Outdoor Living Structure Market Size, Share & Trends Analysis Report By Product (Pergolas/Patio, Pavilion/Gazebo), By Region (North America, Europe, Asia Pacific), And Segment Forecasts, 2021 - 2028

Report Overview

The global outdoor living structure market size was valued at USD 1.8 billion in 2020 and is expected to grow at a compounded annual growth rate (CAGR) of 6.1% from 2021 to 2028. Construction of dining and leisure areas is a growing trend, primarily in North America and Europe, which is expected to drive the market over the forecast period. The stay-at-home restrictions imposed by governments across several countries amid the outbreak of the COVID-19 pandemic are expected to create new growth opportunities for the market. Companies offering perpetual work from home opportunity to employees has enabled homeowners to renovate their existing spaces into office, mini gaming zones, grilling spaces, mini-gymnasiums, and yoga spaces.

Incorporation of smart and advanced technologies into the outdoor living spaces is a newly emerging trend in the U.S. and it is anticipated to offer expansion potential for outdoor living structures. The California government has imposed several regulations on ADU sizes, interior space, height, building materials, and electricity & utility of the outdoor structures. For instance, the living room/bedroom needs to be at least 70 square feet, the kitchen (along with the hallways and closet) must measure 50 square feet, and the bathroom must be at least 30 square feet and contain a toilet, sink, and a shower stall or tub.

The industry is highly competitive in nature owing to the presence of large number of regional players in the market. The market is customer-centric, wherein consumers are involved in the whole decision-making process. Hence, the industry players tend to focus on providing apt service and quality products to develop a loyal customer base.

Product Insights

The pergolas/patio segment dominated the outdoor living structures market and accounted for about 65% of revenue share in 2020. This is attributed to the growing consumer preferences for the plants in sitting areas, and extended areas for living rooms. In addition, consumers prefer these structures owing to their low price and easy construction as compared to pavilions/gazebos.

Pergolas are built using various materials including wood, stone, steel, aluminum, vinyl, fiberglass, and cellular polyvinyl chloride. Structures made of aluminum and steel offer better customization options and have minimal maintenance costs. Pergolas made of PVC, vinyl, fiberglass, and concrete have low construction costs and are also 100% termite resistant and offer better protection from sunlight and rain.

Gazebos and pavilions are used for several applications including fireplaces, bars, seating areas, outdoor kitchens, and entertainment zones. The construction of gazebo is more economical as compared to pavilions, due to extra flooring and fencing costs associated with pavilions, which is expected to propel its demand in the coming years.

Gazebos are commonly constructed in oval, octagonal, and hexagonal shapes. They have traditional railings and balusters on the sides, making them much more enclosed than pavilions, thus increasing the level of privacy. In addition, gazebos have flooring of their own, making them fit for middle of the yard.

Regional Insights

North America dominated the market and accounted for around 43% of the revenue share in 2020, owing to improved lifestyles, coupled with high per capita income, especially in the U.S. Increase in number of people shifting to sub-urban areas, who prefer large houses with backyard are expected to provide potential opportunity for the market growth.

Rising demand for professional landscaping, vegetable gardens, outdoor fireplaces, outdoor area rugs is also anticipated to fuel the demand in the U.S. In addition, emergence of innovative outdoor-specific appliances and systems designed for outdoor kitchens and entertainment areas is expected to benefit the market.

‘Green infrastructure project’ initiated by the European Commission is anticipated to encourage projects on outdoor living spaces, thereby propelling market growth. Moreover, rise in demand for lawn and yard maintenance, outdoor cooking, gardening, outdoor designing, and landscaping is projected to drive the market growth.

Demand for outdoor patio umbrellas, outdoor table and chair sets, lounge and dining sets are on the rise and are likely to expand the market in China, owing to growing travel and tourism industry in the country. In addition, improved lifestyle, coupled with growing high-income population is expected to provide potential growth opportunities over the forecast period.

Key Companies & Market Share Insights

Key industry participants primarily compete on the basis of product quality, customer service, and product pricing. However, product quality with superior durability & flexibility of the components and providing structures with enhanced sun protection and extreme weather handling situations are considered as important competitive factors.

Majority of the companies have limited geographical presence; hence they focus on expanding their regional customer base by providing customer-centric services. Few companies also offer their services across the globe via contractors, architects, and retail stores to expand their geographical reach and gain a competitive edge over other players. In 2019, Renson and LIXIL collaborated to provide high-end outdoor solutions in Japan. Some prominent players in the outdoor living structure market include:

• Renson

• Outdoor Structure Company LLC

• Outdoor Living

• Absolute Outdoor Living

• Corradi

• Luxos

• IQ Outdoor Living

• Totally Outdoors

• Outdoor World

• Aussie Outdoor Living

• Bosman Homefront

• Scandia Canada

Outdoor Living Structure Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the outdoor living structure market on the basis of product and regions:

• Product Outlook (Revenue, USD Million; 2017 - 2028)

  • Pavilions/Gazebos

  •  Pergolas/Patio

• Regional Outlook (Revenue, USD Million; 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

  • Middle East & Africa