Growth of Interior Design Industry
The Interior Design Industry is expected to expand in the near future. There are several factors that drive the growth of the industry. The industry can be classified into three major segments – Residential, Luxury interior design, and Commercial. Moreover, the industry is likely to grow despite the COVID-19 pandemic.
Residential Application Segment for Interior Design Industry
Growth of the Interior Design industry will depend on several factors, including the rise in construction activities and urbanization. These factors are expected to drive the industry’s demand over the next seven years. In particular, the construction of new buildings and residential projects will drive the market growth. In addition, the growing concern about environmental issues will drive the need for interior design services.
A number of start-ups are also targeting the market and leveraging the new technology to make interior design easier. Some of them are using virtual reality and cloud computing to improve user experience. These new innovations are attracting new talent and investors, which are vital to the growth of the interior design industry.
The residential sector is expected to grow at the fastest rate over the next few years. The increasing population is driving the need for comfortable living spaces, and technological innovations are boosting the demand for home decor. The millennial generation, in particular, considers the interior design of their home to reflect their personality. As a result, most homeowners seek the services of design firms that understand their vision and can curate cost-effective designs that match their preferences.
Luxury Interior Design Segment for Interior Design Industry
The luxury interior design segment is growing in the interior design industry, driven by consumer expectations. Increasing sophistication in the design of offices and stores is driving demand for luxury interior design. The growing demand for technology-integrated design facilities and smart government institutes is further stimulating demand for luxury interior design.
The market for luxury interior design is characterized by increased R&D activities, new entrants, technological innovations, and government initiatives. The global luxury interior design market is expected to reach USD 92,670 million by 2027. During the forecast period, the market is expected to expand at a CAGR of 9.0%. The market recovery from the COVID-19 epidemic is expected to further drive the growth of luxury interior design.
The luxury interior design segment is growing in the interior design industry, as consumers are increasingly spending more on home decor and furnishings. However, there are some challenges to this growth. For instance, the COVID-19 pandemic has affected supply chains and caused termination of contracts. This has resulted in a shortage of manual labour. However, this shortage is likely to change soon, as the demand for luxury interior design services is likely to continue to grow. This segment is driven by a rising number of high-end residential remodelling projects and new construction projects that involve renovation works at a later stage. This segment is also expected to grow because of the benefits that luxury interior designs have on customers. Luxury interior designs can increase the productivity and morale of employees and encourage consumers to spend more money.
Changing consumer preferences in home decor has led to an increased demand for luxurious interior fabrics. These fabrics add texture and colour to a space. They are made from a range of materials, including silk and wool. The choice of fabric depends on the style of the room and the location. For instance, for a home, warm, bright colours are popular; whereas for offices, darker tones are preferred.
Commercial Application Segment for Interior Design Industry
The Commercial application segment of the interior design industry encompasses a variety of services. This includes space planning, design and decoration, and space management. These services are used to create a more inviting environment. The industry is growing at a healthy rate, but the growth of some sectors may be slowing.
Several factors can affect the growth of the commercial application segment of the interior design industry, including lack of skilled labour and increased number of construction projects in some areas. In the past decade, the industry has experienced a number of setbacks, but technology has played a major role in fostering a resurgence in the industry. Increased construction activity and private investments are expected to boost the market’s growth. Urbanization is also expected to increase demand for interior design services.
The Commercial application segment of the interior design industry is expected to grow during the forecast period. A rise in tourism is driving the construction of hotels, restaurants, amusement centres, and other commercial spaces. Interior design services for these sectors include designing spacious rooms, lavish bathrooms, and spas. Increasing demand for interior design services in these sectors is also fuelling the growth of the commercial segment.
Commercial application interior design services are highly competitive. There are several players in the market, but they differ in pricing and product portfolio. This means that smaller players may offer lower prices than larger players. Also, competition is fierce among the smaller players, particularly in developing regions. The competition in this sector is primarily driven by technological innovation.
Another factor that is driving the growth of the commercial application segment of the interior design industry is the increasing demand for commercial infrastructure. As construction activities continue to increase in all sectors, many national governments are undertaking initiatives to develop customized infrastructure. In addition, the increasing demand for interior design services is due to increasing investment in the public sector. Many governments around the world are investing in various construction projects for cities, airports, and other commercial buildings.
Commercial application segment of the interior design industry encompasses a variety of different subspecialties. A commercial office needs a space that is conducive to work and customer interactions. It requires a unique set of skills, including creativity, collaboration with other fields, and general psychology.
While the interior design industry is experiencing steady growth, there is room for cautious optimism. The current economy is affecting the market and the future of the industry. The future of the industry will be largely determined by the direct sales model and personal relationships. The industry will also be influenced by personality factors. Furthermore, the emergence of smart cities is expected to drive the market for innovative interior design solutions integrating advanced and sustainable infrastructure.