Interior Design Market By Application (Residential, Corporate, and Others), and Type (New Design, Renovation), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global Interior Design Market was valued at around USD 133.57 billion in 2022 and is projected to attain a valuation of USD 241.47 billion by 2032 at a CAGR of around 6.1% between 2023 and 2032.

The interior design market is a dynamic and ever-evolving industry, where clients' preferences and design concepts play a crucial role in creating or enhancing the aesthetic of interior space. Businesses specializing in project planning, design, and management for various interior environments make up the interior design market. The market is poised for growth, driven by factors such as increased demand for residential, corporate, and other spaces, rising disposable incomes, and consumers' growing awareness of interior design. Technological advancements and the development of new applications present additional opportunities for companies to expand their reach and attract more clients. 

However, the interior design market is not immune to challenges, such as fluctuations in the availability and price of raw materials required for furniture, economic uncertainties, and other factors that can impact the market on a large scale.

North America and Asia Pacific are significant players in the market, with their growing construction industries. Europe has seen a steady increase in contribution, despite some limitations faced by European countries. The interior design market is expected to continue its growth trajectory in the coming years.

Key Insights

• Based on application, the residential segment held the largest market share
• Based on type, the new design segment generated the highest revenue
• On the basis of region, North America accounted for the largest market share

Demand for Innovative and Unique Themes is Setting the Trends

Consumers are increasingly exposed to diverse cultural, contemporary, and modern design styles. Contemporary designs, characterized by linear patterns, bold color themes, and a mix of natural materials, are becoming increasingly popular. As competition in the interior design market intensifies, designers are working to expand their reach and showcase their latest designs to potential clients. The rapid introduction of new designs allows customers to have a wider range of choices to choose from, enabling them to find the perfect fit for their needs and preferences.

This dynamic market, coupled with the changing preferences of consumers, presents both challenges and opportunities for interior designers. With the growth of the market, designers are continuously seeking new ways to stand out, innovate, and meet the evolving needs of their clients.

Rise in Infrastructural Activities to Fuel Growth of Global Interior Design Market

Urbanizing countries play a crucial role in infrastructural development owing to increasing The growth of businesses, and new residential, commercial, and corporate projects, are driving the demand for interior solutions. The increase in investment in the construction industry observed in 2022 is expected to continue fueling the interior design market through the forecast period. As businesses and developers invest in new projects, they are increasingly looking for high-quality interior design solutions that meet the needs and preferences of their customers. This growing demand for interior solutions presents opportunities for designers, manufacturers, and suppliers to meet the needs of the market.

The construction industry's growth is an indicator of the continued expansion of the interior design market, which is expected to provide significant growth opportunities for players in the industry in the coming years. Companies operating in this market are poised to benefit from the increasing demand for interior design services and solutions as businesses and individuals continue to invest in new construction projects.

Expensive Interior Designing Solutions and Products May Impede the Market Growth in the Years to Come

The cost of interior design products and solutions is relatively high, due in part to the incorporation of the latest technologies and design trends. The cost of services is not the only factor that may impede the growth of the market. The cost of raw materials, such as color palettes, furniture, and other associated expenses, also contributes to the high cost of interior design solutions.

This cost can present a challenge for consumers with limited or medium-sized incomes, who may prefer to decorate their spaces using their own choices instead of seeking professional interior design services. Over the forecast period, the rising cost of interior design solutions may become a barrier to market growth.

To overcome these challenges, companies in the interior design market may need to find new ways to provide cost-effective solutions that meet the needs and budgets of their clients. This could involve exploring alternative materials, implementing more efficient processes, or developing new business models that better align with consumer preferences and financial constraints.

Recent Developments

In December 2022: HOK expanded its reach in the U.S. by opening 3 new studios in the country. The studios were opened in Denver, Austin, and Miami. The aim of these studios was to strategically increase their reach and thus reach out to their clients.

In February 2022: The Inside, a brand serving directly to customers was acquired by Havenly, which is the largest firm offering interior Designs. The Inside grew by 600% between 2020 to 2022.

Segmentation Analysis

Based on application, the market is categorized into residential, corporate, and others. The residential segment dominated the segmental share in 2022 accounting for slightly over 50% of revenues. The residential sector comprises apartments, houses, bungalows, and villas amongst others. Increasing levels of disposable income is the key factor resulting in the growth of this segment. Other factors influencing the customers include exposure to cultures, arts, and themes.

In recent years, there has been a surge in themed apartments that offer a single, cohesive theme throughout the living space. This innovative trend has helped customers make better-informed decisions when it comes to decorating their homes. The rise in homeownership around the world, as the real estate sector continues to grow, is also contributing to the increased demand for interior designers. This growing demand for residential interior design services is fueling the growth of interior design companies. Meanwhile, the corporate sector is expected to be the fastest-growing sector in the industry, driven by the shift in work cultures and the increasing number of office spaces. The trend towards more modern, functional designs that meet the primary and secondary needs of workspaces is contributing to the growth of the corporate sector.

Based on decoration type, the market is categorized into new design and renovation. New Design dominated the market share owing to ever-increasing infrastructural developments. The global number of new projects completed in 2022 was quite high. The key players with their innovative and aesthetic Designs are augmenting the segment's growth.

North America Dominates Market owing to Increased Consumer Awareness Among Population

North America dominated the global interior design market, accounting for over 30% of the total revenue. The United States, being the most significant contributor to the region, generated over 60% of the revenue. Driven by demographic changes, cultural fusion, and cutting-edge technologies in interior design, customers are better equipped to make informed decisions. A shift away from traditional office interiors and towards more innovative workplace designs has also influenced corporate customers to renovate their spaces.

Infrastructure development in the region has fueled the growth of the residential interior design sector. The introduction of modern and traditional design themes has further fueled the demand for the interior design market in North America.

Asia Pacific to Register Fastest Growing Market Due to Increasing Infrastructure

The Asia Pacific region is expected to experience the fastest growth in the interior design market in the coming years. The growth is driven by several key factors, including the increasing number of businesses, the return of work modules to office environments, the growth of the corporate sector, and the rise of disposable incomes among individuals.

India, China, Australia, and New Zealand are among the countries in the region that have seen significant infrastructure development. India is poised for particularly rapid growth due to its urbanizing cities that attract new business hubs. With growing incomes, individuals are opting for smart interior designs that optimize space and enhance the aesthetic appeal of their homes.

Competitive Landscape

• CannonDesign
• GENSLER
• Gold Mantis
• HOK
• IA INTERIOR ARCHITECTS
• Inter IKEA Systems B.V.
• com
• PERKINS&WILL
• Roomtodo
• Hirsch Bedner Associates

The global interior design market is segmented as follows:

By Application

• Residential
• Corporate
• Others

By Type

• New Design
• Renovation

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America