Artificial Intelligence (AI) In Interior Design Market: Major Trends Reshaping the Future of the Industry

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What Will the Artificial Intelligence (AI) In Interior Design Industry Market Size Be by 2025?
The market size for artificial intelligence (AI) in the interior design industry has seen a considerable increase in recent years. Its growth is projected to rise from $1.09 billion in 2024 to $1.39 billion in 2025, with a compound annual growth rate (CAGR) of 27.3%. Factors contributing to this progress made during the historic period include a heightened demand for custom designs, advancements in AI technology, an increase in home revamps and refashioning, the expansion of ecommerce in the home furnishings sector, a decrease in the costs of AI implementation, an improved user experience owing to AI, and the incorporation of AR/VR technologies.

What's the Long-Term Growth Forecast for the Artificial Intelligence (AI) In Interior Design Market Size Through 2029?
In the coming years, the market size for artificial intelligence (AI) in the field of interior design is predicted to witness a huge surge, with projections stating an increase to $3.59 billion by 2029, growing at a compound annual growth rate (CAGR) of 26.9%. The expected growth during this forecast period is due to factors such as an increase in the adoption of smart homes, progressive development in AI generation, an expanded role of AI in consumer applications, the demand for eco-friendly design solutions, a greater emphasis on data-driven designs, the rise of AI-based design platforms, and elevated consumer expectations for engaging designs. Foreseen trends during this period include the convergence of AI and IoT, the creation of advanced tools for generative design, improved real-time feedback on designs, customized design experiences, the rise of AI-guided virtual and augmented reality, focus on AI-boosted collaboration, and innovations in AI for sustainable design.

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What Are the Key Growth Drivers Fueling the Artificial Intelligence (AI) In Interior Design Market Expansion?
The spike in smart home demand, resulting from the push for a more automated, convenient, comfortable, and energy-efficient living, is anticipated to boost the use of artificial intelligence (AI) in the interior design industry in the foreseeable future. Smart homes are homes fitted with appliances, devices, and systems that enhance automated control for an augmented living experience, security, and energy efficiency. Affordable smart appliances, growing awareness about energy efficiency, and the advantages of home security significantly contribute to the increased demand for integrated living solutions. AI application in smart home technology offers personalized and improved living environments, assisting homeowners in regulating systems, enhancing energy efficiency, and guaranteeing optimal comfort and security. As per a report by techUK, a tech industry membership association in the UK, the number of UK adults owning at least a single connected home device will surge to 77% in 2022, a rise from 67% before the pandemic and a 1% increment from 2021. Additionally, the ratio of advanced users owning over three interconnected home devices has escalated from 24% in 2021 to 26% in 2022. Consequently, the surging smart home demand fuels the usage of AI in the interior design industry.

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What Are the Key Trends Driving Artificial Intelligence (AI) In Interior Design Market Growth?
Key players in the artificial intelligence (AI) within the interior design sector are concentrating their efforts on the creation of innovative AI solutions like AI-driven generative interior design tools. These tools make it possible for users to visualize and customize their living environments. Using AI, these tools provide photorealistic conversions of rooms in numerous décor styles, as per the customer's uploaded images. A case in point is the July 2023 launch of Decorify by Wayfair Inc., a U.S. based company specializing in a diverse range of furniture and home goods. This generative AI-driven interior design software allows customers to reimagine their spaces. It enables users to upload their room's picture, which is then transformed by AI into styles such as bohemian, mid-century modern, or industrial. Decorify generates photorealistic, purchasable images of the redesigned space, helping customers visualize diverse decor options. It elevates the shopping experience, enabling users to experiment with different room designs and shop directly from Wayfair's extensive catalog within the application.

How Is the Artificial Intelligence (AI) In Interior Design Market Segmented?
The artificial intelligence (AI) in interior design market covered in this report is segmented -

1) By Component: Solution, Services
2) By Application: Space Planning And Design, Furniture And Decor Selection, Virtual Reality And Augmented Reality (VR Or AR) Visualization, Material Selection And Optimization, Other Applications
3) By End User: Interior Design Firms, Architects And Real-Estate Developers, Furniture Manufacturers, Other End-Users

Subsegments:
1) By Solution: AI-Powered Design Tools, Virtual Reality (VR) And Augmented Reality (AR) Integration For Interior Design, 3D Modeling And Visualization Solutions, AI-Driven Furniture Layout And Arrangement Tools, Color And Lighting Recommendation Systems, Smart Home Integration Solutions For Interior Design
2) By Services: AI-Driven Interior Design Consultation Services, Customization And Personalization Services using AI, AI-Based Space Planning And Optimization Services, Virtual Interior Design Assistance Services, AI Integration And Implementation Services, Ongoing Maintenance And Updates For AI Design Solutions

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Which Companies Are Leading the Charge in Artificial Intelligence (AI) In Interior Design Market Innovation?
Major companies operating in the artificial intelligence (AI) in interior design market are Wayfair Inc., Autodesk Inc., Houzz Inc., Havenly Inc., Modsy Inc., Foyr Inc., Homestyler Inc., DesignFusion AI, Collov Inc., REImagine Home Inc., ZMO.ai Ltd., Coohom Inc., DecorMatters Inc., Floorplanner.com B.V., Morpholio LLC, Planner 5D Inc., RoomSketcher AS, Fotor Inc., Room AI inc., RoomGPT

Which Regions Are Leading the Global Artificial Intelligence (AI) In Interior Design Market in Revenue?
North America was the largest region in the artificial intelligence (AI) in interior design market in 2024. The regions covered in the artificial intelligence (AI) in interior design market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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