Luxury Interior Design Market Size, Share, Growth, Industry Growth By Type (Newly Decorated and Repeatedly Decorated) By Application (Residential, Commercial, and Others) Covid-19 Impact, Latest Trends, Regional Insights, and Forecast from 2024 To 2031

Updated On: 01 April 2024

LUXURY INTERIOR DESIGN MARKET REPORT OVERVIEW

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The global luxury interior design market size was USD 56860 million in 2021 and is projected to touch USD 129862.75 million by 2031, exhibiting a CAGR of 8.6% during the forecast period. 

The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. The COVID-19 pandemic has negatively affected several markets globally. This market is expected to grow slowly during the COVID-19 pandemic.

Luxury interior design is an artistic procedure led by skilled interior designers. It transmits very diligently to the client's exclusive way of life and puts experiences first. It embraces the true joy of living and the attractiveness of the neighboring nature or vibrant city landscape. Luxury Interior Design is a manifestation of self and an application in style or comfort. Luxury interior designers inspire their clients to bring a little of their own characters to the platter in their designs and luxuriously integrate them.

The growth of luxury interior design's market size can be attributed to increasing investments in R&D activities, new entrants, product improvement, technological innovations, effective distribution of funds, and growing competition between business competitors to expand its regional and customer base. Supportive government strategies and encouragements, good regulations are anticipated to regulate the development of the luxury interior design market in the coming future. A rise in the spending capability of consumers with the rising disposable income will contribute towards market development.

COVID-19 Impact: Halt on Constructions and Supply Chain Disruption to Impede Sales. 

The COVID-19 pandemic has disrupted supply chains, affected a lack of resources, and terminated contracts to control expenditures. The lack of manual labor is also hindering the luxury interior design market expansion, particularly in countries such as Spain, Italy, and Brazil. It may slow down the industry growth during the forecast period. COVID-19 has elevated demand for homewares enormously, as people have started to spend lavishly on home decor through DIYs and other products, boosting the market growth.

An unexpected rush in demand for homewares produced a minor demand-supply gap; nonetheless, companies rapidly began manufacturing to fulfill the need. Manufacturers are also figuring out how to deal with supply chain disruptions and capacity limits that could make it problematic to satisfy fluctuating client demands.

LATEST TRENDS

"Increasing Demand from Real Estate Industry to Bolster Market Progress"

The increasing demand from the real estate sector and the growing urban population in the emerging economies are some of the major factors fueling the growth of the luxury interior design market. Moreover, rising expenditure on domestic products has subjective the demand for products, likely to provide prospects for the market during the forecast period. The development of the hospitality and infrastructure sector in emerging economies is also driving the demand for luxury interiors from the workplaces and hotel segments. The increasing popularity of luxury interiors such as bedrooms, bathrooms, kitchens, and others is likely to enhance the product's sales.

LUXURY INTERIOR DESIGN MARKET SEGMENTATION

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• By Type Analysis

By type, the market is segmented into newly decorated and repeatedly decorated. 

The newly decorated is expected to be the leading segment because of high investments. It is not cost-effective and can be done only once at an economic level. Its adoption in the luxury segment is expected to boost its demand rapidly. These factors may propel industry growth. 

• By Application Analysis

Based on application, it is categorized into commercial, residential, and others

The residential luxury interior design market has observed ideal growth in recent years and is expected to endure in the coming years. The growth of the industry size can be credited to growing investments in research & development activities, new entrants, product invention, technological advancements, available resources, and rising competition among competitors to increase its regional and customer base.

