The U.S. outdoor living structure market size was estimated at around USD 1.28 billion in 2022 and it is projected to hit around USD 2.28 billion by 2032, growing at a CAGR of 5.94% from 2023 to 2032.
Key Pointers
Report Scope of the U.S. outdoor living structure Market
Report Coverage | Details |
Market Size in 2022 | USD 1.28 billion |
Revenue Forecast by 2032 | USD 2.28 billion |
Growth rate from 2023 to 2032 | CAGR of 5.94% |
Base Year | 2022 |
Forecast Period | 2023 to 2032 |
Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
Companies Covered | Outdoor Structure Company LLC; Renson; Absolute Outdoor Living; CorradiUSA, Inc; Structurework; Reformed Outdoor Structures LLC; AZENCO INTERNATIONAL; Outdoor Living Today; Lancaster County Backyard; LAYZE Systems |
This market growth is attributed to the rising trend among homeowners with large backyards to use the space for applications such as dining, relaxation, and entertainment. In addition, increasing spending on lawn and garden equipment for lawn maintenance is expected to boost the need for storing items such as tools and equipment, which, in turn, is expected to drive the demand for outdoor living structures, including sheds.
The stay-at-home restrictions imposed by governments of several countries in North America amid the outbreak of the COVID-19 pandemic created new growth opportunities in the market. This has led to large-scale investments by homeowners with large garden spaces for the development of mini-gaming zones, grilling spaces, mini-gymnasiums, and yoga spaces.
The rising demand for pergolas, patios, and pavilions for dining and entertainment is also anticipated to fuel the market. Moreover, peace and relaxation emerged as key motivating factors driving the demand for outdoor living structures, as outdoor living areas offer quiet and calm places to refresh and recharge and a comfortable time away from electronic gadgets. The above-mentioned factors are anticipated to boost the demand for outdoor living structures in the U.S.
The market is characterized by the presence of a large number of players, with established players leading market developments. The U.S. outdoor living structures market exhibits high competition owing to vast distribution networks and diverse product portfolios. To retain their positions in the outdoor living structures market, major manufacturers in the U.S. are concentrating on research & development, geographical expansion, new product & technological development, and mergers & acquisitions to gain a competitive advantage.
Product Insights
The pavilions/gazebos product segment accounted for USD 266.53 in 2022, and it is expected to expand at a CAGR of 6.25% over the forecast year. Pavilions are used for setting up outdoor kitchens, seating areas, fireplaces, lounges, and poolside bars. Compared to pavilions, gazebos have flooring of their own, making them fit for being in the middle of the yard. Hence, the cost of the pavilion is also higher owing to the additional flooring costs. This would increase the gazebo's adoption of outdoor living structures in comparison to the pavilion.
Pergolas/patios product segment dominated the market, and it is growing at a CAGR of 5.72% over the forecast year. A pergola is an open garden feature forming a shaded sitting area, walkway, and passageway of pillars or vertical posts that support latticework beams, rafters, and stringers, which are often trained upon by woody vines to add to the aesthetic look. The space underneath a pergola can be utilized for several applications, including cocktail bars, dining areas, outdoor kitchens, and living areas.
In addition, a patio is an enclosed area located at the front of a residential property. It is an extension of living rooms, dining rooms, kitchens, and gaming hubs. It can be constructed with several materials, including concrete, flagstones, and bricks. A rising trend for decorating backyards for leisure and relaxation activities is estimated to increase the demand for pergolas over the coming years.
Price Range Insights
The 0 to 5000 USD price range segment accounted for a market share of 29% in terms of revenue in 2022 and is expected to grow at the highest CAGR of 6.33% over the forecast period. This price range enables end users to build outdoor living structures in minimal spaces, ideal for smaller families and backyards. However, the price range does not allow much scope for customization with respect to other price ranges.
The 5000 to 15000 USD price range segment led the market and accounted for USD 644.6 million in 2022. The price range of outdoor living structures depends on the shape, size, material, and design of the structures. This price range of outdoor living structures is most prevalent for backyard spaces, as it is ideal for standard-family sizes. The rising trend of a mini greenhouse on residential property is further increasing storage shed demand as it stores various items such as soil, herbicides, extra exhaust fans, tumblers, and portable sprinklers.
The 15000 to 25000 USD price range segment was valued at USD 188.1 million in 2022 and is expected to grow at a CAGR of 5.8% over the forecast period. This price range is preferred by homeowners with large family sizes and backyard spaces. It allows more customization in terms of materials, designs, and technology. The size also offers more space to fit outdoor entertainment units and furniture.
Application Insights
The cooking application segment accounted for a market share of 22% in terms of revenue in 2022. The cooking segment includes outdoor kitchens and grills, which are placed under outdoor living structures. The growth of the market can be attributed to rising home improvement activities. Furthermore, there has been a rising desire to cook outside the four walls since the pandemic, which has contributed to the growth of the cooking segment.
Entertainment applications include TV, stereo systems, internet, speaker systems, and charging hubs. The travel restrictions imposed during the lockdown period resulted in people realizing the importance of outdoor entertaining spaces connected to their own homes. This has increased the demand for various outdoor living structures such as pergolas, patios, sheds, and gazebos in the market.
The relaxation/physical or recreational application segment was valued at USD 314.53 million in 2022 and is expected to expand at a CAGR of 6.24% over the forecast period. The most common use of outdoor living structures is relaxation. It includes seating and dining areas, outdoor furniture, fire pits, and spaces for exercise and yoga. The adoption of outdoor living structures has grown in the U.S. over the past few years as they offer leisure time with family and friends and a path to connect with nature.
