Interior Design Services Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

The interior design services market attained a value of USD 294.39 Billion in 2024. The market is expected to grow at a CAGR of 6.30% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 542.32 Billion.

Rising incomes and increasing consumer spending power are fostering the interior design services market development. As per reports, the real household income per capita as a whole surged 1.8% in the OECD in 2024. As households earn more, they are more willing to invest in personalized, aesthetically pleasing, and functional living spaces. This trend is especially evident in urban areas, where middle- and upper-income groups seek professional design services to enhance comfort, social status, and property value. Higher disposable income also supports demand for premium materials, custom furniture, and smart home integrations.

Generative artificial intelligence (AI) and machine learning (ML) are aiding concept visualization and material evaluation using sustainability metrics, adding to the interior design services industry value. Designers use AI-powered tools to generate design concepts from simple prompts, rapidly producing layout options, color schemes, and mood boards. In May 2025, Square Yards launched an AI-powered interior design platform to enable users to visualize and customize home interiors through AR and VR experiences. These technologies are helping designers make environmentally responsible choices. This innovation drives both creative efficiency and sustainability in the market.

Key Trends and Recent Developments

April 2025

Lowe’s acquired Dallas-based Artisan Design Group in a USD 1.325 billion deal to enhance its Pro services by integrating the latter’s nationwide network of 132 facilities and 3,200 specialized installers in 18 states. This strategic move expanded Lowe’s reach into the interior finishes market.

April 2025

Mondän launched the industry’s first VR-powered, design-on-demand platform for offering immersive 360° room previews tailored to space, style, and budget. With nearly 100 professionally designed, fully shoppable room packages, it fills the gap between DIY and costly custom design, making expert interiors accessible to everyday homeowners.

October 2024

Credvest Group entered the interior design sector with Bengaluru, India-based Aiti Interieurs. The venture blends nature-inspired aesthetics with global sophistication and delivers premium interiors through a year of research & development, quality materials, and an immersive experience center.

March 2024

Pierre Yovanovitch’s group acquired d’Argentat, the historic French furniture maker along with ECART International. This strategic expansion vertically integrates production, honors Andrée Putman’s legacy, and enhances French artisanal excellence by combining traditional craftsmanship with global growth ambitions.

Sustainability & Eco-Friendly Design

A significant driver of the interior design services market is the strong focus on sustainable design for offering green materials, energy efficiency, and waste reduction. Rising consumer awareness and stricter regulations are pushing firms toward eco-friendly offerings. In November 2024, Google unveiled its first mass timber office building, reducing embodied carbon emissions by 96%, showcasing a sustainable, low-impact design approach for future commercial architecture. Trends also include the use of reclaimed wood, recycled glass, and non-toxic finishes for sustainable refurbishment in existing buildings.

Technology Integration & Smart Homes

Design firms are embedding smart technology, such as automated lighting, HVAC systems, security, and appliances into interiors. In July 2025, IKEA introduced over 20 Matter-over-Thread smart devices, including lights, sensors, remotes, and air-quality monitors, plus an upgraded Dirigera hub to make smart home design accessible and scalable. These systems enhance aesthetics and functionality while optimizing energy use. The adoption of smart integrations is also popularized in commercial and residential projects in tech-forward regions.

AR & AR Visualization

The growing adoption of virtual reality & augmented reality and 3D modelling tools for revolutionizing client engagement favouring the interior design services market revenue. In August 2023, homebuilder Lennar acquired Modsy’s 3D visualization engine and integrated it into its model-home showcases. These immersive experiences allow users to preview designs pre-implementation, reducing costs and improving satisfaction. Platforms, such as Houzz, Modsy, and Spacejoy also harness this trend to democratize interior design.

Social Media & Trend-Driven Demand

Platforms including Instagram and Pinterest are driving the demand for interior design for shaping consumer preferences. These visually driven social networks provide endless inspiration through trending styles, DIY ideas, and influencer showcases, making interior design more accessible to a wider audience. This instant exposure accelerates trend adoption and encourages personalized expression.

Emphasis on Lighting Innovation

Organic-shaped fixtures, vintage finishes, circadian lighting systems, and LED efficiency are shaping illuminating trends in the interior design services industry. Integration of energy-efficient, customizable lighting solutions supports sustainable design goals. In June 2024, Signify introduced NatureConnect, an innovative lighting solution to mimics the natural rhythm of sunlight to enhance well-being. Designers are incorporating these statement lighting pieces to blend functionality with artistic expression. Such innovations contribute to smarter, healthier, and more aesthetically engaging environments.

Interior Design Services Industry Segmentation

The report titled “Interior Design Services Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by End-Use

• Commercial
• Residential

Key Insight: The commercial segment is the dominant force in the interior design services market, driven by the demand from offices, retail spaces, hotels, healthcare, and educational institutions. Businesses seek designs that enhance productivity, brand identity, and customer experience. In September 2024, Apple introduced The Observatory, a new subterranean event venue at its Apple Park campus in Cupertino, California, designed by its global head of design for real estate and development. Commercial projects also involve larger budgets, complex regulations, and cutting-edge technologies, such as smart building integration, making this sector a critical revenue driver and innovation hub for interior design firms globally.

