Home Improvement Market Demand, Innovation & Competitive Trends 2034
Home Improvement Market Demand, Innovation & Competitive Trends 2034
According to Fortune Business Insights, the global home improvement market size was valued at USD 945.86 billion in 2025 and is projected to grow from USD 984.36 billion in 2026 to USD 1354.48 billion by 2034, exhibiting a CAGR of 4.07% during the forecast period. The market in North America dominated with a revenue share of 38% in 2025.
The home improvement market is being supported by increasing consumer interest in upgrading residential properties, growing renovation activities, changing lifestyle preferences, and rising demand for modern, functional, and aesthetically appealing living spaces. In 2026, homeowners are increasingly focusing on remodeling kitchens, bathrooms, living areas, outdoor spaces, and other parts of residential properties. The availability of a wide range of home improvement products through organized retail stores and online platforms is also improving consumer accessibility and supporting market development.
Continue reading for more details:
https://www.fortunebusinessinsights.com/home-improvement-market-113207
The home improvement market can be segmented based on product type, project type, and distribution channel. By product type, the market includes building materials, décor and interior products, kitchen and bathroom products, flooring products, lighting products, furniture, and other home improvement solutions. Consumers are increasingly selecting products that combine functionality, durability, design, and convenience. The growing availability of innovative materials and smart home-related products is also influencing purchasing decisions in the home improvement market.
Based on project type, the market can be categorized into renovation, remodeling, repair, maintenance, and improvement projects. Renovation and remodeling activities are gaining importance as homeowners seek to modernize existing properties instead of moving to new homes. Kitchen and bathroom upgrades, flooring replacement, painting, lighting improvements, landscaping, and outdoor renovations are among the common activities supporting demand. Repair and maintenance projects also contribute to recurring demand for home improvement products and services.
Based on distribution channel, the market includes offline and online channels. Offline channels such as specialty stores, home improvement stores, hardware stores, and other retail outlets continue to play an important role because customers can physically examine products before purchasing them. At the same time, online channels are expanding as consumers increasingly use digital platforms to compare prices, review products, explore designs, and purchase home improvement materials and furnishings. The combination of physical retail and e-commerce is providing consumers with greater flexibility.
The Home Depot, Inc.
Lowe’s Companies, Inc.
Kingfisher plc
Ferguson plc
Travis Perkins plc
JELD-WEN, Inc.
Masco Corporation
Sherwin-Williams Company
Mohawk Industries, Inc.
Stanley Black & Decker, Inc.
The global home improvement market is projected to grow from USD 984.36 billion in 2026 to USD 1354.48 billion by 2034, exhibiting a CAGR of 4.07% during the forecast period. Increasing spending on residential renovation and remodeling is one of the major factors supporting the home improvement market. Homeowners are investing in improvements that enhance comfort, functionality, energy efficiency, and overall property appearance. The desire to create personalized living spaces is also encouraging consumers to undertake different types of improvement projects.
Changing lifestyles are influencing home improvement demand. Consumers are increasingly interested in home environments that accommodate work, entertainment, fitness, relaxation, and family activities. The growing importance of multifunctional spaces is encouraging homeowners to modify existing rooms and invest in furniture, lighting, storage solutions, flooring, and other products. This trend is creating opportunities across different categories of the home improvement market.
The increasing popularity of do-it-yourself activities is another factor contributing to market development. Consumers with basic repair and renovation skills are increasingly undertaking painting, decorating, gardening, furniture assembly, and smaller improvement projects independently. Online tutorials, digital design tools, product information, and social media content are making DIY activities more accessible. Retailers are also offering products designed for easier installation and use, supporting consumer participation in home improvement projects.
Technology is also influencing the market. Smart lighting, connected security systems, energy-efficient appliances, automated climate control, and other technology-enabled solutions are increasingly being incorporated into residential improvement projects. Homeowners are looking for solutions that improve convenience while helping manage energy consumption and household operations. The integration of technology with traditional home improvement products is expected to create additional opportunities in 2026.
The home improvement market faces several challenges that can affect consumer spending and project activity. High costs of raw materials, construction supplies, furniture, fixtures, labor, and installation services can increase the overall cost of renovation and remodeling projects. Rising project expenses may encourage consumers to postpone non-essential improvements or reduce the scope of planned renovations.
Economic uncertainty can also influence the home improvement market. Changes in household disposable income, interest rates, employment conditions, and consumer confidence can affect spending on discretionary home improvement projects. When consumers face financial pressure, they may prioritize essential repairs and maintenance rather than large-scale remodeling activities.
Labor availability is another challenge for the market. Skilled workers are required for electrical work, plumbing, carpentry, flooring, painting, roofing, and other specialized activities. Shortages of qualified professionals can increase project timelines and labor costs. Delays in obtaining materials and products can also affect renovation schedules and consumer satisfaction.
Supply chain disruptions may create additional challenges for retailers, manufacturers, contractors, and homeowners. Delays in the availability of building materials, fixtures, appliances, furniture, and other products can affect project completion. Companies are therefore focusing on inventory management, supplier diversification, and improved distribution systems to reduce potential disruptions.
North America dominated the home improvement market with a revenue share of 38% in 2025. The region benefits from strong consumer spending on residential renovation, remodeling, maintenance, and repair activities. The presence of established home improvement retailers, a large residential housing stock, and increasing consumer interest in upgrading existing properties are supporting market development. Homeowners are investing in kitchens, bathrooms, flooring, outdoor areas, energy-efficient products, and smart home technologies.
Europe represents another significant market for home improvement products and services. Demand is supported by renovation of existing residential properties, changing household preferences, energy-efficiency initiatives, and interest in sustainable housing solutions. Consumers are increasingly considering improvements that enhance energy performance, comfort, and long-term property value.
Asia Pacific is expected to offer significant opportunities for the home improvement market due to urbanization, increasing disposable incomes, expanding residential construction, and changing lifestyles. Growing middle-class populations are increasingly investing in home décor, furniture, renovation, kitchen improvements, bathroom products, and modern household solutions. The expansion of organized retail and e-commerce is also improving access to home improvement products.
Latin America is experiencing increasing demand for residential improvement products as urban populations expand and homeowners invest in property maintenance and modernization. Growing retail availability and improving consumer access to home improvement products are supporting regional opportunities.
The Middle East and Africa are also witnessing demand for home improvement products due to residential development, urbanization, infrastructure investment, and rising interest in modern interior and exterior designs. Increasing construction and renovation activities are creating opportunities for retailers, manufacturers, and service providers. Overall, the home improvement market is expected to maintain steady development in 2026, supported by renovation demand, changing lifestyles, DIY activities, digital retail, smart home adoption, and consumer interest in more comfortable and functional residential environments.
Uncover Japan’s Market Trends - Explore the Latest -Home Improvement Market - Insights