Home Renovation and Refurbishment Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Home Renovation and Refurbishment market is estimated to be valued at USD 520 billion in 2025 and is expected to reach USD 780 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.1% from 2025 to 2032. This growth trajectory highlights the increasing consumer expenditure on upgrading and modernizing residential properties, driven by rising disposable incomes and a growing emphasis on sustainable and energy-efficient home improvements.

Current market trends indicate a significant shift towards smart home technologies and eco-friendly materials in renovation projects. Homeowners are increasingly prioritizing energy efficiency, integrating solar panels, smart HVAC systems, and automated lighting to reduce long-term costs and environmental impact. Additionally, the demand for personalized and multifunctional living spaces is driving innovative refurbishment designs, supported by advancements in digital visualization tools and modular construction techniques, which streamline the renovation process and enhance customer satisfaction.

Segmental Analysis:

By Renovation Type: Structural Renovation Driving Market Dominance

In terms of By Renovation Type, Structural Renovation contributes the highest share of the home renovation and refurbishment market owing to its critical role in ensuring the safety, longevity, and functionality of buildings. Structural renovation typically involves foundational repairs, roofing, wall reinforcements, and other major modifications that address the core integrity of a property. This segment's growth is primarily driven by increasing awareness among homeowners and building managers about the necessity of maintaining structural soundness to prevent long-term damage and costly repairs. Aging housing stock in many regions is compelling owners to prioritize structural upgrades, which often come first before any aesthetic or interior improvements. Moreover, stringent building codes and regulations aimed at enhancing the resilience of structures against natural disasters such as earthquakes, floods, and storms are pushing demand for advanced structural renovation services. Additionally, increasing urbanization and the trend toward repurposing old buildings for modern uses fuel the need for comprehensive structural refurbishments. These renovations not only improve safety but also provide the opportunity to increase property value, which makes structural renovation a financially sound investment. The expanding inclination towards ensuring sustainable and resilient construction materials in structural repairs further adds to the appeal of this segment, as building owners seek to retrofit with materials that enhance energy efficiency and durability. Collectively, these factors position structural renovation as the cornerstone of home refurbishment initiatives, sustaining its dominant market share.

By End-Use: Residential Segment Leading Growth Trajectory

In terms of By End-Use, the Residential segment holds the largest share in the home renovation and refurbishment market, largely due to changing lifestyles, evolving aesthetic preferences, and the rising importance of home comfort and functionality. Homeowners constantly seek to enhance their living spaces to better accommodate family needs, which includes expanding rooms, upgrading kitchens and bathrooms, and creating more open or multi-functional areas. This demand is fueled by demographic changes such as increasing single-person households, multigenerational living, and aging populations that require adaptable and accessible housing. Additionally, the proliferation of remote work has triggered a surge in home offices and dedicated workspace renovations. The residential segment is also propelled by the growing investment in personalization and interior design trends, encouraging owners to refurbish their homes with contemporary finishes and smart home technologies. Another key driver is the rising emphasis on sustainability, leading homeowners to incorporate energy-efficient upgrades, better insulation, and eco-friendly materials. The availability of financing options and incentives for residential remodeling further accelerates this trend. Furthermore, the desire to increase property value in competitive real estate markets motivates many to undertake renovations, reinforcing the segment's strong momentum. These diverse and dynamic factors ensure that residential renovation remains the primary focus for homeowners and industry players alike, cementing its substantial share within the sector.

