The APAC interior design software market was valued at USD 923.2 million in 2020, and it is expected to reach USD 1782.94 million by 2026, registering a CAGR of 11.56% during the forecast period (2021-2026).
- Building infrastructure plans in the countries, such as China and India, are anticipated to be a significant contributor to the growth of the Asia-Pacific interior design software market. According to a study by Oxford Economics, India is expected to rank third in terms of volumes of constructions by 2030, with a target of 11 million buildings to be constructed, highlighting bright prospects for the market studied.
- Growing urbanization and the population in major cities in the Asia-Pacific, such as Beijing, China, Tokyo, Japan, and India, led to an augmented increase of residential apartments. For instance, according to the World Bank, the urbanization rate in China increased to 60.60% in 2019, from 57.90% in 2017.
- Moreover, Chinese banks extended CNY 1.9 trillion (USD 302 billion) in mortgages for new homes in the first quarter of 2018, up over 11% year-on-year. This created a massive scope for the use of interior design software in China and expected to boost the demand for interior design software market in the future.
- The development in tourism in Asian countries is expected to drive the commercial construction market. In 2019, the ASEAN (Association of South East Asian Nations) was able to attract 133.1 million tourists to visit amazing island, natural attractions with unique cuisines and colourful cultures. Open-skies agreement between ASEAN members countries, easier visa attainment and the establishment of low-cost airlines are some of the ways Southeast Asia has attempted to stimulate its tourism industry.
Key Market Trends
Non-Residential Segment Is Expected To Grow Significantly
- The APAC interior design software market is expected to be driven by investment in new infrastructure while increasing domestic demand is driving the expansion in the construction of buildings in non-residential sectors. Moreover, reforms to encourage Public Private Partnerships (PPPs) are gaining popularity ASEAN region.
- For instance, the Philippines, Myanmar, Laos, and Vietnam have undergone reforms to create more accessible markets for private sector investment in construction through PPPs. Indonesia has undergone similar reforms, expanding the construction sectors eligible for PPPs, and increasing incentives to invest in projects.
- Further, acquiring land in Asian countries is now much fairer and more transparent. Vietnam has also implemented an initiative in which foreign investors are allowed to acquire land and hold a majority stake in a commercial or residential project which is expected to boost the interior design software market in the non-residential segment.
- With the recent outbreak of Covid-19, workspace buying decisions are expected to be postponed by a majority of buyers till the mid of 2021. Various business enterprises are also expected to either halt or postpone their commercial office expansion plans for the same period; such developments are expected to negatively impact the demand for interior design software. Commercial building sector is expected to be the worst hit due to slumping revenues and closure of their businesses during the lockdown period.
Cloud-Based Interior Designing Software Is Expected To Grow Significantly
- With the growing consumer spending capability in Asian countries, one of the focus of spending is expected to be their living space. Consumers are increasingly spending on home decor items and constantly changing the look of their homes. They are also adopting innovative interior designing applications that can assist them and are open to paying extra when it comes to their living space.
- The implementation of the cloud-based interior designing software helps companies to make changes in interior design software with fewer resources. Moreover, the increasing demand for goods and a comfortable life has led to high booming growth in the interior designing industry in the region.
- Start-ups are disrupting the interior design ecosystem in the region. For instance, Livspace has grown to become one of India's largest home interiors and renovation platform. The company designed over 5,000 homes, a whopping 2 million square feet, and works with over 2,000 design partners. The company partnered with Brand Capital, the strategic investment arm of The Times Group, and was able to create a strong brand presence.
- Infrastructure is one of the vital growth indexes for any country to grow; owing to this, governments across the globe are increasingly focusing on promoting construction and real-estate.
- In Asia, the governments are increasingly spending on infrastructure projects and housing initiatives that help citizens to build their homes. According to the Asia Development Bank, Asia needs to invest USD 26 trillion from 2016 to 2030. Apart from this, governments in the region are subsidizing housing solutions; for instance, in India, the government increased the amount of subsidy provided to individuals investing in building their home. Such initiatives are expected to see growth of cloud based interior designing software.
The APAC interior design software market is concentrated and is dominated by a few major players like Autodesk Inc., Dassault Systemes SE, Trimble, Inc., Foyr LLC, and Infurnia Technologies Pvt. Ltd. These major players, with a prominent share in the market, are focusing on expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.
- April 2020 - Autodesk released 3Ds Max 2021 version. The latest version from the company focuses on rendering and textures by leveraging the improvements in performance. The version also added support for python 3, scriptable baking, and more focus on CAD-related workflows and interoperability with Autodesk’s CAD tools, such as AutoCAD and Revit.
- April 2020 - Dassault Systèmes and Aden Group, one of Asia’s largest integrated facility management companies collaborated. These companies are working together to develop new hospital engineering, construction and operations processes by leveraging Dassault Systèmes’ 3DEXPERIENCE platform and Aden Group’s Akila Care smart and connected hospital concept. The solution relies on a virtual collaborative environment for the design, simulation and development of hospitals that can be built and operational within 100 days and remain operational for many years, as well as for optimizing their operations and maintenance throughout their entire lifecycle.
- The market estimate (ME) sheet in Excel format
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Table of Contents
1.2 Scope of the Study
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5.1.1 Want for better interior design and decoration
5.1.2 Rise in Government Initiatives for Promoting Construction and Real-estate Worldwide
5.2 Market Restraints
5.2.1 Interoperability Issues with Interior Design Software
5.3 Impact of COVID-19
6.1.1 Residential sector
6.1.2 Non-Residential sector
6.2 By Country
6.2.4 Rest of Asia-Pacific
7.1.1 Dassault System SE
7.1.2 Autodesk Inc
7.1.3 Trimble, Inc.
7.1.4 Foyr LLC
7.1.5 Infurnia Technologies Pvt. Ltd
7.1.6 InnoPlanner Ltd.
A selection of companies mentioned in this report includes:
- Dassault System SE
- Autodesk Inc
- Trimble, Inc.
- Foyr LLC
- Infurnia Technologies Pvt. Ltd
- InnoPlanner Ltd.