Europe Remodeling Market share was valued at USD 1,597.2 Bn in 2019 and is anticipated to grow with a CAGR of up to 3.3% during 2020 and 2026. The remodeling market is growing due to the recovering construction industry and initiatives to build energy-efficient infrastructure.
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The growing need to renovate and remodel the aging infrastructure is one of the key reasons which is driving the market growth. The other factors include boosting expenditure on construction projects and a rising number of investments for both the private and public sectors to develop to boost both residential and non-residential construction.
The increasing number of custom designs for residential & commercial facilities coupled with a growing preference of house owners for aesthetically appealing building interiors will act as a key driver of the market in the forthcoming years. The demand for aesthetic value is significantly aiding the further growth of the residential construction sector in the region. The future market growth is anticipated to be underpinned by the dynamically improving construction industry in Europe.
However, remodeling projects which usually take modern technologies into the application are associated with high costs that may act as a restraining factor for the market growth. Moreover, inefficiency in the supply chain owing to the pervasive coronavirus and covid-19 disease is further hampering the industry progress on several levels. After taking a significant hit by the pandemic, the construction sector observed a hold on major projects, which plummeted its growth in the first quarter of 2020. But, after an unprecedented decline, the production activities in the construction sector improved dynamically in May 2020 with a 22% growth rate. Compared to October 2020, construction production improved by 1.2% in September 2020 in the European region. Therefore, the recovering construction sector is anticipated to create lucrative opportunities for the market participants.
The remodeling market based on end-user is segmented into residential and commercial. The residential segment emerged as a major revenue maker in 2019 and is estimated to witness significant growth with a CAGR of up to 3.4% throughout the estimated period. One of the major factors driving the residential remodeling market in the regions includes the rising demand for aesthetic appeal in interiors of residential buildings.
In the European residential market, the interior addition & alterations held over a 43% portion, accounting to be the largest shareholding segment in 2019. The major driver for the residential market is a boost in the number of projects for bath and kitchen remodeling, which is also expected to generate sufficient revenue supporting future growth. Others segment was estimated to be the second-largest revenue producer and held over 23% market share. The growth of the other segment is supported by the increased demand for system & equipment, disaster repair, and property improvement projects. According to the latest report by Graphical Research, the European residential remodeling industry has grown by over 15% since 2016. Therefore, these promising growth trends are expected to further propel the market growth during the review period.
Key players in the Europe market include House Renovation London, APT Renovation Ltd., Walker Construction (UK) Ltd., Bollinger+Grohmann GmbH, Sherwin-Williams Company, Dow Building Solutions, Brymor Group, Kier Group plc, Vinci Construction, Renosud, and Glen Malton.