PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887226
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887226
The global home renovation market continues to expand as homeowners increasingly invest in improving functionality, aesthetics, and long-term property value. According to the report, the market was valued at USD 1,994.02 billion in 2024, is projected to reach USD 2,049.25 billion in 2025, and is estimated to grow to USD 2,659.60 billion by 2032, registering a steady CAGR of 3.79% during 2025-2032. In 2024, North America dominated the market with a 33.34% share, supported by aging housing stock, high expenditure on remodeling, and rapid integration of smart home technologies.
Home renovation projects are increasingly focused on optimizing living spaces, enhancing comfort, and adapting homes to evolving lifestyles. Popular improvement categories include kitchen remodeling, bathroom upgrades, energy-efficient installations, and multifunctional space transformations. Post-pandemic lifestyle shifts such as work-from-home adoption have significantly boosted demand for well-designed, personalized interiors. Moreover, trends such as sustainable materials, minimalistic aesthetics, DIY home projects, and technology-enabled improvements are shaping the global market landscape.
Market Drivers
One of the core drivers of market expansion is rising consumer interest in personalized living spaces. Homeowners are investing more time and resources into bespoke interiors that reflect personal style, influenced by design content across social media, rising homeownership among millennials, and increased time spent indoors. In the U.S., strong economic performance and rising home equity support renovation spending. For example, according to the U.S. Census Bureau, new home sales reached 610,000 units in October 2024, with an average sale price of USD 545,800, highlighting rising interest in property upgrades that increase market value.
Another major growth factor is the global shift toward energy-efficient home improvements. Homeowners are prioritizing eco-friendly renovations such as solar installations, insulation upgrades, and smart home systems. According to the Leading Indicator of Remodeling Activity (LIRA), U.S. home improvement spending is projected to rise from USD 472 billion in Q3 2024 to USD 477 billion by Q3 2025, reflecting increasing investment in sustainability and efficiency-driven upgrades. These initiatives not only reduce long-term energy costs but also enhance comfort and environmental performance.
Market Restraints
Despite strong demand, high renovation costs limit accessibility for many middle-income households. Rising material prices, skilled labor shortages, and inflation create barriers to undertaking large-scale projects. This challenge is compounded by higher interest rates and economic uncertainty, which can delay non-essential renovations. Limited affordability remains a key restraint for market penetration in emerging economies and among budget-conscious consumers.
Market Opportunities
The increasing adoption of smart home technologies presents lucrative opportunities for the renovation industry. Homeowners are rapidly embracing automated lighting, smart thermostats, voice-controlled systems, and integrated security solutions. Offering bundled smart renovation packages can help businesses capture a growing tech-savvy consumer base. As per the LIRA report, renovation spending in the U.S. is anticipated to continue expanding through 2025, signaling strong market potential for technology-driven home upgrades.
The professional renovation segment dominated the global market in 2024, capturing 78.51% share due to consumer reliance on skilled contractors capable of handling complex remodeling projects. DIY renovation is expected to grow fastest from 2025 to 2032, driven by cost-effectiveness, accessible online tutorials, and widespread DIY culture.
By application, interior renovations lead the market and are projected to achieve 46.06% market share in 2025, as homeowners prioritize improvements to kitchens, bathrooms, and living spaces. Energy-efficiency projects are expected to register the fastest CAGR (3.45%) during 2025-2032.
By renovation type, functional renovations dominated in 2024 and are expected to gain 43.61% share in 2025, while aesthetic renovations are projected to grow at the fastest CAGR of 4.36%. By budget, mid-range renovators will hold 52.02% share in 2025, reflecting strong demand for cost-balanced renovation solutions.
North America remained the largest market in 2024 with USD 664.72 billion, supported by high homeownership rates, sustainability trends, and advanced remodeling services. The U.S. alone is expected to reach USD 567.72 billion in 2025.
Europe is projected to reach USD 633.01 billion in 2025, driven by incentives for green renovations.
Asia Pacific is expected to be valued at USD 604.94 billion in 2025, making it the fastest-growing region due to rapid urbanization and rising disposable incomes.
South America is expected to reach USD 86.68 billion in 2025, while the UAE in the Middle East will reach USD 4.64 billion in the same year.
Conclusion
Growing from USD 1,994.02 billion in 2024 to USD 2,659.60 billion by 2032, the home renovation market shows strong long-term potential. Demand is driven by sustainability, personalization, technology integration, and modernization needs, positioning the global renovation industry for steady and resilient growth through 2032.
Segmentation
By Project
By Application
By Renovation Type
By Spending Budget
By Region