The interior design services market is estimated to grow at a CAGR of 5.16% between 2022 and 2027. The size of the market is forecast to increase by USD 34029.03 million. The growth of the market depends on several factors, including the increase in worldwide construction activities, the increasing adoption of interior design software for higher productivity, and the improvement in the standard of living and introduction of premium interior designing services.
This report extensively covers end-user (commercial and residential), application (newly decorated and repeated decorated), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
What will the Size of the Interior Design Services Market be During the Forecast Period?
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Parent Market Analysis
Technavio categorizes the global interior design services market as a part of the global specialized consumer services market within the global diversified consumer services market. The parent global specialized consumer services market covers revenue generated by consumer service providers, including residential services, home security services, legal services, personal services, renovation, and interior design services, consumer auction services, wedding services, and funeral services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Interior Design Services Market: Key Drivers, Trends, Challenges, and Customer Landscape
The increase in global construction activities are notably driving the interior design services market growth, although factors such as growing demand for the presence of unorganized players and intense competition among existing players may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Key Interior Design Services Market Driver
The increase in global construction activities is a key factor driving the global interior design services market growth. The increase in construction activities across the globe is driving the global interior design services market. Construction activities are increasing across the residential, commercial, government, corporate, and public sectors. Governments in several emerging economies are increasingly undertaking initiatives to develop infrastructure to improve the economic conditions in these nations, which is expected to drive the growth of the construction sector. Increasing investments by the public sector in construction projects also play a key role in driving the global interior design services market. Many governments across the world are investing a significant amount of capital in the construction of cities, airports, and other commercial buildings, which will drive the demand for interior design services during the forecast period.
Key Interior Design Services Market Trend
R&D investments and technological advancements in digital design will fuel the global interior design services market growth. Technological innovation in digital designing, planning, and execution is the current trend in the global interior design services market. Innovative technological platforms, such as machine learning, VR, and AI, elevate the execution of interior design projects. Vendors are increasing investments in R&D and launching digital design labs to remain competitive in the market and render interior designing productive, boost safety, and identify and address concerns. For instance, AECOM is developing an AI-powered web-and-mobile platform, Capture, which will help designers bring accuracy to conventionally cumbersome, time-consuming, and subjective project management processes. VR technology can overcome the challenges of a verbal explanation of designs and 2D drawings, which are faced by designers. VR devices enable customers to visit different iterations of rooms that require interior design services in a virtual manner. Moreover, collecting and analyzing data using machine learning provides more accurate design data and saves time. Therefore, such technological advancements will drive the growth of the global interior design services market during the forecast period.
Key Interior Design Services Market Challenge
The presence of unorganized players and intense competition among existing players is a major challenge to the global interior design services market growth. The global interior design services market is highly fragmented. It has organized and unorganized interior design service providers. The market is highly fragmented, with the presence of several types of service providers offering comparable services.A few vendors account for a significant share of the market. The vendors also range in size, from small companies focusing on a single type of service to large MNCs offering multiple interior designing services. The competition is intense between established vendors based on various parameters, such as differentiation, product portfolio, premiumization, and pricing. The competitors in the market in focus vary by the type of service that they provide across different regions and compete based on design, the experience of the designer, brand experience, and service. In developing regions, smaller players offer services at lower prices. Technology innovation by big vendors increases the competition for smaller players. For instance, Gensler has invested in virtual reality (VR) technology, and AECOM has invested in artificial intelligence (AI). Thus, the presence of unorganized players and intense competition among existing players will impede the growth of the market in focus during the forecast period.
Key Interior Design Services Market Customer Landscape
Our analysis of the Life Cycle of the Global interior design services market indicates a movement from the innovator’s stage to the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries, including the US, Canada, China, Japan, India, and Germany. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Interior Design Services Market Customer Landscape
Who are the Major Interior Design Services Market Vendors?
