Interior Design Service Market Research Report: By Project Type (Residential, Commercial, Hospitality, Healthcare, Retail, Educational, Public Buildings), By Service Type (Interior Design Consulting, Interior Decoration, Space Planning, Furniture and Fixture Selection, Lighting Design, Color Consultation, Window Treatment, Home Staging), By Budget Range (Under $10,000, $10,000-$50,000, $50,000-$100,000, $100,000-$250,000, $250,000-$500,000, Over $500,000), By Project Complexity (Simple Refurbishment, Major Renovation, New Build, High-End Lu

Interior Design Service Market Overview

As per MRFR analysis, the Interior Design Service Market Size was estimated at 212.94 (USD Billion) in 2022.The Interior Design Service Market Industry is expected to grow from 225.46(USD Billion) in 2023 to 376.9 (USD Billion) by 2032. The Interior Design Service Market CAGR (growth rate) is expected to be around 5.88% during the forecast period (2024 - 2032).

Key Interior Design Service Market Trends Highlighted

The interior design service market is driven by a surge in demand for personalized and aesthetically pleasing living and workspaces. The growing trend towards luxury and wellness has created opportunities for interior designers specializing in high-end residential and hospitality projects. Modern technologies, such as virtual and augmented reality, enable designers to create immersive experiences and tailor designs to individual preferences.

Opportunities in the interior design service market lie in expanding into emerging markets, catering to the needs of specialized sectors like healthcare and education, and embracing sustainability and eco-friendly practices. The rise of the sharing economy and online marketplaces provides platforms for designers to reach a wider audience.Recent trends in the interior design service market include the increasing popularity of biophilic designs that incorporate natural elements, the adoption of smart home technology and automation, and the growing demand for ergonomic and functional spaces. Designers are also focusing on creating multi-purpose and adaptable spaces that cater to the evolving needs of modern lifestyles. 

Figure1: Interior Design Service Market, 2018 - 2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Interior Design Service Market Drivers

Growing Demand for Personalized and Aesthetically Pleasing Spaces

The increasing demand for personalized and aesthetically pleasing spaces is a major driver of the Interior Design Service Market Industry. As people spend more time in their homes, they are looking for ways to make them more comfortable, stylish, and functional. This has led to a growing demand for interior designers who can help people create spaces that reflect their individual tastes and needs. The trend towards personalization is being driven by a number of factors, including the rise of social media and the increasing availability of affordable home décor.Social media platforms such as Instagram and Pinterest have made it easier for people to share photos of their homes and get inspiration from others. This has led to a greater awareness of different interior design styles and trends. At the same time, the increasing availability of affordable home décor has made it easier for people to achieve the look they want without breaking the bank. The growing demand for personalized and aesthetically pleasing spaces is expected to continue in the coming years.This is due in part to the increasing number of millennials and Generation Z consumers who are entering the homeownership market. These generations are known for their desire for unique and stylish spaces. As they continue to buy homes, they are expected to drive demand for interior design services.

Rising Disposable Income and Increasing Homeownership Rates

The rising disposable income and increasing homeownership rates are also contributing to the growth of the Interior Design Service Market Industry. As people have more money to spend, they are investing in their homes. This is leading to a greater demand for interior design services as people look for ways to make their homes more comfortable, stylish, and functional.

Growing Popularity of Smart Home Technology

The growing popularity of smart home technology is also driving the growth of the Interior Design Service Market Industry. Smart home technology can be used to control a variety of home functions, such as lighting, heating, cooling, and security. This can make homes more comfortable, convenient, and energy-efficient. Interior designers are increasingly incorporating smart home technology into their designs. This is because smart home technology can be used to create more personalized and functional spaces.For example, a smart lighting system can be used to create different lighting scenes for different occasions. A smart thermostat can be used to automatically adjust the temperature of a home based on the time of day or the weather. The growing popularity of smart home technology is expected to continue in the coming years. This is due in part to the increasing availability of affordable smart home devices. As smart home technology becomes more affordable, it is becoming more accessible to a wider range of consumers.

Interior Design Service Market Segment Insights

Interior Design Service Market Project Type Insights

The Interior Design Service Market is segmented by project type into residential, commercial, hospitality, healthcare, retail, educational, and public buildings. Among these, the commercial segment is expected to hold the largest market share during the forecast period. The increasing demand for interior design services in office spaces, retail stores, and other commercial establishments is driving the growth of this segment. The hospitality segment is also expected to witness significant growth due to the rising number of hotels, restaurants, and other hospitality projects around the world.The residential segment is another major contributor to the Interior Design Service Market revenue. Homeowners are increasingly seeking professional interior design services to create comfortable, stylish, and functional living spaces. The growing popularity of home improvement and remodeling projects is also fueling the demand for interior design services in the residential sector. The healthcare segment is also expected to experience growth in the coming years. Hospitals, clinics, and other healthcare facilities are increasingly investing in interior design services to create welcoming and healing environments for patients and visitors.The demand for interior design services in the healthcare sector is expected to be driven by the rising awareness of the impact of design on patient outcomes and the increasing emphasis on patient satisfaction. The retail segment is another important segment of the Interior Design Service Market. Retailers are increasingly recognizing the importance of interior design in creating a positive shopping experience for customers. Interior design services can help retailers create visually appealing and functional store layouts that encourage customers to linger and make purchases.The educational segment is also expected to witness growth in the coming years. Schools, universities, and other educational institutions are investing in interior design services to create inspiring and engaging learning environments for students. The demand for interior design services in the educational sector is expected to be driven by the increasing focus on student well-being and the need to create spaces that support effective learning. The public buildings segment includes government buildings, libraries, museums, and other public spaces.This segment is expected to experience steady growth in the coming years as governments and municipalities invest in creating inviting and functional public spaces for their communities. 

Figure2: Interior Design Service Market, by Project Type, 2023 & 2032 (USD billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Interior Design Service Market Service Type Insights

The Interior Design Service Market is segmented by service type into Interior Design Consulting, Interior Decoration, Space Planning, Furniture and Fixture Selection, Lighting Design, Color Consultation, Window Treatment, and Home Staging. Among these, Interior Design Consulting is expected to hold the largest market share in 2023, owing to the increasing demand for professional guidance in designing and decorating residential and commercial spaces. Interior Decoration is projected to witness significant growth over the forecast period, driven by the rising popularity of home decor and renovation projects.Space Planning is another key segment, with growing demand for efficient and functional space utilization in both residential and commercial settings. Furniture and Fixture Selection is also expected to witness steady growth as consumers seek customized and stylish furniture and fixtures for their homes and offices.

Interior Design Service Market Budget Range Insights

The Interior Design Service Market is segmented into various categories, including budget range. The budget range segment is further divided into several sub-segments, each catering to a specific price range. The "Under $10,000" segment holds a substantial market share due to its affordability and widespread appeal among budget-conscious consumers. This segment is particularly popular for small-scale projects and basic design needs. Moving up the price range, the "$10,000-$50,000" segment targets a broader clientele seeking a balance between affordability and enhanced design services.This segment often includes homeowners and businesses looking to upgrade their interiors without breaking the bank. The "$50,000-$100,000" segment caters to discerning clients seeking more elaborate designs and premium materials. This segment is driven by the growing demand for luxury interior spaces, especially among high-end residential and commercial projects. The "$100,000-$250,000" and "$250,000-$500,000" segments represent the upper echelons of the budget range market. These segments cater to affluent clients with substantial budgets for extensive renovations and bespoke design solutions.Finally, the "Over $500,000" segment encompasses ultra-high-end interior design services tailored to the most discerning clientele. This segment is characterized by exclusive designs, rare materials, and exceptional craftsmanship, often commissioned by celebrities, royalty, and corporations. As the Interior Design Service Market continues to grow, the budget range segment is expected to remain a key driver, with each sub-segment offering unique opportunities for growth.

Interior Design Service Market Project Complexity Insights

Project Complexity is a key segmentation of the Interior Design Service Market, influencing market growth and industry dynamics. The segment comprises four sub-segments: Simple Refurbishment, Major Renovation, New Build, and High-End Luxury. Simple Refurbishment accounted for a significant share of the Interior Design Service Market revenue in 2023 and is projected to maintain its dominance throughout the forecast period. This sub-segment involves minor updates and cosmetic changes to existing spaces, driven by factors such as changing tastes, trends, and the need for a refresh.Major Renovation projects involve more extensive structural and functional modifications, offering higher revenue potential for interior designers. This sub-segment is expected to witness steady growth due to rising demand for home renovations and property upgrades. New Build projects present lucrative opportunities for interior designers, as they involve the design and implementation of interiors for newly constructed buildings. This sub-segment is poised for substantial growth driven by increasing construction activities and the growing popularity of customized home designs.High-end luxury projects cater to discerning clientele seeking exclusive and opulent interior design services. This sub-segment is characterized by high-value contracts and the use of premium materials and finishes. Its growth is fueled by the increasing affluence of high-net-worth individuals and the demand for bespoke interior design solutions.

