Hardware & Home Improvement Stores in Germany - Market Research Report (2014-2029)
Frankfurt, Germany
Last Updated: May 2024
WZ G47.52DERevenue
€27.8bn
Past 5-Year Growth
Profit
€XXX.Xm
Employees
151k
Businesses
11,756
Wages
€X.Xbn
Hardware & Home Improvement Stores in Germany industry analysis
The sector is primarily characterised by DIY and home improvement stores and smaller specialist retailers that focus on specific product categories in the DIY market. As is typical for the retail sector, the industry's development follows macroeconomic trends. In 2020, the pandemic-related contact and travel restrictions initially led to consumers carrying out more home improvement and renovation projects in their houses and flats. However, as they brought forward their consumption in many cases as a result, industry sales fell again in 2021. The past two years were characterised by high energy and food prices, which had a negative impact on consumers' propensity to spend, overall economic development and thus sales in DIY and home improvement stores. As a result, industry sales have fallen by an average of 1% per year since 2019.In 2024, turnover in the sector is expected to amount to 27.8 billion euros, which corresponds to an increase of 0.6% compared to the previous year. The continued high energy and food prices as well as shifts in consumer spending towards the areas of travel and leisure and the necessary everyday errands are responsible for the restrained growth. The current decline in inflation rates and the European Football Championships in Germany are likely to have a positive impact.IBISWorld expects turnover to increase to 29.8 billion euros in 2029. This corresponds to average annual growth of 1.4%. The coming years are likely to hold moderate growth potential for the industry. Overlaps in the markets' coverage areas and the already very high branch density of DIY store chains in Germany are likely to have an inhibiting effect on growth. However, IBISWorld expects new sales to be generated through a stronger focus on services among industry players.
Trends and Insights
- The coronavirus pandemic boosted business temporarily. Many consumers focussed on home improvement and renovation projects during the lockdowns. However, they only brought forward their purchases and therefore had a lower demand for industry products in the following season.
- The largest product category in the industry is the construction segment. Not least due to the significant price increases in the area of building materials from 2021, the share of sales in this segment has risen in recent years.
- Most of the companies and branches are located in the Central region, with the geographical distribution strongly orientated towards the distribution of the population, which is why North Rhine-Westphalia has the largest share of the total number of companies within this region.
- The industry is dominated by large DIY and home improvement stores, which generate a large proportion of industry sales. In addition, there are also regional DIY and home improvement chains and smaller specialist retailers, which, unlike the large DIY stores, often specialise in a wide range of products in certain product groups.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.0 % over the past five years, to reach an estimated €27.8bn in 2024.
Trends and Insights
The development of the sector is strongly determined by the large DIY chains
- The industry is dominated by large DIY and home improvement centres, which generate a large proportion of total industry sales. These companies offer a comprehensive selection across all DIY and home improvement product segments.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Demographic change is likely to strengthen the service orientation of DIY and home improvement centres
- For the future, it is expected that consumer trends will continue to influence the business orientation of the players. Above all, this includes the trend of customers increasingly turning to do-it-for-me services.
Biggest companies in the Hardware & Home Improvement Stores in Germany
| Company | Market Share (%)
2024 | Revenue (€m)
2024 |
|---|---|---|
Bauhaus AG | 4,441.0 | |
Obi Group Holding SE & Co. KGaA | 2,967.0 | |
Toom Baumarkt GmbH | 2,615.0 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Products from the construction segment, DIY supplies and Products from the garden segment. Products from the construction segment is the largest segment of the Hardware & Home Improvement Stores in Germany.
