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Home Renovation Market Size 2025-2029

The home renovation market size is forecast to increase by USD 83 billion at a CAGR of 4.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the global trend of rapid urbanization and the increasing focus on enhancing living spaces through technology. One of the most notable trends shaping this market is the adoption of Artificial Intelligence (AI) in home improvement projects. This technological advancement offers numerous benefits, including energy efficiency, personalized living experiences, and improved home security. However, the market faces a major challenge In the form of a shortage of skilled labor, which can lead to project delays and increased costs for homeowners. To capitalize on this market opportunity, companies must focus on innovative solutions that address the labor shortage, such as pre-fabricated renovation kits or partnerships with local training programs. This market continues to experience steady growth, driven by the desire for modern living standards, improved environmental performance, and the integration of smart home technologies.
Additionally, investing in AI-powered tools and services can provide a competitive edge, enabling companies to offer more efficient and personalized renovation services to meet the evolving demands of consumers. Overall, the market presents a promising landscape for growth, with opportunities for companies that can effectively navigate the challenges and leverage technological advancements to meet the needs of the urbanizing population.

What will be the Size of the Home Renovation Market during the forecast period?

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The residential remodeling market encompasses various activities repairing broken structures, and weather sealing. Sustainable trends, such as the use of green remodeling products and sustainable building materials, are gaining traction as consumers become increasingly environmentally aware and conscious of their carbon footprints. New trends In the market include the adoption of 3D rendering software for virtual home design, structural glazing for enhanced temperature control, and the integration of solar panels for energy efficiency.
Economic slowdowns and reduced disposable income have led to project budgets being carefully considered, resulting in increased focus on labor costs and supply chain disruptions. Old buildings are being repurposed and renovated, with a focus on preserving their historical character while incorporating modern amenities. New flooring, lighting systems, insulating glass, and electrical & insulation upgrades are popular choices for homeowners seeking to enhance their living spaces. Government incentives and homeowner budgets are also driving the market, with a particular emphasis on energy-efficient windows and green buildings. Despite these trends, the market faces challenges, including labor shortages and rising material costs, which can impact construction expenditure.
The novel coronavirus pandemic has also disrupted the supply chain, leading to delays and increased costs for many projects. Overall, the residential remodeling market is expected to continue growing, driven by a combination of consumer demand and government incentives, as well as advancements in technology and sustainable building materials.

How is this Home Renovation Industry segmented?

The home renovation industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Professional renovation
  Do-It-Yourself (DIY) renovation


Application

  Kitchen renovation
  Bathroom renovation
  Exterior renovation
  Bedroom renovation
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    India
    Japan


  Middle East and Africa



  South America

By Type Insights

The professional renovation segment is estimated to witness significant growth during the forecast period.

Professional home renovation services offer homeowners customized solutions for complex projects, ensuring high-quality results that meet specific aesthetic and functional requirements. These services encompass a range of tasks, from structural changes to intricate design solutions, executed with precision and care. Key features include specialized skills, custom design solutions, time efficiency, and regulatory compliance. Professionals manage tasks such as HVAC upgrades, electrical rewiring, plumbing system improvements, and energy efficiency upgrades using sustainable materials and modern home design trends. Safety enhancements and smart home technology installations are also common, along with home renovation inspiration and remodeling p

The residential remodeling industry has expanded solidly over the past five years. Notably impacted by increased investments in housing by private equity, remodelers have experienced a surge in demand, particularly from property managers and developers looking to transform low-cost, investor-owned homes into appealing rental properties. However, remodelers have faced headwinds as inflation and interest rate hikes tempered enthusiasm for larger projects. Despite these challenges, the steady rise in home prices and an appetite for improving existing residences have helped sustain the momentum for remodelers. Revenue has been increasing at a CAGR of 2.9% over the past five years to total an estimated $164.5 billion in 2025, including an estimated increase of 0.2% in 2025. Fewer housing starts, because of high interest rates, have increased the demand for renovation activity as buyers looked to enhance existing properties rather than invest in new ones. However, remodelers have had to contend with rising costs of building materials and escalating wage costs driven by labor shortages and an aging workforce. Competition within the industry has intensified, with many remodelers prioritizing growth in clientele even at the cost of reduced profit. Legislation, like the Inflation Reduction Act, provided a boost, driving demand for energy-efficient renovations. Also, despite a considerable increase in DIY projects in 2020 and 2021, remodelers regained considerable market share in 2023. Residential remodelers will continue to enjoy growth. Expected interest rate cuts will likely spur greater investment in larger renovation projects as homeowners tap into second mortgages to finance expansive remodels. With home prices still on an upward trajectory, consumers are expected to prioritize renovations to add value to their properties. Also, ongoing climate challenges, including increased wildfires and hurricanes, will present additional opportunities for remodelers to engage in repair and restoration projects. As innovative technologies like smart home systems and 3D printing become more prevalent, remodelers stand to benefit by meeting the growing demand for sustainable and customized renovations. However, they will continue to be forced to navigate challenges such as rising costs and tariffs in a competitive landscape that demands adaptability and innovation. Also, the expiration of tax credits may hinder growth. Industry revenue is forecast to increase at a CAGR of 1.8% to total an estimated $180.3 billion through the end of 2030.