Interior Design Service Market Client Type Insights

The Interior Design Service Market is segmented by Client Type into Homeowners, Businesses, Architects, Contractors, Developers, and Property Managers. Among these segments, Homeowners hold the largest market share due to the rising demand for personalized and aesthetically pleasing living spaces. The growing disposable income of homeowners is driving the demand for interior design services as they seek to enhance the functionality and comfort of their homes. Businesses, particularly in the hospitality and commercial sectors, are also significant contributors to market growth as they invest in creating visually appealing and functional workspaces.Furthermore, Architects, Contractors, and Developers collaborate with interior designers to ensure seamless integration of design concepts into construction projects. Property Managers recognize the value of well-designed properties in attracting and retaining tenants, leading to increased demand for interior design services in the rental market.

Interior Design Service Market Regional Insights

The Interior Design Service Market exhibited a highly regionalized landscape, with each region presenting unique growth dynamics. North America dominated the market, capturing over 35% of the market share in 2023. The region's strong economic growth, coupled with a high demand for luxury and personalized interior design services, contributed to its market leadership. Europe followed closely, accounting for approximately 30% of the market. The region's mature design industry and sophisticated consumer base have driven the demand for interior design services.APAC is poised for significant growth in the coming years, with a projected CAGR of over 7% during the forecast period. The region's rapidly growing economies, urbanization, and increasing disposable income are fueling the demand for interior design services. South America and MEA, while accounting for smaller shares of the market, are expected to witness steady growth driven by expanding construction and real estate sectors.

 Figure3: Interior Design Service Market, by Regional, 2023 & 2032 (USD billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Interior Design Service Market Key Players And Competitive Insights

Major players in the Interior Design Service Market industry are constantly innovating and developing new products and technologies to stay ahead of the competition. Leading Interior Design Service Market players are also focusing on expanding their reach and acquiring smaller companies to strengthen their market position. The Interior Design Service Market industry is expected to witness a significant consolidation in the coming years as larger players look to acquire smaller players to gain market share and increase their product portfolio. The Interior Design Service Market is also witnessing a growing number of mergers and acquisitions as companies look to combine their strengths and create stronger market positions.One of the key competitors in the Interior Design Service Market is IKEA. IKEA is a Swedish multinational company that designs and sells furniture, home accessories, and other home goods. The company has a strong presence in the furniture market and is known for its affordable and stylish products. IKEA is constantly innovating and developing new products and technologies to stay ahead of the competition. The company is also focusing on expanding its reach and acquiring smaller companies to strengthen its market position.Another key competitor in the Interior Design Service Market is Home Depot. Home Depot is an American multinational home improvement retailer that sells a wide range of home improvement products, including furniture, appliances, and building materials. The company has a strong presence in the North American market and is known for its wide selection of products and its competitive prices. Home Depot is constantly innovating and developing new products and technologies to stay ahead of the competition. The company is also focusing on expanding its reach and acquiring smaller companies to strengthen its market position.

Key Companies in the Interior Design Service Market Include

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  Hutch

  
  


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  Interior Motives

  
  


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  Emily Henderson Design

  
  


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  Mark D. Sikes

  
  


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  Modsy

  
  


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  Leanne Ford Interiors

  
  


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  Amber Interiors

  
  


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  Sarah Sherman Samuel

  
  


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  Emily A. Clark

  
  


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  Homepolish

  
  


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  The Expert

  
  


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  Havenly

  
  


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  Decorist

  
  


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  Studio McGee

  
  


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  Laurel Wolf

  
  

Interior Design Service Market Industry Developments

Recent developments in the Interior Design Service Market include the growing popularity of sustainable and eco-friendly design practices. Consumers are increasingly seeking out interior designers who can create spaces that are both stylish and environmentally conscious. Additionally, the rise of smart home technology is driving demand for interior designers who can integrate these technologies into their designs.Current affairs in the market include the impact of the COVID-19 pandemic. The pandemic led to a decline in demand for interior design services in 2020 and 2021. However, the market is expected to rebound in 2022 and beyond as consumers begin to invest in their homes again.

Interior Design Service Market Segmentation Insights

Interior Design Service Market Project Type Outlook

• Residential


• Commercial


• Hospitality


• Healthcare


• Retail


• Educational


• Public Buildings

Interior Design Service Market Service Type Outlook

• Interior Design Consulting


• Interior Decoration


• Space Planning


• Furniture and Fixture Selection


• Lighting Design


• Color Consultation


• Window Treatment


• Home Staging

Interior Design Service Market Budget Range Outlook

• Under $10,000


• $10,000-$50,000


• $50,000-$100,000


• $100,000-$250,000


• $250,000-$500,000


• Over $500,000

Interior Design Service Market Project Complexity Outlook

• Simple Refurbishment


• Major Renovation


• New Build


• High-End Luxury

Interior Design Service Market Client Type Outlook

• Homeowners


• Businesses


• Architects


• Contractors


• Developers


• Property Managers

Interior Design Service Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa