The interior design services market attained a value of USD 312.94 Billion in 2025. The market is expected to grow at a CAGR of 6.30% during the forecast period of 2026-2035. By 2035, the market is expected to reach USD 576.49 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 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, colour 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.
Base Year
Historical Period
Forecast Period
The 2019 bureau of Labor statistics indicated 60,650 individuals were employed in the interior design industry in the U.S. California had the highest number with 9,420 interior designers and the highest hourly mean rate at USD 34.10.
As per industry reports, there are over 75,000 interior designers in the United States.
In the U.S., interior designers are most prevalent in California, followed by Florida, New York, Texas and St Louis. California has 1,536 interior design firms.
Compound Annual Growth Rate
6.3%
Value in USD Billion
2026-2035
*this image is indicative*
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.
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.
The rise of virtual reality (VR) & augmented reality (AR) and 3D modelling tools for transforming client engagement will benefit the interior design services market revenue. In August 2023, homebuilder Lennar acquired Modsy's 3D visualization engine to incorporate into its model-home presentations. These immersive experiences allow users to see designs before implementation while lowering costs and improving satisfaction. Platforms, such as Houzz, Modsy, and Spacejoy are also capitalising this trend to democratize interior design.
Platforms like Instagram and Pinterest are fueling demand for interior design to influence consumer desires. In July 2025, Pinterest unveiled AI-powered auto-collages and a new Trends tool for advertisers. These visually oriented social networks provide limitless inspiration through trending styles, DIY concepts, and influencer displays, thus democratizing interior design to a greater audience. This immediate exposure also speeds up adapting to trends and encourages self-expression.
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.
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The EMR’s report titled “Interior Design Services Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by End-Use
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
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.
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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.
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 offer scalable, customized design solutions either on online platforms or in person. There are significantly large government infrastructure and smart city investments throughout the region that will further help drive growth potential in the future.
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 VR, 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, 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 (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-centred 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. 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.
Headquartered in Edmonton, Canada, and founded in 1954, Stantec Inc. has grown into a global design and consulting firm via strategic innovations and acquisitions in environmental and infrastructure planning. With more than 450 locations globally, Stantec is recognized for sustainable design, engineering excellence, and community-centred projects.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the interior design services market are Perkins & Will International Group of Companies among others.
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The market is projected to grow at a CAGR of 6.30% between 2026 and 2035.
Key strategies driving the market include personalization, sustainable and eco-friendly designs, smart home integration, and the use of advanced technologies like virtual reality (VR) for visualization. Additionally, online platforms, modular design solutions, and rising demand in residential and commercial sectors boost market expansion and client engagement.
Key trends aiding market expansion include the increasing consumer demand for custom kitchens, bathrooms, and living rooms and the introduction of premium interior designing services.
Regions considered in the market are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
Interior design services enable new construction, renovation, or repair of buildings, and involve the preparation of working drawings, plans, and specifications relative to building elements.
The Asia Pacific region is the fastest-growing market, while North America is the largest market for interior design services.
The end-uses of the market include commercial and residential.
The key players in the market report include AECOM, Gensler. M. Arthur Gensler Jr. & Associates Inc., Jacobs Engineering Group Inc., Perkins & Will International Group of Companies, and Stantec Inc., among others.
In 2025, the market reached an approximate value of USD 312.94 Billion.
The commercial segment is the dominant force in the market, driven by the demand from offices, retail spaces, hotels, healthcare, and educational institutions.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by End-Use |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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| Report Price and Purchase Option | Explore our purchase options that are best suited to your resources and industry needs. |
| Delivery Format | Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option. |
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