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product / service launches, to enhance their presence in the market
aedas.com - The company offers interior design services for end-users from the hospitality industry, as well as residential spaces and corporate offices. Also, the company offers design solutions that are tailored to the needs of cities and communities.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
- Arcadis NV
- Architectural Surfaces Inc.
- Areen Design Ltd.
- DP Architects Pte Ltd.
- Foster + Partners Group Ltd.
- M. Arthur Gensler Jr. and Associates, Inc. (Gensler)
- HBA International
- HDR Inc.
- HOK Group Inc.
- IBI Group Inc.
- Interior Architects Inc.
- Jacobs Engineering Group Inc
- NIKKEN SEKKEI Ltd.
- Perkins & Will International Group of Co.
- Samoo Architects & Engineers
- Stantec Inc.
- Suzhou Gold Mantis Construction Decoration Co. Ltd.
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
What is the Fastest-Growing Segment in the Interior Design Services Market?
The market share growth by the commercial segment will be significant during the forecast period. Commercial end-users include corporate players; government institutions, such as government hospitals and office centers; public sector entities, such as healthcare, education, and railways; and private players, such as retailers, hospitality, and restaurant owners. The commercial segment is expected to grow during the forecast period due to an increase in the number of commercial construction projects. In the commercial segment, interior designing is important for the success of the business. Commercial interior designers conceptualize spaces for businesses to increase functionality and elevate the style for financial gain. Commercial buildings witness a higher frequency of renovation than residential buildings. This will further influence the growth of the commercial segment during the forecast period.
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The commercial segment shows a gradual increase in the market share, from USD 52,807.88 million in 2017 and continued to grow by 2021. The growing retail industry further provides an opportunity for the growth of the commercial segment. Many global vendors are expanding their presence in developing regions. Specialty stores in urban areas will also contribute to growth. A rise in the number of government initiatives for the development of smart cities is expected to drive the demand for commercial interior design services. Non-traditional buildings, such as data centers, are leading in office construction. Technology and life science companies are also developing new buildings with customized interior designs. All these factors will drive the growth of the market for interior design services in the commercial segment during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast period market share and their segment along with the reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of the Interior Design Services by residential consumers, which is driven by an increase in the global demand for the interior design services industry.
Which are the Key Regions of the Interior Design Services Market?
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APAC is projected to contribute 34% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The interior design services market in APAC has witnessed steady growth, led by an increase in the demand for construction projects in developing countries such as China, Japan, and India. China was the largest revenue contributor to the interior design services market in APAC in 2021. The huge construction industry in Japan and China contributed to the growing adoption of interior design solutions. Japan is one of the largest importers of interior decorative products globally. Hotels and resorts carried out renovation of their old structures as the Olympic Games were expected to attract millions of foreign tourists to the country. Finnish companies that specialize in furniture and other interior design products find Japan as one of the largest and growing markets, mainly due to the increasing demand for interior design in the country.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The COVID-19 pandemic led to a decline in demand for interior design services in APAC. In 2020, the outbreak of COVID-19, followed by the imposition of lockdowns by several countries, severely impacted logistics and supply chain operations in the region. As a result, construction projects in the region were suspended. All these factors negatively impacted the regional interior design services market during the first half of 2020. However, the initiation of vaccination drives led to the lifting of lockdown restrictions in the second half of 2020. This resulted in the resumption of construction activities in the region. Organizations operating in the construction industry are moving toward remote ways of working. For instance, digital collaboration technologies such as building information modeling (BIM) are increasingly being used by designers and engineers. Leading engineers and contractors are replanning projects and reoptimizing schedules using 4D and 5D simulation. Such developments in the construction industry are expected to drive the demand for interior design services, which, in turn, will boost the growth of the interior design services market in APAC during the forecast period.
Our report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, product, distribution channel, and region.
- End-user Outlook (USD Million, 2017 - 2027)
- Application Outlook (USD Million, 2017 - 2027)
- Newly decorated
- Repeated decorated