The home improvement industry is in a constant state of flux due to the evolving needs and desires of homeowners. From smart home technology to sustainability to DIY personalization, a variety of influential trends are reshaping the home improvement industry.
This article takes a closer look at the data behind these trends, drawing on the latest reports from several leading market research firms.
1. Smart Home Technology
Smart home technologies are a notable trend and a major area of growth among tech giants such as Samsung, Amazon, Google, and Apple. Smart home devices can be controlled remotely through the internet, offering automation and convenience for tasks such as lighting, security, and climate control.
Globally, the smart home market is projected to increase from an estimated $101.7 billion in 2023 to $163.7 billion by 2028, rising at a compound annual growth rate (CAGR) of 10% during the forecast period, according to a recent report on the smart home market by MarketsandMarkets.
The widespread adoption of home automation solutions is driven by their convenience, energy efficiency, and cost-saving advantages. In regions like North America and Europe, lighting control, HVAC systems, security products, and access solutions have gained significant traction. This trend has prompted smart home product manufacturers to diversify their offerings and expand their product portfolios.
While popular, smart home devices face a variety of challenges including the high cost of switching, concerns over security and privacy breaches, difficulties linking disparate systems, and limited functionality.
Homeowners are increasingly gravitating towards eco-friendly materials and energy-efficient solutions that reduce their carbon footprint while enhancing their living spaces. For instance, reclaimed wood is finding its way into interiors, adding rustic charm with a side of sustainability.
The global reclaimed lumber market is expected to hit $70.61 billion by 2028 from a base of $49.27 billion in 2020, according to Global Reclaimed Lumber Market Analysis & Trends by Accuray Research LLP. The use of reclaimed lumber helps protect forests and reduces the percentage of materials being sent to landfills. Reclaimed lumber also provides a natural rustic look and feel.
Another example of the sustainability trend is the popularity of solar panels, which allow homeowners to harness the power of the sun to meet their energy needs and even sell excess energy back to the grid. Global Industry Analysts estimates the global solar panels market will grow from $50.1 billion in 2022 to reach $98.5 billion by 2030, rising at a CAGR of 8.8% over the period. The solar panel market is growing due to heightened environmental awareness, decreasing costs, government incentives, technological advancements, and the appeal of clean energy for reducing emissions and achieving long-term savings.
3. Outdoor Living
The great outdoors is becoming an extension of the home, as homeowners invest in outdoor spaces that are as inviting as their interiors. Landscaping, outdoor kitchens, and cozy seating areas are all part of the trend that emphasizes outdoor living.
The outdoor living industry benefited from elevated sales during the COVID-19 pandemic, but the industry is facing headwinds in 2023. “Near term growth rates for many segments will be challenged by an inflationary environment that is increasingly fostering price sensitivity,” states US Outdoor Living Products 2023 by The Freedonia Group.
However, innovations are expected to boost sales and encourage products upgrades. Consumers are increasingly seeking sustainability features that increase energy and water efficiency. Smart technology, particularly for mowers and irrigation controls, also holds special appeal.
The fast-paced modern lifestyle has propelled the need for wellness-focused spaces within homes. Homeowners are transforming bathrooms into spa-like sanctuaries, complete with steam showers, soaking tubs, and calming color palettes. This trend also extends to fitness rooms equipped with state-of-the-art exercise equipment and dedicated meditation corners.
“Consumers are spending more on wellness than they ever have before,” explains McKinsey & Company. “Consumers intend to keep spending more on products that improve their health, fitness, nutrition, appearance, sleep, and mindfulness.”
Home design companies are experimenting with a variety of wellness concepts, such as smart technology that provides soft lighting and a relaxing playlist at the touch of a button, or storage items that promote a sense of calm and order.
5. Do-It-Yourself (DIY) and Personalization
The rise of home improvement influencers and online video tutorials with step-by-step guidance has empowered many homeowners to take matters into their own hands. The DIY trend is not only about saving costs but also about creating spaces that are uniquely tailored to individual tastes. Companies like IKEA have tapped into this trend by offering customizable furniture options, allowing homeowners to express their creativity and personality through their home décor.
DIY home improvement encompasses a wide array of market segments from lighting and painting to wallpaper and flooring. In a recent report, Prodture projects the global DIY home improvement retailing market will increase at a CAGR of 3.9% from 2023 to 2030.
Additional Home Improvement Industry Research
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About the Author: Sarah Schmidt is a Managing Editor at MarketResearch.com, a leading provider of global market intelligence products and services.