Outdoor Living Structures Market Size, Share & Trends Analysis Report By Product (Pergolas/Patio, Pavilion/Gazebo), By Region, And Segment Forecasts, 2024 - 2030

Outdoor Living Structures Market Trends

The global outdoor living structures market size was estimated at USD 2.19 billion in 2023 and is projected to grow at a CAGR of 6.3% from 2024 to 2030. The product demand is rising owing to the growing trends in the construction of dining and leisure areas, primarily in North America and Europe regions. In addition, growing preferences among homeowners with large gardens and backyards towards the usage of unused spaces in their properties for the construction of recreation rooms, accessory dwelling units, prayer rooms, kids' playing rooms, and others are expected to drive the market growth.

Increasing demand for home value and ‘curb appeal’ have propelled the demand for outdoor living structures in the U.S. Furthermore, the incorporation of smart and advanced technologies in outdoor living spaces is a newly emerging trend in the U.S., and it is anticipated to offer expansion potential for product manufacturers. Outdoor living spaces provide a place to relax and recharge, as well as a comfortable place to spend time away from gadgets.

The major raw materials utilized in outdoor living structures include concrete, wood, ground covers, granite, stainless steel, glass, and aluminum. The usage of raw materials in these structures is usually dependent on the demands and requirements of homeowners given to architects and structure manufacturers. Manufacturers tend to collaborate with raw material suppliers via third-party agreements for timely availability and supply of materials as per customer demands.

Many suppliers are available at the global level for stainless steel, wood, aluminum, gravel, and concrete. These products are utilized in several applications, including automobiles, construction, electronics, and others. This can lead to fluctuations in the availability of these materials. The demand for raw materials is highly dependent on buyers’ preferences. Thus, their timely availability is a critical factor for manufacturers, leading to an increase in supplier’s bargaining power.

Market Concentration & Characteristics

The market growth stage is medium, with an accelerating pace. The industry includes several small and medium-sized companies, which compete based on product quality, customer service, and product pricing. Moreover, industry players offer similar products and services to the end-users, thus, the market concentration is expected to be fragmented in nature.

The market is characterized by a medium degree of innovation. Several companies are working on the adoption of new technologies for speeding up manufacturing processes and providing new customized solutions for homeowners. Some of the prevalent technologies include Off-Site Manufacturing (OSM), integrations of LED lighting with steps & seat walls, app-controlled lighting, sound, and temperature control systems.

The market is also characterized by a medium level of merger and acquisition (M&A) activity by the players. The companies are investing in expanding their product line to provide the best suitable design with a variety of roofing structures, superior ceilings, and cladding design patterns. These are expected to be among the key factors influencing product demand.

The market is also subject to increasing regulatory scrutiny. Several economies around the world have important regulations for patios and accessory dwelling units (ADU). For instance, the California government has set a number of standards for accessory dwelling units (ADUs), including size, interior area, height, construction materials, and electrical & utility.

The threat of substitutes is expected to be low over the forecast period due to the lack of known substitutes for living structures to be installed outside of buildings. Low-threat substitute products increase the attractiveness in terms of demand for outdoor living structures. This also increases the profit potential of the companies in the industry.

End user concentration is a significant factor in the market. Homeowners specify their needs to contractors, which the manufacturers then fulfill by designing, fabricating, and installing structures according to consumer needs. The end user concentration of outdoor living structures is dependent on customization and integration to gain high profit margins and construct appropriate structures according to customer satisfaction.

Product Insights

The market was dominated by pergolas/patios in 2023, with a share of more than 64%. This is attributed to its low price as compared to the pavilion/gazebo and easy construction. It is an extension of living and dining areas and does not require extra space as in case of pavilion/gazebo.

Several materials are utilized for making pergolas, including wood, stone, steel, aluminum, vinyl, fiberglass, and cellular polyvinyl chloride. The commonly used wood types are cedar and redwood, to create a natural garden look. However, the look of these pergolas fades out with time, thus requiring high maintenance work.

Gazebos or other types of pavilions are shade structures with fully or partially open sides. This type of structure is used for several applications, including fireplaces, bars, seating areas, outside kitchens, and entertainment zones. Gazebo construction is expected to be more economical than pavilion construction due to the extra flooring and fencing costs associated with pavilions.

A pavilion is a shade structure and is commonly found in square, rectangular, L-shaped, and T-shaped. They are used for a variety of applications, namely outside kitchens, seating areas, fireplaces, lounges, and poolside bars. Pavilions made from metals and bricks are primarily incorporated in areas with high sunlight levels. Pavilions have no built-in floors, owing to which they are mostly found near homes on a concrete or stone patio.

Regional Insights

North America outdoor living structures market dominated globally with a revenue share of 43.1% in 2023. This is attributed to the growing popularity of the concept of ‘outdoor living’ among consumers as it offers relaxation, leisure time to spend with family and friends, and a way to get connected to nature.Demand for pergolas, gazebos, arbors, and trellises is on the rise and is anticipated to expand the industry in North America. The U.S. is the major revenue-generating country in North America, followed by Canada. Improved lifestyle coupled with a rise in per capita income, especially in the urban areas, propels the market demand in North America.

U.S. Outdoor Living Structures Market Trends

The U.S. outdoor living structures market is witnessing a newly emerging trend of incorporating smart and advanced technologies into living spaces, which is anticipated to offer expansion potential for the market. Patios and gazebos have gained high popularity in the country, and this is likely to fuel the demand for outdoor living structures.