DRIVING FACTORS

"Increasing Urbanization and Standard of Living to Facilitate Industry Progress"

With rising urbanization and industrial development, the high-class segment progressively increases, successively making consumers demand interior products. Growing awareness about the benefits of and luxury offered by the products enhances market growth. As the standard of living is altering, consumers are motivated towards good quality, aesthetic, comfy, and visually attractive products for interior decorations. Usually, the luxury industry has been linked with impressions like high costs, extreme consumerism, and exclusivity. However, as the new generations are compelling on the market with their new standards, consumers' potentials for luxury interior designs are changing consequently. Ethical values are becoming essential for consumers so that they are starting to affect their purchasing choices intensely. Factors such as sustainability, animal welfare, environment, impact on communities, labor, and manufacturing practices are all essentials presently considered when buying a product for interior decorations. These factors are likely to drive the luxury interior design market growth. 

"Increasing Adoption in Commercial Sector to Bolster Market Progress"

With the rise in consumer expectations towards a vacation, there is an increase in smart workplaces and growing makeovers in modern stores. It is also boosting enrichment in luxurious interiors of hotels. In addition, there is an increase in the demand for smart arrangement and technology combined design facilities after the improvement of smart government institutes, healthcare, airports, smart cities, and healthcare. It is anticipated to drive the demand for innovative interior design that integrates sustainable and eco-friendly recreational centers and advanced infrastructure. Therefore, the rising demand for interior design facilities from the commercial sector will enhance the development of the luxury interior design market during the forecast period.

RESTRAINING FACTORS

"High Cost of Raw Materials to Impede Market Progress"

The high cost of raw materials used in interior designs and purchasing power of the consumers are the major restraining factors. Products used to manufacture interior parts are commonly available at higher prices, making purchases challenging for buyers of all economic levels. Moreover, increasing raw material prices connected with goods like wood and leather impede market expansion.

LUXURY INTERIOR DESIGN MARKET REGIONAL INSIGHTS

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"Infrastructure Development to Fuel Industry Development in Asia-Pacific"

Europe is expected to dominate the luxury interior design market share because growing consumer awareness about luxury fabrics for their homes' interior designs is enhancing market growth in the region. Moreover, the presence of some prominent players is another factor driving the market. The selection of designs and textiles has been shifting over time. The furniture and textile firms use several strategies to preserve and entice the customer base. Numerous businesses propose design customization and personalization according to the buyer's preferences.

North America is the second-largest shareholder globally in the luxury interior design industry. It is due to prominent players and higher disposable income in the region. The globalization of artifacts has led to broader market prospects for the people, which is aided by the easy accessibility of products through the different sales channels. Customers in the U.S. are spending more on interior products, which can be credited to an upsurge in the number of people with an easy lifestyle.

KEY INDUSTRY PLAYERS

"Implementation of Strategies and Product Innovation to Help Major Players Grow"

The key players holding a huge part of market share in the residential segment and impacting market productivity are estimated after considering their business plans, product & services revenue, innovations, growth rate, and sales. The final location of a player in the market is influenced by events, new product introductions, mergers & acquisitions, regional expansions, technical innovations, and benchmarking.

List of Market Players Profiled

• Gensler (U.S.)
• Gold Mantis (China)
• HOK (U.S.)
• HBA (U.S.)
• Perkins + Will (U.S.)
• Jacobs (U.S.)
• Stantec (Canada)
• IA Interior Architects (U.S.)
• CallisonRTKL (U.S.)
• Nelson (U.S.)
• Leo A Daly (U.S.)
• SOM (U.S.)
• HSK (China)
• DB & B (Singapore)
• Cannon Design (U.S.)
• NBBJ (U.S.)
• Perkins Eastman (U.S.)

INDUSTRY DEVELOPMENT

• 2019: Inter IKEA Systems B.V. announced its new IVAR storage scheme product collection, which comprises space-saving shelving. This scheme was produced for individuals who are living in compact spaces.

REPORT COVERAGE

The market report provides limited information about how the market will develop. The report classifies the latest trends that define the growth of the market. This published report sheds light on emotional subtleties, such as the drivers, restraints, and opportunities for key market players and emerging players connected with the production and supply. The study examines the most recent developments and the most profitable categories. It keeps track of the essential players' strategies and regional trends. It allows readers to learn about the critical methods that promote market growth.