PMRREP35670
1 Oct 2025
Consumer Goods
198 Pages
The global DIY home improvement market size is likely to be valued at US$800 billion in 2025. It is expected to reach US$1,400.9 billion by 2032, growing at a CAGR of 8% during the forecast period from 2025 to 2032, driven by increasing consumer interest in home renovation and cost-effective solutions.
Rising urbanization, a growing millennial and Gen Z homeowner base, and the widespread adoption of digital tools such as AR tutorials are reshaping project execution and engagement.
Cost savings and personalization remain major drivers, with nearly half of homeowners undertaking DIY projects to reduce expenses while enhancing living spaces. The proliferation of online retail channels and easy access to building materials are expanding market reach, while economic factors and fluctuating material costs continue to influence spending patterns.
| Key Insights | Details |
|---|---|
| DIY Home Improvement Market Size (2025E) | US$800 Bn |
| Market Value Forecast (2032F) | US$1400.9 Bn |
| Projected Growth (CAGR 2025 to 2032) | 8% |
| Historical Market Growth (CAGR 2019 to 2024) | 4.7% |
The DIY home improvement market is increasingly shaped by the rise of online DIY tutorials and virtual design tools, which allow homeowners to execute complex projects with greater confidence. Platforms such as YouTube and TikTok have become key resources, with a significant portion of Gen Z and millennial audiences turning to these channels for guidance on home renovation and remodeling.
This shift reduces reliance on professional contractors for basic projects. However, skilled trades such as electrical and plumbing still require professional involvement in many regions due to legal and safety concerns. For example, Lowe's has leveraged this trend through its "DIY-U by Lowe's" program, offering livestreamed workshops and interactive content to engage digitally savvy consumers.
AI-powered personalization in home design is transforming how homeowners approach renovations. Advanced platforms now analyze user preferences to recommend tailored solutions that optimize both aesthetics and functionality, providing a seamless user experience. This level of customization is particularly appealing to younger homeowners who prioritize efficiency and unique design.
Integrating AI into virtual design tools allows users to visualize changes in real-time, streamlining decision-making and increasing project success rates. Together, these technological advancements are driving sustained growth and reshaping consumer behavior within the DIY home improvement market.
Despite the growing popularity of DIY home improvement, many homeowners remain limited to projects that are primarily aesthetic, such as painting, landscaping, or fixture upgrades. More complex undertakings, including electrical work, plumbing, or structural modifications, often require professional intervention due to safety concerns and potential code violations. This limitation narrows the scope of DIY activities and can discourage some homeowners from attempting projects, restricting the overall market engagement and adoption.
Psychological barriers and skill gaps also pose significant challenges. A substantial number of potential DIY enthusiasts are deterred by the fear of making mistakes, with surveys indicating that nearly 70% of individuals avoid projects due to this concern.
Compounding this issue, many homeowners lack the technical expertise or hands-on experience required for certain tasks, which can lead to project delays, errors, or abandoned initiatives. These factors collectively restrain market growth and highlight the need for supportive tools and educational resources to enhance consumer confidence and capability.
The integration of augmented reality (AR) tools is creating significant opportunities in the DIY home improvement market by allowing homeowners to visualize projects before execution. These technologies enable users to overlay digital designs onto their physical spaces, supporting more informed decisions and minimizing costly errors. Retailers that leverage AR, such as Lowe’s with its "DIY-U by Lowe's" program, which offers interactive workshops and livestreamed tutorials, are enhancing customer engagement and positioning themselves as innovative leaders in the market.
The rising interest in sustainable and eco-friendly home improvement solutions presents another compelling opportunity in the DIY market. Homeowners are increasingly seeking energy-efficient materials, low-VOC paints, and recycled building products to reduce environmental impact and long-term utility costs.
This trend not only aligns with the growing environmental consciousness but also allows retailers and manufacturers to introduce specialized product lines catering to green DIY projects. For example, Home Depot has expanded its sustainable product offerings, including responsibly sourced lumber and eco-friendly insulation, which has attracted environmentally conscious consumers and driven incremental revenue growth.
The building materials segment is the largest within the DIY home improvement market, accounting for approximately 51.8% of market share in 2025. driven by the essential role these materials play in structural maintenance and home renovation projects.
With rising urbanization and an increasing number of homeowners undertaking personalized renovations, demand for materials such as drywall, cement, insulation, and metal framing has surged. A notable example is Lowe’s acquisition of Foundation Building Materials (FBM) for US$8.8 Bn, which strengthens its supply chain and product range for both professional builders and DIY enthusiasts, highlighting the strategic importance of this segment.
In contrast, paints and coatings represent the fastest-growing product type. Growth in this segment is driven by innovations such as low-VOC paints, specialty coatings, and self-painting kits that make aesthetic and protective home improvements more accessible to DIY consumers. The increasing focus on interior personalization, combined with ease of application, has expanded the appeal of painting projects for homeowners, particularly millennials seeking cost-effective yet impactful renovations.
Within materials, wood and laminates are anticipated to dominate, favored for their versatility, affordability, and ease of handling. They account for the largest share due to the widespread use in furniture assembly, cabinetry, flooring, and other home décor projects. The popularity of modular and flat-pack solutions, such as IKEA’s offerings, demonstrates the appeal of wood and laminates for homeowners seeking customizable and budget-friendly solutions.
Eco-friendly and recycled materials are the fastest-growing segment in the material category. Driven by increasing environmental awareness and sustainability trends, these materials —such as reclaimed wood, recycled plastics, and sustainable composites —are gaining traction among DIY enthusiasts.
