Residential Remodeling Market Report
Residential Remodeling Market by Project Type (DIY and Professional) Distribution Channel (Online and Offline), Application (Windows & Door, Kitchen & Bathroom, Floor & Roof, Walls, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2023-2032
Residential Remodeling Overview
The residential remodeling is a house remodeling technique involving plumbing, electrical, and furniture upgrades, as well as the renovation of exterior spaces like garages, gardens, and lawns. One of the primary benefits of Residential remodeling is the resulting increase in home value. Remodeling projects that are well-planned can improve a home's appearance, usability, and general quality. Higher resale value may result from this, giving homeowners a return on their investment. Homeowners can modify their living spaces to suit their preferences and sense of style by remodeling their homes. Homeowners have the chance to design a home that reflects their distinct tastes and lifestyle through the selection of materials, finishes, and colors as well as the design of layouts and floor plans. Remodeling a home gives the freedom to change it as per needs.
Residential Remodeling Market Analysis
The global residential remodeling market size was $894.69 billion in 2022 and is predicted to grow with a CAGR of 4.9%, by generating a revenue of $1,409.71 billion by 2032.
COVID-19 Impact on Residential Remodeling Market
During the early stages of the pandemic, many residential remodeling projects were put on hold or delayed. This was primarily due to lockdown measures, social distancing guidelines, and the uncertainty surrounding the economy. Homeowners were cautious about spending on non-essential projects, leading to a decline in remodeling activity. As people spent more time at home due to lockdowns and remote work arrangements, the demand for residential remodeling increased. Homeowners realized the need for functional and comfortable living spaces and began investing in home improvements. As a result, there was a shift in remodeling priorities towards home offices, outdoor living spaces, gyms, and other areas that catered to the new lifestyle needs.
Increase in Disposable Income and Rising Standards of Living to Drive the Residential Remodeling Market
The global residential remodeling industry has grown in recent years, owing mostly to reasons such as increased disposable income, rising living standards, and changing lifestyle choices. As people's salaries and living standards rise, they tend to devote a larger amount of their earnings on renovating their homes and living places. Furthermore, the availability of numerous financing options, such as home equity loans and credit lines, has made it easier for homeowners to fund remodeling projects. This has aided the overall expansion of the residential remodeling sector. Furthermore, rising real estate prices have resulted in a greater emphasis on remodeling existing dwellings held by consumers rather than purchasing new homes. The growing emphasis on modifying the beauty of houses' interiors and exteriors has also contributed to the growth of the remodeling sector.
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Lack of Skilled Labor to Restrain the market
Lack of skilled labor and unavailability of finance are factors predicted to restrain the market growth. Due to the shortage of skilled labor, remodelers and homeowners face challenges in finding skilled professionals for the remodeling project. This can also lead to delays and increased cost, and discourage homeowners from remodeling projects. Due to lack of skilled labor quality concern increases.
Smart Home Technology to Drive Excellent Opportunities
Residential remodeling market encompasses new technologies like smart homes and others to enhance the product and services. Homeowners are looking to incorporate voice-activated assistants, automated lighting, security systems, temperature control, and other smart home features into their living spaces. The seamless integration of these technologies into existing homes calls for remodeling expertise and presents a development opportunity. Remodeling projects in the kitchen and bathroom are frequently desired by homeowners. These areas, which are frequently the focus of a house, offer remodeling companies a chance to demonstrate their prowess in designing practical, fashionable, and distinctive spaces and offer investment opportunities for businesses in the market.
To know more about global residential remodeling market opportunities, get in touch with our analysts here.
Global Residential Remodeling Market Growth, by Product Type, 2022
The professional sub segment generated the highest market share in 2022. Remodeling companies provide skilled workforce who have the knowledge and experience which is required to undertake complex remodeling projects. They possess the necessary skills to handle various aspects of the remodeling process, including design, planning, construction, and project management. Homeowners often prefer professionals to ensure high-quality workmanship and successful project outcomes. Residential remodeling projects must comply with local building codes and regulations to ensure safety and legal compliance. Professional remodelers are well-versed in these requirements and have a thorough understanding of the necessary permits and inspections. Hiring professionals reduces the risk of non-compliance, potential fines, and project delays. Professional remodeling companies have established networks and relationships with suppliers, subcontractors, and manufacturers. This allows them to access a wide range of high-quality resources and materials at competitive prices. They can source materials efficiently and have the capability to handle any challenges or issues that may arise during the project.
