What Is the Global Market Size for Interior Design? A Comprehensive Look at the Industry’s Growth and Future Projections

The global interior design industry is a multi-billion dollar market that has been growing steadily over the years. With the increasing demand for well-designed and aesthetically pleasing spaces, the interior design industry has become an essential part of the construction and real estate sector. Interior design is no longer just about decorating a space, but it has evolved to include the creation of functional and sustainable spaces that cater to the needs of the end-users.

According to Statista, the global market size for interior design was over $150.7 billion in 2020 and is expected to reach $193.5 billion by 2025. The interior design industry is highly competitive, with numerous players vying for a share of the market. The industry is segmented into residential and commercial interior design, with the latter being the larger segment. The commercial interior design segment includes offices, retail spaces, hospitality, and healthcare facilities, among others.

Key Takeaways

  • The global interior design industry is a multi-billion dollar market that has been growing steadily over the years.
  • The industry is highly competitive, with numerous players vying for a share of the market.
  • The industry is segmented into residential and commercial interior design, with the latter being the larger segment.
The Global Market Size for Interior Design
The Global Market Size for Interior Design

Global Interior Design Market Overview

The global interior design market has been growing steadily over the past few years and is expected to continue doing so in the coming years. The market is highly competitive and fragmented, with a large number of players operating in the industry. The market is driven by factors such as increasing disposable income, rapid urbanization, and changing lifestyles.

Market Size

According to a report by Statista, the global interior design market was valued at approximately 121.1 billion U.S. dollars in 2016. The market has been growing steadily since then and is expected to reach 200 billion U.S. dollars by 2025, growing at a CAGR of 6.5% between 2020 and 2025, according to a report by Mordor Intelligence.

The market is segmented into commercial and residential sectors. The residential sector is the largest segment of the market, accounting for 60.3% of the revenue in 2020, according to a report by Gitnux. The commercial sector is also growing rapidly, driven by the increasing demand for office spaces, hotels, and restaurants.

Market Share

The global interior design market is highly fragmented, with a large number of players operating in the industry. The market is dominated by players such as Gensler, HOK, Perkins+Will, AECOM, and IA Interior Architects. These players account for a significant share of the market, while the remaining share is divided among a large number of small and medium-sized players.

Geographically, the market is dominated by North America and Europe, which together account for more than 60% of the market share. However, the Asia-Pacific region is expected to grow at the fastest rate during the forecast period, driven by the increasing demand for interior design services in countries such as China, Japan, and South Korea.

The COVID-19 pandemic has had a significant impact on the global interior design market, with many projects being delayed or canceled due to the economic slowdown. However, the market is expected to recover in the coming years, driven by the increasing demand for interior design services in the residential and commercial sectors.

Market Segmentation

The interior design market is segmented by type, application, and region. Understanding these segments is essential for manufacturers, furniture makers, space planning firms, and individual designers to target the right end-users and grow their businesses.

By Type

The interior design market is segmented by type into newly decorated and repeatedly decorated. The newly decorated segment includes designing a new space or renovating an existing one. Repeated decoration segment includes designing the same space multiple times, such as updating a room’s decor or changing the layout of an office.

By Application

The interior design market is segmented by application into residential and commercial. Residential applications include designing homes, apartments, and other living spaces. Commercial applications include designing offices, retail stores, hotels, and other public spaces.

By Region

The interior design market is segmented by region into North America, Europe, Asia-Pacific, South America, Middle East, and Africa. North America and Europe are the largest markets for interior design services due to the high demand for luxury homes and commercial spaces. Asia-Pacific is the fastest-growing market due to the growing middle class and increased urbanization.

In conclusion, market segmentation is essential for manufacturers, furniture makers, space planning firms, and individual designers to target the right end-users and grow their businesses. By understanding the different types of interior design services and their applications, companies can develop targeted marketing strategies and focus on regions with the highest demand for their products and services.

Market Trends and Forecast

Trends

The global market for interior design services has been growing steadily over the years. According to a recent report, the market was estimated to be worth US$150.7 billion in 2020, and it is projected to reach US$255.4 billion by 2027. The market is expected to grow at a CAGR of 6.8% during the forecast period of 2021-2027.

One of the major trends in the interior design market is the increasing demand for sustainable and eco-friendly designs. Consumers are becoming more conscious of the impact of their choices on the environment and are looking for ways to reduce their carbon footprint. This has led to the rise of green interior design, which focuses on using sustainable materials, reducing waste, and creating energy-efficient spaces.

Another trend is the growing popularity of smart homes. With the increasing adoption of smart technology, consumers are looking for ways to integrate technology into their homes. Smart homes offer convenience, security, and energy efficiency, and interior designers are incorporating smart technology into their designs to meet this growing demand.

Forecast Period

The forecast period for the global interior design services market is from 2021 to 2027. During this period, the market is expected to grow at a CAGR of 6.8%. The market is projected to reach US$255.4 billion by 2027, up from US$150.7 billion in 2020.

