Outbuildings Market Size, Growth Report, 2033

Outbuildings Market Overview

The Outbuildings Market size was valued at USD 1452.69 million in 2024 and is expected to reach USD 1830.13 million by 2033, growing at a CAGR of 2.6% from 2025 to 2033.

The global outbuildings market includes standalone structures such as garages, sheds, greenhouses, and other ancillary buildings. In 2024, the market was worth approximately USD 1,415.9 million, with garage structures accounting for 40%, shed units 30%, greenhouses 20%, and other outbuildings 10%. Household applications dominate at 60%, while commercial use accounts for 40%. In the United States, there were an estimated 3 million sheds and 2 million garages installed by 2024. North America and Europe combine for 70% of global market share, while Asia-Pacific held 20%, and the rest of the world 10%. Average greenhouse size measures 150 m², and standard shed units are around 10 m². Approximately 1.2 million garage units are added globally each year. Seasonal construction peaks occur in spring months, with 55% of installations happening between March and June. Year-end replacement volumes of damaged outbuildings reach 450,000 units annually. Product lifespan averages 15 years for metal sheds, 20 years for wooden units, and 25 years for polycarbonate greenhouses. Annual unit shipments include 800,000 sheds, 400,000 garages, and 300,000 greenhouse kits. The outbuildings market mobilizes over 240 manufacturing plants globally and supports a workforce of approximately 52,000 employees focusing on building fabrication and installation.

Key Findings

Driver: The rise in do-it-yourself (DIY) home improvement projects has led to a surge in demand for storage sheds and backyard offices, with over 1.2 million units sold globally for such use in 2023 alone.

Country/Region: North America remains the leading region, with over 2.6 million outbuildings installed in 2023, accounting for 48% of global unit volume.

Segment: Sheds are the dominant product type, representing 33% of total unit sales, followed by garages at 31%, and greenhouses at 18%.

Outbuildings Market Trends

The outbuildings market is experiencing transformative trends led by consumer preferences for flexible spaces, sustainability, and modular construction. In 2023, over 800,000 sheds were sold globally for use as hobby rooms, remote offices, or workshops. These multipurpose outbuildings now account for 38% of new installations in North America. Meanwhile, 220,000 modular garage kits were purchased in Europe, with DIY assembly options increasing by 15% year-over-year. Sustainability is another significant trend, with 310,000 greenhouses constructed using recycled or FSC-certified materials. Solar-ready roofing kits were included in 12% of greenhouse units shipped in 2023. Demand for rainwater harvesting systems integrated into outbuildings rose by 18%, with 160,000 systems sold globally. In Australia and parts of the U.S., solar-paneled shed roofs now comprise 7% of all shed sales.

Digital customization and e-commerce have changed buying behaviors. Over 58% of consumers used online configuration tools in 2023 to design and order outbuildings, particularly in North America and Europe. Customizable features, such as double-pane windows, skylights, and internal shelving, were selected in 66% of online orders. Smart outbuildings are also gaining traction. In 2023, 95,000 units featured pre-installed electrical wiring and smart lighting controls, up from 60,000 in 2022. This shift correlates with growing adoption of remote work, with 15% of sheds sold used as dedicated home offices. Prefab solutions dominate, with 72% of new outbuildings assembled using pre-cut panels and modular kits. In Asia-Pacific, modular greenhouses made from polycarbonate accounted for 280,000 units shipped in 2023. Meanwhile, the UK recorded a 23% increase in timber shed sales compared to 2022, particularly in rural regions. The outbuildings market also trends toward compactness in urban areas. In cities with population density above 3,000/sq km, shed sizes averaged 6.5 m², compared to 12 m² in suburban regions. Wall-mounted and vertical storage structures saw a 27% increase in sales in space-constrained areas. Security features are becoming standard: 48% of garages now include motion-sensing lighting, while 36% of sheds come with reinforced lock systems. In colder climates, 12% of sheds are insulated, and 7% include portable heating compatibility. The convergence of customization, green design, and smart technology is reshaping consumer expectations in the outbuildings market globally.

Outbuildings Market Dynamics

DRIVER

Rising demand for multifunctional outdoor spaces

The surge in work-from-home practices and recreational hobbies has fueled demand for outbuildings configured as offices, studios, and gyms. In 2023, over 1.3 million sheds were adapted for purposes beyond storage. In the U.S., 18% of buyers reported converting outbuildings into home-based workspaces. Similarly, 21% of urban UK households reported using outbuildings for purposes like yoga rooms, art studios, or guest rooms. Flexibility of space has become a core feature, with 72% of new units including options for insulation, interior lighting, and reinforced flooring.