Market Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Key Insight: North America is the largest market for interior design services, driven by strong demand in commercial and residential sectors. The United States leads with extensive projects in tech hubs by focusing on sustainable and smart design solutions. Major firms dominate with innovative office, healthcare, and retail interiors. The rise of luxury residential developments and renovation projects further fuels growth. In March 2025, Karat Home partnered with the American Society of Interior Designers (ASID) for offering designers exclusive access to curated furniture collections. Additionally, advancements in VR and AI-powered design platforms are rapidly adopted in the region for enhancing customer engagement and personalization.

Interior Design Services Market Share

Residential Interior Design Services to Gain Popularity

The residential interior design services industry caters to individual homeowners and multi-family housing developments. This segment is growing rapidly, especially with rising urbanization and millennials investing in home aesthetics. Major companies have revolutionized the market with affordable, tech-enabled services, including virtual design consultations and modular furniture. In May 2025, D’LIFE launched its 28th showroom in Mumbai to meet the growing demand for premium home interior solutions in the region’s thriving real estate market. Residential design emphasizes personalization, comfort, and smart-home features, making it an important area for growth and innovation.

Interior Design Services Market Regional Analysis

Rising Interior Design Services Demand in Europe & Asia-Pacific

Europe interior design services industry is marked by a rich history of art and architecture influencing interior aesthetics. The United Kingdom, Germany, and France lead with a mix of heritage restoration and modern design integration. European markets emphasize eco-friendly materials and energy-efficient designs, complying with stringent regulations. Firms drive innovation with bespoke interiors that blend tradition and contemporary trends. The demand for high-end residential and boutique hospitality design remains robust, supported by affluent clientele and tourism growth.

The Asia-Pacific interior design services market value is growing due to rapid urbanization, rising disposable incomes, and expanding real estate sectors in China, India, and Southeast Asia. As per the United Nations, Asia’s urban population in expected to rise by 50% By 2050. There is strong focus on affordable, tech-enabled residential interior design services and commercial spaces, such as co-working offices and retail stores. Startups in India and China leverage digital platforms for scalable, customized design solutions. The region’s government investments in infrastructure and smart cities are significant drivers for future expansion.

Competitive Landscape

Key players in the interior design services market are deploying measures that focus on innovation, client engagement, and operational efficiency. Personalization is central, with designers tailoring spaces to meet individual client preferences, lifestyles, and cultural influences. Sustainability has become a priority, driving the use of eco-friendly materials, energy-efficient lighting, and sustainable sourcing practices. Technology integration is allowing firms to increasingly adopt virtual reality (VR), augmented reality (AR), and 3D modelling tools to provide immersive design previews and improve customer satisfaction.

Expanding online presence through social media marketing, digital portfolios, and e-consultations helps attract a broader client base. Subscription-based or packaged design services are also gaining traction, particularly for millennials and first-time homeowners seeking cost-effective solutions. Strategic partnerships with real estate developers, furniture brands, and construction firms enhance service offerings and client referrals. Additionally, international expansion into emerging markets and the adoption of hybrid service models support scalability. Continuous training and development of design teams ensure creativity, innovation, and high service quality.

AECOM

AECOM, established in 1990 and headquartered in Dallas, the United States, has emerged from the consolidation of several design and engineering firms. AECOM is recognized globally for its leadership in infrastructure, transportation, and environmental projects, with innovations in digital infrastructure, sustainable urban planning, and AI-integrated project delivery.

Gensler

Gensler (M. Arthur Gensler Jr. & Associates Inc.) was founded in 1965 and is headquartered in San Francisco, the United States. As the world’s largest architecture and design firm, Gensler is renowned for human-centered design, pioneering adaptive reuse strategies, and sustainable product standards. The firm operates globally with innovative projects across commercial, civic, and cultural spaces.

Jacobs Engineering Group Inc.

Jacobs Engineering Group Inc. was founded in 1947 and is headquartered in Dallas, the United States, and is a global leader in technical, professional, and construction services, known for innovations in digital twin technology, smart city solutions, and sustainability consulting. Jacobs frequently ranks among the top engineering firms worldwide.

Stantec Inc.

Stantec Inc. was founded in 1954 and is headquartered in Edmonton, Canada, and has grown into a global design and consulting firm through strategic acquisitions and innovations in environmental and infrastructure planning. With over 450 locations worldwide, Stantec is recognized for sustainable design, engineering excellence, and community-centred projects.

Other players in the interior design services market are Perkins & Will International Group of Companies among others.

Key Features of the Interior Design Services Market Report

• Comprehensive market size and forecast with detailed quantitative and qualitative analysis.
• In-depth segmentation by end-user, and regional performance.
• Insights into emerging interior design services market trends and growth drivers.
• Competitive landscape with key player profiles and strategic developments.
• SWOT and Porter’s Five Forces analysis for market dynamics assessment.
• Historical data comparison and forward-looking insights up to 2034.

Why Choose This Research?

• Trusted source for industry-specific and data-driven market intelligence.
• Expert analysts delivering tailored insights and accurate forecasts.
• Transparent methodology ensuring reliability and actionable findings.
• Extensive coverage of niche and high-growth sectors across global markets.