Trends and Insights
Products from the construction segment form the most important product group in the industry
- The largest product category in the sector is the construction segment. It includes construction chemicals, building materials such as insulation materials, wood, tiles and painting supplies.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Textile Retailers in Germany
- Carpet, Rug & Curtain Retailers in Germany
- Electrical Household Appliance Retailers in Germany
- Furniture, Lighting & Homeware Retailers in Germany
International industries
- Home Improvement Stores in the US
- Home Improvement Stores in Canada
- Hardware and Building Supplies Retailing in Australia
- Hardware and Building Supplies Retailing in New Zealand
- Hardware & Home Improvement Stores in the UK
Table of Contents
About this industry
Industry definition
The companies in this sector, typically DIY stores or smaller specialist retailers, sell metal goods, paints and other building and DIY supplies to end consumers and, in some cases, to professional customers. The goods sold are purchased from wholesalers or directly from producers.
What's included in this industry?
Products from the construction segmentDIY suppliesProducts from the garden segmentProducts from the residential segmentCompanies
Bauhaus AGObi Group Holding SE & Co. KGaAToom Baumarkt GmbHPurchase this report to view all 4 major companies in this industry.
Related Terms
DO-IT-YOURSELF MARKETDO-IT-FOR-ME CUSTOMERSCOST LEADERSHIPIndustry Code
WZ 47.52 - Hardware & Home Improvement Stores in Germany
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The coronavirus pandemic boosted business temporarily. Many consumers focussed on home improvement and renovation projects during the lockdowns. However, they only brought fo...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The largest product category in the industry is the construction segment. Not least due to the significant price increases in the area of building materials from 2021, the sh...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Most of the companies and branches are located in the Central region, with the geographical distribution strongly orientated towards the distribution of the population, which ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
The industry is dominated by large DIY and home improvement stores, which generate a large proportion of industry sales. In addition, there are also regional DIY and home imp...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Obi has expanded its cross-channel business. The improved online presence, which has included its own app since 2020, is intended not only to increase sales through purchases...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Bauhaus AG's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Obi Group Holding SE & Co. KGaA's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Toom Baumarkt GmbH's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Bauhaus AG, and factors influencing its performance in the industry
- Description and key data for Obi Group Holding SE & Co. KGaA, and factors influencing its performance in the industry
- Description and key data for Toom Baumarkt GmbH, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The DIY sector is affected by temporary employment regulations, among other things. Since 2017, temporary workers have had to receive the same pay as permanent staff after ni...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The industry's profit margin is relatively low. The reason for this is the strong competition among the large DIY chains, which usually pursue the strategy of generating prof...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Germany include:
- German Federal Statistics Office (Destatis)
- European Statistics Office (Eurostat)
- United Nations Comtrade
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:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
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.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hardware & Home Improvement Stores industry in Germany in 2024?
The market size of the Hardware & Home Improvement Stores industry in Germany is €27.8bn in 2024.
How many businesses are there in the Hardware & Home Improvement Stores in Germany industry in 2024?
There are 11,756 businesses in the Hardware & Home Improvement Stores industry in Germany, which has declined at a CAGR of 1.6 % between 2019 and 2024.
Has the Hardware & Home Improvement Stores industry in Germany grown or declined over the past 5 years?
The market size of the Hardware & Home Improvement Stores industry in Germany has been declining at a CAGR of 1.0 % between 2019 and 2024.
What is the forecast growth of the Hardware & Home Improvement Stores industry in Germany over the next 5 years?
Over the next five years, the Hardware & Home Improvement Stores industry in Germany is expected to grow.
What are the biggest companies in the Hardware & Home Improvement Stores market in Germany?
The biggest companies operating in the Hardware & Home Improvement Stores market in Germany are Bauhaus AG, Obi Group Holding SE & Co. KGaA and Toom Baumarkt GmbH
What does the Hardware & Home Improvement Stores in Germany include?
Products from the construction segment and DIY supplies are part of the Hardware & Home Improvement Stores industry.
Which companies have the highest market share in the Hardware & Home Improvement Stores in Germany?
The company holding the most market share in Germany is Bauhaus AG.
How competitive is the Hardware & Home Improvement Stores industry in Germany?
The level of competition is high and steady in the Hardware & Home Improvement Stores industry in Germany.