The Home Remodeling Market report segments the industry into Project Type (DIY(Do it Yourself), Professional), By Distribution Channel (Online, Offline), By Application (Windows and Doors, Kitchen and Bathroom, Floor and Roof, Walls, Other Applications), and By Geography (North America, Europe, Asia Pacific, Middle East and Africa, South America). Five years of historical data and market forecasts are included.

Global home improvement market size was valued USD 340.81 billion in 2024 and is expected to rise to USD 490.13 billion by 2034 at a CAGR of 4%.

DIY Home Improvement Market size was valued at USD 857.39 Billion in 2024 and is projected to reach USD 1192.78 Billion by 2031, growing at a CAGR of 4.21% from 2024 to 2031.Global DIY Home Improvement Market DriversThe market drivers for the Diy Home Improvement Market can be influenced by various factors. These may include:Growing Homeownership Rates: The demand for do-it-yourself home repair projects is being driven by rising homeownership rates, especially among younger generations and millennials. To add personality to their homes and raise the value of their properties, homeowners are more likely to do do-it-yourself modifications, repairs, and renovations.Desire for Cost Savings: Compared to engaging professional contractors, DIY home remodeling projects can save costs. DIYers frequently decide to forego hiring labor services in favor of saving money on supplies by buying and installing everything themselves.Availability of Online Tutorials and Resources: With the growth of DIY tutorials, instructional videos, and online resources, customers have easy access to important advice and ideas for home renovation tasks. Social media channels, DIY blogs, and YouTube give homeowners the freedom to take on projects on their own and learn new skills.Convenience and Flexibility: Do-it-yourself home remodeling gives homeowners the freedom to work when and how they want, making it convenient and flexible. For those who are busy, do-it-yourself tasks are a desirable alternative because they may be completed on the weekends or in the evenings without depending on contractors' availability.Empowerment and Creative Expression: Homeowners can take pleasure in their achievements, personalize their living environments, and express their creativity through do-it-yourself home remodeling projects. Doing work around the house gives one a sense of accomplishment and empowerment and strengthens their bond with their surroundings and house.Sustainability & Environmental Awareness: The need for eco-friendly do-it-yourself home renovation projects is being driven by growing concerns about environmental sustainability. Reusing, upcycling, and sustainable materials are popular choices among do-it-yourselfers who want to cut down on waste and their projects' environmental effect.Renovation at Home TV Series and Media Influence: Popular home improvement TV series, periodicals, and internet resources provide homeowners with innovative concepts and styles that pique their interest in do-it-yourself projects. Media coverage of interior design and renovation shapes consumer tastes and promotes do-it-yourself projects.Trend Towards Home Comfort and Wellness: The COVID-19 pandemic has sped up the trend toward home comfort and wellness, encouraging homeowners to make do-it-yourself renovations to improve their living spaces. Home organization, comfort enhancements, and indoor/outdoor living areas are DIY projects that fit with changing lifestyle requirements.DIY-friendly Product Innovation: Pre-assembled kits, simple-to-install fixtures, and streamlined instructions are just a few examples of the user-friendly, DIY-friendly products that manufacturers and retailers are increasingly offering to appeal to the do-it-yourself market. For customers with different skill levels, these goods increase the accessibility and attainable nature of DIY projects.

The worldwide home improvement market was valued at *** billion U.S. dollars in 2020. With a compound annual growth rate (CAGR) of more than **** percent, the home improvement market value was expected to surpass the ******** dollar mark by 2027.

The UK home improvement market size reached USD 14.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 21.6 Billion by 2033, exhibiting a growth rate (CAGR) of 4.3% during 2025-2033. The market is propelled by the rising demand for energy-efficient homes, increased focus on home aesthetics and interior design, growing adoption of smart home technology, and a rise in DIY projects and home renovation during the pandemic.

Check Market Research Intellect's Home Remodeling Market Report, pegged at USD 450 billion in 2024 and projected to reach USD 650 billion by 2033, advancing with a CAGR of 5.5% (2026-2033).Explore factors such as rising applications, technological shifts, and industry leaders.

