Home Improvement Retail Market Size, Share, Growth, and Industry Analysis, By Type (Repair, Home Additions and Soft Outfit (Furniture and Decoration)), By Grade (High-End and General Grade), By End-Users (Pregnant & Infant, Toddler, Teenagers, Adult and Elder), By Application (Private Home, Guesthouse, Hotel and Others), and Regional Forecast to 2034

HOME IMPROVEMENT RETAIL MARKET OVERVIEW

The global Home Improvement Retail Market size expanded rapidly in 2025 and is projected to grow substantially by 2034, exhibiting a prodigious CAGR during the forecast period.

Home improvement retail is a sector dedicated to selling products, materials, and services for the renovation, maintenance, repair and decoration of homes. The stores are a hybrid of a hardware store and a lumber yard, offering building products including lumber, drywall and flooring, and hardware, tools, appliances, paint, fixtures, plumbing, and electrical products. They cater to any projects with a wide product offer to DIY homeowners and professional contractors alike. Most are also providing value-added services, including rental of tools, installation, design consultations, and do-it-yourself workshops, thus being full-service destinations of home improvement and customisation.

The old housing stock, soaring property values, increases in homeownership rates and work-from-home trends have contributed to robust growth in the home improvement retail sector, which has played a crucial role in helping the overall economy recover. The popularity of the DIY culture, aided by online instructions and a lack of design inhibition, has only fueled the demand. Controlled by large-scale retail players, such as Home Depot, Lowe's, B&Q, and Menards, the market provides extensive product lines, aggressive pricing, and wide-scale services. They become a one-stop-shop retailer, supporting the Do-It-Yourself (DIY) and professional with building supplies, tools, furnishings, installation services, and professional project consultants.

GLOBAL CRISES IMPACTING HOME IMPROVEMENT RETAIL MARKET- COVID-19 IMPACT

Pandemic disruptions caused delays, shortages and uncertainty that severely affected the market

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Pandemic disruptions severely impacted the home improvement retail sector, creating financial uncertainty, delaying projects and supply chains. Professional contractors and homebuilders experienced significant losses as the available materials, labour restrictions and paused projects slackened business undertakings. Most of the large-scale renovations are delayed or terminated because of budget issues and unstable economic environments. This caused the cost to rise and the products to be unavailable because the supply chain was experiencing bottlenecks, which resulted in frustrating retailers and customers. Investment into home upgrades was made by some consumers, which was overtaken by inhibitive operational issues, stock-outs and supply chain disruptions, making the industries prone to crises and economic crashes.

LATEST TRENDS

Growing unified commerce and omnichannel shopping to drive the market

Customers are requiring an integrated hybrid shopping experience that combines online and in-store assortment, driving home improvement competitors to implement integrated commerce approaches. Online catalogues of various sizes enable even businesses to research and choose what to buy and visit stores. Branded mobile apps and loyalty programs also increase the level of engagement by providing personalised offers, tracking purchases, and projecting ideas. Such an omnichannel strategy enhances convenience and attracts brand loyalty by reaching various shopping preferences. One way home improvement retailers can satisfy the changing standards of customers is by integrating online commerce efficiency and in-store expertise.

HOME IMPROVEMENT RETAIL MARKET SEGMENTATION

BY TYPE

Based on type, the global market can be categorized into Repair, Home Additions and Soft Outfit (Furniture and Decoration)

• Repair: Repair in home improvement retail covers products and services for fixing damaged or worn-out parts of a home. This encompasses plumbing supplies, repair fixtures, electrical materials and hardware equipment for small and large corrections. Retailers serve both needs such as leaky faucets, roofing and structural repair. The segment caters to both DIY homeowners and professional maintenance suppliers. The ongoing innovation of repair products simplifies and brings the process close to every consumer.
• Home Additions: Home additions involve expanding or modifying a home by adding rooms, extending spaces, or creating new features. It necessitates materials such as lumber, drywall, insulation, windows and external finishing, which are easy to find at the home improvement stores. The section appeals to DIYers and contractors who are experienced, as the segment is complex. Retailers financing the projects provide direction, design tools and consultations. The increasing demand is based on the necessity of larger space, property value and more comfort.
• Soft Outfit (Furniture and Decoration): Soft Outfit (Furniture and Decoration) deals with aesthetic and comfort improvements of a house such as furnishing, decor, light, textiles, and accessories. Retailers provide a wide selection of styles and brands, making people create personal formats in space. The products are items such as couches, beds, curtains, rugs, wall paintings, plants and decorative lights. The stores offer interior design consultations and showrooms with aspirational displays. The driving force behind the demand is home fashion trade, seasonal changes and the pursuit of versatile homely living spaces.

