Table of Contents
Introduction
The Global Home Improvement Services Market is projected to reach USD 652.3 billion by 2033, up from USD 381.9 billion in 2023, growing at a compound annual growth rate (CAGR) of 5.50% from 2024 to 2033.
The Home Improvement Services market encompasses a broad spectrum of services aimed at enhancing or upgrading residential properties, including renovations, repairs, and remodeling projects. This market serves homeowners looking to improve the functionality, aesthetics, and value of their living spaces through services such as kitchen and bathroom remodeling, landscaping, flooring, plumbing, electrical work, and more.
The market has witnessed significant growth, driven by factors like rising disposable income, increased homeownership rates, and a growing desire for personalized living spaces. Additionally, an aging housing stock in mature markets and the trend towards sustainability and energy-efficient home improvements further boost demand. With increasing consumer awareness of home aesthetics and comfort, demand for customized home improvement services is on the rise, creating ample opportunities for service providers. Technological advancements in design tools, coupled with growing online platforms for home services, are also enabling market expansion, offering vast potential for new business models and customer engagement strategies

Key Takeaways
- The global home improvement services market is projected to reach USD 652.3 billion by 2033, up from USD 381.9 billion in 2023, growing at a CAGR of 5.50% during the forecast period (2024–2033).
- North America holds a significant share of the market, comprising 38% of the global market.
- The offline deployment channel dominates, accounting for 60% of the total home improvement services provided.
- Electricity repairs and maintenance account for 22% of the services, indicating strong demand for electrical expertise.
- Interior design leads the types of home improvement services, representing 53% of the market, reflecting a strong consumer preference for aesthetic enhancements.
Report Scope
Report Features | Description |
---|---|
Market Value (2023) | USD 381.9 Billion |
Forecast Revenue (2033) | USD 652.3 Billion |
CAGR (2024-2033) | 5.50% |
Segments Covered | By Deployment(Online, Offline), By Repairs & Maintenance(Non-HVAC Home Appliances, Ventilation and Air Conditioning, Electricity, Gas, Heating, Plumbing), By Home Improvement Type(Interior Design, Construction) |
Competitive Landscape | DKI Ventures, LLC, Rainbow Restoration, Servpro, Power Home Remodeling Group, LLC, Coit Services, Inc., Crane Renovation Group, Mr. Handyman, FirstService Corporation, Belfor, Venturi Restoration, Other Key Players |
Home Improvement Services Statistics
- American home improvement and repair spending reached a record $567 billion in 2022.
- Median homeowner spending on home improvements increased from $15,000 in 2020 to $22,000 in 2022.
- In 2022, 86% of homeowners delayed repairs due to financial constraints.
- People aged 35 to 54 are the most likely to invest in home renovations.
- Home remodeling should be done every 15 to 20 years for homes in good condition.
- Sharp objects like screws, nails, and bolts cause 30% of home remodeling injuries.
- 59% of U.S. homes were built before 1980.
- 84% of homeowners planned to complete a heating and cooling improvement project in 2022.
- The median age of homes in the U.S. is 39 years.
- 55% of homeowners renovated part of their home in the past year.
- 80% of homeowners exceeded their initial renovation budget by at least $500.
- 93% of homeowners reported a better quality of life after completing renovations.
- Urban areas, home to 80% of the U.S. population, drive the majority of the home services market.
- 70% of consumers prefer eco-friendly home services.
- 50% of home services businesses struggle to find qualified workers.
- Investment in home services training and certification programs grew by 25%.
- There are over 2.1 million janitorial workers in the U.S.
- 70% of homeowners are concerned about the chemicals used during cleaning.
- 64% of the cleaning industry workforce is female.
- One-time home cleaning services make up 61% of the cleaning market.
- 60% of people use cleaning services to save time.
- Regular cleaning services account for 39% of the cleaning market.
Emerging Trends
- Increased Adoption of Smart Home Technology: Homeowners are increasingly investing in smart home upgrades, such as energy-efficient lighting, smart thermostats, security systems, and voice-activated devices. These tech solutions enhance comfort and energy efficiency. The global market for smart home systems is growing significantly, driven by consumer demand for convenience and sustainability.
