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Key Trend Reshaping the Interior Design Services Market in 2025: AI-Powered Interior Design Platforms Redefine Market Dynamics
Interior Design Services Market Size
In the past few years, the market size for interior design services has seen significant growth. It is expected to rise from $82.09 billion in 2024 to $88.26 billion in 2025, with a compound annual growth rate (CAGR) of 7.5%. The historic expansion can be traced back to factors such as the rise in home sales, changing lifestyles, enhanced consumer knowledge, ups and downs in the housing market, and increased expenditure on interior design services.
Expectations are high for a robust surge in the interior design services market size in the coming years. Notably, this market is anticipated to expand to $123.84 billion by 2029, registering a compound annual growth rate (CAGR) of 8.8%. This expected growth during the predicted period can be credited to factors such as potential economic growth, the aging population, a shift to remote working, increasing understanding of the effects of interior settings, and the persistent digital revolution. Key trends projected for the forecast period incorporate an escalating inclination towards virtual interior design, the embedding of technological tools, a heightened emphasis on formulating interior atmospheres, a rising curiosity in external living spaces, and the amalgamation of smart home technology.
What Are the Key Drivers Behind the Growth of the Interior Design Services Market?
The expansion of the construction industry is anticipated to fuel the increase of the interior design services market. The gamut of activities included in the construction industry involves the conceptualization, creation, construction, and upkeep of structures, infrastructure, and buildings. Urbanization, infrastructure requirements, and investment in real estate and public works projects are contributing to the rise of this sector. The construction industry is progressively adopting interior design services to produce visually appealing and functional indoor areas that cater to the tastes and needs of clients. For example, the Office for National Statistics, a UK-based independent official statistics producer, reported in August 2024 that total construction new orders escalated by 16.5%, £1,771 million ($2,224 million), in Quarter 2 of 2024 compared to Quarter 1 of the same year. This growth in the quarterly term was largely attributable to private commercial new work and infrastructure new work, advancing by 15.1%, £503 million ($637 million), and 23.4 %, £389 million ($490 million) respectively. Thus, the rise in demand from the construction sector is stimulating the growth of the cobblestone market. Consequently, the expanding construction industry is stimulating the growth of the interior design services market.
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Which Businesses Are at the Forefront of Interior Design Services Market Development?
Major companies operating in the interior design services market are Jacobs Engineering Group Inc., AECOM Technology Corporation, Stantec Inc., Arcadis NV, SmithGroup Ltd., HDR Inc., Gensler, Perkins And Will Inc., Arcadis IBI Group, Nelson Worldwide Holdings Inc., Hirsch Bedner Associates Inc., HOK Group Inc., Foster + Partners Group Ltd., CallisonRTKL Inc., Cannon Design Inc., Perkins Eastman Inc., ZGF Architects LLP, Woods Bagot Architects Pty Ltd., Samoo Architects And Engineers Co. Ltd., IA Interior Architects, Areen Design Services Ltd., Rockwell Group LLC, Yabu Pushelberg, Avroko Design LLC, Rapt Studio Inc.
What Are the Latest Innovations in the Interior Design Services Market?
Leading firms in the interior design services market are concentrating on the creation of novel solutions like AI-based interior design platforms to enhance their competitiveness. Such platforms embrace AI algorithms and technologies to support users in the designing of interior spaces. For instance, Icon Technology Inc., a US company specializing in 3D-printed housing services and robotic & AI systems development, rolled out Vitruvius in March 2024. This artificial intelligence system is designed to facilitate home design and construction. The AI system enables users to enter their requirements and preferences to generate floor plans, internal and external visualizations, and even crucial construction documents. Vitruvius's purpose is streamlining the generation of personalized floor plans and construction blueprints along with full construction schedules and budgets. By merging design and construction expertise, the system crafts designs that are not only aesthetically pleasing but also suitable for building purposes.
How Is the Interior Design Services Market Segmented?
The interior design services market covered in this report is segmented -
1) By Type: Newly Decorated, Repeated Decorated
2) By Specialized Interior Design Services: Hospitality Interior Design, Healthcare Interior Design, Retail Interior Design, Office Interior Design, Restaurant Interior Design, Event And Exhibition Design
3) By End User: Commercial, Residential
Subsegments:
1) By Newly Decorated: Residential Interior Design, Commercial Interior Design, Hospitality Interior Design, Retail Interior Design
2) By Repeated Decorated: Residential Remodeling And Renovation, Commercial Space Redesign, Office Interior Redesign, Retail Store Updates
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Where Is the Interior Design Services Market Growth Most Prominent?
North America was the largest region in the interior design services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the interior design services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What Is Covered In The Interior Design Services Global Market Report?
- Market Size Analysis: Analyze the Interior Design Services Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Interior Design Services Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Interior Design Services Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Interior Design Services Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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