BY GRADE

Based on grade, the global market can be categorized into High-End and General Grade

• High-End: High-end grade in home improvement retail targets consumers seeking premium quality and craftsmanship. It provides designer plumbing products, luxury cookers and appliances, custom-made cabinetry, exclusive floors and custom furniture. The retailers offer a unique consultation, designs, and product lines. The customers appreciate the beauty, quality, and prestige of the brand. This part features innovative trends and curated offerings to transform homes.
• General Grade: General grade in home improvement retail offers standard, practical products for everyday use. It includes accessible and reliable items for repairs, renovations, and décor projects. The retailers offer a variety of choices, cheap rates, and Do-It-Yourself assistance services. Consumers are most focused on functionality, value and ease of use. This segment adapts to trends and promotions, appealing to most households and small contractors.

BY END-USERS

Based on end-users, the global market can be categorized into Pregnant & Infant, Toddler, Teenagers, Adult and Elder

• Pregnant & Infant: Pregnant & Infant home improvement products are all about ensuring the safety and comfortable surroundings of expectant parents and infants. The products are nursery furniture, cribs, changing tables, safety gates and what is called non-toxic paints. Health and comfort are made possible by ergonomic designs and materials that are chemical-free. Design and arrangement, light and storage are arranged to be accessible and stress-free. Early parenting products will have a strong focus on safety parameters, softened aesthetics and practical designs that cater to brands.
• Toddler: Toddler home improvement products prioritise safety while encouraging independence for young children. These items were the low-height furniture, toy storage, edge protector and safety locks. Active designs are vibrant, lasting, and hassle-free to wash. Retailers provide themed decor, playroom furniture and interactive learning environments. Solutions blend functionality with imaginative development through thoughtful design.
• Teenagers: Teenagers' home improvement products focus on personalised, versatile spaces that reflect individual style. Study desks, modular storage, cool decor, and comfortable seating are among popular items. Furniture such as tech-friendly furniture, ports to charge, and space to put up a hobby or a game are in high demand. Retailers sell fabricatable furniture, wall art, and color appeal to enable self-expression. This segment balances aesthetics with practical solutions for study, relaxation and entertainment purposes.
• Adult: Adult home improvement products run the gamit of functionality upgrades to luxurious upgrades of daily life. The products offered consist of furniture, kitchen and bathroom fixtures, home office arrangements, and outdoor living arts. Decor preferences incorporate individual style, comfort, and efficiency. This group is served by retailers with DIY-friendly choices and professional services. This can be in demand among new home owners and those who are upgrading their existing homes.of the first time home owners and those upgrading existing houses.
• Elder: Elder home improvements are designed with respect to safety, access, and comfort of elderly people. Among the important ones are grab bars, non-slippery floors, adjustable-height seats and easy fixtures. Designs are practical although aesthetics has been maintained and warmth has not been lost. Retailers advertise age-in-place products to decrease relocation requirements. Ergonomic, low-maintenance materials support health, mobility and convenience.

BY APPLICATION

Based on application, the global market can be categorized into Private Home, Guesthouse, Hotel and Others

