Sweden DIY Home Improvement Market Size & Share Analysis - Growth Trends & Forecasts

Sweden DIY Home Improvement Market Trends and Insights

Rising Interest in Home Renovation and Personalization

Remote-work lifestyles and shifting household priorities are lifting renovation intent. In 2024, 49% of Swedes planned DIY projects over summer, and 23% budgeted for specialist help, underscoring a hybrid execution model. Improved finances for nearly 1 in 5 respondents translated into broader project scopes. The rise of remote work has intensified focus on home office spaces, storage solutions, and indoor air quality improvements, creating new product categories and driving demand for multifunctional furniture and smart home technologies. With housing absorbing 21.9% of consumer outlays in 2021, homeowners channel disposable income toward storage, indoor-air upgrades, and multifunctional furnishings ^{[1]Source: Statistics Sweden, “Consumer Price Index and Construction Cost Index,” scb.se}.

Expansion of DIY Retail Chains and Omnichannel Presence

Chains such as Hornbach invest in compact city stores—e.g., a USD 4.37 million unit in Trollhättan—to meet urban convenience expectations. Clas Ohlson grew to 241 stores and posted 4% sales growth in April 2025 despite FX headwinds, signaling appetite for deeper market penetration. IKEA’s micro-mobility delivery pilots using e-bikes and cargo trailers trim last-mile emissions and customer effort.

Growth of E-commerce for Home-Improvement SKUs

Sweden’s high broadband coverage and digital trust accelerate online DIY transactions. Ninety-two percent of IKEA customers combine web and store visits, illustrating omnichannel complementarity. Retailers respond with AR visualization, live video consults, and click-and-collect logistics that align with complex product decision cycles. The complexity of home improvement products requires sophisticated online-to-offline integration, with retailers investing heavily in augmented reality tools, virtual consultation services, and improved product visualization technologies.

Government ROT-avdrag Tax Incentive Spurring Semi-DIY Renovations

The ROT-avdrag system represents one of Europe's most generous home improvement tax incentives, fundamentally altering project economics and consumer behavior patterns while supporting employment in the construction and renovation sectors. Card-based payment rules formalize contractor activity, while a combined ceiling of USD 7,000 for ROT+RUT offsets encourages larger project packages. The deduction applies only to labor costs, not materials, creating price sensitivity around product selection and driving demand for premium DIY-friendly materials that reduce installation complexity.

Energy-Efficiency Retrofit Push Amid High Power Prices

Solar panels, batteries, and EV chargers qualify for tax rebates of 20–50% on equipment, triggering a bundled energy-saving upgrade. Electricity costs jumped 44.1% in October 2022, reinforcing payback economics for insulation, heat-pump, and smart-lighting installs. Boverket earmarked USD 74.4 million for rentals and proposes USD 93 million annually through 2025, catalyzing spill-over demand in owner-occupied housing^{[2]Source: International Energy Agency, “Sweden Buildings Energy Policies,” iea.org} . 

Ageing Population and DIY Skill Shortage

An older median age and fading vocational skills limit complex project execution. Research shows seniors lean toward cosmetic fixes, while younger, sustainability-minded owners lack hands-on know-how, widening a capability gap. Roughly 27,000 DIY injuries a year, mainly among middle-aged men, raise safety concerns that retailers must address with training workshops and intuitive product kits ^{[3] Source: If Skadeförsäkring, “Home Improvement Injury Statistics 2024,” if.se}. 

Lumber and Material Price Volatility

Material cost instability represents a persistent challenge for Swedish DIY market growth, with price fluctuations creating planning difficulties for both consumers and retailers while affecting project timing and scope decisions. Retailers hedge by diversifying suppliers and adopting dynamic shelf pricing. The price swings create consumer hesitation around project timing and scope, with many homeowners delaying renovations during peak cost periods or substituting materials based on price rather than performance characteristics.

