Home Improvement Retail Market Trends and Forecast
The future of the home improvement retail market looks promising with opportunities in residential and commercial buildings. The global home improvement retail market is expected to reach an estimated $1 billion by 2030 with a CAGR of 6% from 2023 to 2030. The major drivers of the home improvement retail industry is increasing new and existing home sales, increasing disposable income, rising consumer spending, remodeling and renovation of homes, urbanization, and increasing middle class population.
The main raw materials used in home improvement retail include lumber for construction and cabinetry, drywall for wall installation, metals such as steel and aluminum for fixtures and fittings, paint for finishing and decorating, and plumbing materials like pipes and faucets. Additionally, materials like insulation, flooring, and roofing supplies are crucial for various projects. Pricing for these materials can vary based on supply chain dynamics, market demand, and fluctuations in global raw material costs.
• On the basis of its comprehensive research, Lucintel forecasts that the home improvement retail industry will grow moderately during 2023-2030.
• The DIY Culture remain the largest segment due to its high interest in do-it-yourself projects and home renovations drives regular consumer spending on related products.
• North America is expected to remain the largest market and it is also expected to witness the highest growth over the forecast period, due to its high consumer spending power, mature market with established retail networks, strong DIY culture, frequent home renovations, and high property values encouraging ongoing improvements.
Country wise Outlook for the Home Improvement Retail Market
The home improvement retail market is witnessing substantial growth globally, driven by driven by increased demand from various industries such as residential construction, renovation projects, commercial real estate development, and government infrastructure initiatives. Below image highlights recent developments by major home improvement retail producers in key regions: the USA, Germany, China, Australia, and Brazil.
Emerging Trends in the Home Improvement Retail Market
Emerging trends in the home improvement retail market shaping its future applications and market dynamics:
• Smart Home Integration: Increased demand for smart home technologies including internet of connected devices, automated systems and energy management solutions that increase convenience, safety as well as save power.
• Growth in Consumer Preference for Green-Friendly Sustainable Goods: The growth in consumer preference for green-friendly sustainable goods encouraging energy saving appliances, recycled materials and green building practices during homes’ renovation.
• Integration of Products Promoting Health and Wellness Focus: Integration of products promoting health and well-being in home environments, including air purifiers, water filtration systems, ergonomic furniture, and sustainable building materials.
• Increasing Demand for Personalization and Customization: Increasing demand for customizable home improvement solutions, such as bespoke furniture, modular systems, and tailored design services that cater to individual preferences and lifestyle needs.
A more than 150 page report to help in your business decisions. A sample figure with insights is shown below.
Recent Developments in the Home Improvement Retail Market
Ongoing innovations and advancements in various sectors of the home improvement retail market which have been highlighted by recent developments:
• Expansion of E-commerce: There has been accelerated growth in the online sales of home improvement products because of increased digitalization and consumer preference for convenient shopping experiences.
• Integration of Augmented Reality (AR) and Virtual Reality (VR): Retailers have started adopting AR and VR technologies to enhance customer engagement and decision-making processes, enabling them to visualize home improvement projects before making purchases.
• Focus on Sustainability: There is an increasing focus on eco-friendly products and practices including energy-efficient appliances, sustainable building materials, as well as recycling initiatives due to growing consumer demand for environmentally responsible options.
• Smart Home Technologies: Expansion of smart home product offerings such as connected devices, smart lighting, and home automation systems that improve energy efficiency, security, and convenience.
• Enhanced Customer Experience: Investments in omnichannel strategies which include personalized customer service along with user-friendly interfaces are made so as to ensure seamless shopping experience on online platforms when compared to physical stores.
• DIY Innovation: New innovative DIY solutions, tools as well kits that empower consumers to undertake home improvement projects themselves with the support from accessible tutorials are being introduced.
Strategic Growth Opportunities for Home Improvement Retail Market
The home improvement retail market is very dynamic due to its unique properties of in regulatory compliance and security measures, including anti-counterfeit technologies, ensuring patient safety and adherence to stringent industry standards. Some key strategic growth opportunities for this market include:
E-commerce Expansion:
• The move towards cyber shopping continues to rise, fueled by ease and approaching. Home retailers can tap into this by making investments in strong e-commerce platforms and which facilitates smooth buying process, personalized suggestions and easy browsing. Also, adoption of omnichannel strategies that allow for seamless transitions between online and offline stores is paramount in terms of customer engagement and satisfaction levels. Additionally, integrating augmented reality (AR) and virtual reality (VR) technologies for virtual simulations about home improvements makes online shopping more interesting since customers see how the products would be like before purchasing them.
Smart Home Technologies:
• Demand for smart home devices that enhance convenience, security and energy efficiency is growing. Hence, expanding product ranges to cover smart thermostats, lighting systems, security cameras or connected appliances can position the firms better to benefit from the trends. Similarly, educating buyers on advantages of smart home integration will greatly increase sales volume; also it will bring about differentiation from other vendors. Attracting tech-savvy customers seeking integrated solutions could also result from partnerships with technology companies to develop exclusive smart home bundles or collaborations with home automation experts.
