Virtual Interior Design Artificial Intelligence (AI) Global Market Report 2025

The virtual interior design artificial intelligence (AI) market size has grown exponentially in recent years. It will grow from $1.52 billion in 2024 to $1.98 billion in 2025 at a compound annual growth rate (CAGR) of 30.3%. Growth in the historic period can be attributed to the increasing digitalization of the architecture and design industry, greater use of virtual reality for home visualization, rising consumer interest in online home décor customization, expanded accessibility of design software for both professionals and homeowners, and growing collaboration between design firms and technology providers.

The virtual interior design artificial intelligence (AI) market size is expected to see exponential growth in the next few years. It will grow to $5.65 billion in 2029 at a compound annual growth rate (CAGR) of 29.9%. Growth in the forecast period can be linked to rising investment in AI-based interior design platforms, increasing demand for sustainable and smart home design solutions, growing preference for virtual consultation and remote design services, expansion of proptech applications in real estate visualization, and increasing adoption of subscription-based design software models. Major trends expected in the forecast period include advancements in immersive design visualization tools, innovations in AI-based texture and material generation, developments in cloud-based rendering and collaboration systems, research and development in natural language-driven design interfaces, and progress in machine learning algorithms.

The rising adoption rates of smart home solutions are expected to drive the growth of the virtual interior design artificial intelligence (AI) market in the coming years. Smart home solutions comprise networked devices and automation systems that enable remote control, monitoring, and management of household functions via internet connectivity. Adoption of these solutions is increasing due to rapid urbanization, as dense urban populations drive higher demand for convenience, energy efficiency, and automated living spaces. The growing use of smart home solutions is supporting demand for virtual interior design AI, as homeowners seek digital tools to seamlessly plan and integrate connected devices into their living spaces. For instance, according to the Central Statistics Office of Ireland, in October 2024, 30% of internet users employed smart home security solutions - including internet-connected alarms, smoke detectors, security cameras, and smart doorbells - compared with 17% in 2022. Therefore, rising adoption rates of smart home solutions are propelling the virtual interior design AI market.

Major companies in the market are leveraging generative AI to enhance personalized and interactive interior design experiences. Generative AI-powered virtual room stylers use algorithms to automatically create personalized layouts, color schemes, and furniture arrangements, enabling users to visualize and customize their spaces efficiently while reducing planning time. For example, in July 2023, Wayfair Inc., a U.S.-based e-commerce and home goods company, launched Decorify, a generative AI-powered virtual room styler. Users can upload photos of their spaces and see them reimagined in various styles, including bohemian, mid-century modern, and industrial. The tool generates photorealistic, shoppable images, allowing customers to explore different design concepts and purchase items directly from Wayfair’s catalog.

In October 2024, Zillow Group Inc., a U.S.-based technology company specializing in real estate and digital services, acquired Virtual Staging AI GmbH, a Germany-based company specializing in AI-driven virtual staging solutions, for an undisclosed amount. This acquisition enables Zillow to enhance its digital listing capabilities by providing real estate professionals with AI-powered tools to create fully staged home images, improving customer engagement and accelerating property sales without the need for physical furniture or décor.

Major companies operating in the virtual interior design artificial intelligence (ai) market are IKEA AB, Dreamhouse AI Inc., Houzz Inc., Havenly Inc., RoOomy Inc., Planner 5D Inc., Coohom Inc., Foyr Neo Pvt. Ltd., Spacejoy Inc., Decorilla LLC, RoomSketcher AS, Desiome Inc., Collov Inc., Morpholio Board Inc., BoxBrownie Pty Ltd, DecorMatters Inc., REimagineHome Inc., Interior AI Inc., RoomGPT Inc., Edensign Inc.

North America was the largest region in the virtual interior design artificial intelligence (AI) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in virtual interior design artificial intelligence (AI) report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the virtual interior design artificial intelligence (AI) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the services sector, particularly in business services, IT, and professional consulting operations. Higher costs for imported technology, office equipment, and essential digital infrastructure have raised operating expenses for service providers, forcing them to either pass on costs to clients or absorb margin pressures. Outsourcing firms and IT service companies are also facing challenges due to increased costs of hardware components and delayed global supply chains, affecting project delivery timelines and profitability. Additionally, retaliatory tariffs have dampened demand for U.S.-based professional services in key international markets, leading to a slowdown in export-driven revenue streams. The sector must now prioritize digital transformation, cost optimization, and expanding domestic client bases to sustain growth and maintain competitiveness amid ongoing trade uncertainty.

The virtual interior design artificial intelligence (AI) market research report is one of a series of new reports that provides virtual interior design artificial intelligence (AI) market statistics, including virtual interior design artificial intelligence (AI) industry global market size, regional shares, competitors with the virtual interior design artificial intelligence (AI) market share, virtual interior design artificial intelligence (AI) market segments, market trends, and opportunities, and any further data you may need to thrive in the virtual interior design artificial intelligence (AI) industry. This virtual interior design artificial intelligence (AI) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Virtual interior design artificial intelligence (AI) is a technology that uses machine learning and algorithms to digitally create, optimize, and visualize interior spaces. It produces design layouts and recommends color schemes, furniture arrangements, and décor elements based on style preferences and spatial requirements. By offering realistic simulations and automated design suggestions, it enhances creativity and improves efficiency in the interior design process.

The primary components of virtual interior design AI are software and services. Software refers to computer programs that use AI and advanced graphics to generate photorealistic, personalized interior designs and automate space planning. These solutions can be deployed through cloud-based or on-premises modes. They are used in applications such as residential, commercial, hospitality, retail, and others, serving end users including interior designers, architects, real estate developers, homeowners, and more.

The virtual interior design artificial intelligence (AI) market consists of revenues earned by entities by providing services such as material selection optimization, data-driven trend analysis, virtual staging, and automated space planning. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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