Interior Design Services Market

Interior Design Services Market Outlook (2022-2032)

The global interior design services market witnessed a growth rate of 5.8% during the historical period of 2017-2021 and reached a valuation of US$ 115 billion in 2022. During the forecast period 2022-2032, the market is forecasted to expand rapidly at a CAGR of 6.4% and reach a value of US$ 213.7 billion.

The world of design services is witnessing a sea of opportunity. Demand growth is being led by significant developments in the real estate sector, Demand for real estate has been increasing from both residential and commercial ends. Increasing spending power of the middle class is creating a huge demand for interior designing services.

Given the current economic environment and improved employability, it is expected that the population of middle-class families will increase over the coming years. With improved income and rapid urbanization, worldwide demand for interior design services is only expected to be high.

Rapid urbanization and increased government spending on infrastructure development will play a key role in creating a huge demand for interior designing services. The share of middle-class families in the total global population will increase significantly, simultaneously leading to an increase in the demand for real estate, which will drive the demand for interior designing services as well.

Integration of technology into the services offered coupled with customized service solutions for specific customer needs will certainly help market players remain relevant in the market. Over the years, change in style and design (modern/contemporary/traditional) will also create new opportunities for interior designers.

Report Attributes	Details
Interior Design Services Market Size (2021A)	US$ 108 Billion
Estimated Market Value (2022E)	US$ 115 Billion
Forecasted Market Value (2032F)	US$ 213.7 Billion
Global Market Growth Rate (2022-2032)	6.4% CAGR
North America Market Share (2021)	~31%
East Asia Market Growth Rate (2022-2032)	~7.8% CAGR
United States Market Growth Rate (2022-2032)	~5.1% CAGR
Key Companies Profiled	Aecom Areen Design Services Ltd CallisonRTKL Inc. Cannon Design DB&B DP Architects Pte Ltd Foster Partners Group Ltd Gensler Gold Mantis Technical Works LLC HDR Inc. Hirsch Bedner Associates HOK IA Interior Architects Jacobs Engineering Group Inc. M Moser Associates Nelson Worldwide Perkins and Will Perkins Eastman Stantec Inc. Yabu Pushelberg

Why are Interior Designing Services in Such High Demand?

“Rising Consumer Spending Power across Regions”

The real estate industry is witnessing one of the highest demands for residential properties in the past few years. This would not have been possible without consumers’ increased spending power. The house ownership share among middle-class families has increased significantly.

Rapid increase in nuclear families has also led to the demand for real estate and ultimately created the need for interior designers to some extent. People are looking for designers who can match their requirements with the exact vision that they have.

Improved spending power has allowed consumers to choose the design, style, and color, among others, for the house. If a customer is not happy with the design or color provided by the builders, they are going beyond the basic plan and incurring extra costs to get their choice of design. This trend is expected to continue in the near future and create huge opportunities for interior service providers.

“Rapid Urbanization of Cities across the World”

Demand for interior design services from the commercial/enterprise space is very evident. Continuous urbanization along with high government spending on infrastructural development has created huge opportunities for those providing design services.

In this highly competitive business environment, infrastructure development companies are offering designer complexes and apartments to lure customers. Over the years, real estate developers have started offering interior designing services either through in-house experts or outsourced services.

Even government institutions are spending a lot of money on designing services. Planning for smart cities with all the required amenities cannot be possible without consulting an architecture designer. The interior designing industry is evolving along with a new set of customers such as educational institutions, hospitals, etc.

What May Adversely Impact Interior Designing Market Growth?

“Continuous Technology Evolution”

It is not always possible for every designer to keep up with the pace of ever-changing technology. Currently, the interior designing industry is filled with companies providing 2D/3D modeling services.

Many new entrants are coming up with advanced technology-enabled services, which, in turn, is affecting the business of well-established large players. Services such as floor planning, color combination, and architectural design can be performed with the help of technology without the intervention of a certified designer. However, in the long run, if adopted, technology will make life easier for both consumers and service providers.

