During the Covid-19 crisis, the global market for interior design services was estimated at US $150.7 Billion in 2020 but it is projected to reach the US $255.4 Billion by 2027, growing at a CAGR of 7.8% over the analysis period 2020-2027.
“The essence of interior design will always be about people and how they live. It is about the realities of what makes for an attractive, civilized, meaningful environment, not about fashion or what’s in or what’s out. This is not an easy job”, said Albert Hadley, a renowned interior designer, while pointing out the importance of the interior designing industry.
Interior designing plays a prominent role in our everyday lives and makes our lifestyle more stylish and modern. It introduces us to elegance, aesthetics and helps to raise the functionality in our lives.
According to the report prepared by Technavio, the growth in demand from commercial infrastructure is contributing to the growth of interior design services. The report says that there are many key drivers and trends that would lead to the growth of the interior designing industry. Some of them are:
1. Rising Demand for Luxurious Spaces
Consumers are shifting towards leisure, resulting in rising shopping store renovations, the introduction of smart workstations, conglomerate’s business stores, and enhanced luxurious interiors in hotels. In addition, there has been a rise in demand for smart planning and technology integrated design services. This is leading to an increase in demand for innovative interior design that incorporates recreational activity areas, advanced IT infrastructure, and sustainable and wellness-focused designs.
2. Development of Government Institutes
The development of smart cities, smart government institutes, airports, healthcare, and infrastructure by the government will also boost the growth of the interior design service market during the forecast period.
3. Increasing Demand for improved residential spaces
The demand for luxurious personalized kitchens, bathrooms, living rooms and houses is also increasing among consumers. Urbanization and the rise in consumer awareness about the impact of the interior environment on lifestyle is resulting in increased demand for flexible spaces, living rooms, and other residential spaces. The residential space dominates the global interior design market owing to the growth in the income and purchasing power of the consumers and home-ownership rates.
Due to rising exposure to various cultures and global trends, people are getting exposed to new and unique designs and decorations, leading to consumers hiring interior designing services. This is prompting Interior designers to offer innovative design solutions that maximize space and ensures near-zero wastage. “The increase in construction activities and introduction of premium interior designing services are some other major factors that will boost market growth during the forecast period,” says a senior analyst at Technavio.
KEY REGIONS FOR INTERIOR DESIGN SERVICES MARKET
According to ResearchAndMarkets report, “China, the world’s second-largest economy, is forecast to reach a projected market size of US$57.6 Billion by the year 2027 trailing a CAGR of 11.9% over the analysis period 2020 to 2027.” Two prominent East Asian countries, Japan and China are projected to grow at 4.2 % and 7% respectively over the 2020-2027 period. Western European country, Germany is forecast to grow at a CAGR of 5.1% approximately.
Other Types Segment to Record 7.2% CAGR
The ResearchAndMarkets report further highlights that “In the global Other Types segment, USA, Canada, Japan, China, and Europe will drive the 6.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$11.3 Billion in the year 2020 will reach a projected size of US$17.8 Billion by the close of the analysis period. China will remain among the fastest-growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$35.3 Billion by the year 2027, while Latin America will expand at an 8.4% CAGR through the analysis period.”
Regional Insights- APAC Region
According to the Technavio report, “35% of the market’s growth will originate from APAC (Asia Pacific) region during the forecast period. China, Japan, and India are the key markets for interior design services in APAC.” The report says that market growth in the APAC region will be faster than the growth of the market in other regions.
It also mentions that “The increasing demand for construction services from developing countries will facilitate the interior design services market growth in APAC over the forecast period.” The growth in the Asia-Pacific region can be projected owing to change in lifestyle, changing tastes in home decor, increased disposable income, and population growth.
The world is seeing a growing trend of personalized and customized interior design. Millennials’ lifestyle and work choices differ from those of earlier generations, and that is projected to give a positive impact on the global interior design market in the coming years.
SOURCE: The information in the article has been noted from the Technovia and ResearchAndMarkets reports on the Global Interior Design Services Market. Technavio is a leading global technology research and advisory company. ResearchAndMarkets is the world’s leading source for international market research reports and market data.