Remodeling Market Size By End-Use (Residential [Interior addition & alterations {Kitchen, Bath, Other room}, Exterior addition and alterations {Porch, garden, and garage}, System & equipment, Disaster repair, Property improvement], Commercial [Office spac

Remodeling Market Size By End-Use (Residential [Interior addition & alterations {Kitchen, Bath, Other room}, Exterior addition and alterations {Porch, garden, and garage}, System & equipment, Disaster repair, Property improvement], Commercial [Office space renovation, Retail space renovation, Hotel remodeling, Restaurant renovation & remodeling, Snow removal]), COVID19 Impact Analysis, Regional Outlook, Application Development Potential, Competitive Market Share & Forecast, 2023 - 2032

The global remodeling market is poised to witness substantial growth through 2032, owing to the increasing number of smart city initiatives across leading economies. Several nations have recently initiated smart city projects in an effort to refurbish and renovate ageing public infrastructure and give their economies a much-needed boost out of the pandemic slump.

Citing an instance, in 2020 Germany unveiled the Smart City Model Projects Program to help the nation’s municipalities by financing the development of smart city strategies with a capital of around €350 million.

Another initiative, the Smart Manufacturing Project, launched by the Abu Dhabi Department of Economic Development, strives to provide a technological push to manufacturers of pharmaceuticals, food, and electronics in the region. It will contribute towards commercial remodeling efforts by transforming factories to incorporate a higher level of automation, safety, and efficiency.

Meanwhile, increasing efforts by world governments to make sustainable homes are also likely to drive market growth. Recently in US, the Biden government unveiled a $3.16 billion scheme 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 also switching to more efficient electrical appliances.

Meanwhile, growing awareness about the occupational hazards associated with the construction, and remodeling, sector may constrain industry growth. According to International Labour Organization, at least 108,000 construction workers are killed on-site annually, which accounts for nearly 30% of all occupational fatal injuries.

However, growing scrutiny from regulatory agencies such as OSHA, in the US, is pushing market players to establish and enforce more comprehensive safety measures. These efforts are likely to help the market attain better productivity while ensuring optimal safety.

The overall remodeling market landscape is divided into segments such as end-use, and regional landscape.

On the basis of end-use, the industry is categorized into residential and commercial. The exterior addition and alterations from the residential segment registered over USD 650 billion in 2022. The segment is slated to witness notable growth in Brazil, where increasing consumer inclination towards improving the interior and exterior of homes, corporate spaces, retail stores, hotels, and restaurants is propelling market growth.

In addition, with the tourism sector picking up steam, investments towards redesigning of the interior and exterior of hotels across the hospitality sector would also shape segment outlook.

Regionally, the market is classified into North America, Asia Pacific, Europe, Latin America, and MEA. The Europe remodeling market is anticipated to witness over 3% CAGR by 2032, owing to increasing government initiatives to enhance office safety and rising employee inclination towards better working spaces.

Moreover, improved supply chain management practices are providing more remodeling options to customers in the region. Climate pledges by countries across Europe would also foster industry size. Efforts such as the Renovation Wave Initiative strive to increase Europe’s renovation rate to at least 3% annually, to propagate and average reduction of 75% in energy demand to reach climate neutrality by 2050.