The rise of upcycling projects, where old or discarded materials are repurposed for new applications, exemplifies this shift toward sustainable home improvement practices. This trend not only supports environmentally conscious decision-making but also opens new opportunities for innovative product offerings in the market.
North America remains a dominant region, accounting for approximately 48.7% of the market share, primarily driven by a strong culture of self-managed home renovation and remodeling projects. In the U.S., homeowners are increasingly pursuing DIY initiatives due to rising labor costs and a desire for personalized home spaces. Remodeling projects, particularly kitchen and bathroom renovations, remain popular as consumers aim to enhance both functionality and aesthetic appeal.
Retailers have responded strategically to this trend; for instance, Lowe’s expanded its reach into the professional builder segment with the acquisition of Foundation Building Materials, allowing the company to provide a broader range of construction and remodeling materials to both DIY enthusiasts and trade professionals. Similarly, Home Depot continues to strengthen its product offerings and digital tools to support homeowners in tackling more complex projects, from flooring installations to custom cabinetry.
In Canada, the DIY trend mirrors that of the U.S., with homeowners showing an increasing interest in personalizing their homes and undertaking cost-efficient renovation projects. Canadian retailers have been proactive in enhancing the customer experience, with several chains integrating online platforms that allow consumers to browse products, access DIY tutorials, and plan projects before visiting physical stores.
This hybrid model, which combines digital convenience with in-store support, has become a key differentiator in the market, reflecting a broader shift in North America toward technology-enabled DIY solutions. Recent initiatives by Canadian retailers include offering live virtual workshops and project planning tools to help consumers confidently execute larger-scale renovations.
Asia Pacific represents one of the fastest-growing markets for DIY home improvement, fueled by rapid urbanization, rising disposable incomes, and a burgeoning middle class. In China, the market is characterized by a shift toward modern home aesthetics and multifunctional spaces, with homeowners increasingly investing in DIY solutions that combine style with practicality.
E-commerce platforms have emerged as a pivotal channel, providing access to a wide range of products, instructional content, and project planning tools. For example, companies such as JD.com and Alibaba are leveraging AR-enabled applications and livestreamed tutorials to guide consumers through complex renovations, making DIY projects more accessible and engaging.
India’s DIY market is also witnessing robust expansion, driven by urban growth and a rising focus on home personalization. Consumers are seeking affordable, flexible solutions that allow them to customize interiors, from modular furniture to decorative fixtures. Retailers are responding by expanding product assortments and offering digital resources that help homeowners plan and execute projects efficiently.
The growing popularity of DIY workshops and tutorial-based content on platforms such as YouTube has further empowered Indian consumers to take on more ambitious projects. Several home improvement retailers in India have begun introducing pre-packaged DIY kits for kitchen, bathroom, and garden upgrades, reflecting a growing trend toward simplifying project execution while enhancing consumer confidence.
Europe’s DIY home improvement market is evolving steadily, with strong emphasis on sustainability, quality, and technological integration. In Germany, the market is mature, and consumers prioritize durable, eco-friendly materials and energy-efficient solutions. Retailers are responding by offering comprehensive DIY packages that combine tools, materials, and expert guidance.
German chains such as Obi and Hornbach have integrated online platforms with their physical stores to allow consumers to explore products, compare materials, and visualize project outcomes before making a purchase. This blend of digital and in-store experiences is helping consumers undertake more complex home improvement projects with confidence, from building custom furniture to renovating entire rooms.
In the U.K., the DIY market is experiencing a notable shift toward digitalization. Consumers are increasingly relying on online resources for product information, tutorials, and making purchase decisions. Retailers such as B&Q have adapted by streamlining operations and enhancing their e-commerce presence.
Recent strategic decisions, including a major restructuring that resulted in the reduction of over 650 positions, reflect the company’s efforts to optimize operations and align with evolving consumer behavior. The U.K. market is also witnessing growing interest in smart home integration and small-scale, eco-friendly projects, with retailers offering dedicated sections for sustainable products and connected devices, which further drives the adoption of DIY initiatives.
The global DIY home improvement market is moderately fragmented, with a mix of large multinational retailers and specialized regional players competing to capture market share. Leading companies, such as Lowe’s, Home Depot, B&Q, Kingfisher, and Obi, dominate the market through extensive product portfolios, strong brand recognition, and integrated digital and offline retail strategies.
The market has witnessed significant strategic developments, including Lowe’s acquisition of Foundation Building Materials to strengthen its professional builder segment, and B&Q’s operational restructuring aimed at streamlining costs and enhancing e-commerce capabilities.
Companies are increasingly focusing on technology-driven initiatives, such as AR-enabled project planning, online tutorials, and sustainable product offerings, to differentiate themselves and cater to evolving consumer demands. Strategic partnerships with suppliers and investments in logistics infrastructure further reinforce competitive positioning, highlighting a dynamic landscape driven by innovation, customer experience, and regional expansion.
The DIY home improvement market size is estimated at US$800 Bn in 2025.
By 2032, the market is projected to reach US$1.5 Tn.
Key trends include the adoption of AR/AI tools for project planning, growing preference for eco-friendly and recycled materials, expansion of e-commerce platforms, and a shift toward personalized interior and smart home solutions.
Building materials hold the largest share, accounting for approximately 52% of the market, due to their critical role in renovations, remodeling, and structural projects.
The DIY home improvement market is expected to grow at a CAGR of 8% between 2025 and 2032.
Leading players include Lowe’s, Home Depot, B&Q, Kingfisher, OBI, and IKEA.
| Report Attribute | Details |
|---|---|
| Historical Data/Actuals | 2019 - 2024 |
| Forecast Period | 2025 - 2032 |
| Market Analysis | Value: US$ Bn |
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