Growth Rate

The growth rate of the global interior design services market is expected to be driven by several factors, including the increasing demand for sustainable and eco-friendly designs, the growing popularity of smart homes, and the rising disposable incomes of consumers. The market is also expected to benefit from the increasing number of residential and commercial construction projects across the world.

According to a market research report, the global interior design services market is segmented by type (newly decorated and repeatedly decorated), end-user (commercial and residential), and geography (North America, Europe, Asia-Pacific, South America, Middle-East, and Africa). The report offers a detailed analysis of the market trends, opportunities, and challenges, along with an executive summary, market analysis, and market statistics.

In conclusion, the global interior design services market is expected to witness significant growth during the forecast period of 2021-2027. The market is driven by several factors, including the increasing demand for sustainable and eco-friendly designs, the growing popularity of smart homes, and the rising disposable incomes of consumers. Interior designers who can incorporate these trends into their designs will be well-positioned to take advantage of the opportunities in the market.

Key Players and Competitive Landscape

Major Players

The global interior design market is highly competitive, with several major players vying for market share. Some of the key players in the industry include Jacobs, Stantec, Gensler, Gold Mantis, Nelson, Leo A Daly, Perkins Eastman, Perkins+Will, AECOM, Cannon Design, Callison, HOK, Areen Design Services, M Moser Associates, Wilson Associates, IA Interior Architects, and NBBJ.

Market Share

According to a report by Expert Market Research, the top five players in the global interior design services market accounted for a combined market share of around 12% in 2020. These players include AECOM, Gensler, M. Arthur Gensler Jr. & Associates Inc., Jacobs Engineering Group Inc., and Perkins+Will.

Competitive Landscape

The interior design market is highly competitive, with several major players vying for market share. The industry is characterized by intense competition, with firms competing on the basis of design quality, innovation, and customer service.

Competition in the industry has intensified in recent years, with several major players engaging in mergers and acquisitions to gain a competitive edge. For example, in 2020, AECOM acquired URS Corporation, a global engineering and design firm, to strengthen its position in the market.

Overall, the global interior design market is expected to grow in the coming years, driven by factors such as increasing demand for sustainable and eco-friendly designs, rising disposable incomes, and growing urbanization.

Covid-19 Impact on the Interior Design Industry

The Covid-19 pandemic has significantly impacted the interior design industry globally. The pandemic has forced many businesses to shut down temporarily, resulting in a decline in the demand for interior design services. As a result, the market size for interior design has been affected, and the industry has experienced a significant slowdown.

The pandemic has also changed the way interior design services are delivered. With social distancing measures in place, many interior designers have had to adjust to remote working. This has led to increased use of virtual design tools, such as 3D rendering and virtual reality, to communicate design concepts to clients.

Another impact of Covid-19 on the interior design industry is the shift in consumer preferences. With more people spending time at home, there has been an increased demand for home office spaces, outdoor living areas, and multi-functional spaces that can accommodate work, play, and relaxation. As a result, interior designers have had to adapt their designs to meet these changing needs.

Despite the challenges posed by the pandemic, the interior design industry has shown resilience and adaptability. Many interior design businesses have pivoted their services to meet the changing needs of consumers, offering virtual consultations and design services. The industry has also seen an increased focus on sustainability and eco-friendly design, as more consumers prioritize environmentally conscious design solutions.

In conclusion, the Covid-19 pandemic has had a significant impact on the interior design industry globally. While the industry has experienced a slowdown, it has also shown resilience and adaptability in the face of these challenges. As the world continues to navigate the pandemic, the interior design industry will continue to evolve and adapt to meet the changing needs of consumers.

FAQ

What are the current statistics on the interior design industry?

According to a report by Mordor Intelligence, the global interior design services market is expected to grow at a CAGR of greater than 4% during the forecast period. The market was valued at USD 145.3 billion in 2020 and is projected to reach USD 210.0 billion by the year 2027.

What are the growth projections for the interior design market?

The global interior design market is expected to grow at a CAGR of 5.5% during the forecast period (2020-2027), according to a report by BlueWeave Consulting. The market was worth USD 145.3 billion in 2020 and is projected to reach USD 210.0 billion by the year 2027.

What are the biggest gaps in the interior design industry?

The biggest gaps in the interior design industry are the lack of standardization and regulation, as well as the lack of awareness among consumers about the value of professional interior design services. Additionally, there is a significant gap in the availability of affordable interior design services for low-income households.

How competitive is the global interior design market?

The global interior design market is highly competitive, with a large number of players operating in the market. Some of the key players in the market include Gensler, HOK, Perkins+Will, AECOM, and IA Interior Architects.

What are the latest industry trends in interior design?

Some of the latest industry trends in interior design include the use of sustainable materials, the integration of technology into interior design, and the increasing popularity of biophilic design, which incorporates natural elements into interior spaces.


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