In 2022, direct sales made up nearly ** percent of China's home improvement market. In comparison, retail sales had a market share of merely ** percent that year.

The DIY Home Improvement Market Segments by Product Type (Building Materials, Paints and Coatings, Tools and Equipment, and More), by Distribution Channel (Home-Improvement / DIY Stores, Online Pure-Play Retail, and More), by Project Type (Interior Remodel, Exterior / Curb Appeal, and More) and Geography (North America, Europe, Asia-Pacific, and More). The Market Forecasts are Provided in Terms of Value (USD).

Booming home renovation market analysis reveals a robust CAGR, driven by rising disposable incomes and aging housing stock. Explore key trends, regional insights, and top companies shaping the future of home refurbishment (2019-2033).

Home Renovation Market Outlook

According to our latest research, the Global Home Renovation Market size was valued at $1,150 billion in 2024 and is projected to reach $1,890 billion by 2033, expanding at a robust CAGR of 5.7% during the forecast period of 2025–2033. The primary growth driver for this dynamic market is the escalating demand for modernization and energy efficiency upgrades across both residential and commercial spaces. As urbanization accelerates and consumer preferences shift toward personalized, smart, and sustainable living environments, the home renovation industry is witnessing a surge in large-scale refurbishments, system upgrades, and interior overhauls. The proliferation of digital platforms and e-commerce has further democratized access to renovation products and services, empowering end-users with a wider array of choices and streamlined project management solutions. This transformation is underpinned by rising disposable incomes, evolving lifestyle aspirations, and increasing awareness about the long-term value addition that quality renovations can bring to property assets worldwide.

Regional Outlook

North America continues to dominate the home renovation market, accounting for the largest share of global revenue in 2024, with a market value exceeding $430 billion. This region’s preeminence is largely attributed to its mature housing infrastructure, high rates of homeownership, and a well-established culture of property enhancement. The United States, in particular, leads the way due to its aging housing stock, robust consumer spending, and widespread adoption of smart home technologies. Favorable government incentives for energy-efficient upgrades and sustainable materials have further fueled demand, while a strong network of professional contractors and specialty retailers ensures seamless project execution. Additionally, North America benefits from advanced supply chain logistics and a highly competitive retail environment, which collectively drive innovation and keep renovation costs relatively stable.

The Asia Pacific region is emerging as the fastest-growing market, forecasted to register a remarkable CAGR of 7.9% during 2025–2033. Rapid urbanization, increasing disposable incomes, and a burgeoning middle-class population are key factors propelling demand for home renovation services in countries like China, India, and Southeast Asian nations. Governments in the region are actively promoting green building codes and smart city initiatives, which, combined with a young demographic keen on modern lifestyles, are fostering a vibrant renovation ecosystem. Additionally, the proliferation of online retail channels and mobile platforms has made it easier for consumers to access renovation products and services, further accelerating market growth. Major investments from international players and local startups alike are also contributing to the expansion of the market, particularly in urban centers where demand for quality living spaces is at an all-time high.

Emerging economies in Latin America, the Middle East, and Africa are gradually gaining traction in the home renovation market, although they face unique challenges related to economic volatility, supply chain constraints, and regulatory complexities. In these regions, the adoption of renovation activities is often driven by localized demand, such as urban renewal projects, infrastructure upgrades, and the need to adapt existing structures to new building codes or climate resilience standards. While consumer awareness and spending power are steadily rising, market penetration remains limited due to fragmented distribution channels and a lack of standardized service providers. Nevertheless, policy reforms aimed at affordable housing, coupled with international development aid and private sector investments, are creating new opportunities for growth and innovation in these markets.

Report Scope

Vietnam Home Improvement Market is Segmented by Product Type (Building Materials, Kitchen Improvement and Additions, and More), by Distribution Channel (Home Improvement Stores, Specialty Stores, and More), by End User (DIY, and DIFM / Professional Installation), by Project Type (Renovation, Remodelling, and More), by Region (Northern Vietnam, Central Vietnam, and More). The Market Forecasts are Provided in Terms of Value (USD).

United States Home Improvement Market was valued at USD 476.93 billion in 2024 and is anticipated to grow USD 623.34 billion by 2030 with a CAGR of 4.61%.