Segment Analysis

By Product Type: Painting Drives Volume, Lighting Powers Growth

Painting & Wallpaper accounted for 21.25% of Sweden DIY home improvement market share in 2024, benefitting from ROT-eligible labor and affordable supplies. The segment’s accessible skill requirements and immediate visual payoff sustain repeat purchases. Tools, building materials, and kitchens follow, while flooring and electrical jobs skew toward hybrid install models requiring certified specialists for compliance.  

Lighting grows fastest at a 7.4% CAGR because LEDs, smart switches, and motion sensors dovetail with tax-supported energy packages. The green-tech deduction covering 50% of storage batteries creates cross-category pull-through for integrated lighting-energy systems[3]. Plumbing lags under strict insurance rules mandating professional touchpoints, and lumber faces cyclical swings tied to commodity markets.

Note: Segment shares of all individual segments are available upon report purchase

By Distribution Channel: Traditional Stores Dominate, Digital Disruption Accelerates

DIY home-improvement stores delivered 62.25% of the Sweden DIY home improvement market size in 2024, anchored by wide assortments, consultative sales, and same-day pickup for urgent fixes. These outlets optimize project baskets by clustering materials under one roof.  

Online platforms, expanding at 12.8% CAGR, capture research-savvy consumers who compare prices and book delivery in a single session. IKEA’s user data confirm that shoppers fluidly navigate between mobile apps, 3-D room planners, and showrooms. Specialty outlets retain value among electricians and trades requiring niche SKUs, while small rural hardware shops pivot to just-in-time community supply roles.

By Project Type: Maintenance Leads Market, Energy Retrofits Drive Future Growth

Maintenance & Repair represented 36.61% of the Sweden DIY home improvement market size in 2024, reflecting the country’s aging Million Homes Programme stock and severe winters. The ROT-avdrag lowers barriers for preventative upkeep, shifting behavior from reactive to scheduled interventions.  

Energy-Efficiency Retrofits, climbing at an 8.2% CAGR, reshape priorities as households chase lower utility bills and carbon targets. Boverket’s rule demanding at least 20% performance gain propels comprehensive packages—insulation, heat pumps, and triple-glazed windows—rather than piecemeal fixes. Garden and outdoor works flourish every summer but remain weather-sensitive.

Note: Segment shares of all individual segments are available upon report purchase

By End-User: Houses Lead Market, Apartments Show Growth Potential

Owner-occupied houses held 47.72% share in 2024 owing to larger floorplates, exterior access, and fewer co-operative restrictions. Detached homes typically combine decking, façade, and landscape jobs, raising basket sizes and cross-selling ratios for retailers.  

Owner-occupied apartments are set for 6.2% CAGR through 2030 as urban professionals channel earnings into interior makeovers and space-saving solutions. Sweden’s bostadsrätt model lets units upgrade kitchens or bathrooms individually, spurring demand for modular systems that avoid structural alteration. Rented dwellings lag, but new efficiency standards push landlords toward professional retrofits that still pull DIY-grade materials through trade counters.

Geography Analysis

Götaland generated 45.5% of 2024 revenue, underpinned by Stockholm’s USD 63,612 GRDP per capita and USD 24,738 household disposable income. Mature dwellings drive steady renovation cycles, while dense retail networks hold prices in check. Forestry-rich Skåne, with land at USD 18,600 per hectare, mirrors strong property wealth that feeds remodeling budgets.

Svealand balances urban Stockholm apartment work with rural cabin upkeep, sustaining diverse product demand. Uppsala’s 4% GRDP growth underscores economic momentum that filters into improvement spending. Construction investment remains elevated, encouraging retailers to deepen omnichannel penetration across the region’s mixed topography.  

Norrland posts the swiftest 7.56% CAGR as mining booms entice a skilled workforce northward. Cold winters amplify the payoff from insulation and window upgrades, while sparse settlement patterns boost e-commerce penetration. Logistics hurdles persist, but seasonal bulk ordering and regional warehouses mitigate availability gaps.