According to a recent study from market research firm Graphical Research, the global home improvement market size is set to register a significant growth during the forecast timeframe, as homeowners are focused on adding style, comfort, and value to their living spaces. The global COVID-19 emergency had an undeniable effect on the market, with customers wanting to upgrade their home to equip themselves with work-from-home and learn-from-home needs. The following trends are likely to stay prevalent in the market through 2027:
- Property improvements garner momentum in Europe
The growing trend of upgrading houses and boosting their aesthetic appeal is set to drive the demand for home renovation products in Europe. People are increasingly emphasizing sustainable development and actively lowering their carbon impact. The concept of smart homes has picked pace globally, and people are increasingly investing in upgradations that ease their day-to-day work.
Another factor driving property upgrades in the next years is Europe's rapidly aging homes. It is expected that Europe home improvement market share from the properties segment will grow with a CAGR of 5.5% through 2027.
- Kitchen upgrades & additions emerge as a top renovation category in Europe
The use of high-end and smart technology in kitchens has effectively piqued the interest of homeowners. Modular kitchens are becoming increasingly popular due to the aesthetic appeal they offer. The increased need for convenient add-ons like one-touch chillers, self-regulating dispensers, and motion-sensing water faucets has prompted the adoption of smart kitchens in home renovation and remodeling. Europe home improvement market share from kitchen upgrades and additions will account for $44 billion by 2027.
- Do-it-yourself (DIY) projects pick pace in Asia Pacific
Due to rising house modifications such home offices, or just upgrading the living and dining spaces, APAC home improvement market from the do-it-yourself segment is set to account for roughly $30 billion through 2027. Functionality, aesthetics, damage, ROI, and generational differences are a few of the factors fueling the DIY boom. As per a recent study by homeisd.com, 73% of millennials work on DIY home repair projects, while the remaining 27% opt for DIFM. The data supports the idea that millennial age avidly consumes content related to DIY projects via YouTube and other internet media.
- Home renovations on the rise across Asia Pacific
APAC rehabilitation industry is observing healthy growth, thanks to the growing demand for the renovation or upgradation of old buildings. The expanding construction sector, & increased expenditure and investment in new building projects, is also benefiting market revenues. A large variety of configurable designs for commercial structures, as well as a high demand from property owners for appealing interiors, are other major factors contributing to the popularity of renovations.
- Do-it-for-me (DIFM) home improvement projects across North America
The global pandemic significantly boosted renovation ideas by requiring numerous housing alterations. Many homeowners were confronted with the necessity for extra space to work from home and participate in remote learning. The rise in demand for home improvement products was reflected in The Home Depot and Lowe's profit results for 2020. Home Depot reported a roughly 20% rise in net sales for fiscal 2020. Meanwhile, Lowe's full-year net sales increased by 24.2%. To gain and retain its market share, Lowe's has been taking several strategic initiatives over the past two years.
The business recently launched "Lowe's for Pros JobSIGHT," an augmented video chat application. It enables professionals to communicate digitally with clients and enterprises. Following that, the company launched a personalized shopping experience intended particularly for this customer-base. As per market estimates, North America home improvement market share from the DIFM segment will reach the valuation of $315 billion by 2027.
- Exterior replacements gain prominence across North America
One of the most notable lifestyle changes following the pandemic is a desire to spend more time outdoors. As evidence of this tendency, the American Institute of Architects' 2021 poll found that the demand for outdoor areas increased from 61% to 71%. Similarly, according to Forbes, the average homeowner spent $8,408 on outside renovations such as deck, porch, patio, or terrace upgrades.
Rising consumer knowledge of new and better design trends, such as polymer & vinyl sidings and stone veneer sidings, to improve the appearance & aspect of home exteriors, are likely to drive the service adoption. With more leisure activities spent outdoors, North America home improvement market share from exterior replacements segment is likely to account for $90 billion valuation by 2027.