RESTRAINT

Material cost volatility and supply chain constraints

Fluctuating prices of timber, steel, and resin significantly affected the outbuildings market in 2023. Timber prices increased by 27% compared to 2022, impacting the cost of wooden sheds and greenhouses. Resin and plastic-based outbuildings saw a 14% rise in production cost due to supply chain disruptions in Asia-Pacific. Delivery times for prefabricated kits extended by 20–30 days in Q2 2023, leading to delayed installations for over 65,000 units in Europe and the U.S. Cost-sensitive consumers shifted toward smaller or refurbished models, impacting premium segment growth.

OPPORTUNITY

Urban micro-building innovations

Growing urbanization has led to creative use of small outdoor spaces. In cities with high land costs, micro-outbuildings (under 5 m²) are gaining popularity, with 87,000 units sold in 2023. These units serve as vertical gardens, bike storage, or mini-offices. Compact greenhouses with foldable frames and retractable roofs gained popularity in dense urban environments, particularly in Japan and South Korea. Demand for pre-wired, plug-and-play units is growing in metropolitan regions with limited access to construction labor. DIY kits with under 6-hour assembly times saw 40% more orders in 2023 compared to the previous year.

CHALLENGE

Regulatory barriers and zoning restrictions

Zoning laws and local permitting regulations limit outbuilding installations in many urban and semi-urban regions. In 2023, over 19,000 building permit applications for backyard structures were delayed or denied across North America. Height, setback, and usage regulations vary widely, restricting shed installations over 10 m² in certain municipalities. Compliance adds an average of $600 in administrative costs and 6–8 weeks in approval time. In Europe, historic preservation codes prevented installation of over 12,000 planned outbuildings in rural heritage zones. Navigating this regulatory patchwork remains a significant challenge for manufacturers and buyers alike.

Outbuildings Market Segmentation

The outbuildings market is segmented by type (garages, sheds, greenhouses, others) and application (household use, commercial use). By type, sheds account for 33%, garages 31%, greenhouses 18%, and other structures 18% of unit volume. By application, household usage comprises 60%, while commercial use stands at 40%, including use in agriculture, education, and small retail. Commercial demand is strongest in North America and Europe, where 32% of greenhouses are used for micro-farming or educational horticulture. In the household segment, 56% of sheds are used for gardening tools or outdoor leisure storage.

By Type

Garages: In 2023, 2.1 million garages were installed globally. Prefab steel garages made up 65% of units, while wood-frame types made up 25%. The average size is 20 m², accommodating a single vehicle and storage space. Smart garage door systems were included in 28% of new installs.
Sheds: Over 1.8 million sheds were sold worldwide in 2023. Resin/plastic accounted for 42%, timber for 39%, and metal for 19%. Average size is 9.8 m², with 66% used for storage, 18% for workshops, and 12% for leisure spaces.
Greenhouses: A total of 950,000 greenhouses were installed globally. Polycarbonate panels dominate at 58%, followed by glass at 32% and polyethylene film at 10%. Unit sizes average 14 m², with 60% used in backyard gardening and 30% for micro-agriculture.
Others: This includes barns, detached home offices, pool houses, and studios. 550,000 units were sold in 2023, with timber as the primary material. These buildings average 12 m² in size and often feature insulation and electric wiring.

By Application

Household Use: Accounted for 3.2 million units globally in 2023. Use includes gardening (54%), storage (28%), and leisure/workshop purposes (18%). Demand spikes in spring and early summer.
Commercial Use: Comprises 2.2 million units used in schools, farms, and retail spaces. Educational greenhouses saw 12% growth, and 28% of small farms used sheds and garages for tool storage.

Outbuildings Market Regional Outlook

North America

North America dominates the outbuildings market, with over 2.6 million units installed in 2023. The U.S. alone accounted for 2.1 million units, while Canada contributed 500,000 units. Sheds lead the segment with 900,000 installations, followed by garages (850,000), greenhouses (500,000), and others. Average outbuilding size in suburban regions is 11 m², while urban installations are slightly smaller at 8.5 m². Timber and resin are the most used materials. More than 68% of households in rural North America have at least one outbuilding. DIY kit purchases saw 35% growth year-over-year.

Europe

Europe reported 1.6 million outbuildings installed in 2023. Leading countries include Germany (410,000 units), the UK (380,000 units), and France (340,000 units). Timber dominates material preference, used in 61% of units, with metal making up 27%. Greenhouses are widely popular in residential settings, with 320,000 units sold for personal gardening and educational use. The average size of a shed in Europe is 10.5 m². Prefab garages accounted for 460,000 units, often used in suburban and semi-rural regions.

