Research conducted by Global Market Insights Inc. shows that over the next 10 years the remodeling market is predicted to grow from $4.1 trillion in 2022 to over $6 trillion in 2032 with a compound annual growth rate (CAGR) of 3.5%. This is due in part to smart city initiatives, changes in living styles due to COVID-19, more efficient factories, demand for sustainable homes, and remodeling in the hospitality sector as the tourism market continues to grow at the tail-end of the pandemic.
Several nations have recently initiated smart city projects to refurbish and renovate aging public infrastructure, to improve living conditions, and to provide a boost to their economies. Growth is also seen at the residential level as property owners have had to remodel their homes to accommodate for school and work-from-home requirements. Additionally, increasing property values, especially in the Asia-Pacific region, have been driving the remodeling market, as demand has risen for smaller, more efficient living spaces.
Another initiative, the Smart Manufacturing Project, launched by the Abu Dhabi Department of Economic Development, provides a technological push to manufacturers of pharmaceuticals, food, and electronics in the region. This contributes towards commercial remodeling efforts by transforming factories to incorporate a higher level of automation, safety, and efficiency.
Increasing efforts by world governments to make sustainable homes are also likely to drive remodeling market growth. In the United States, the Biden administration unveiled $3.16 billion as part of its extensive $1.2 trillion infrastructure bill to help upgrade low-income homes to make them more energy efficient. The project will focus on installing new insulation, updating cooling and heating systems, and a switch to energy efficient appliances. Additionally, climate pledges in countries across Europe to reach climate neutrality by 2050 will lead to increased demand for commercial and residential renovation and remodeling.
The growth of the remodeling market has followed the growth of the tourism sector. Retail stores, hotels, and restaurants have invested in updating and improving the interior and exterior of their spaces.
Improved supply-chain management, especially in Europe, has provided more remodeling options to customers.
There are factors that may constrain industry growth. There is a shortage of skilled labor. Fewer skilled laborers are entering the industry each year than the number retiring. There is also increasing awareness of the occupational hazards associated with the construction and remodeling sector. According to the International Labor Organization (ILO), at least 108,000 construction workers are killed on-site annually, accounting for nearly 30% of all workplace deaths. This awareness has led to growing scrutiny from regulatory agencies, such as the Occupational Safety and Health Administration (OSHA) in the United States, that are pushing for the establishment of more comprehensive and enforceable safety measures throughout the industry. These efforts are likely to help the market attain better productivity while ensuring optimal safety.
To learn more about the Global Marketing Insights report, visit www.gminsights.com/industry-analysis/remodeling-market.