Sustainability and Eco-Friendly Products:
• Customers are increasingly concerned with sustainability when making purchase decisions. In order to meet this requirement, stores selling building materials should try as much as possible to have eco-friendly items such as sustainable bamboo flooring fixtures that save water. Moreover featuring brands which already possess certifications like LEED along with Energy Star drastically enhances product legitimacy as well as appealing environmentally conscious consumers. Another way would be through promoting recycling programs for old appliances and construction materials thereby demonstrating sustainability commitment that would facilitate customer loyalty hence attracting new customers.
DIY Culture and Educational Initiatives:
• Customers are shifting towards Do-It-Yourself (DIY) approach while renovating their homes because it’s a cost effective way of upgrading their living spaces according to their personal styles. They may assist homeowners who embrace this culture by issues such as comprehensive do it yourself (DIY) resources like online tutorials, workshops and even assembling kits. The provision of expert advice through staff members both in-store and online is also another strategy that these firms can use to encourage customers to feel confident about undertaking these projects. On the other hand, DIY enthusiasts may be given offers or incentives which will foster customer loyalty, create repeat business.
Expansion into New Markets and Geographic Regions:
• This might involve penetration into new markets that are emerging or expanding geographical scope with respect to home improvement stores. Analyzing the demographics, economic indicators as well as consumer behavior in target markets helps in pinpointing which places they should enter. Consequently, customization of product portfolios plus marketing techniques according to local preferences and regulations would make them remain competitive in such unfamiliar territories. Finally, strategic partnerships or acquisitions with local businesses enable market entry thereby hastening growth rates.
By taking advantage of these strategic growth opportunities, the home improvement retail market can strengthen its market position by enhancing customer engagement through seamless omnichannel experiences, expanding product offerings to include smart home technologies and eco-friendly solutions, empowering consumers with comprehensive DIY resources, and strategically expanding into new geographic markets to capture untapped consumer segments and drive revenue growth.
Home Improvement Retail Market Driver and Challenges
Home improvement retailers are essential for various industries, providing critical supplies and tools that support both residential and commercial projects. They enable efficient renovations, repairs, and maintenance, driving growth and innovation across sectors. The factors responsible for driving the home improvement retail market include:
1. Economic Growth and Housing Market: Strong economic conditions and growth in the housing market drive demand for home improvement products as homeowners invest in renovations and upgrades.
2. Consumer Spending and Disposable Income: Higher consumer spending power and disposable income enable individuals to undertake discretionary spending on home improvement projects.
3. Aging Housing Stock: Aging housing stock requires maintenance, repairs, and renovations, creating sustained demand for home improvement products and services.
4. DIY Culture: Growing popularity of do-it-yourself projects among consumers, fueled by online tutorials, DIY kits, and the desire for personalization in home renovations.
Challenges in the home improvement retail market are:
1. Market Competition: Intense competition among retailers, both online and brick-and-mortar, necessitates differentiation through product assortment, pricing strategies, and customer service.
2. Economic Uncertainty: Changes in economic conditions like interest rates or trends in the housing market could potentially affect consumer sentiment as well as expenses on home improvements.
3. Supply Chain Disruptions: Sourcing raw materials challenges inventory management accompanied by logistical difficulties that hinder availability of products or pricing them accordingly.
4. Customer Expectations: Meeting evolving customer expectations for seamless omnichannel experiences, personalized service, and sustainable product options.
Innovations in material science and manufacturing processes have sparked a surge in demand for the home improvement retail market by introducing advanced, durable materials and efficient manufacturing techniques that enhance product quality, performance, and sustainability, meeting evolving consumer preferences and regulatory standards.
Home Improvement Retail Suppliers and their Market Shares
In this globally competitive market, several key players such as The Home Depot Inc., Lowe's Companies Inc., Groupe Adeo SA, Kingfisher plc, S.A.C.I. Falabella, etc. dominate the market and contribute to industry’s growth and innovation. These players capture maximum market share. To know the current market share of each of major players contact us.
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies home improvement retail companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the home improvement retail companies profiled in this report includes:
• The Home Depot Inc.
• Lowe's Companies Inc.
• Groupe Adeo SA
• Kingfisher plc
• S.A.C.I. Falabella
These companies have established themselves as leaders in the home improvement retail industry, with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within the home improvement retail market are evolving, with the entry of new players and the emergence of innovative home improvement retail technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
Home Improvement Retail Market by Segment
Major segments of the home improvement retail market experiencing growth include smart home technologies, which encompass a range of connected devices like thermostats, lighting systems, and security solutions. These products cater to consumers' increasing desire for convenience, energy efficiency, and enhanced home security. Another burgeoning segment is sustainable products, driven by growing environmental consciousness. This includes energy-efficient appliances, eco-friendly building materials such as bamboo flooring and recycled glass countertops, and water-saving fixtures. These offerings appeal to environmentally conscious consumers seeking to reduce their carbon footprint and lower utility bills.