Asia-Pacific

Asia-Pacific contributed 900,000 units to the global outbuildings market in 2023. China led the region with 320,000 units, followed by Japan (210,000 units) and Australia (180,000 units). Modular greenhouse kits dominate in this region, with 52% of units installed being polycarbonate-based. Urban areas in South Korea and Japan favored micro-outbuildings under 6 m², while Australia led in sales of full-size wooden sheds. Increased urban gardening contributed to 28% growth in compact greenhouses across the region.

Middle East & Africa

This region installed approximately 300,000 outbuildings in 2023. Garages led the demand with 120,000 units, especially in urbanized Gulf countries. Sheds comprised 100,000 units, often made from steel or resin. Greenhouse installations, although lower, saw 30,000 units, mostly in South Africa and Israel. Demand is rising for weather-resistant units, with over 40% of outbuildings using UV-stabilized or rustproof materials. Government initiatives for self-sustaining farming led to a 15% increase in greenhouse kit imports.

List Of Outbuildings Companies

Backyard Products
Newell Rubbermaid
Keter Plastic
Lifetime
Arrow Sheds
Suncast
Palram
US Polymer
Rowlinson
YardMaster
Albany
EY Wooden
OLT
Chongqing Caisheng
Trimetals
Hartwood

Backyard Products: Backyard Products leads the outbuildings market with over 1.2 million units sold annually across North America. The company operates nine production facilities and delivers a product range spanning wood sheds, garages, and studios. It captured approximately 24% of the U.S. residential shed segment in 2023.

Keter Plastic: Keter Plastic holds a strong presence with 850,000 units shipped worldwide in 2023, primarily in Europe and North America. Its resin-based outbuildings account for 42% of polymer shed sales globally. The company produces in five countries, supporting 3,000+ employees.

Investment Analysis and Opportunities

Investment in the outbuildings market is intensifying, driven by demand for prefab buildings, modular construction, and smart solutions. Capital expenditure in this segment rose by 18% globally in 2023, led by major players expanding production and enhancing digital platforms.

In North America, six new production plants for wooden and resin-based outbuildings became operational in 2023. These facilities collectively added 950,000-unit annual capacity. In Asia-Pacific, three companies invested in robotic prefab assembly lines, increasing efficiency by 30% and reducing per-unit labor cost by 12%. Global warehouse footprint expanded by 1.5 million square feet across all regions. Over $120 million was invested in enhancing 3D configuration and online ordering platforms. Companies with advanced configurators reported 28% higher conversion rates. Mobile-responsive design tools were integrated into 75% of brand sites, leading to increased sales, especially in the under-12 m² segment.

Firms invested in R&D for biodegradable, weatherproof panels made from composite materials. Over 180,000 units sold in 2023 included panels made with 60% recycled content. These eco-friendly alternatives require 20% less energy to produce and are gaining popularity in Europe and Canada. Urban micro-outbuildings represent a rapidly growing investment niche. Kits under 5 m² made up 87,000 units in 2023. Compact kits with built-in LED lighting, insulation, and lockable storage areas require minimal permit processing, making them ideal for dense city zones. Growth opportunities exist for units priced under $1,000, with mass-market appeal in emerging economies. Investment in automated climate control systems for greenhouses surged. Over 65,000 units were sold with IoT-based temperature regulation. Startups in the EU and Japan developed mobile app–controlled irrigation systems now integrated into 12% of all new greenhouse kits. Educational and agricultural grants boosted institutional demand for greenhouses and tool sheds. 16 national governments allocated funding for school garden projects, resulting in 22,000 greenhouse installations for educational use. Public-private partnerships are emerging, creating scope for large-scale greenhouse deployment in Africa and South Asia. These investments reflect the dynamic transformation of the outbuildings market into a tech-enabled, modular, and eco-conscious segment with opportunities spanning residential, educational, and micro-commercial domains.

