Why the $529 B Home Improvement Services Market Is Booming: Trends in Renovation & Regional Insights

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The global home improvement services market is poised for significant growth, reaching a value of USD 371.3 billion in 2024 and projected to attain USD 529.4 billion by 2033, with a CAGR of 3.82% during 2025–2033. This expansion is driven by the increasing need for home remodeling, the rising adoption of smart homes, and the growing demand for energy-efficient living spaces. Factors such as rapid urbanization, inflating income levels, and changing living standards further contribute to the market's upward trajectory.

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Study Assumption Years

• Base Year: 2024

• Historical Period: 2019–2024

• Forecast Period: 2025–2033

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Home Improvement Services Market Key Takeaways

• Market Size and Growth: The market reached USD 371.3 billion in 2024 and is expected to grow to USD 529.4 billion by 2033, exhibiting a CAGR of 3.82% during the forecast period.

• Regional Performance: North America holds a significant share, driven by high homeownership rates and a strong inclination towards home remodeling projects.

• Market Segmentation: The market is segmented by type, buyers' age, city type, and region, with kitchen and bathroom renovations leading the type segment.

• Technological Advancements: The integration of smart home technologies, including IoT and AI-enabled systems, is enhancing the appeal of home improvement services.

• Consumer Demographics: Homeowners aged 35–54 are the primary consumers, reflecting a focus on family-oriented home enhancements.

• Urban vs. Non-Urban Demand: Metro cities dominate the demand, but non-metro cities and towns are emerging as significant markets due to increasing urbanization.

• Sustainability Trends: There's a growing preference for energy-efficient and sustainable home improvements, aligning with global environmental concerns.

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Market Growth Factors

The market for house renovations is much influenced by the quick adoption of smart home technology. Homeowners are using IoT-enabled gadgets like smart thermostats, lighting systems, and surveillance cameras to increase convenience, security, and energy efficiency. Apart from improving the usefulness of residences, these technologies boost their visual appeal, hence driving up demand for professional installation and maintenance. The ongoing advancement of smart home equipment presents several possibilities for service providers to offer particular solutions, therefore propelling market growth.

Government regulations and laws greatly influence the home remodeling industry. Programs advocating energy efficiency and sustainable construction methods encourage homeowners to work on projects meeting green building criteria. For homeowners, tax credits and rebates for energy-efficient upgrades make financial sense. Furthermore ensuring a steady demand for skilled house remodeling services are building codes and safety regulations that necessitate frequent repairs and updating.

Urbanization is among the primary forces propelling the residential improvement services industry. The need for housing increases as more people relocate to metropolitan areas, hence stimulating home remodeling and fresh development. Urban dwellers often seek to make the most of tiny living quarters, hence propelling improvements that enhance ease and practicality. Moreover, increasing metropolitan disposable income enables more home improvement expenditures. This urban-centric demand and lifestyle objectives are helping to fuel the market's growth.

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• Kitchen Renovation and Addition: Involves upgrading kitchen layouts, installing modern appliances, and enhancing storage solutions to improve functionality and aesthetics.

• Bathroom Renovation and Addition: Focuses on updating fixtures, improving ventilation, and incorporating energy-efficient systems for enhanced comfort and hygiene.

• Exterior and Interior Replacements: Includes replacing doors, windows, roofing, and siding to boost curb appeal and energy efficiency.

• System Upgrades: Entails modernizing electrical, plumbing, and HVAC systems to meet current standards and improve home safety.

• Others: Covers miscellaneous improvements such as flooring, painting, and landscaping to enhance overall home value.

• Under 35: Young homeowners focusing on modernizing spaces with smart technologies and contemporary designs.

• 35–54: Middle-aged group investing in comprehensive renovations to accommodate growing family needs.

• 55–64: Pre-retirement segment emphasizing comfort upgrades and age-friendly modifications.

• Above 65: Senior homeowners prioritizing accessibility improvements and maintenance services.

• Metro Cities: High demand for luxury renovations and smart home integrations driven by urban lifestyles.

• Non-metro Cities and Towns: Growing interest in home improvements due to increasing urbanization and rising income levels.

• North America: United States, Canada

• Asia Pacific: China, Japan, India, South Korea, Australia, Indonesia, Others

• Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Others

• Latin America: Brazil, Mexico, Others

• Middle East and Africa

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North America dominates the home improvement services market, attributed to high homeownership rates and a strong culture of home renovation. The region's emphasis on energy-efficient upgrades and smart home technologies further propels market growth. Additionally, favorable economic conditions and government incentives support the thriving home improvement industry in this region.

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The home improvement services market is witnessing a surge in technological integrations, with service providers adopting advanced tools to enhance customer experience. The incorporation of AI and IoT in home systems allows for predictive maintenance and energy management, offering homeowners greater control and efficiency. Moreover, the trend of sustainable renovations is gaining momentum, with eco-friendly materials and energy-saving installations becoming increasingly popular. These developments indicate a shift towards smarter and more sustainable home improvement solutions.

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• Belfor

• Coit Cleaners

• Crane Renovation Group

• DKI Ventures LLC

• FirstService Corporation

• Mr. Handyman International LLC

• Power Home Remodeling Group

• Rainbow International LLC

• Servpro

• Venturi Restoration

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