Interior Design Services Market - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Interior Design Services Market Forecast 2023-2027

The Interior Design Services Market size is forecast to increase by USD 34.02 billion at a CAGR of 5.16% between 2022 and 2027.  The surge in global construction activities, coupled with the increasing adoption of interior design software for improved efficiency, and the elevation of living standards have become pivotal drivers for market share growth in the interior design services sector. This trend is further fueled by the introduction of upscale interior design services catering to discerning consumers. With a focus on efficiency and luxury, firms are leveraging technological advancements to meet the evolving needs of clients, thereby enhancing their market share amidst a competitive landscape driven by innovation and client satisfaction.

 What will the Size of the Market be During the Forecast Period?

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The market is experiencing significant growth fueled by global construction activities, AR technologies, and the demand for sustainable and eco-friendly practices. With a focus on residential and hospitality segments, firms are leveraging digital advancements for virtual design consultations, personalized experiences, and energy-efficient solutions. Additionally, the rise of co-working spaces in tier 1 and tier 2 cities has spurred demand for adaptable designs and ergonomic functionality. As consumer tastes evolve and technology develops, interior design firms are integrating distinctive aesthetics, brand reputation, and environmentally conscious practices to meet the diverse needs of property owners and investors while enhancing property value and desirability.

Market Segmentation 

In the realm of interior design, a conscientious shift towards sustainability is evident across various sectors, including real estate, commercial spaces, and hospitality. From kitchens to bedrooms and bathrooms, sustainable design practices are being embraced, driven by environmental concerns and a growing emphasis on health and wellness. The interior design industry is witnessing a trend towards sustainable sourcing, utilizing recycled materials and energy-efficient systems to mitigate climate change impacts. This movement encompasses a diverse array of cultural influences and heritage elements, blending traditional aesthetics with modern AR technologies. Across residential and commercial segments, property owners and designers alike are embracing eco-friendly practices to meet the evolving demands of consumers in tier 1 and tier 2 cities. 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.

By End-User Segment 

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 52.80 billion 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 companies 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. 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 in the commercial segment during the forecast period. The growth of this segment is primarily attributed to the increasing adoption of the by residential consumers, which is driven by an increase in the global demand for the industry.

Market Dynamics and Customer Landscape

The emphasis on eco-friendly products and materials has gained significant traction, particularly within the real estate sector and residential segment. This shift towards sustainability reflects a broader cultural diversity and appreciation for heritage, blending traditional elements with modern concepts. Designers prioritize eco-friendly materials and sustainable practices to promote wellness and cater to diverse populations with varying comfort levels and lifestyles. From apartment living to workplace environments, the focus is on space-saving solutions, ergonomic furniture, and seamless technology integration to enhance productivity, well-being, and consumer experiences across retail and healthcare sectors. Augmented Reality (AR) further revolutionizes design processes, offering immersive customer experiences and enabling innovative thematic designs aligned with corporate branding initiatives.

Key Market Driver

The increase in global construction activities is a key factor driving the global value. The increase in construction activities across the globe is driving the global. 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. 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 demand during the forecast period.

Significant Market Trends

R&D investments and technological advancements in digital design will fuel global growth. Technological innovation in digital designing, planning, and execution is the current trend in the global. Innovative technological platforms, such as machine learning, VR, and AI, elevate the execution of interior design projects. companies are increasing investments in R&D and launching digital design labs to remain competitive 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 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 during the forecast period.

Major Market Challenge

The presence of unorganized players and intense competition among existing players is a major challenge to global growth. The global is highly fragmented. It has organized and unorganized interior design service providers. The is highly fragmented, with the presence of several types of service providers offering comparable services. A few companies account for a significant share. The companies 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 companies based on various parameters, such as differentiation, product portfolio, premiumization, and pricing. The competitors 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 companies 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 focus during the forecast period.

Market Customer Landscape

Our analysis of the Life Cycle of the global 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 Market Customer Landscape

Who are the Market Companies?                                     

Companies 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 Ltd - The company offers 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 companies, including :

• AECOM
• Arcadis NV
• Architectural Surfaces Inc.
• Areen Design Ltd.
• CannonDesign
• 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 companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Which are the Key Regions of the 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 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 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 in the country. 

Market Analyst Overview

The market encompasses a broad spectrum of services within the interior decorating industry, catering to both residential and commercial clients, and reflects market growth. From residential interior design to office interior design and hospitality interior design, interior design firms offer tailored solutions to meet diverse needs. Whether it's home renovation services or retail interior design, professionals in the field provide expertise and creativity to transform spaces, contributing to Interior design market trends. 

The commercial real estate and architecture, the convergence of innovative technologies and sustainable practices is reshaping public infrastructure and co-working spaces. Digital interior design startups are pioneering biophilic designs and ergonomic solutions while integrating smart home systems for personalized experiences. This evolution reflects urbanization trends and the changing tastes of the middle class, driving design innovation worldwide. From warehouses to retail segments, there's a growing demand for upcycled designs and flexible, collaborative spaces that prioritize employee productivity and customer comfort. As interior designers draw inspiration from global cultures and local elements, they incorporate natural materials, vibrant colors, and intricate patterns into minimalist designs, seamlessly integrating smart technology to create immersive environments.

Through comprehensive market growth analysis and forecasting, the market size, growth, and trends are continuously monitored, shaping the market outlook and driving industry advancements. With a focus on delivering exceptional experiences, interior design professionals undertake various interior design projects to create functional and aesthetically pleasing environments, underscoring the importance and the role of Interior Design Consultancy.

Segment Overview

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
  • Commercial
  • Residential 

• Application Outlook
  • Newly decorated
  • Repeated decorated

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

  Market Scope
  Report Coverage	Details
  Page number	120
  Base year	2022
  Historical year	2017-2021
  Forecast period	2023-2027
  Growth momentum & CAGR	Accelerate at a CAGR of 5.16%
  Market growth 2023-2027	USD 34.02 billion
  Market structure	Fragmented
  YoY growth (%)	3.78
  Regional analysis	APAC, North America, Europe, South America, and the Middle East and Africa
  Performing market contribution	APAC at 34%
  Key consumer countries	US, Canada, China, Japan, India, and Germany
  Competitive landscape	Leading companies, Competitive Strategies, Consumer engagement scope
  Key companies profiled	AECOM, Aedas Ltd., Arcadis NV, Architectural Surfaces Inc., Areen Design Ltd., CannonDesign, DP Architects Pte Ltd., Foster + Partners Group Ltd., M. Arthur Gensler Jr. & 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., and Suzhou Gold Mantis Construction Decoration Co. Ltd.
  Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
  Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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  What are the Key Data Covered in this  Market Research and Growth Report?

  • CAGR of the market during the forecast period 2023-2027
  • Detailed information on factors that will drive the growth of the global market research report between 2023 and 2027
  • Precise estimation of the size of the market size and its contribution to the market in focus on the parent market.
  • Accurate predictions about upcoming trends and changes in consumer behavior
  • Growth of industry across APAC, North America, Europe, South America, and the Middle East and Africa
  • A thorough analysis of the market’s competitive landscape and detailed information about companies
  • Comprehensive details of factors that will challenge the growth of market companies

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