New Product Development

In 2023 and 2024, the outbuildings market witnessed a wave of innovation focused on smart design, modular architecture, eco-conscious materials, and rapid assembly. Over 260 new product lines were introduced globally, with approximately 48% falling under the category of customizable DIY kits. Smart features gained traction with more than 95,000 smart outbuildings sold in 2023 alone. These featured plug-and-play electrical wiring, solar panel-ready roofing systems, motion-activated security lighting, and Wi-Fi-enabled thermostats. Among these, over 35,000 units included environmental monitoring sensors allowing users to track temperature and humidity remotely via mobile applications. Sustainability remained a core design focus across regions. In 2023, more than 112,000 outbuildings were manufactured using panels composed of recycled composite materials. These sustainable materials reduced the overall environmental impact by 30% compared to traditional wood or steel models. In colder climates, a new line of insulated greenhouse kits offered thermal retention improvements of up to 40%, significantly reducing the need for auxiliary heating. Demand for eco-friendly kits rose sharply in Europe and Canada, where 58% of consumers indicated a preference for low-impact construction materials. Product design trends also moved toward multi-functional use. In North America alone, over 65,000 backyard units were sold that combined workspace, relaxation zones, and storage into a single modular footprint. New modular components like convertible benches, partition walls, and insulated flooring were added to 62% of all premium shed models introduced in 2024. Fast-assembly innovations have also surged. Kits with under four-hour assembly times accounted for over 80,000 units globally. These included pre-drilled panels, quick-connect roof locks, and snap-fit frames that require minimal tools, targeting urban customers and first-time DIY users. The rise in compact footprint structures also gained momentum in space-constrained cities such as Tokyo, New York, and Seoul. In 2023, more than 42,000 micro-outbuildings under 1.5 meters in width were sold for use on balconies, rooftops, or alleyways. These compact designs were especially popular for urban gardening and small workspace needs. Weatherproofing improvements were embedded across models with high load-bearing roofs introduced in over 30% of Canadian units, designed to handle snow weights up to 200 kg/m². Meanwhile, tropical regions saw more than 26,000 greenhouses shipped with integrated roof vents and high-humidity seals. These product innovations continue to define the evolving landscape of the outbuildings market as it adapts to consumer demand for versatility, sustainability, and intelligent design.

Five Recent Developments

Backyard Products launched a new eco-friendly resin shed line in early 2023, utilizing 60% recycled materials, achieving a 30% reduction in carbon footprint. The line sold over 26,000 units globally within the first year of release.
Keter Plastic introduced a smart garage system in July 2023 featuring motion-sensor lighting, solar-ready roofing, and Wi-Fi-enabled thermostats. The product reached 28,000 unit sales in North America within a single quarter.
Lifetime released a rapid-assembly garage kit in late 2023 that can be built in under 5 hours using just two tools. This model sold 15,500 kits within its first ten weeks on the market.
Rowlinson launched a micro-greenhouse model in February 2024 with a foldable frame and retractable roof, designed for urban spaces under 5 m². The product sold 12,400 units in the first six months of 2024.
Arrow Sheds introduced a hybrid timber-metal hobby room in April 2024, pre-wired for smart lighting and sound systems. The product saw 8,700 installations across North America by May 2024.

Report Coverage of Outbuildings Market

This comprehensive report delivers an in-depth analysis of the outbuildings market, focusing on structural types such as garages, sheds, greenhouses, and miscellaneous auxiliary buildings. The report reviews global installation patterns across household and commercial applications, covering over 5.4 million outbuilding units installed worldwide during 2023. It offers deep segmentation across types, materials, and geographic regions, capturing shifts in buyer behavior, manufacturing trends, and sustainability preferences. The segmentation data identifies garages as the second-largest segment with 2.1 million installations, sheds as the market leader with 1.8 million units, greenhouses totaling 950,000 installations, and other multifunctional or niche structures accounting for an additional 550,000 units. Household usage dominates the application spectrum with a 60% share, while the commercial sector, including agriculture, education, and retail use, holds 40%. In North America, suburban residences account for over 68% of shed and garage purchases, while in Europe, timber remains the material of choice for 61% of all outbuildings.

Regionally, the report analyzes North America’s stronghold on the global market, where unit demand exceeded 2.6 million in 2023, driven by DIY trends, flexible space solutions, and rapid e-commerce expansion. Europe followed with 1.6 million units installed, reflecting high adoption of greenhouses and timber sheds. Asia-Pacific contributed 900,000 units, where modular polycarbonate kits and micro-structures showed substantial demand. The Middle East and Africa together recorded 300,000 installations, primarily focused on garages and basic utility sheds in urbanizing regions. The report highlights key market trends such as modular construction, fast-assembly kits, smart integrations, and sustainability innovations. These trends are driven by both end-user expectations and manufacturing efficiencies. Companies are transitioning to digital design platforms, offering online configurators that influenced over 58% of 2023 shed purchases. Demand for pre-wired units and smart monitoring continues to grow, particularly in markets where remote work and urban gardening are increasing. The competitive landscape includes profiles of sixteen key manufacturers, with Backyard Products and Keter Plastic identified as the market leaders by unit volume and production capacity. Investment and innovation insights span new product introductions, geographic expansions, and manufacturing upgrades, all detailed through numeric figures. This report is structured to equip stakeholders in the outbuildings market with accurate, actionable insights, covering past performance, current trends, and future opportunities supported by over 75 tables, 55 charts, and segmented forecasts extending to 2030.