Global Residential Remodeling Market Size by Distribution Channel, 2022
The online sub-segment registered the highest market share in 2022. Online platform provides convenience and accessibility for homeowners looking for residential remodeling options. Online subsegment offers design visualization tools like virtual room planers and 3D modeling software; this 3D feature allows homeowners to visualize their remodeling projects online in all dimensional view, so homeowners can easily understand the home design. Online platform provides transparent pricing information, allowing homeowners to compare cost with other suppliers and differentiate the cost factor.
Global Residential Remodeling Market Share, by Application, 2022
The floor & roof sub segment generated the highest market share in 2022. Functional and practical flooring and roofing are essential components of any residential structure. Over time, they can wear out, become damaged, or simply go out of style. Homeowners often choose to remodel their floors and roofs to enhance the functionality and practicality of their living spaces. Upgrading to more durable and aesthetically pleasing materials can greatly improve the overall quality of a home. Aesthetic appeal upgrading the flooring and roof of a residential property can significantly enhance its overall appearance. Homeowners often prioritize these areas as they contribute to the visual appeal of the space. Visual impact on both floors and roofs significantly contribute to the overall aesthetic appeal of a home. Remodeling these areas can transform the look and feel of a residence, providing a fresh and updated appearance. As homeowners seek to improve the visual appeal of their homes, floor and roof renovations become popular choices.
Residential Remodeling Market Size & Forecast, by Region, 2022-2023 ($Billion)
The North America residential remodeling market generated the highest revenue in 2022. Older homes are common in North America, and hence the demand for updates or renovations might be high. The continuous development in home remodeling offers a never-ending supply of chances for remodeling projects, from small renovations to substantial remodels. Homeownership and home improvement investments are strongly ingrained in North American culture. In order to increase the value of their homes, improve their living conditions, or accommodate changing lifestyle demands, homeowners frequently view their properties as long-term investments and are willing to spend money on remodeling projects.
Competitive Scenario in the Residential Remodeling Market
Investment and agreement are common strategies followed by major market players. One of the leading market players in the industry is Pella corporation. Pella Corporation is a window and door manufacturing company based in the United States. It was founded in 1925 by Pete and Lucille Kuyper in Pella, Iowa. Pella is known for its high-quality windows and doors, offering a wide range of products for residential and commercial applications. Over the years, Pella Corporation has established a reputation for craftsmanship, attention to detail, and customer satisfaction. They have a strong focus on product development and have introduced several innovative features and technologies to their windows and doors. In addition to their manufacturing operations, Pella Corporation operates showrooms and authorized dealerships across the United States and Canada, where customers can view and purchase their products. They also offer installation services through their network of certified contractors. Pella Corporation is committed to sustainability and environmental stewardship. The company specializes in designing, manufacturing, and selling windows and doors made from various materials, including wood, fiberglass, and vinyl. Pella windows and doors are known for their energy efficiency, durability, and aesthetic appeal. They offer a variety of styles, finishes, and customization options to meet the needs and preferences of customers.
Some of the leading competitors in the market are Andersen Corporation, Dow Inc., Industries Cotto Possagno S.p.A, Jeld-Wen Holdings Inc., Kajaria Ceramics Limited, Kohler Co., Lurton Electronics, Mohawk Industries, Inc., Pella Corporation, and Seven Group Holdings Limited (Boral Limited).
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Type
Segmentation by Distribution Channel
Segmentation by Application
Key Companies Profiled
Q1. What is the size of the global residential remodeling market?
A. The size of the global residential remodeling market was over $894.69 billion in 2022 and is projected to reach $1409.71 billion by 2032.
Q2. Which are the major companies in the residential remodeling market?
A. AFCA, Allianz SE, AXA, Chubb, and American International Group are some of the major companies in the market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The North America region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What are the strategies opted by the leading players in this market?
A. Agreement and investment are the two key strategies opted by the operating companies in this market.
Q5. Which companies are investing more on R&D practices?
A. Andersen Corporation, Dow Inc., and Industrie Cotto Possagno S.p. A are some of the companies that invest more in R & D.