Home Improvement Spending Market: Global Size, Share, Trends, Growth and Forecast, 2022-2032
Home Improvement Spending Market: Overview and Definition
The home improvement spending market refers to the global market for goods and services related to home renovation and improvement projects. This market includes a wide range of products and services, such as building materials, tools, appliances, furniture, and home decor, as well as professional services such as design, construction, and remodeling.
The home improvement spending market is driven by factors such as increasing homeownership rates, the growing trend of DIY projects, and the desire for modern and energy-efficient homes. Consumers may undertake home improvement projects for a variety of reasons, including increasing the value of their home, improving the functionality of living spaces, or simply enhancing the aesthetics of their living environment.
The home improvement spending market is highly competitive, with numerous established players and a growing number of emerging manufacturers and service providers. The market is also subject to various economic factors, such as fluctuations in the housing market and changes in interest rates.
Home improvement spending is a process of investing in home renovation and refurbishment. Home improvements can be done by taking advice from home upgrade specialists, interior decorators, and house remodelers. Apart from the internal decorations and furnishings, rise in consumer spending on exteriors is also increasing with raising disposable incomes. Exterior decorations and refurbishing activities such as windows and doors, roofing, and sidings maintenance owing to damage that may or already happened due to climatic variations are increasing. Also the demand for technological advancements in products such eco dish cleaners, wireless lighting systems, ACs, and smart faucet is also increasing.
Some of the factors that are attracting consumers to invest more in home furnishing and refurbishing are mainly caused by COVID-19. With the COVID-19 pandemic stuck all over the world, families were bound to stay at homes for months and were spending very limited time outside their homes. Due to this it is observed that consumers took up on the pending tasks that were planned or desired anyway such as painting a living room or upgrading fixtures of living rooms. Moreover, as almost every country told their working class to continue their home by staying at home itself through new normal “work from home” culture, home offices became a need, especially for those families where two working spouses were present and also their children were engaged in remote learning. Kitchen renovations are also becoming popular as dine out limitations are pushing consumers for having more of their meals at homes. Moreover, Gyms were also closed for majority of the time in 2020; it has prompted some homeowners to opt for creating dedicated home gym spaces or at least personal work out areas. A major factor that is increasing the spending capacity of consumers on home furnishings is the inability of consumers to travel. With the COVID regulations, there are several travel restrictions imposed by various countries and hence many families have transformed their backyards into weekend spaces. Decorating the backyards, customizing living spaces, creating dedicated gym spaces is helping the home improvement spending market to grow.
The global home improvement spending market is expected to register surge in revenue as home improvement is adopted by both millennial and baby boomers. Baby boomers continue to invest in home upgrade activities having higher spending capability in home upgrades. Purchasing power and spending of consumers in terms of home decor and refurbishing is increasing since last few years for homeowners in both emerging as well as developed countries. Variable purchasing behavior can be seen by different age groups. While millennial are more focused on personalization and use of integrated technology, baby boomers prefer accessibility and other home upgrades. This variable purchasing behavior different age groups offers lucrative opportunities or the market players to expand their products and services targeting specific consumer group.
Among the other factors that are boosting the growth of home improvement spending market major are rapid urbanizations, more convenient access, increasing awareness about home decorations, and changing lifestyles, are adding leading the growth of the market. Moreover, the number of market players in the Home improvement is also increasing. Lot of new domestic players are contributing to the growth of the market while international players are looking forward to expand their businesses in new geographies after the industries will be back to normal from the COVID-19 setback. The market is expected to fuel the growth by providing numerous opportunities through the rise of e-commerce industry during the forecast time period. E-commerce has changed the face of global market and spending remarkably since past few years. With the help of e-commerce websites and apps, home décor, and home ware product manufacturers have managed to reach consumers in remote and rural areas. Reasons attributing to the expansion of e-commerce are rising internet penetration, digitalization, and growing sales of smartphones.
For the purpose of analysis the home improvement spending market is segmented on the basis of project type, application, distribution channel, and region. On the basis of project type the market is further sub segmented into DIY and DIFM. On the basis of application the market is divided in bath improvement & additions, exterior replacements, property improvements, room additions & alterations, kitchen improvement & additions, system upgrades, interior replacements, and disaster repairs. On the distribution channel basis the market is bifurcated into online and offline. On the regional basis, the market is studied across North America, Europe, Asia-pacific, and LAMEA.
North America region dominates the home improvement market size in 2019. Major reason for this dominance is higher spending of consumers on housing activities such as roofs replacements and home exterior alterations in North America region. Moreover, factors such as technological advancements, superior designs, and enhanced durability coupled with increasing house security are expected to further expand the market.
The major players profiled in the home improvement spending market are ABC Supply, Dow Building Solutions, 3M, GAF Materials Corporation, JELD-WEN, Kohler Co., Andersen Corporation, Oldcastle Building Products, Builders First Source, and Hanley Wood LLC. Other prominent players in the market are Fortune Brands Home & Security, the Home Depot, and Ferguson Enterprises.