By Material Type: Wood as a Preferred Material in Home Renovation

In terms of By Material Type, Wood contributes the highest share of the home renovation and refurbishment market, driven by its versatility, aesthetic appeal, and sustainability attributes. Wood remains a preferred choice across various renovation projects due to its natural beauty, ease of customization, and ability to complement both traditional and modern design schemes. Its use spans structural components, flooring, cabinetry, paneling, and decorative elements, allowing homeowners and contractors to achieve warmth and visual richness in living spaces. The renewed interest in eco-conscious building practices highlights wood's advantage as a renewable resource, especially when sourced from certified sustainable forests. This resonates strongly with the growing segment of environmentally aware consumers seeking to reduce their carbon footprint. Additionally, advancements in wood treatment and engineered wood products enhance durability and resistance to pests and moisture, expanding its applicability even in demanding environments. The adaptability of wood also supports renovations that require precise craftsmanship and creative detailing, appealing to homeowners who prioritize bespoke designs. The material's lightweight nature facilitates quicker installation and reductions in labor costs, further incentivizing its use during refurbishment projects. Moreover, the integration of wood with modern technologies, such as wood-based composites and hybrid materials, broadens its functional range without compromising on aesthetics or sustainability. These combined factors firmly establish wood as the dominant material choice in the home renovation and refurbishment market.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Home Renovation and Refurbishment market stems from a mature real estate sector combined with a strong consumer inclination toward improving existing homes rather than purchasing new properties. This region benefits from a well-established market ecosystem comprising a dense network of suppliers, renovators, and specialized contractors. Government policies encouraging energy efficiency and sustainable building practices, such as tax credits for green remodeling, further stimulate renovation activities. Additionally, the presence of large home improvement retail giants like Home Depot and Lowe's plays a pivotal role in shaping market trends by providing extensive product ranges and professional services. Trade dynamics favor North America with reliable supply chains and advanced logistics, supporting timely availability of renovation materials and equipment.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific exhibits the fastest growth in the Home Renovation and Refurbishment market due to rapid urbanization, increasing disposable income, and a burgeoning middle class aspiring to enhance living standards. Government initiatives promoting affordable housing and urban renewal projects boost demand for refurbishment both in residential and commercial sectors. The region's expanding construction industry, driven by players such as LIXIL Corporation in Japan and Alibaba-backed platforms facilitating renovation services in China, energizes the market. Trade relationships within the region ease access to raw materials and advanced technologies, supporting swift market expansion. Furthermore, rising awareness about modern design trends and smart home integrations is transforming renovation preferences across Asia Pacific nations.

Home Renovation and Refurbishment Market Outlook for Key Countries

United States

The United States' market for home renovation and refurbishment is characterized by a sophisticated supply chain and a mature consumer base that prioritizes quality and sustainability. Major players like Home Depot, Lowe's, and Sherwin-Williams lead the market by offering extensive product lines and professional contractor networks. Additionally, increasing interest in energy-efficient retrofits and smart home technology drives demand for innovative renovation services. Regulatory frameworks aimed at building safety and environmental standards further influence renovation activities, encouraging homeowners and builders to upgrade existing properties.

Germany

Germany's market continues to lead in Europe due to the country's strong emphasis on sustainable construction and renovation practices. Government incentives aimed at reducing carbon emissions influence a high demand for energy-efficient refurbishments. Companies such as Hettich and Bosch Home Appliances contribute to the market by supplying advanced hardware and smart appliances suited for modernization projects. The well-developed industrial ecosystem, combined with stringent building codes, supports consistent renovation growth, particularly in urban centers with aging infrastructure.

China

China's home renovation market is rapidly developing fueled by urban renewal policies and the modernization of older residential complexes. Leading players like Midea Group and China State Construction Engineering Corporation play critical roles in facilitating refurbishment projects both for residential and commercial spaces. The growing e-commerce ecosystem, spearheaded by platforms like Alibaba, supports the distribution of renovation materials and services, making refurbishment accessible to a wider consumer base. Favorable government policies incentivizing affordable housing upgrades encourage continued investment in refurbishment activities across various provinces.

United Kingdom

The United Kingdom's market benefits from a strong culture of home improvement combined with government initiatives focused on improving housing quality and energy efficiency. Companies such as B&Q and Wickes hold substantial market shares by providing innovative and affordable renovation solutions tailored to diverse customer needs. The evolving trade dynamics post-Brexit have introduced both challenges and opportunities concerning material imports, prompting local manufacturers to strengthen supply chains. Rising consumer interest in smart home features and eco-friendly materials further underpins market momentum.

Australia

Australia's renovation market is spurred by increasing consumer demand for home personalization and upgrade of older residential properties to meet modern lifestyle needs. Key players such as Bunnings Warehouse and CSR Limited influence market dynamics through broad retail distribution and innovative product offerings. The government's active role in promoting sustainable housing and supporting renovation grants enhances homeowner participation. Moreover, Australia's geographic isolation has fostered a resilient local manufacturing base that reduces reliance on imports, ensuring steady availability of renovation materials despite fluctuating global trade conditions.

Market Report Scope

Market Segmentation

Renovation Type Insights (Revenue, USD, 2020 - 2032)

• Structural Renovation
• Interior Refurbishment
• Exterior Refurbishment
• Energy-Efficient Upgrades
• Others

End-use Insights (Revenue, USD, 2020 - 2032)

• Residential
• Commercial
• Industrial
• Institutional
• Others

Material Type Insights (Revenue, USD, 2020 - 2032)

• Wood
• Concrete
• Metal
• Composite
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Lendlease Group
• Mohawk Industries, Inc.
• Lennar Corporation
• NVR, Inc.
• Beazer Homes USA, Inc.
• Masco Corporation
• Kohler Co.
• The Home Depot, Inc.
• CEMEX S.A.B. de C.V.
• Saint-Gobain Group
• Boral Limited
• PulteGroup, Inc.
• Owens Corning
• Carrier Global Corporation
• Georgia-Pacific LLC