- Sustainability and Eco-friendly Materials: There is a growing demand for eco-friendly home improvement products, like sustainable flooring, energy-efficient windows, and non-toxic paints. Consumers are increasingly aware of their environmental footprint and prefer to opt for renewable and recyclable materials. This trend is expected to expand as more people become environmentally conscious.
- DIY (Do-It-Yourself) Home Improvement: The DIY home improvement market is flourishing, with platforms offering step-by-step guides, tools, and materials to help homeowners tackle projects themselves. Consumers, especially Millennials and Gen Z, are showing an increased interest in handling home improvements independently, leading to an upswing in online sales of DIY products.
- Home Renovation for Increased Property Value: Homeowners are prioritizing renovations that improve property value, such as kitchen and bathroom upgrades, to increase home resale prices. This trend is expected to continue as the real estate market sees fluctuations and homeowners seek to enhance the resale value of their properties.
- Rise of Virtual and Augmented Reality for Design Planning: Virtual and Augmented Reality (AR/VR) are gaining traction in home improvement, especially for interior design and renovation planning. Homeowners can now use VR/AR applications to visualize different designs and changes to their homes before committing to renovations, providing an interactive and immersive design experience.
Top Use Cases
- Bathroom and Kitchen Renovations: Kitchen and bathroom remodeling continue to dominate home improvement projects. Nearly 40% of homeowners are opting for kitchen renovations, with a focus on modern appliances, smart storage, and energy-efficient designs. Bathrooms also see high demand, with people updating fixtures and adding luxury features like steam showers and heated floors.
- Outdoor Living Spaces: Homeowners are increasingly investing in outdoor living spaces like patios, decks, and landscaped gardens. With 49% of Americans choosing to renovate their outdoor areas in the last five years, this sector is becoming a key focus for home improvement services. People are seeking to create functional and relaxing outdoor environments.
- Energy Efficiency Upgrades: Energy efficiency upgrades, such as the installation of solar panels, new insulation, and energy-efficient windows, are increasingly popular. Homeowners are motivated by both cost savings on utility bills and environmental concerns, making this a significant area for growth. More than 55% of renovations now incorporate energy-efficient technologies.
- Accessibility and Aging-in-Place Modifications: As the population ages, there is a growing need for home modifications that support aging-in-place. This includes the installation of wheelchair ramps, wider doorways, and accessible bathroom features like grab bars. The aging baby boomer generation is driving this trend, with a reported increase in demand for home modifications.
- Smart Home Integration and Automation: The use of home automation systems is expanding rapidly, including the integration of voice-activated assistants, automated lighting, and home security systems. A significant number of homeowners (over 60%) are integrating smart technology into their renovation projects, with improvements focusing on convenience and security.
Major Challenges
- Rising Material Costs: The rising cost of raw materials, such as lumber, steel, and other construction materials, is a major challenge for home improvement projects. This has resulted in increased renovation costs and longer lead times. For example, lumber prices saw a dramatic rise of 200% in recent years.
- Labor Shortages and Skilled Worker Deficit: The home improvement industry is facing a shortage of skilled labor, including electricians, plumbers, and carpenters. This shortage is causing delays in project timelines and increasing labor costs. Reports suggest that over 80% of home improvement businesses are struggling to find qualified workers.
- Supply Chain Disruptions: Supply chain disruptions, largely due to the COVID-19 pandemic, continue to affect the availability of materials and tools required for home improvement projects. Delays in product delivery are leading to extended project timelines, causing frustration among homeowners and contractors alike.
- Homeowner Budget Constraints: Home improvement projects can often exceed the homeowner’s budget due to unforeseen issues, such as structural problems or changes in material costs. A study found that 40% of homeowners encounter budget overruns during home renovation projects.
- Regulatory and Permit Challenges: Navigating building codes and securing permits for home improvement projects can be a cumbersome and time-consuming process. About 25% of homeowners report delays due to issues with obtaining necessary permits or meeting local building codes.
Top Opportunities
- Increase in DIY Culture and Online Resources: As DIY home improvement grows, there is an opportunity for businesses to provide online tutorials, instructional videos, and home improvement kits. Nearly 48% of homeowners now engage in DIY projects, often turning to digital platforms for guidance.