Home Improvement Market size was valued at USD 761.6 Million in 2024 and is projected to reach USD 995.16 Million by 2032, growing at a CAGR of 3.4% from 2026 to 2032.Rising Consumer Spending on Home Renovation and Remodeling Projects: One of the most significant catalysts for the home improvement market is the consistent increase in consumer spending allocated to renovation and remodeling. This trend is fueled by several factors, including a desire to personalize living spaces, adapt homes to evolving family needs, and enhance overall property value.Increasing Demand for Smart Home Technologies and Energy Efficient Solutions: The digital revolution has profoundly impacted the home improvement sector, manifesting as an escalating demand for smart home technologies and energy efficient solutions. Consumers are no longer content with basic functionalities; they seek integrated systems that offer convenience, security, and significant cost savings.

Home Renovation Market Outlook

As per the latest research conducted in 2025, the global home renovation market size is valued at USD 1,180.5 billion in 2024. The market is experiencing robust momentum, driven by rising disposable incomes, urbanization, and a growing focus on home aesthetics and sustainability. The sector is projected to expand at a CAGR of 4.9% from 2025 to 2033, culminating in a forecasted market value of USD 1,787.2 billion by 2033. This sustained growth is primarily attributed to increasing investments in residential and commercial infrastructure, technological advancements in renovation materials and processes, and the evolving preferences of end-users seeking comfort, efficiency, and modern amenities in their living and working spaces.

One of the primary growth factors propelling the home renovation market is the escalating demand for energy-efficient and sustainable living environments. Homeowners and property managers are increasingly prioritizing eco-friendly renovations, such as installing energy-efficient windows, insulation, and smart home technologies. These upgrades not only reduce utility costs but also align with global efforts to minimize environmental impact. Furthermore, government incentives and regulatory mandates for green building practices are encouraging both individuals and organizations to invest in sustainable renovation projects. The integration of renewable energy solutions and advanced materials in renovation processes is expected to further drive market growth, as consumers become more conscious of their carbon footprint and seek long-term value in their property investments.

Another significant driver is the rising trend of urbanization and the expansion of metropolitan areas across both developed and emerging economies. As cities grow, there is an increasing need to upgrade aging infrastructure, revitalize older residential and commercial properties, and optimize space utilization. This has led to a surge in interior and exterior renovations, system upgrades, and property additions. The proliferation of remote work and flexible lifestyles post-pandemic has also contributed to a spike in home improvement projects, with individuals seeking to create multifunctional, comfortable, and aesthetically pleasing living spaces. The commercial sector, too, is witnessing heightened renovation activity, as businesses strive to create modern, efficient, and attractive work environments to retain talent and enhance productivity.

Technological advancements in construction and renovation materials, coupled with the digitalization of the home improvement industry, are further fueling growth. The adoption of Building Information Modeling (BIM), 3D visualization tools, and smart home devices is streamlining project planning and execution, while enhancing customer engagement and satisfaction. Online platforms and e-commerce channels are making it easier for consumers to access a wide range of renovation products and services, compare prices, and make informed purchasing decisions. This digital transformation is also enabling market players to offer personalized solutions, improve project transparency, and reduce turnaround times, thereby boosting overall market competitiveness and growth prospects.

From a regional perspective, North America continues to dominate the global home renovation market, accounting for the largest share in 2024, followed closely by Europe and Asia Pacific. The North American market is characterized by high consumer spending on home improvement, a mature real estate sector, and a strong focus on sustainability and smart home integration. Europe is witnessing steady growth, driven by stringent energy efficiency regulations and a growing emphasis on heritage property restoration. Meanwhile, Asia Pacific is emerging as a key growth engine, fueled by rapid urbanization, rising middle-class incomes, and increasing investments in residential and commercial infrastructure. Latin America and the Middle East & Africa are also showing promising potential, supported by demographic shifts and government initiatives to promote housing development and urban renewal.

The global House Renovation Services market is experiencing robust expansion, projected to reach a significant valuation of approximately $500 billion by 2025, with a compelling Compound Annual Growth Rate (CAGR) of around 8.5% expected to drive its value to over $950 billion by 2033. This substantial growth is primarily fueled by a confluence of factors, including an increasing desire among homeowners for personalized living spaces, a growing emphasis on energy efficiency and sustainability in homes, and the rising average age of housing stock, which necessitates regular upgrades and repairs. Furthermore, a burgeoning trend towards smart home integration and the demand for aesthetically pleasing and functional renovations are significant drivers. The market is bifurcated into Residential Buildings and Commercial Buildings, with residential applications currently dominating due to increased disposable income and a greater focus on home improvement as a lifestyle investment. Within renovations, Partial House Renovation services hold a larger share, catering to the more frequent, smaller-scale upgrades, while Whole House Renovation projects represent a significant but less frequent undertaking. Several key trends are shaping the house renovation landscape. The adoption of advanced technologies for design visualization, such as Augmented Reality (AR) and Virtual Reality (VR), is enhancing customer experience and project planning. There's also a pronounced shift towards eco-friendly materials and sustainable building practices, driven by both environmental consciousness and government incentives. The rise of the gig economy and specialized renovation platforms is also making services more accessible and competitive. However, the market is not without its challenges. Restraints such as fluctuating material costs, labor shortages in skilled trades, and the potential for extended project timelines due to supply chain disruptions can impact growth. Regulatory hurdles and obtaining necessary permits can also add complexity. Despite these, the sustained demand for improved living and working environments, coupled with an aging housing infrastructure, positions the house renovation services market for continued strong performance throughout the forecast period. This in-depth report provides a thorough analysis of the global House Renovation Services market, encompassing a detailed study from the historical period of 2019-2024, the base and estimated year of 2025, and a forward-looking forecast for 2025-2033. The report offers invaluable insights into market dynamics, key players, emerging trends, and future growth prospects, projecting a market valuation in the hundreds of millions of USD.