Type Insights
Oversaturated product segment accounted for the highest revenue share of 85% in 2022. It includes pavilions, gazebos, pergolas/patios, sheds, and arbors, as their growth has stagnated. This kind of oversaturation occurs when the introduction of a new technology causes these products to become obsolete or when the existing businesses have met all potential customers' needs. For instance, Outdoor Structure Co., Renson, Corradi, and Structureworks are offering similar kinds of products to the targeted customers, and there are no new customer acquisition opportunities for any of these companies in the industry.
The untapped product segment is expected to expand at the highest CAGR of 7.03% over the forecast year. The segment includes new or innovative living structures that are being introduced by manufacturers. Greenhouses, pool houses, cabanas, and sunrooms are notable examples of untapped products of outdoor living structures. These modern structures are inclusive of entertainment spaces, outdoor kitchens, extra bedrooms, and guestrooms; thus, more customers are attracted to these products.
Distribution Channel Insights
The direct distribution channel of the market was valued at USD 394.62 million in 2022 and is expected to grow at the fastest rate over the forecast period. The direct distribution channel includes direct contact between manufacturers and end users, which eliminates the middleman between manufacturing companies and end consumers of outdoor living structures. This enables consumers to design their outdoor structures, as well as benefiting manufacturers by increasing their profit margins by directly selling their products to consumers.
The retail distribution channel accounts for the highest market share and is the most common distribution channel in the residential outdoor living structures market in the U.S. Retail distribution channel comprises wholesalers, retail stores, and online third-party distributors. The growth of the retail market is attributed to the consumer preference to visually inspect the materials, products, colors, aesthetics, and specifications before finalizing the purchase of outdoor living structures.
U.S. outdoor living structure Market Segmentations:
By Product
By Price Range
By Application
By Type
By Distribution Channel
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on U.S. Outdoor Living Structure Market
5.1. COVID-19 Landscape: U.S. Outdoor Living Structure Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. U.S. Outdoor Living Structure Market, By Product
8.1. U.S. Outdoor Living Structure Market, by Product, 2023-2032
8.1.1. Pergolas/Patios
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Pavilions/Gazebos
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. Sheds
8.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 9. U.S. Outdoor Living Structure Market, By Price Range
9.1. U.S. Outdoor Living Structure Market, by Price Range, 2023-2032
9.1.1. 0 to 5000 USD
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. 5000 to 15000 USD
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. 15000 to 25000
9.1.3.1. Market Revenue and Forecast (2020-2032)
9.1.4. 25000 and above
9.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 10. U.S. Outdoor Living Structure Market, By Application
10.1. U.S. Outdoor Living Structure Market, by Application, 2023-2032
10.1.1. Cooking
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Entertainment
10.1.2.1. Market Revenue and Forecast (2020-2032)
10.1.3. Relaxation/Physical or Recreational Activities
10.1.3.1. Market Revenue and Forecast (2020-2032)
10.1.4. Shed Storage & Protection
10.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 11. U.S. Outdoor Living Structure Market, By Type
11.1. U.S. Outdoor Living Structure Market, by Type, 2023-2032
11.1.1. Oversaturated Product
11.1.1.1. Market Revenue and Forecast (2020-2032)
11.1.2. Untapped Product
11.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 12. U.S. Outdoor Living Structure Market, By Distribution Channel
12.1. U.S. Outdoor Living Structure Market, by Distribution Channel, 2023-2032
12.1.1. Direct
12.1.1.1. Market Revenue and Forecast (2020-2032)
12.1.2. Retail
12.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 13. U.S. Outdoor Living Structure Market, Regional Estimates and Trend Forecast
13.1. U.S.
13.1.1. Market Revenue and Forecast, by Product (2020-2032)
13.1.2. Market Revenue and Forecast, by Price Range (2020-2032)
13.1.3. Market Revenue and Forecast, by Application (2020-2032)
13.1.4. Market Revenue and Forecast, by Type (2020-2032)
13.1.5. Market Revenue and Forecast, by Distribution Channel (2020-2032)
Chapter 14. Company Profiles
14.1. Outdoor Structure Company LLC
14.1.1. Company Overview
14.1.2. Product Offerings
14.1.3. Financial Performance
14.1.4. Recent Initiatives
14.2. Renson
14.2.1. Company Overview
14.2.2. Product Offerings
14.2.3. Financial Performance
14.2.4. Recent Initiatives
14.3. Absolute Outdoor Living
14.3.1. Company Overview
14.3.2. Product Offerings
14.3.3. Financial Performance
14.3.4. Recent Initiatives
14.4. CorradiUSA, Inc
14.4.1. Company Overview
14.4.2. Product Offerings
14.4.3. Financial Performance
14.4.4. Recent Initiatives
14.5. Structurework
14.5.1. Company Overview
14.5.2. Product Offerings
14.5.3. Financial Performance
14.5.4. Recent Initiatives
14.6. Reformed Outdoor Structures LLC
14.6.1. Company Overview
14.6.2. Product Offerings
14.6.3. Financial Performance
14.6.4. Recent Initiatives
14.7. AZENCO INTERNATIONAL
14.7.1. Company Overview
14.7.2. Product Offerings
14.7.3. Financial Performance
14.7.4. Recent Initiatives
14.8. Outdoor Living Today
14.8.1. Company Overview
14.8.2. Product Offerings
14.8.3. Financial Performance
14.8.4. Recent Initiatives
14.9. Lancaster County Backyard
14.9.1. Company Overview
14.9.2. Product Offerings
14.9.3. Financial Performance
14.9.4. Recent Initiatives
14.10. LAYZE Systems
14.10.1. Company Overview
14.10.2. Product Offerings
14.10.3. Financial Performance
14.10.4. Recent Initiatives
Chapter 15. Research Methodology
15.1. Primary Research
15.2. Secondary Research
15.3. Assumptions
Chapter 16. Appendix
16.1. About Us
16.2. Glossary of Terms