The Canada outdoor living structures market is anticipated to grow significantly over the forecast period. Need for relaxation, grilling, gardening, exercising, dining, playing with pets and children, and other entertainment activities are likely to enhance the demand for the market in Canada, which is expected to reach USD 104.3 million by 2030.

Europe Outdoor Living Structures Market Trends

The Europe outdoor living structures market accounted for USD 696.1 million in 2023 and is driven by key factors such as need for improved and luxurious lifestyle, increasing per capita income, presence of developed economies and rising investments in residential constructions and landscaping projects.

The Italy outdoor living structures market is driven by advancements in manufacturing technologies, the attractive furniture industry, the need for a high-quality life, and a rise in the number of recreational centers. Increasing investments in architecture projects that are based upon the principle of sustainability are likely to fuel the Italian market.

The outdoor living structures market in Germany focuses on developing buildings and urban systems that interact seamlessly and sustainably with the environment. Upcoming projects in urban planning, waterfront restorations, and city centers are anticipated to drive market growth in Germany.

Asia Pacific Outdoor Living Structures Market

The outdoor living structures market in Asia Pacific is driven by the increase in the construction of outdoor kitchens and furniture in the region. An increase in preference for luxurious lifestyles in countries such as China, Japan, and Singapore is likely to propel the demand for market growth in the Asia Pacific region.

China outdoor living structures market is the fastest growing in the Asia Pacific region owing to the improved standard of living and significantly high population. Rise in number of restaurants and increasing demand for gardening are anticipated to significantly expand the product demand in China. Outdoor furniture manufacturers such as Tanfly, Zzue Creation, Golden Eagle Outdoor Furniture Co., Ltd., and Goodwin Co., Ltd of Zhongshan attract customers for their products both via offline and online selling, resulting in growing product demand.

The outdoor living structures market in India is witnessing a surge in product demand that can be ascribed to the recreational and residential construction activities in the country. However, the pace of recreational activities is less when compared to developed economies and it is anticipated to have high future potential. The need for family get-togethers, the idea of a home village, a change in cultural attitude, and rising disposable income are driving the demand for recreational projects in India and hence offering growth opportunities for outdoor living structures.

The Australia outdoor living structures marketis driven by the presence of key furniture manufacturers such as IKEA Pty Ltd, Herman Miller Proprietary Limited, Harvey Norman Holding Limited etc., which are likely to create more opportunities for the expansion of the market. Moreover, increasing demand for customized patios and verandas, carports, luxury swimming pools, and children’s parks is likely to enhance the demand for the market in the country.

Central & South America Outdoor Living Structures Market Trends

The Central & South America outdoor living structures market is driven by the improved lifestyle, high purchase income and recreational activities in the urban areas of countries such as Brazil, Argentina and Peru, which are anticipated to fuel the market in Central & South America.

Middle East & Africa Outdoor Living Structures Market Trends

The outdoor living structures market in the Middle East & Africa is anticipated to grow at the fastest CAGR of 7.8% over the forecast year. Many countries in the region had to impose restrictions on traveling in and out of the countries. Increased demand for outdoor living structures can be ascribed to the advancements made in the travelling and tourism industry.

Key Outdoor Living Structures Company Insights

Some of the key players operating in the market include Renson, Outdoor Structure Company LLC, Absolute Outdoor Living, and Corradi:

• Renson designs and constructs structures equipped with ventilation and sun protection systems. The company operates through four business segments: solar shading, ventilation, and wall cladding solutions. It offers business solutions and materials for creating patios or pergolas with different roofing design styles.

• Outdoor Structure Company LLC is majorly involved in designing and constructing living structures for outdoor living surroundings. The company offers a broad range of patio covers, decks, pergolas, arbors, outside kitchens, concrete patios, and storage sheds. In addition, it creates customized design outdoor solutions for better aesthetics and know-how for its customers.

Scandia Canada Ltd., Outdoor World, Totally Outdoor, and Luxox are some of the emerging participants in the market.

• Totally Outdoors is majorly involved in designing outdoor living solutions for residential and commercial applications. The company operates through four business divisions, namely The Project Centre, Project Centre Materials PTY LTS, Outdoor Project Suppliers, and Totally Outdoors. The company also exhibits a broad spectrum of portfolios in inventing and supplying enhanced outdoor projects.

• Luxos is majorly involved in manufacturing outdoor furniture for the garden, patio, balcony, urban, beach, and terrace spaces. The company markets its products through a brand, namely Luxox, which offers a combination of raw materials, such as braid, rope, wicker, rattan, wood, and aluminum, for optimal protection against intense weather situations.

Recent Developments

• In December 2022, AZENCO INTERNATIONAL announced the expansion of its manufacturing line with a dedicated cabana-crafting robot for producing modular, multi-purpose K-BANA. The dedicated production line enables the company to ensure the completion of cabana projects on time.

• In October 2022, Renson announced a new outdoor living site named ‘NOA Outdoor Living’. The NOA outdoor living was opened in an outdoor site in Kruisem/Nazareth, Belgium. This is an initiative by Renson exhibiting 12 lifelike garden setups in partnership with over 30 brands in high-end outdoor living.

• In February 2022, Renson acquired Issey Sun Shade Systems in Perth to start producing windproof Fixscreen sunlight protection fabric in Australia. This acquisition will help Renson shorten the delivery dates of its products in Australia.

Outdoor Living Structures Market Report Scope

Global Outdoor Living Structures Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global outdoor living structures market report based on product and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Full- Pergolas/Patio

  • Pavilions/Gazeebo

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

  • Central & South America

  • Middle East & Africa