Global Home Improvement Services Market By Deployment(Online, Offline), By Repairs & Maintenance(Non-HVAC Home Appliances, Ventilation and Air Conditioning, Electricity, Gas, Heating, Plumbing), By Home Improvement Type(Interior Design, Construction), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

The Global Home Improvement Services Market size is expected to be worth around USD 652.3 Billion by 2033, From  USD 381.9 Billion by 2023, growing at a CAGR of 5.50% during the forecast period from 2024 to 2033.

The Home Improvement Services Market encompasses a diverse array of products and services aimed at enhancing residential properties. It includes renovations, repairs, and upgrades to interiors and exteriors, ranging from kitchen and bathroom remodels to landscaping and roofing projects. This dynamic market responds to evolving consumer preferences, technological advancements, and sustainability trends.

Key players offer tailored solutions to meet the demand for personalized, efficient, and environmentally friendly home improvement services. With a growing emphasis on convenience and innovation, stakeholders must leverage data-driven insights to navigate competitive landscapes and capitalize on emerging opportunities in this thriving sector.

The Home Improvement Services Market, a cornerstone of residential development and consumer lifestyle enhancement, is experiencing nuanced shifts reflecting evolving consumer behaviors and economic dynamics. Recent data highlights a mixed trajectory within key segments, notably observed in kitchen and bathroom renovations. In 2023, despite an anticipated decrease in revenues by 14% to $162.4 billion compared to the preceding year, the market remains robust and adaptable.

Supportive data further underscores the market’s resilience amidst fluctuations. Importantly, import shipments recorded a notable decline of 30.1% in the first half of 2023, contrasting with a modest 3.8% increase in U.S. manufacturing shipments. This trend suggests a growing preference for domestic sourcing and production, possibly influenced by supply chain disruptions and a renewed focus on local economies.

Understanding consumer demographics is paramount for market players seeking to tailor offerings effectively. In 2023, the typical kitchen and bath consumer profile reveals an 84% homeownership rate, with Baby Boomers and Gen X cohorts comprising significant purchasers. This demographic insight underscores the importance of targeted marketing strategies and product innovation tailored to the preferences and needs of these consumer segments.

As the market continues to evolve, stakeholders must remain agile, leveraging data-driven insights to navigate complexities and capitalize on emerging opportunities. By prioritizing innovation, sustainability, and consumer-centric approaches, industry players can position themselves for sustained growth and competitive advantage in the dynamic landscape of home improvement services.

Key Takeaways

• Market Growth:  Global Home Improvement Services Market size is expected to be worth around USD 652.3 Billion by 2033, From  USD 381.9 Billion by 2023, growing at a CAGR of 5.50% during the forecast period from 2024 to 2033.
  
• Regional Dominance:  North America constitutes 38% of the global home improvement services market, indicating significant regional dominance.
  
• Segmentation Insights:
  • By Deployment: The offline deployment channel dominates the market, accounting for 60% of home improvement services provided.
  • By Repairs & Maintenance: Electricity repairs and maintenance represent 22% of services, indicating a significant demand for electrical expertise.
  • By Home Improvement Type: Interior design leads home improvement types, comprising 53% of services, highlighting aesthetic enhancement preferences.
• Growth Opportunities:  In 2023, the global home improvement market is propelled by urbanization, aesthetic enhancement interests, and the adoption of smart home technologies, promising growth for services tailored to these trends.
  

Driving Factors

Acceleration Through Remodeling of Newly Acquired Old Homes

The remodeling of newly purchased old homes before occupancy has emerged as a significant driving force in the home improvement services market. This trend is primarily fueled by the desire of homeowners to personalize and upgrade their living spaces to reflect contemporary living standards and aesthetic preferences.

The surge in demand for these services can be attributed to the increasing sales of older homes, which often require renovations, repairs, and updates before they are considered habitable or aligned with the buyer’s needs. This factor not only stimulates the market by increasing the volume of projects but also encourages the adoption of modern, energy-efficient, and technologically advanced home improvement solutions.

Influence of Economic Factors: Interest Rates and Property Costs

The rise in interest rates and property costs plays a pivotal role in shaping the home improvement services market. Higher property costs discourage homeowners from buying new properties, leading to a preference for renovating existing homes to enhance their value and livability.

