Home Decor Market Report 2026

The home decor market size has grown steadily in recent years. It will grow from $654.84 billion in 2025 to $682.53 billion in 2026 at a compound annual growth rate (CAGR) of 4.2%. The growth in the historic period can be attributed to growth in residential construction activities, increasing disposable income levels, rising urbanization trends, expansion of organized retail channels, growing consumer interest in interior aesthetics.

The home decor market size is expected to see steady growth in the next few years. It will grow to $819.12 billion in 2030 at a compound annual growth rate (CAGR) of 4.7%. The growth in the forecast period can be attributed to increasing demand for sustainable home solutions, rising adoption of smart and multifunctional furniture, expansion of e-commerce home decor sales, growing influence of digital design platforms, increasing customization preferences. Major trends in the forecast period include rising demand for sustainable and eco-friendly decor products, growing adoption of online and omnichannel retail models, increasing use of virtual visualization tools for home design, expansion of customized and modular furniture offerings, enhanced focus on aesthetic and functional living spaces.

The growing penetration of smartphones and e-commerce is anticipated to drive the growth of the home decor market in the future. A smartphone is a handheld electronic device that provides access to cellular networks and the internet, facilitating the purchase of home decor items such as wall art, cushions, curtains, and figurines from various online e-commerce platforms. For example, in December 2023, the U.S. Department of Transportation reported that in 2023, exports and imports accounted for 11.7 percent of the tonnage and 20.6 percent of the value of freight shipments. These figures are expected to increase, with international trade projected to represent 13.8 percent of the tonnage and 21.7 percent of the value of freight moving across the United States by 2050. Thus, the rising adoption of smart devices is contributing to the expansion of the home decor market.

Leading companies in the home decor market are focusing on introducing innovative products, such as decorative wall panel systems, to enhance interior aesthetics and boost profitability. Decorative wall panel systems are prefabricated panels designed to cover and beautify walls with various patterns, textures, or materials, offering a quick, customizable, and low-maintenance way to transform living spaces while adding insulation and improving interior design. For example, in May 2024, Urban Company Limited, an India-based home services and decor marketplace, launched a wall panel solutions service as part of its home decor offerings. The service provides over 300 modular wall panel designs, with an end-to-end process that includes in-home selection, precise measurement, and professional installation. The panels are made from materials such as wood, PVC, and composites, and include recyclable, fire-resistant, and insulated options. Designs range from stone, wood, geometric, and floral to metallic and pastel finishes, making them suitable for living rooms, bedrooms, entertainment units, and other interior spaces.

In March 2024, Ashley Furniture, a US-based furniture manufacturing company, acquired Resident for an undisclosed amount. This strategic acquisition is anticipated to enhance Ashley's product offerings and broaden its presence in the competitive home decor sector. The deal represents a significant opportunity for Ashley to capitalize on the rising demand for innovative and stylish furniture solutions. Resident is a US-based contemporary home furnishings company recognized for its modern and stylish furniture designs.

Major companies operating in the home decor market include General Electric, Inter IKEA Systems BV, Koninklijke Philips N.V., Wayfair Inc., Mohawk Industries Inc., Shaw Industries Group Inc., Bed Bath & Beyond Inc., IKEA USA, Ashley Furniture Industries Ltd., Rooms To Go, Herman Miller Inc., Crate & Barrel, Springs Window Fashions LLC, Suofeiya Home Collection Co. Ltd., Pier 1 Imports Inc., Forbo Group, Hanssem Corporation, Armstrong World Industries Inc., Mannington Mills Inc., home24, Kimball International Inc., Samson Holding Ltd., Duresta Upholstery Ltd.

North America was the largest region in the home decor market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the home decor market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the home decor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The home decor market consists of sales of home decor product including wall decor, and lighting. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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