After facing marginal decline in 2023, the plumbing industry has started to regain its footing in 2024, with growth in the market projected over the next few years.
New home construction in the U.S. is still a challenging arena, but there continues to be demand to modernize and prolong the function of older homes and buildings, which typically calls for updating and enhancing plumbing systems, bringing them up to code.
Meanwhile, the rise of smart technology and appliances coupled with growing environmental awareness are influencing consumer preferences and the training, knowledge and tools necessary for plumbing professionals to stay ahead of the curve in years to come.
What Key Plumbing Trends Will Impact the Industry in 2025 and Beyond?
The housing market has struggled along since 2022, but there were promising signs of growth in the early part of 2024, and single-family starts are forecasted to increase 4.2% in 2025, according to the National Association of Home Builders (NAHB).
However, there are numerous other factors impacting the plumbing industry, as well as the market for plumbing products and fixtures, from labor shortages, demand for sustainable and eco-friendly materials and products, and the appeal of smart technology.
Here is a look at some of the main trends that are—and will continue—to affect trade professionals and consumers in 2025:
1. The National Plumbing Fixtures and Fittings Market is Growing
The global plumbing fixtures and fittings market is projected to grow to $145.16 billion by 2028, at a compound annual growth rate (CAGR) of 7.8%, according to The Business Research Company. Meanwhile, the North America market is expected to expand at a CAGR of 7.5% through 2028, according to analysis by Grandview Research. Our custom market research team at The Farnsworth Group is able to drill deep into the degree to which certain specific plumbing market segments are growing or shrinking, as we did for this finished plumbing manufacturer.
Some of the factors contributing to this growth include the aging of existing housing stock, water-efficiency regulations, urbanization and infrastructure development, technological and design innovations, and a growing awareness around health and hygiene in commercial and residential spaces.
While the offline segment of distribution channels—which includes home improvement centers and other brick-and-mortar retailers—currently accounts for the highest share of revenue, or more than 80%, the online segment is experiencing the most rapid CAGR as consumers gravitate toward the convenience of purchasing products through digital distribution channels for DIY and DIFM home improvement projects.
2. Plumbing Aging Out Lends to Remodeling Projects
Plumbing repair and replacements will remain in-demand to keep current housing stock, which is on average 40 years old, livable. Due to the lock-in effect, many homeowners are not able to abandon these problems in search for a different home to move into, and must instead deal with the necessary repairs.
Economists at the Bank of America have predicted the lock-in effect we’re observing could persist for another six to eight years, despite marginal cuts to federal interest rates. The equity that many homeowners have built up in their homes will continue to contribute to this lock-in effect whereby it is more financially reasonable to stay put and improve what they already have as opposed to moving.
At the end of Q1 2024, of those homeowners with a mortgage, 57.3% of homeowners have a mortgage under 4% (and over 20% have a mortgage below 3%). This has lead to decreased mobility and when paired with current federal interest rates and low housing inventory has created the lock-in effect. Do bear in mind, however, that nearly 40% of homeowners are without a mortgage.
Further, as of July 2024 reporting, only 17% of consumers believe now is a good time to buy a home.
3. Evolving Economic Conditions and Struggling Housing Inventory
As a result of economic conditions and challenges in the housing industry, there has been a slight decline in the plumbing industry in the U.S. over the past couple of years. As of the mid-point of 2024, the plumbing industry in the U.S. was valued about $121.5 billion, with roughly 112,000 businesses participating in the market, according to IBIS World. According to the U.S. Bureau of Labor Statistics, there were approximately 473,400 plumbers, pipefitters and steamfitters in 2023.
In light of inflation and high interest and mortgage rates, the housing market has stalled over the past year or two, softening the need for plumbers in the new construction sector. However, we may see some of that inflation subside moving forward, providing new opportunities in the residential and single-family markets in 2025 and beyond.
Meanwhile, there continues to be a strong demand for plumbers in the home repair and remodel sector of the home improvement market, largely because of the age of the existing housing stock in the U.S., evolving environmental regulations, and the need to retrofit and upgrade infrastructure—as well as investments to do so.
4. Skilled Labor Shortages Persist
One of the main challenges facing the plumbing industry is a continued shortage of skilled labor. Some of this may be due to a generational shift in the U.S., with older tradespeople aging out of the profession without younger generations filling the gap.
Not only do professional contractors have to be thoughtful and creative when it comes to optimizing the utilization of labor, but the shortage also can make it difficult for existing crews to find time to learn about new product enhancements and technologies.
There is a strong need for workforce development and implementing strategies for attracting and retaining skilled employees. Manufacturers and retailers also can address this ongoing challenge in the plumbing industry by developing and marketing technologies that allow for faster installation and that help crews make the most of their time at the job site. For example, we’re seeing a higher demand for prefabricated plumbing systems that can reduce on-site labor needs in order to complete projects.
5. Consumers Seek More Eco-Friendly and Higher Efficiency Options
Environmental concerns continue to be a big part of consumer preferences when it comes to plumbing fixtures and systems, which extends these days to water-treatment and conservation systems, landscape sprinkler systems, fire sprinklers, and waste-management systems. Residents are increasingly aware of their water consumption and seeking new ways to lessen their carbon footprint while creating healthier homes.
Along with concerns around environmental sustainability and water conservation, this type of remodeling and upgrading activity is driven, in part, by inflation. Customers are hyper-aware of long-term value and, consequently, selecting higher-efficiency products that will enhance the function of their home for years to come while keeping utility costs under control. They want products that use less energy and save water.
