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AI-Powered Interior Design Platforms Redefine Market Dynamics Industry Trends Gaining Momentum in the Global Interior Design Services Market
Interior Design Services Market
Interior Design Services Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In the past few years, there has been a significant increase in the size of the interior design services market. It is expected to expand from its $82.09 billion value in 2024 to a higher value of $88.26 billion by 2025 at a compound annual growth rate (CAGR) of 7.5%. Factors contributing to the growth in this previous period includes a rise in home sales, changing lifestyles, an increase in consumer awareness, fluctuations in the housing market, and augmented expenditure on interior design services.
Interior Design Services Market Size Forecast: What's the Projected Valuation by 2029?
The market size for interior design services is set to experience robust growth in the near future, reaching $123.84 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 8.8%. This growth during the forecasted period is mainly due to factors such as anticipated economic growth, an ageing demographic, the transition towards working from home, a rising consciousness about the influence of indoor environments, and the continuous digital transformation. The forecast period is expected to witness major trends including an increased inclination towards virtual interior design, the introduction of technological tools, enhanced emphasis on designing indoor spaces, growing fascination towards outdoor living areas, and the incorporation of smart home technology.
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What Are the Drivers Transforming the Interior Design Services Market?
The expansion of the construction industry is predicted to fuel the progress of the market for interior design services. Comprising all tasks related to planning, designing, building and sustaining infrastructure, buildings and other structures, the construction industry is witnessing growth due to urbanization, infrastructure requirements, and investments in real estate and public works ventures. Interior design services are becoming increasingly critical to the success of construction projects. Such services help in creating indoor spaces that are not just visually appealing but also suit the tastes and requirements of the clients. For example, the Office for National Statistics, an independent UK statistician, reported that in August 2024, there was a 16.5% rise in total construction new orders amounting £1,771 million ($2,224 million) in the second quarter of 2024 compared to the first quarter of the same year. This upswing was mainly driven by £503 million ($637 million) increments in private commercial new work and £389 million ($490 million) in infrastructure new work, a 15.1% and 23.4% increase respectively. Therefore, the construction industry's growing demand is a significant propellant for the cobblestone market. Hence, the expansion of the construction industry is acting as a catalyst for the growth of interior design services market.
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What Long-Term Trends Will Define the Future of the Interior Design Services Market?
Key players in the interior design services market, such as AI-based interior design platforms, are strategically focusing on innovative solution development to maintain their competitive advantage. The AI-based interior design platform is essentially a digital tool or software that employs AI techniques and algorithms to provide interior design assistance to users. Icon Technology Inc., a firm located in the U.S that provides services in 3D-printed housing and development of AI and robotics systems, introduced an AI system called Vitruvius in March 2024. This system is specifically designed to make home design and construction easier by enabling users to input their needs and preferences to generate necessary construction documents, interior, and exterior visualizations, and floor plans. Vitruvius's purpose is to facilitate the creation of custom floor plans and construction blueprints, which in turn, leads to comprehensive construction schedules and budgets. This system integrates design and construction knowledge to develop designs that are not just visually attractive, but also viable for construction.
Which Segments in the Interior Design Services Market Offer the Most Profit Potential?
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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Which Firms Dominate the Interior Design Services Market by Market Share and Revenue in 2025?
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.
Which Regions Offer the Highest Growth Potential in the Interior Design Services Market?
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.
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