• Private Home: Private home improvement products and services enhance, renovate, and decorate personal residences. Customers are seeking functionality changes, along with cosmetic ones. Custom furniture, Kitchen and bathroom renovations, and garden-enhancement are popular options. There are minimalist, as well as luxury styles on offer at retailers. This segment is characterized by DIY tools, materials, and design advice.
• Guesthouse: Guesthouse home fixing is aimed at designing pleasant, trendy, and comfortable accommodations in short-term rent. The major priorities include durable and beautiful furniture, outdoor facilities as well as energy-efficient systems. Retailers offer products meanwhile ensuring balance between affordability and a welcoming environment. Themes, coordinated colours and easy maintenance features enhance appeal. The goal is to improve guest experience while ensuring practicality for frequent turnover.
• Hotel: Hotel home improvement focuses on large-scale interior and exterior solutions for a consistent brand image. Retailers supply bulk furniture, premium finishes, lighting systems and durable fixtures for heavy use. Quality, comfort, and features applicable to luxury or business stays are prioritized. Important criteria would include energy-efficiency, ease of maintenance, and durable materials. Decor is otherwise frequently changed to keep up with hospitality trends as well as visitor expectations.
• Others: Others in home improvement retail cover office spaces, community centers, institutional housing, and rentals. Retailers offer versatile solutions adaptable to different needs and functions. High-traffic or multi-use locations stress durability, functionality, and cost-effectiveness in products. Designs accommodate both functionality and attractiveness to various users. This segment thrives on flexible, customizable product ranges.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

Increasing homeownership and renovation activities to boost the market

Increasing homeownership, particularly in emerging markets, has significantly boosted renovation and remodelling activities, driving strong expansion in the Home Improvement Retail Market growth. With the increasing number of people who own property, property upgrades, repairs and renovations are more demand to increase comfort, effectiveness and appreciation. This movement generates demand for building materials, fixtures, tools and decor products, favouring the DIY clients and commercially oriented contractors. The market is further boosted by increased disposable income, urbanisation and positive housing policies. Retailers will react to the demand by increasing product offers and offering good prices and value additions. In general, the high rate of homeowning is consistently the most contributing factor for the long-term growth of the retail sector.

Rising disposable income and consumer spending to expand the market

Rising disposable incomes and increased consumer spending worldwide have enabled more consumers to purchase home improvements, renovations and aesthetic amenities, creating a booming market in home improvement products. With increasing purchasing power, households are more willing to spend on improving comfort, functionality and increasing the property value. The change has been of advantage to DIY people and professional contractors, increasing sales in areas that include building materials, fixtures, appliances and decor. Retailers are taking advantage of this trend by making high-end product lines, customised services and financing to attract customers with different incomes and earnings. Altogether, the increasing revenues directly stimulate the growth of the market and raise consumer demands concerning quality and design.

RESTRAINING FACTOR

High competition and market fragmentation to hinder the market

High competition and market fragmentation pose a significant hindrance in the home improvement retail sector, undermining stability and growth. The high population of large and small retailers and a highly disintegrated vendor and contractor environment results in pricing discrepancies and product or service quality inconsistency. It is also problematic in that when customers go to compare offerings, they find huge differences in costs and standards between similar goods. This uncertainty compromises trust, and buying decisions become more complicated and time-consuming. Moreover, vigorous price competition may jeopardise quality and break supply chains, increasing inefficiencies. These conditions hold back the growth of the entire market and reduce the confidence of customers in the reliability of the industry.

OPPORTUNITY

Focus on energy-efficient and sustainable upgrades to create opportunity for the market

Growing consumer preference for eco-friendly and energy-efficient upgrades is creating significant opportunities in the Home Improvement Retail Market. Products that are efficient, such as high efficiency systems of heating, ventilating, and air conditioning, advanced insulation, LEDs, water-saving fixtures, and smart home technologies which maximise energy efficiency, are on the increase as far as demand is concerned. Homeowners with environmental concerns are driven by more than the desire to go green, as they are interested in saving long-term costs in utility bills. The trend cuts across new constructive works as well as in renovation works with customers being more concerned with materials and systems that minimise the effects on the environment. With the increased awareness of energy conservation and the leadership role of climate change, energy-efficient solutions are taking centre stage in the buying decisions where motives are increasing the market opportunities.

CHALLENGE

Incohesive and fragmented shopping experience to challenge the market

Incohesive and fragmented shopping experiences continue to challenge the home improvement retail sector. Poor connectivity between online, mobile, and in-store channels causes multiple disorienting jumps in the consumer buying process, where consumers find it challenging to browse, compare, and purchase products competently. Fragmentation of data can allow inconsistent product information and poor synchronisation of inventory frequently causes stockouts or incorrect updating of availability. Customers can experience delays, disagreements in pricing or even failure to execute orders, further diminishing the trust factor. The absence of cross-touchpoint connectivity between online and real-life diminishes convenience, irritates customers and eventually undermines brand loyal consumers, thereby losing potential sales and eroding entire market competitiveness.

