For decades, home improvement in India was largely functional — patching leaks, repainting walls and replacing worn-out furniture. Today, that mindset has shifted. Home improvement is no longer just about maintenance, it’s about reimagining living spaces to reflect changing lifestyles, aspirations and technology. 

Whether it’s hybrid work, digital design inspiration or sustainability, Indian consumers are making more deliberate, investment-driven decisions about their homes. They aren’t just fixing problems, they’re designing homes that enhance their quality of life. 

This shift is fuelling one of the fastest-growing consumer sectors in India. The Indian home improvement market, currently valued at Rs 3 lakh crore, is growing at a 9–10% compounded annual growth rate, with homeowners now renovating every 10–12 years instead of once in a generation.

The Market Opportunity

Several powerful social trends are driving a shift in the mindset of homeowners, creating a large opportunity for the industry: the home improvement market is set to expand to Rs 4 lakh crore by 2030. 

Rising disposable incomes, nuclear families have led to a 40% rise in demand YoY for customised interiors, smart home solutions and custom finishes. The shift to permanent or hybrid work-from-home has made people rethink their spaces. Demand for home offices, ergonomic furniture, and multi-use areas has surged, driving a 30% increase in the last five years in modular home solutions. 

Platforms like Instagram and Pinterest have raised consumer expectations. Homeowners now want aesthetic, well-designed spaces that reflect global trends. More than 60% of urban consumers now consult digital sources before making home improvement decisions as compared to 25% five years ago. With growing awareness around sustainability, more than 50% of high-value homebuyers now prioritise eco-friendly features in their renovation plans as compared to a negligible per cent a decade ago. 

Moreover, home improvement is no longer restricted to high-income households. Flexible financing, easy EMIs and plug-and-play modular solutions have made premium home upgrades accessible to mid-market consumers, expanding the sector’s potential. 

This shift from repair to reimagination has fundamentally altered consumer expectations. But the industry needs to evolve faster to successfully tap into the market opportunity. 

The Supply Gap

While demand is booming, the home improvement industry remains highly fragmented. Unlike consumer electronics or e-commerce, home improvement lacks standardisation and seamless digital experiences.

Three key challenges stand out: 

  • Lack of Standardisation: Costs, quality and execution vary widely across vendors, making pricing unpredictable and service inconsistent.

  • Limited Transparency: Many consumers struggle with unclear pricing, hidden costs, project delays and unreliable execution.

  • Non-Digital, Complex Buying Journey: While industries like travel and retail have gone digital, home improvement still relies on word-of-mouth recommendations and unstructured vendor networks.

As a result, home renovation remains an intimidating, high-friction process, preventing many consumers from upgrading their homes with confidence.

Strategies To Bridge The Gap 

For players in this space, the next wave of growth will come from simplifying choices, building credibility and enhancing transparency. Businesses must ensure these imperatives are met to achieve growth. 

  • Bridging The Trust Gap: Consumers need reliable service providers, transparent pricing models and tech-enabled execution. Verified vendor platforms, standardised contracts and end-to-end managed solutions can drive trust and adoption.

  • Making Home Improvement More Accessible: Mid-income consumers, set to become the largest customer base for the industry, are increasingly looking for affordable, modular designs. Businesses that democratise home design through easy financing, subscription models or DIY kits will unlock exponential growth. 

  • Enhancing Transparency and Ease of Experience: Home improvement needs a digital revolution. Businesses that integrate AI-driven design tools, AR/VR-based home visualisation and tech-driven execution tracking will redefine the consumer journey.

  • Sustainability as a Differentiator, Not an Afterthought: Consumers are increasingly prioritising eco-friendly materials, energy-efficient appliances and waste-conscious designs. Businesses that embed green building standards, offer carbon-neutral solutions and make sustainability affordable will create a long-term competitive edge. More than half of urban consumers already express a willingness to pay a premium for sustainable home upgrades — the industry must catch up. 

The Way Ahead: Time For Mindset Shift

For the home improvement industry, the opportunity is clear: They must think beyond transactions — homeowners are looking for advisory-led, experience-driven solutions, not just vendors.

Businesses must simplify choices to drive faster decision-making and larger market adoption. Finally, technology will serve as the big differentiator, with seamless, transparent and tech-enabled experiences separating industry leaders from laggards.

The Indian home improvement industry is on the cusp of exponential growth. The question is which businesses will evolve fast enough to lead it. 

Mani Singhal is the managing director at Alvarez & Marsal.

Disclaimer: The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team. 

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