approach involving targeted marketing, efficient supply chain management, and a focus on sustainability will be crucial for success in this dynamic and competitive market.

Home Improvement Retail Market Outlook

The global market size of the Home Improvement Retail sector was valued at approximately $800 billion in 2023 and is forecasted to reach around $1.2 trillion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.5%. This robust growth is driven by several factors, including rising disposable incomes, increasing urbanization, and a growing trend towards DIY (Do-It-Yourself) home improvement activities.

The growth in the Home Improvement Retail market can be largely attributed to the rising disposable incomes and increased consumer spending on home renovations and improvements. As economic conditions improve globally, consumers have more financial resources to invest in their homes, making them more likely to purchase products from this market. Additionally, the growing trend of working from home has led many to consider revamping their living spaces to create a more conducive environment for work and leisure, further driving the market’s expansion.

Another significant growth factor is the surge in urbanization. With more people moving to urban areas, there is a heightened demand for housing and consequently for home improvement products. Urban dwellers are often more inclined to invest in modern and efficient home improvement solutions due to limited space and the high cost of living. This has led to an increased demand for innovative and space-saving home improvement products such as modular kitchens, multi-functional furniture, and energy-efficient appliances.

The rising popularity of DIY activities is also playing a crucial role in boosting the Home Improvement Retail market. With the plethora of online tutorials and resources available, more consumers are taking on home improvement projects themselves rather than hiring professionals. This trend is particularly strong among younger consumers who view DIY projects as a way to personalize their living spaces and save on labor costs. Retailers are responding to this trend by offering a wide range of DIY-friendly products and tools, as well as instructional content to aid consumers in their projects.

The regional outlook for the Home Improvement Retail market reveals that North America and Europe are the dominant regions, with significant growth also expected in the Asia Pacific region. North America holds a substantial share of the market due to the high rate of homeownership and the prevalence of DIY culture. Europe follows closely, driven by the region's aesthetic value on home decor and renovations. Meanwhile, the Asia Pacific region is anticipated to experience the highest growth rate, driven by increasing urbanization, rising disposable incomes, and a growing middle class. These factors create a fertile ground for the market to flourish in these regions.

Product Type Analysis

In the Home Improvement Retail market, products can be broadly categorized into several types: Building Materials, Home Decor, Tools and Hardware, Outdoor Living, and Others. The Building Materials segment holds a substantial share of the market due to the continuous demand for construction materials amidst growing urbanization and housing projects. This segment is crucial as it includes essential items like cement, bricks, and lumber, which are fundamental to any home improvement or construction project. The growing trend of sustainable and eco-friendly construction materials is further driving growth in this segment, as consumers become more environmentally conscious.

The Home Decor segment is gaining traction due to the rising interest in interior design and the personalization of living spaces. Consumers are increasingly investing in decorative items such as furniture, lighting, and accessories to enhance the aesthetic appeal of their homes. This segment is also influenced by trends in fashion and design, which are seeing a rapid evolution. The advent of digital platforms has made it easier for consumers to stay updated on the latest trends, thereby driving the demand for contemporary and stylish home decor products.

Tools and Hardware is another significant segment within the Home Improvement Retail market. This category includes essential tools, equipment, and hardware necessary for various home improvement tasks. The increase in DIY activities has led to a surge in demand for high-quality, user-friendly tools that cater to both novice and experienced DIY enthusiasts. Retailers are increasingly focusing on offering a wide range of tools that are easy to use and come with detailed instructions, thus catering to the growing DIY market.<

Over the last two observations, the revenue is forecast to significantly increase in all segments. Particularly striking is the exceptionally strong increase of the segment Hardware & Building Materials towards the end of the forecast period. The value amounting to 0.2 billion U.S. dollars stands out significantly from the average changes, which are estimated at 0.065 billion U.S. dollars. Find other insights concerning similar markets and segments, such as a comparison of revenue in Mexico and a comparison of revenue in South America. The Statista Market Insights cover a broad range of additional markets.

In fiscal year 2023, the sales value of do-it-yourself (DIY) retail stores in Japan amounted to just below ************* Japanese yen. In the last decade, DIY retailers generated stable sales of around ************* yen, with a peak recorded in 2020 as self-made items grew in popularity during the coronavirus pandemic. DIY in the Japanese retail market DIY retailers are commonly known as “home centers” in Japan, which are comparable to hardware stores overseas. Unlike traditional small-sized hardware stores that are commonly family-owned businesses, home improvement centers boast a larger product variety, serving as a one-stop solution for professional handymen and laypersons. Stores stock primarily non-food products, out of which tools and materials used in DIY-related crafts are the main sales segment. Other product segments for home improvement projects include household utensils, gardening products, and electric appliances. DIY stores are categorized as specialty retailers in Japan and represent only a minor segment within the domestic retail sector. Nonetheless, they cater to other consumer demands outside of DIY activities as well, particularly as a major sales channel in the pet market. Calming the heated competition The first large-scale home improvement centers in Japan were opened in the post-war era and within the last decades, the size of the store network grew steadily as it reached a record high of close to ************* stores in 2022. While many businesses limited their operation to a small number of stores within prefectural or regional borders, the leading DIY stores like Komeri, DCM Holdings, and Kohnan Shoji eyed a nationwide strategy. Through the acquisition of smaller competitors and new openings particularly around the borders of rural areas, the market leaders further varied their brand portfolio by specializing in certain product segments and varying store sizes to cater to different demands.