Concurrently, elevated interest rates make financing new properties more challenging, further incentivizing homeowners to invest in home improvement and renovation projects. This economic landscape fosters a vibrant market for home improvement services, as homeowners seek to optimize the value and functionality of their current properties amid fluctuating economic conditions.

The Impact of Rising Disposable Incomes and Consumer Preferences

Rising disposable incomes and evolving consumer preferences significantly contribute to the expansion of the home improvement services market. With increased financial resources, homeowners are more inclined to allocate funds toward enhancing their living environments, prioritizing comfort, sustainability, and aesthetics. This financial capability, combined with a shift in consumer preferences towards personalized and high-quality living spaces, drives demand for home improvement services.

Consumers are increasingly seeking bespoke solutions that reflect their tastes and lifestyle aspirations, thereby fueling the growth and diversification of the market. Together, these economic and sociocultural shifts underpin a robust and dynamic home improvement services industry, characterized by innovation, customization, and sustainability.

Restraining Factors

Constrained Spending due to Rising Interest Rates and Property Costs

The impact of rising interest rates on houses and property costs constitutes a significant restraining factor for the growth of the home improvement services market. As interest rates climb, the cost of financing home purchases and renovations escalates, compelling homeowners to prioritize essential expenditures. This financial pressure can lead to a reduction in discretionary spending, including on professional home renovation services.

Higher property costs further exacerbate this situation by absorbing a larger share of potential buyers’ budgets, leaving less available for improvements. Consequently, the market faces challenges as consumers become more cautious with their investments in home upgrades, potentially slowing market growth.

The DIY Movement: Empowered by Tools and Resources

The availability of advanced tools and resources has significantly empowered the Do-It-Yourself (DIY) movement, presenting a challenge to the home improvement services market. With a wealth of information and tutorials available online, alongside the accessibility of sophisticated tools, homeowners are increasingly undertaking renovation projects independently. This shift towards self-managed projects is driven by the desire to reduce costs and personalize the renovation experience.

While this trend showcases the evolving capabilities of individuals to manage home improvement tasks, it concurrently limits the demand for professional services. The growth of the DIY segment can dilute the potential market for home improvement service providers, as a portion of the consumer base opts to bypass professional services in favor of personal involvement and cost savings. This dual impact of financial constraints and the rise of DIY renovations forms a complex challenge to the sustained growth of the home improvement services industry.

By Deployment Analysis

Offline deployment commands 60% of the market in home improvement services.

In 2023, the Home Improvement Services Market was prominently segmented by deployment into two main categories: Online and Offline. Offline deployment held a dominant market position, capturing more than a 60% share. This significant portion can be attributed to consumers’ preference for traditional, in-person consultations and services, which offer a tangible experience and personalized interactions. The tactile nature of home improvement projects, alongside the complex decision-making process involved, often necessitates direct, hands-on guidance and assurance that offline channels excel in providing.

The Online segment, while smaller in comparison, exhibited a growing trend, propelled by the digital transformation sweeping across various industries. Advancements in virtual and augmented reality technologies have started to bridge the gap between the tangible benefits of offline services and the convenience of online platforms. These technologies enable customers to visualize changes in their homes before committing to them, thereby enhancing decision-making processes and customer satisfaction.

The growth in the Offline segment’s market share is also reflective of the sector’s adaptability and resilience. Service providers have increasingly incorporated technology into their operations, offering hybrid models that blend the personalization and trust of offline experiences with the efficiency and accessibility of online platforms. As a result, despite the digital shift, the demand for offline home improvement services remains robust, driven by the sector’s ability to meet diverse consumer needs and preferences effectively.

By Repairs & Maintenance Analysis

Electricity repairs and maintenance constitute 22% of the service demand.

In 2023, the Home Improvement Services Market was intricately segmented by repairs & maintenance into several key categories: Non-HVAC Home Appliances, Ventilation and Air Conditioning, Electricity, Gas, Heating, and Plumbing. Among these, Electricity held a dominant market position, capturing more than a 22% share. This prominence is primarily due to the increasing complexity of smart home electrical systems and the growing reliance on electronic devices and smart home technologies. As homes become more integrated with these advanced technologies, the demand for professional electrical maintenance services escalates, underscoring the critical nature of electrical safety and efficiency.

The Ventilation and Air Conditioning segment also accounted for a significant share, driven by the rising awareness of indoor air quality and the need for energy-efficient solutions. However, the Electricity segment’s lead is attributed to its foundational role in supporting the functionality of both traditional and modern home infrastructures, making it indispensable.

The sectors of Gas, Heating, and Plumbing, while essential, observed a relatively lower market share in comparison, due to their specific seasonal demand and the varying degrees of necessity across different geographical regions. Non-HVAC Home Appliances, though vital for daily operations, face a competitive market with diverse DIY solutions and manufacturer warranties reducing the demand for external service providers.

By Home Improvement Type Analysis

Interior design services lead, making up 53% of home improvement types.

In 2023, the Home Improvement Services Market was distinctly segmented by home improvement type into two primary categories: Interior Design and Construction. Interior Design held a dominant market position, capturing more than a 53% share. This significant market share is attributed to the increasing consumer interest in personalizing living spaces, driven by the desire for comfort, functionality, and aesthetic appeal. The trend towards remote work and spending more time at home has further amplified the demand for interior design services, as homeowners seek to create spaces that are not only visually appealing but also conducive to productivity and wellness.

The Construction segment, while essential for the structural integrity and expansion of living spaces, accounted for a smaller portion of the market. This can be partially explained by the higher investment and longer time frames associated with construction projects, which may deter some homeowners. Additionally, the rise of DIY home improvement projects and the availability of modular solutions have provided consumers with alternative means to modify their homes without extensive construction work.

The dominance of Interior Design within the Home Improvement Type segment underscores a shift in consumer priorities toward creating more personalized, functional, and aesthetically pleasing living environments. This trend is further supported by the availability of digital platforms and technologies, allowing homeowners to visualize changes before committing to them, thereby enhancing decision-making and satisfaction. As a result, the Interior Design sector is poised for continued growth, driven by evolving consumer preferences and the ongoing integration of technology in home improvement practices.

Key Market Segments

By Deployment

• Online
• Offline

By Repairs & Maintenance

• Non-HVAC Home Appliances
• Ventilation and Air Conditioning
• Electricity
• Gas
• Heating
• Plumbing

By Home Improvement Type

• Interior Design
• Construction

Growth Opportunities

Impact of Rapid Urbanization on Home Remodeling and Refurbishment Services

The acceleration of urbanization globally has significantly increased the demand for home improvement services. As urban populations swell, the need for personalized and functional living spaces becomes paramount. This trend is facilitating a marked growth in the home remodeling and refurbishment sector. Urban dwellers are increasingly seeking services that can enhance the livability and sustainability of their residences, contributing to the expansion of the home improvement services market.

Rising Interest in Aesthetic Enhancement and Home Décor

The growing homeowner interest in enhancing the aesthetic appeal of their residences is another pivotal factor driving the home improvement services market. Consumers are becoming more involved in home décor and design efforts, seeking professional services to realize their vision of a visually appealing home. This trend underscores the importance of aesthetic value in the overall home improvement market, with services ranging from interior design consultation to complete home makeovers experiencing increased demand.

Adoption of Smart Home Technologies and Automation

The incorporation of smart home technologies and automation into home improvement projects represents a significant market opportunity. Homeowners are adopting these technologies at an increasing rate, seeking to improve the functionality, convenience, and energy efficiency of their living spaces. The demand for services that integrate smart technologies into home design and functionality is expected to grow, positioning companies that offer these services well within the rapidly evolving home improvement market.

Latest Trends

The Impact of the Global Rise in DIY Culture

The proliferation of DIY culture worldwide has had a nuanced impact on the demand for professional home improvement services. With an abundance of online resources and tutorials, homeowners are increasingly undertaking renovation projects independently, aiming to personalize their living spaces while managing costs. This trend presents both challenges and opportunities for the professional home improvement market.

While it may initially appear to detract from the demand for professional services, it also opens avenues for companies to offer specialized, high-complexity services that go beyond the capabilities of the average DIY enthusiast. Additionally, the rise in DIY culture has increased consumer interest in home improvement overall, potentially expanding the market for professional consultations and services tailored to DIY project planning and execution.

Adoption of Smart Home Technologies and Energy Efficiency

The trend toward the adoption of automation and smart, energy-efficient devices in homes continues to shape the home improvement services market. Homeowners are increasingly prioritizing the integration of technology that enhances energy efficiency, convenience, and security. This shift towards smart home technologies is driving demand for professional services capable of installing, integrating, and maintaining these systems.