This home improvement retail report provides a comprehensive analysis of the market's current trends, growth drivers, challenges, and future prospects in all major segments like above. It covers various segments, including home improvement retail types, manufacturing processes grade, product type, and application. The report offers insights into regional dynamics, highlighting the major markets for home improvement retail and their growth potentials. The study includes trends and forecast for the global home improvement retail market by grade, product type, application and region as follows:
Home Improvement Retail market by Grade [Value ($ billion) analysis from 2018 to 2030]:
• High-End
• General Grade
Home Improvement Retail market Product Type [Value ($ billion) analysis from 2018 to 2030]:
• Repair
• Home Additions
• Soft Outfit (Furniture and Decoration)
Home Improvement Retail market by Application [Value ($ billion) analysis from 2018 to 2030]:
• Private Home
• Guesthouse
• Hotel
• Others
Home Improvement Retail Market by Region [Value ($ billion) analysis from 2018 to 2030]:
• North America
• Europe
• Asia-Pacific
• ROW
Features of Home Improvement Retail Market
• Market Size Estimates: Home improvement retail market size estimation in terms of value ($M) shipment.
• Trend and Forecast Analysis: Market trends (2018-2023) and forecast (2024-2030) by various segments grade, product type, and application and regions.
• Segmentation Analysis: Home improvement retail market size by various segments, such as grade, product type, and application, and regions in terms of value.
• Regional Analysis: Home improvement retail market breakdown by North America, Europe, Asia Pacific, and the Rest of the World.
• Growth Opportunities: Analysis on growth opportunities in different grade, product type, and application and regions for home improvement retail market in the global healthcare industry.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape for the home improvement retail market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the home improvement retail market size?
Answer: The global home improvement retail market is expected to reach an estimated $1 billion by 2030.
Q2. What is the growth forecast for home improvement retail market?
Answer: The home improvement retail market is expected to grow at a CAGR of ~6% from 2023 to 2030.
Q3. What are the major drivers influencing the growth of the home improvement retail market?
Answer: The major drivers of the home improvement retail industry is increasing new and existing home sales, increasing disposable income, rising consumer spending, remodeling and renovation of homes, urbanization, and increasing middle class population.
Q4. What are the major applications industries for home improvement retail?
Answer: DIY Culture is major application segment for home improvement retail. .
Q5. What are the emerging trends in home improvement retail market?
Answer: Emerging trends, which have a direct impact on the dynamics of the industry, includes smart home integration, growth in consumer preference for green-friendly sustainable goods, integration of products promoting health and wellness focus, and increasing demand for personalization and customization.
Q6. Who are the key home improvement retail companies?
Answer: Some of the key home improvement retail companies are as follows:
• The Home Depot Inc.
• Lowe's Companies Inc.
• Groupe Adeo SA
• Kingfisher plc
• S.A.C.I. Falabella
Q7. Which home improvement retail product segment will be the largest in forecast period?
Answer: Lucintel forecasts that DIY Culture remain the largest segment due to its high interest in do-it-yourself projects and home renovations drives regular consumer spending on related products.
Q8. In home improvement retail market, which region is expected to be the largest in next 5 years?
Answer: North America will remain the largest region witness the highest growth over next 7 years.
Q9. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% Customization Without any Additional Cost.
This report answers following 11 key questions
Q.1 What are some of the most promising potential, high-growth opportunities for the home improvement retail industry by (by Grade, High-End, General Grade), by Product Type, Repair, Home Additions, Soft Outfit (Furniture and Decoration), Soft Outfit (Furniture and Decoration), and Application (Private Home, Guesthouse, Hotel, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa)?
Q.2 Which segments will grow at a faster pace and why?
Q.3 Which regions will grow at a faster pace and why?
Q.4 What are the key factors affecting market dynamics? What are the drivers and challenges of the home improvement retail industry?
Q.5 What are the business risks and threats to the home improvement retail industry?
Q.6 What are emerging trends in this home improvement retail industry and the reasons behind them?
Q.7 What are some changing demands of customers in the home improvement retail industry?
Q.8 What are the new developments in the home improvement retail industry? Which companies are leading these developments?
Q.9 Who are the major players in the home improvement retail industry? What strategic initiatives are being implemented by key players for business growth?
Q.10 What are some of the competitive products and processes in the home improvement retail industry, and how big of a threat do they pose for loss of market share via material or product substitution?
Q.11 What M&A activities did take place in the last five years in the home improvement retail industry?
For any questions related to home improvement retail market or related to PAN based home improvement retail, pitch based home improvement retail, home improvement retail in automotive, home improvement retail in aerospace, home improvement retail in industrial, home improvement retail manufacturers, home improvement retail top companies, and home improvement retail suppliers, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.