- Smart Home Upgrades and Integration: The expanding market for smart home technology presents an opportunity for home improvement service providers. Offering installation of smart home devices, such as security systems, thermostats, and lighting, is becoming a key market segment. With consumer interest rising, this market is poised for significant growth.
- Home Renovation Financing: With renovation costs increasing, there is an opportunity to provide flexible financing solutions to homeowners. Offering payment plans, home improvement loans, or partnerships with financial institutions can help service providers reach a broader customer base.
- Sustainable and Eco-Friendly Solutions: With the rising demand for sustainable living, offering eco-friendly renovation options can open up a new market. This includes the installation of solar panels, green roofs, and energy-efficient appliances. There is an increasing trend toward environmentally-conscious home improvements.
- Aging Population and Accessibility Solutions: The aging population offers an opportunity for home improvement businesses to specialize in accessibility modifications for aging-in-place. With an increasing number of seniors looking to stay in their homes longer, services focusing on ramp installation, wider doorways, and bathroom modifications are in high demand.
Regional Analysis
North America – Home Improvement Services Market with Largest Market Share (38% in 2023)
The North American home improvement services market holds the largest market share, accounting for 38% of the global market in 2023, valued at approximately USD 145.1 billion. This dominant position is attributed to the robust housing market, increasing consumer spending on home renovations, and the growing trend of home personalization. The demand for home improvement services in the region is driven by factors such as rising home ownership, the aging housing stock, and the growing popularity of do-it-yourself (DIY) projects among homeowners.
Additionally, the availability of financing options and increased disposable incomes have further fueled the market’s growth. The region’s technological advancements in smart home solutions and energy-efficient upgrades also contribute significantly to the growth of home improvement services. Major players in the industry are capitalizing on these trends, offering innovative products and services that align with consumer preferences for sustainability and automation. As the largest market in terms of value and share, North America is expected to continue dominating the global home improvement services sector in the coming years.

Recent Developments
- In 2024, Zillow Group completed the acquisition of Virtual Staging AI (VSAI), a company specializing in AI-driven virtual staging technology for real estate. VSAI’s technology allows home sellers, agents, and photographers to create staged listing images without physical furniture. This acquisition, finalized on October 7, 2024, will enhance Zillow’s platform with more innovative listing options for home shoppers.
- On December 19, 2024, Remodel Health, the top provider of Individual Coverage Health Reimbursement Arrangements (ICHRA), secured over $100 million in growth funding from Oak HC/FT and Hercules Capital, Inc. This funding will help Remodel Health expand its services for brokers.
- In 2024, The Home Depot finalized its acquisition of SRS Distribution, a leader in residential specialty trade distribution, for $18.25 billion. SRS serves professionals in roofing, landscaping, and pool contracting. The acquisition was officially announced on March 28, 2024.
- In 2023, Leaf Home, a tech-enabled home improvement provider, acquired Tundraland Home Improvement, a remodeling company based in Kaukauna, WI. This acquisition expands Leaf Home’s presence in North America and strengthens its portfolio of remodeling services.
- On November 14, 2024, Intact Financial Corporation announced its acquisition of Jiffy Inc., Canada’s leading home maintenance app. The acquisition aims to expand Jiffy’s services across more Canadian regions and enhance Intact’s digital engagement with customers.
- bacquired Soil-Away Restoration Services, a top disaster restoration company based in Hooksett, NH. This acquisition strengthens Insurcomm’s presence in New England, enhancing its ability to serve residential, commercial, and industrial clients with disaster restoration services.
Conclusion
The Home Improvement Services market is poised for continued growth, driven by a combination of consumer trends, economic factors, and technological advancements. As homeowners increasingly prioritize personalization, energy efficiency, and smart home integration, the demand for professional services in renovation, repair, and maintenance will continue to rise. Factors such as the aging housing stock, the growing DIY culture, and an expanding focus on sustainability further support the market’s positive outlook. While challenges like rising material costs and labor shortages may pose hurdles, opportunities in smart home upgrades, eco-friendly solutions, and accessibility modifications for the aging population are expected to offer significant growth avenues. The market is likely to evolve with emerging technologies and consumer preferences, presenting a dynamic and competitive environment for service providers in the coming years.
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