The focus on sustainability and energy efficiency not only reflects environmental awareness but also the desire for cost savings over time. As such, the market is witnessing a growing preference for services that can deliver advanced technological solutions aligned with these values.

Regional Analysis

In North America, 38% of the global home improvement services market is concentrated.

The global home improvement services market exhibits significant variation across regions, with North America, Europe, Asia Pacific, Middle East & Africa, and Latin America showcasing distinct characteristics and growth dynamics.

North America, commanding a dominant 38% share of the global market, stands as the preeminent region in home improvement services. This dominance is fueled by high homeowner engagement in both DIY projects and professional renovations, driven by the desire to enhance living spaces and integrate smart home technologies.

Europe follows, characterized by a strong inclination towards energy efficiency and sustainability. European homeowners prioritize renovations that improve energy efficiency, supported by government incentives for green home improvements. This region’s market is bolstered by a rich architectural heritage, requiring specialized preservation and modernization services.

The Asia Pacific region is witnessing rapid growth due to escalating urbanization and rising income levels. The expansion of the middle class in countries such as China and India is propelling demand for both aesthetic upgrades and functional enhancements in residential spaces.

The Middle East & Africa region, though smaller in comparison, is experiencing an uptick in luxury home improvement projects, fueled by economic diversification efforts and an affluent consumer base seeking bespoke home enhancements.

Latin America’s market is growing steadily, driven by urban development and a growing interest in smart and sustainable living solutions. However, economic variability across countries affects the pace of market growth.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

In 2023, the landscape of the global home improvement services market is markedly shaped by the activities and strategic positions of several key players, including DKI Ventures, LLC, Rainbow Restoration, Servpro, Power Home Remodeling Group, LLC, Coit Services, Inc., Crane Renovation Group, Mr. Handyman, FirstService Corporation, Belfor, Venturi Restoration, and other pivotal entities. These companies are instrumental in defining the market dynamics through their diversified service offerings, geographical reach, and market penetration strategies.

DKI Ventures, LLC and Servpro, known for their restoration services, have capitalized on the growing demand for repair and restoration following natural disasters, leveraging their extensive networks and rapid response capabilities. This specialization has positioned them as go-to solutions in times of crisis, facilitating growth in a niche yet vital segment of the market.

Power Home Remodeling Group, LLC stands out for its focus on exterior home improvements, harnessing digital tools and customer engagement strategies to personalize the customer experience. Their emphasis on sustainability and energy efficiency resonates well with the current market trends, driving their expansion.

Coit Services, Inc. and Belfor have established themselves in the cleaning and restoration sectors, respectively, highlighting the importance of maintenance and recovery services within the home improvement market. Their commitment to quality and comprehensive service portfolios enable them to meet a wide range of consumer needs.

Mr. Handyman and FirstService Corporation differentiate themselves through a broad spectrum of home maintenance and management services, appealing to homeowners seeking all-encompassing solutions.

The global market’s vitality is further enriched by Crane Renovation Group and Venturi Restoration, whose contributions underscore the competitive spirit and innovation driving the industry forward.

Market Key Players

• DKI Ventures, LLC
• Rainbow Restoration
• Servpro
• Power Home Remodeling Group, LLC
• Coit Services, Inc.
• Crane Renovation Group
• Mr. Handyman
• FirstService Corporation
• Belfor
• Venturi Restoration
• Other Key Players

Recent Development

• In March 2024, the Texarkana Home Builders Association organizes the Home & Garden Show, showcasing builders, remodelers, and suppliers for home improvement, fostering community and innovation in Texarkana.
• In March 2024, SunPower leads in solar batteries, offering the SunVault storage solution, renowned for efficiency and winning the 2022 Good Housekeeping Home Renovation Award for energy saving.
• In February 2024, Lowe’s Companies, Inc. partners with Sunrun to offer solar services in stores, enhancing Lowe’s commitment to sustainable home solutions and market growth in renewable energy sectors.
• In February 2024, Evergreen Exhibitions hosts the North Vancouver Home Show, offering a vast array of home improvement options and exclusive deals in a pressure-free environment to support local businesses.

Report Scope