Garden Rooms Market Report 2025

The garden rooms market size has grown rapidly in recent years. It will grow from $2.89 billion in 2024 to $3.2 billion in 2025 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historic period can be attributed to increasing consumer preference for outdoor-indoor living areas, changing lifestyles, increasing disposable income, rising home improvement and renovation activities, and the growing trend of urbanization.

The garden rooms market size is expected to see rapid growth in the next few years. It will grow to $4.88 billion in 2029 at a compound annual growth rate (CAGR) of 11.1%. The growth in the forecast period can be attributed to the growing popularity of greenhouses, increasing emphasis on sustainable living, increasing demand for home office spaces due to remote work trends, rising interest in gardening and outdoor activities, and expansion of eco-friendly garden room designs. Major trends in the forecast period include innovations in durable and weather-resistant materials, customization and personalization, technological advancements, advancements in materials and construction technologies, and partnerships with urban planners.

The forecast of 11.1% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This may directly affect the US through tariffs on prefabricated panels, insulation materials, and glazing components imported from Europe and Asia, potentially causing delays and increased construction costs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing demand for home renovation is expected to drive the expansion of the garden rooms market in the future. Home renovation involves improving, upgrading, or altering an existing home to enhance its functionality, aesthetics, or value. This increasing demand is primarily driven by the need to create personalized and functional living spaces, offering homeowners a sense of satisfaction and control over their environment. Renovation allows individuals to customize their homes to better suit their lifestyles while also improving the overall appearance and functionality. Garden rooms contribute to home renovation by providing a peaceful retreat for work or relaxation that blends seamlessly with outdoor spaces, requiring minimal structural changes. For example, a survey conducted by Houzz Study in May 2024, which polled 1,848 UK homeowners about their renovation activities in 2023 and plans for 2024, found that renovation spending has increased significantly over the past three years, with median spending rising 13% to $17,595.68 (£17,000) in 2023. As a result, the increasing demand for home renovations is helping to drive the growth of the garden rooms market.

Leading companies in the garden rooms market are focusing on using sustainable and eco-friendly materials, such as FSC-certified timber, to reduce environmental impact, improve energy efficiency, and meet the growing consumer demand for sustainable outdoor living solutions. FSC-certified timber comes from responsibly managed forests that meet the standards set by the Forest Stewardship Council (FSC). For instance, in April 2024, Eurocell, a UK-based manufacturer of PVC-U building products, introduced three new garden room styles - Studio View, Studio Frame, and Studio Canopy - along with a contemporary vertical flush cladding option in various finishes, including the Vertical Coastline range and foiled wood effects. Each model comes with an electric pack, panel heater, and energy-efficient double-glazed doors and windows for year-round comfort. The garden rooms also feature FSC-certified sustainable timber and cladding made from 100% recyclable materials, in line with Eurocell's commitment to sustainability and innovation in outdoor living solutions.

In December 2023, Woodlands Home & Garden Group Ltd, a UK-based provider of home and garden solutions, acquired Smart Modular Ltd. for an undisclosed amount. This acquisition allows Smart Modular Ltd. to maintain its structure and expertise, strengthening Woodlands Home & Garden Group Ltd.'s position in the market by expanding its product range and improving its service offerings. Smart Modular Ltd. specializes in innovative and customizable modular garden buildings.

Major players in the garden rooms market are SMART Modular Bulidings, The Garden Escape, Ultraframe, Lidget Compton, EYG Domestic Limited, Green Retreats, Crown Pavilions, The Green Room, AMC Exhibitions Limited, Shomera, Mode Garden Rooms Ltd., Oakwood Garden Rooms, Loghouse.ie, Cedar Garden Rooms, Garden Rooms (Scotland) Limited, Rubicon Garden Rooms, Birch Garden Buildings Ltd., Sanctum Garden Studios, Cabin Master, Bakers Garden Buildings Ltd.

North America was the largest region in the garden rooms market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in garden rooms report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the garden rooms market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The garden rooms market consists of sales of eco-friendly garden rooms, insulated garden offices, modular studios, and bespoke outdoor structures. Values in this market are ‘factory gate’ values, that is, the value of goods sold by manufacturers or creators, whether to other entities (including wholesalers, distributors, retailers, and contractors) or directly to end customers. The value of goods in this market includes related services such as installation, customization, and maintenance.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the resulting trade tensions in spring 2025 are having a considerable impact on the construction sector, particularly in the areas of material procurement and overall project expenses. Increased duties on imported steel, aluminum, lumber, and machinery have raised costs for builders, contractors, and infrastructure developers, resulting in higher project bids and delays in execution. Manufacturers of construction equipment are also facing challenges, as tariffs on key components and raw materials are driving up production costs and compressing profit margins. Furthermore, retaliatory tariffs from major export markets have reduced demand for U.S.-made construction equipment and materials, putting additional pressure on revenue streams. In response, the sector is increasingly focusing on local sourcing, adopting modular construction methods, and diversifying supply chains to better manage rising costs and maintain project feasibility amid ongoing trade instability.

The garden rooms market research report is one of a series of new reports that provides garden rooms market statistics, including the garden rooms industry global market size, regional shares, competitors with the garden rooms market share, detailed garden rooms market segments, market trends, and opportunities, and any further data you may need to thrive in the garden rooms industry. This garden rooms market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

A garden room is a standalone structure situated in a garden or backyard, typically used as an additional living area. It serves as a flexible space for activities such as home offices, relaxation, entertainment, or hobbies, providing a link to nature while expanding usable living space.

The main types of garden rooms include prefab garden rooms, custom-built garden rooms, and converted spaces. Prefab garden rooms are pre-manufactured, self-contained units designed for outdoor areas, offering a range of uses such as home offices, studios, or relaxation spaces. They are constructed from various materials, including wood, metal, vinyl, and composite materials. These garden rooms are used for a variety of purposes, such as home offices, leisure spaces, storage, and more. Key users include residential customers, commercial businesses, gardening enthusiasts, and rental services.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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