HOME IMPROVEMENT RETAIL MARKET REGIONAL INSIGHTS

• NORTH AMERICA

North America dominates the global Home Improvement Retail Market share, particularly the United States Home Improvement Retail Market. It is a leadership driven by high rates of homeownership, a robust DIY culture and a mature retailing infrastructure that integrates a large network of physical stores with advanced e-commerce engines. The U.S. market is fueled by a consistent need to renovate, repair, and upgrade smart homes due to increased property values, a shortage of housing stock, and advances in digital tools of shopping, such as augmented reality (ARs). The industry players dominate the competitive environment, whereas technological improvements and a culture of never-ending home improvement uphold expansion.

• EUROPE

Europe is the second-largest market, with booming levels of homeownership, urbanisation and a keen interest in sustainability. In major markets such as Germany, France and the U.K., the demand for energy-efficient renovation to smart homes technologies and DIY and DIFM services is on the rise. This fragmented landscape is dominated by key players ADEO, Kingfisher Group and OBI, who benefit due to the stringent regulations and government initiatives to push toward the construction of eco-friendly buildings and the replacement of the ageing housing stock.

• ASIA

The Asia Pacific is the most rapidly developing region which is characterized by fast rates of industrialization, urbanization, and emerging middle classes. Increased demand of modular kitchens, smart home solutions, and sustainable decor are experiencing key markets such as China, India, Japan, and South Korea. The driving factors are the growing DIY culture and technology based e-commerce as well as active re-urbanization programs by the government especially in China. The changing lifestyle and increasing expenditure on contemporary and more attractive living environments favor the international and local retailers.

KEY INDUSTRY PLAYERS

Key industry players are integrating digital transformation and customer experience for market expansion

Key industry players are accelerating digital transformation efforts, integrating advanced AI tools, CRM systems and omnichannel retail strategies to enhance operational efficiency and customer engagement. The algorithms will allow accurate demand predictions, better inventory control and in-stock performance and CRM integration to allow hyper-personalised marketing and personal recommendations. Omnichannel strategies are linked between in-store, online and mobile dimensions of the shopping experience, which harmonise the process. Loyalty programs are being enhanced with data-based insight by retailers to improve retention and increase the lifetime value of customers. Besides making supply chains more efficient, this digital transformation takes shopping experiences to another level, achieving emerging consumer pressures regarding convenience, rapidity and individualisation in a competitive market.

LIST OF TOP HOME IMPROVEMENT RETAIL COMPANIES

• The Home Depot, Inc. (U.S.)
• Lowe's Companies, Inc. (U.S.)
• Groupe Adeo SA (France)
• Kingfisher plc (U.K.)
• S.A.C.I. Falabella (Chile)
• Menard, Inc. (U.S.)
• Do It Best Corporation (U.S.)
• BMC (U.K.)
• IKEA (Sweden/ The Netherlands)
• Obi (Germany)
• Leroy Merlin (France)
• Rona (Canada)
• BMR Group (Canada)
• B&Q (U.K.)
• Bunnings Warehouse (Australia)
• Mitre 10 (Australia)

KEY INDUSTRY DEVELOPMENTS

May 2025: The J.D. Power 2025 U.S. Home Improvement Retailer Satisfaction Study showed that 64 percent of home-improvement shoppers would absolutely come down again, an increase of 9 points over 2024, because of active workers and educated consumers. The scores are 680 points out of 8 satisfaction dimensions and 2143 recent shopper feedback given to Lowe and Ace hardware in the said order.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

Home Improvement Retail Market are driving through rapid digital transformation, leveraging AI, CRM integration, and omnichannel retail strategies to elevate efficiency and customer engagement. AI-powered analytics enable precise demand forecasting, optimized inventory management, and improved on-shelf availability, while CRM systems deliver hyper-personalized marketing, tailored recommendations, and targeted promotions. Omnichannel integration ensures a seamless transition between online, mobile, and in-store experiences, meeting modern consumer expectations for convenience and speed. Enhanced loyalty programs, fueled by real-time data insights, strengthen retention and boost customer lifetime value. This digital shift not only streamlines operations but also redefines shopping experiences in a competitive, evolving market.