Germany DIY Home Improvement Market is Segmented by Product Category (Building Materials, Tools and Equipment, and More), by Project Type (Renovation, Remodeling, New Construction), by Distribution Channel (DIY Superstores, Specialty Hardware Stores, and More), by Region (Bavaria, Baden-Württemberg, North Rhine-Westphalia, Lower Saxony, and More). The Market Forecasts are Provided in Terms of Value (USD).

The value of orders for the renovation of dwellings received by construction companies in Japan amounted to around *** trillion Japanese yen in the fiscal year 2024. This represented a year-on-year decline of *** percent. The total value of orders for building renovation rose by *** percent. Home renovation market in Japan Japan’s home renovation market, which included costs for refurbishments, facility repair and maintenance, and furniture and interior, reached *** trillion yen in 2023 and was forecast to expand to *** trillion yen by 2030. Home renovations only account for a small share of new home constructions in Japan, as consumers tend to prefer new homes over used ones. This is because housing policies of the past decades have encouraged the supply of new homes instead of focusing on utilizing the existing housing stock. However, the situation could change, as recently, new homes have become increasingly expensive due to soaring material prices and labor costs. Japan’s housing stock Due to the focus on new constructions, Japan has a massive housing stock of around ** million units. Policies have emphasized quantity over quality, and many homes do not meet the current standards for insulation performance, which is a reason for consumers to avoid second-hand homes. Improving the quality of Japan’s housing stock could become a driver for growth in the renovation market, especially considering the government’s goal to achieve carbon neutrality by 2050. Next to repair and maintenance works, energy-saving measures, disaster prevention, and home modifications for the elderly were already the main purposes of home renovation orders in fiscal 2024.

The European DIY home improvement market, valued at $192.88 billion in 2025, is projected to experience steady growth, driven by several key factors. A rising homeowner population, coupled with increasing disposable incomes across major European economies like Germany, the UK, and France, fuels demand for home renovation and improvement projects. The growing popularity of home-styling trends showcased on social media and home improvement television shows further stimulates consumer interest in upgrading their living spaces. Specifically, the "lumber and landscape management" segment is expected to be a significant contributor to market growth, reflecting a surge in interest in outdoor living spaces and garden enhancements. The "decor and indoor garden" segment also shows strong potential, driven by increasing demand for personalized and aesthetically pleasing home environments. While online channels are gaining traction, offline retailers remain dominant, highlighting the importance of a robust physical presence for successful market penetration. However, the market faces challenges including fluctuating material costs, supply chain disruptions, and potential economic downturns which could impact consumer spending on discretionary items like home improvements. The competitive landscape is characterized by both large multinational corporations and smaller specialized retailers, resulting in a dynamic market with ongoing innovation in products and services. Growth will likely be strongest in markets exhibiting strong economic performance and a culture of home ownership. The forecast period of 2025-2033 suggests a sustained CAGR of 3.2%. This growth, while moderate, indicates a resilient market despite potential headwinds. Further segmentation analysis reveals that the kitchen renovation segment benefits from increasing interest in modernizing kitchens and optimizing space. The painting and wallpaper segment reflects continuous demand for interior refresh and aesthetic enhancement. Geographical analysis indicates that Germany, the UK, and France will be key growth drivers within Europe, reflecting their large populations, strong economies, and established home improvement sectors. Strategic partnerships, product diversification, and focusing on sustainable and eco-friendly products will be critical success factors for companies vying for market share. The increasing awareness of environmental concerns is leading to a growing demand for sustainable building materials and eco-friendly renovation practices, presenting both opportunities and challenges for companies operating within the sector.