Image presents market analysis of interior designing services based on end user and region. Under end user, commercial users account for 53% market share.

Country-wise Insights

How is the U.S. Interior Design Industry Shaping Up?

The U.S. interior design industry is one of the most advanced and matured markets among all other economies. In the year 2022, the U.S. interior design services market is expected to generate a revenue of US$ 28.5 billion.

This number gives a huge opportunity for market players to continue to serve their clients and generate higher revenue.

• As per the U.S. BUREAU OF LABOR STATISTICS, there are around 93.3K jobs generated by the U.S. interior designing industry.

On the back of an improved business environment and low-interest rates, demand from high-end clients for interior design services is on the rise.

How Can Saudi Arabia Be the Dark Horse in the Game of Interior Design Services?

Saudi Arabia is becoming the newest global village of the world. The country is evolving in every aspect of how it functions and presents itself. The same can be witnessed in its architecture and interior designs.

The interiors of buildings and monuments have been witnessing some influence from Western countries also. From walls to interiors to furniture, everything tells a different story. The country has something to offer to whoever is coming to Saudi Arabia.

People across the world are buying properties in Saudi Arabia for residential as well as investment purposes. Every customer has a unique demand. The Saudi Arabia interior design services market is expected to reach a valuation of US$ 1.4 billion. Market players across the globe are trying to capture their share of the big pie in this lucrative market.

Category-wise Insights

Why is Demand for Interior Services Expected to Remain High from Residential Users?

In terms of absolute dollar opportunity, the commercial user space will continue to lead demand; however, the highest growth in terms of demand will be led by residential users.

With the growing urban population and increased spending power, demand for residential property will be high in the future. The increasing rate of home ownership across the globe will also play a key role in the overall demand for interior designing services. Existing homeowners are also trying to keep up with the recent trends and styles and are looking for interior services for the redoing of old interiors.

Trends and styles keep on changing in the residential space. Residential owners have the freedom to redesign and restyle the interior as and when they require, unlike commercial spaces where the restyling or designing happens at a given point in time.

What Allows Small Local Players to Lead the Interior Design Services Space?

The interior services design market is highly fragmented given the existence of a large number of single-location companies. The top 5 companies account for less than a double-digit market share, combined.

Nevertheless, interior services have been witnessing huge demand in the last few years. However, most of this demand is small ticket sizes and is mostly catered to by local service providers. From a business perspective, it is easy for small-size companies to provide customized services within a budget; however, it is not feasible for large enterprises to cater to such small-ticket services. This is the reason why local small- and mid-size market players continue to command a higher market share in the interior designing industry.

Competitive Landscape

Major market players in interior design services are Aecom, Areen Design Services Ltd, CallisonRTKL Inc., Cannon Design, DB&B, DP Architects Pte Ltd, Foster Partners Group Ltd, Gensler, Gold Mantis Technical Works LLC, HDR Inc., Hirsch Bedner Associates, HOK, IA Interior Architects, Jacobs Engineering Group Inc., M Moser Associates, Nelson Worldwide, Perkins and Will, Perkins Eastman, Stantec Inc., and Yabu Pushelberg.

The global interior design market is highly competitive with the presence of many small- and mid-sized companies. The design industry is evolving like never before and market players are trying to increase their market share through acquisitions, partnerships, and expansion into different regions. Many market players have interacted technology into their service offerings to meet varied customer expectations.

• In April 2021, Herman Miller, one of the largest furniture design companies, acquired Knoll for a staggering US$ 1.8 billion.
• In November 2021, Blackford Capital, a private equity investment firm, acquired ID Collaborative Inc. The acquired company will join the existing portfolio companies of Blackford Miller.
• In February 2022, Havenly, one of the largest online interior design service providers, acquired The Inside, a direct-to-consumer home furnishing brand.

Fact.MR has provided detailed information about the providers of interior design services positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of Interior Design Services Industry Survey

• By Firm Size :

  • Less than 10 Employees
  • 11-50 Employees
  • More than 50 Employees

• By End User :

  • Residential
  • Commercial

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa