$297.6bn
$XX.Xbn
764k
3,630
$XX.Xbn
Home improvement stores form a mature industry dominated by two major companies, Home Depot and Lowe's. Both companies share similar product lines, which fuels high levels of price competition. Home improvement stores serve various markets, including do-it-for-me (DIFM), do-it-yourself (DIY) and professional customers. The most prominent influence on industry performance is activity in the residential market. Starting in 2021, spikes in inflation have limited consumers' spending power and rising interest rates have constrained residential construction spending. Still, revenue for home improvement stores is expected to swell at a CAGR of 5.4% to $297.6 billion through the end of 2024, including growth of 3.9% in 2024 alone.
Industry revenue has grown at a CAGR of 5.4 % over the past five years, to reach an estimated $297.6bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Home Depot, inc. | 124,494.3 | 19,117.5 | 15.4 | |
Lowes Companies Inc. | 84,739.8 | 10,642.4 | 12.6 | |
Menard, Inc. | 14,571.0 | 1,807.4 | 12.4 |
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Industry revenue is measured across several distinct product and services lines, including Lumber and other building and structural materials, Hardware, tools and plumbing and electrical supplies and Lawn, garden and farm equipment supplies. Lumber and other building and structural materials is the largest segment of the Home Improvement Stores in the US.
Lumber and other building and structural materials were needed for the massive jump in housing starts
Stores in this industry sell a range of home repair and maintenance goods, such as hardware, tools, electrical goods, lumber and structural material for construction and renovations. Hardware stores, which are generally smaller and consequently sell fewer items, are excluded from this industry. Home improvement companies purchase goods from manufacturers and wholesalers and sell them to end users, such as do-it-yourself consumers and professional contractors.
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NAICS 44411 - Home Improvement Stores in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Rising interest rates present a massive problem for the industry. Demand from the residential and nonresidential markets will bear the brunt of the rate hikes.
Learn about an industry's products and services, markets and trends in international trade.
The pandemic spurred residential activity. However, the effects were not experienced across all product segments.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Home improvement stores are located near high-population areas. This exposes stores to a sizeable base of consumers, ensuring a steady level of business.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Rising interest rates have lowered the ability of companies to expand operations, halting concentration for the largest stores. This trend has worked to limit concentration e...
Learn about the performance of the top companies in the industry.
In response to the pandemic, consumers boosted spending on home improvements and other residential-related spending. While there has been considerable economic volatility sin...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Low interest rates benefitted revenue through the end of 2024. Contractionary monetary policy during 2022 caused interest rates to climb, crushing demand from the residential...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
High-skilled labor keeps wages high as a share of revenue. Growing competitive pressure and a changing business landscape will pressure profit.
Including values and annual change:
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Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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The market size of the Home Improvement Stores in the US industry in United States is $297.6bn in 2024.
There are 3,630 businesses in the Home Improvement Stores in the US industry in United States, which has grown at a CAGR of 0.2 % between 2019 and 2024.
The market size of the Home Improvement Stores in the US industry in United States has been growing at a CAGR of 5.4 % between 2019 and 2024.
Over the next five years, the Home Improvement Stores in the US industry in United States is expected to grow.
The biggest companies operating in the Home Improvement Stores market in United States are Home Depot, inc., Lowes Companies Inc. and Menard, Inc.
Retailing plumbing goods and Retailing electrical goods are part of the Home Improvement Stores in the US industry.
The company holding the most market share in United States is Home Depot, inc..
The level of competition is moderate and steady in the Home Improvement Stores in the US industry in United States.