As a result, we’re witnessing things like an increased demand for low-flow fixtures, which help conserve water; tankless water heaters, which are energy efficient; and greywater recycling systems, which are low-cost and easy to install. Additionally, solar water heaters are on the rise, with the U.S. market expected to grow roughly 8.3% from 2024 to 2030, according to analysis by Grandview Research.
In The Farnsworth Group’s 2021 issue of the Healthy Home Study in partnership with Harvard’s Joint Center for Housing Studies, 31.6% of homeowners indicated intent to retrofit their home with tankless water heaters to increase energy efficiency.
(Keep an eye out for our 2024 Healthy Home Study to gain insight into current sentiments among homeowners, renters, and contractors.)
6. Innovations in Pipe Materials and Designs
In particular, the trend toward sustainability is creating momentum for innovations in the piping materials and designs, with a focus on enhancing durability, performance, and longevity. This includes things like flexible cross-linked polyethylene, corrosion-resistant materials, and recycled components that can contribute to sustainability.
On the flip side, materials such as copper are in decline, according to data from the Home Improvement Research Institute’s (HIRI) Project Decision Study: Plumbing, with copper pipe being used for only 5% of projects in 2023, compared to 19% in 2019, and the use of PVC pipe growing from 51% to 70% in the same period.
Customers are interested in products that are more durable, reducing the risk of leaks, optimizing water consumption, and minimizing ongoing maintenance needs. For DIY homeowners, they’re also drawn to piping materials that are easier to install, reducing the risk of error when taking on their own home improvement projects.
7. Smart and Connected Products are on the Rise
Technology continues to evolve in the trade industries, and we’re seeing more influence from generative artificial intelligence (AI) in 2024 that will likely continue to influence plumbing activities.
Homeowners across the U.S. are starting to trend toward smart technology in their residential spaces. In terms of plumbing, this includes everything from smart toilets and motion-sensor faucets to smart leak detectors, WiFi water filtration, and smart shower heads. These products are intended to make life more convenient for American households, while conserving water and energy and preventing things like water damage as well.
For example, the smart toilet market was valued at approximately $9.47 billion in 2023, according to Verified Market Research. The sector is projected to experience a notable CAGR of approximately 12$ between 2024 and 2031, reaching $23.44 billion.
Our Healthy Home Study also showed that 43.1% of homeowners indicated a desire for smart toilets. Even more homeowners, at 48.2% of respondents, indicated they would like to have automatic faucets, but do not currently have them.
8. Heightened Demand for Specialty Plumbing Tools
It’s not only customers experiencing the influence of AI and smart technology. Developments of specialty tools and technology are underway in the plumbing industry to help professionals diagnose and prescribe solutions for plumbing issues—sometimes before they’re even detected by residents.
They can use infrared technology to look for leaks, trenchless pipe equipment to fix sewer lines, or a portable and high-definition camera to inspect drainage systems. Automated technology also can monitor plumbing systems and provide data to detect leaks, trigger automatic shut-off, and track water consumption.
Digital tools make it easier to organize and manage client relationships and offer them preventative maintenance and support. We expect these types of innovations (and adoption by boots-on-the-ground trade professionals) will continue emerging in response to other industry trends. However, efforts in this field need to align with efforts to generate interest in the plumbing profession by eligible participants in the workforce.
9. Growing Need to Expand Professional Knowledge
In light of the trends toward eco-friendly and smart options, plumbing professionals must be prepared to diversify their knowledge to effectively assist clients in understanding emerging product options and smart-home systems integrations.
This could lead to different training and licensing requirements and optional certifications to ensure professional skills stay up to date and relevant in an evolving industry.
Whether or not certifications become essential, trade professionals will have access to more opportunities and sources of revenue by being willing to adapt to shifting consumer priorities and new technology.
Plumbing manufacturers and retailers can contribute to this effort, and potentially strengthen brand loyalty and professional relationships, by offering training or tutorials for trade professionals about new products and technologies to help them feel informed and confident on the job. With skilled crews already at max capacity in terms of their time, the more you can empower them when using your products, the better.
10. Successfully Navigating Regulatory Changes
Looking ahead, it’s also important for companies and professionals in the plumbing industry to stay abreast of new regulations or changes to industry standards and best practices.
For example, as of September 2023, the Environmental Protection Agency’s "lead free" certification was required for all manufacturers and importers introducing plumbing products regulated under the agency’s “Lead Free” rule. Shortly after, the EPA announced new proposed Lead and Copper Rule Improvements (LCRI) to protect individuals from exposure to lead in drinking water.
These types of regulations will continue to impact the market for plumbing materials and products, which is why it’s important to stay on top of new proposals and guidelines.
Additionally, government incentives and funding provide expanded opportunities in the plumbing industry. The Inflation Reduction Act provides tax credits and rebates on certain energy efficient plumbing upgrades, and contractors can leverage these incentives to motivate customers engaging in residential and commercial plumbing improvements.
Conducting Custom Market Research to Succeed in the Plumbing Industry
Having the right data in your arsenal is critical to staying on top of industry trends and planning for the future while developing and pricing your building products strategically. The Farnsworth Group is here to help you conduct targeted market research among hard to reach plumbers so that you know exactly what to do next to keep up with shifting demands, innovate new technologies, and get the edge over your competitors.
