Remodeling market has been witnessing a tremendous growth with the surging demand for optimized space utilization and the rapid proliferation of smart homes. Commercial and residential establishment owners have lately been looking forward to expanding their existing facilities to remain aligned with the changing requirements of the housing industry currently. With a rapid increase in population, the construction of new buildings has observed a marginal halt, while a surge has been witnessed in remodeling activities across the residential as well as commercial sectors. The rising number of investments in refurbishment and renovation activities across the globe will thus stimulate remodeling industry share over the years ahead.
North America Remodeling Market, By End-Use, 2013-2024, (USD Billion)
The residential sector is a vital expansion channel for remodeling industry, a fact that can be credited to rising number of household remodeling projects that are presently in vogue. As per a survey carried out by the National Association of Home Builders (NAHB), kitchen & bathroom remodeling, house repair, room additions, and window and door renovations fall among prominent remodeling projects that may emerge as remunerative avenues for remodeling market giants. European nations have been observed to be particularly proactive in this regard, given that the region is home to a plethora of remodeling projects supported by energy efficient methodologies.
Of late, keeping in line with the ongoing trends of reduced energy consumption and energy leakage reduction from commercial buildings and residential homes, building owners have been installing energy-efficient windows and doors which could bring down the energy bills. As per estimates, in 2017 alone, worldwide windows and doors market generated revenue of USD 190 billion. Rapid investments in energy optimized building constructions across the globe will thus further fuel remodeling industry size.
Elaborating on the energy efficiency factor, it is significant to state that most home owners are also looking forward to replacing older building components and upgrading existing amenities. For instance, energy-efficient appliances such as low-flow faucets are now being deployed in homes and offices to minimize the expenses on energy and water. Bathroom renovation majorly involves the replacement of tiles, lighting, and other existing fixtures that are cost-effective as well as energy saving. The deployment of such measures across homes is certain to impel the revenue graph of remodeling market from the residential sector over the years ahead.
The commercial sector is also one of the biggest recipients of the changing remodeling market trends. Hospitals, hotels, corporate offices, and numerous other commercial establishments have been adopting energy-efficient remodeling practices. The healthcare sector especially, has been observed to have poured in quite some capital in infrastructure renovation owing to the increasing deployment of numerous medical facilities. The expansion of new clinical service units to relocate patients has also been encouraging remodeling industry contenders to invest in the healthcare sector.
Validating the aforementioned fact, recently, the Cuyuna Regional Medical Center (CRMC) declared an investment of USD 13 million for interior remodeling and an outpatient clinic in order to meet the growing requirement of its pain management and orthopedic service unit. CRMC is also planning to increase its employee strength considering the growing number of patients, and in this regard, has planned to increase its bed capacity. The rising demand to renovate and remodel existing medical care facilities is certain to have a commendable influence of remodeling market from the commercial sector.
Citing another instance validating the increasing investment in remodeling, the University of Texas issued an announcement to invest USD 50 million in revenue bonds to refurbish the Darrel K. Royal-Memorial football stadium. Close to USD 15 million would be invested in the remodeling of architectural services and USD 20 million in the renovation of the athletic center that would house technologically advanced facilities for sports rehabilitation. This incidence further proves that robust investments in such infrastructure renovation activities will have a positive influence on remodeling market size from the commercial sector that incidentally stood at a mammoth USD 1.5 trillion in 2017.
The commitment of home owners and commercial establishment contractors toward the deployment of energy efficient as well as aesthetic designs is certain to fuel remodeling market trends over the years ahead. Of late, the masses have also been giving preference to the remodeling of existing buildings with the deployment of numerous facilities such as inhouse fitness centers, indoor pool, conference rooms, and computer centers rather purchasing new properties to obtain such advanced infrastructural benefits. Driven by sustainability trends prevalent across the globe in conjunction with the growing populace demanding energy efficient homes and commercial enterprises, remodeling market size is forecast to cross a humongous USD 5 trillion by the end of 2024.