How AI Innovations Are Transforming the Interior Design Market
Interior Design Services Market: Steady Growth Ahead
The global interior design services market is in the midst of a clear shift and is set to expand over the next few years. From 2024 to 2028, the market is projected to increase by about USD 31.10 billion, supported by a compound annual growth rate (CAGR) of 4.6%. Much of this momentum comes from the worldwide pickup in construction activity, which is creating new projects and refreshing existing spaces. At the same time, the industry is leaning into new tools and processes, signaling a real inflection point as technology becomes part of everyday design work.
How Technology Is Reshaping Design Work
Digital tools are changing how interior designers plan, present, and deliver projects. Firms are investing in research and development and folding artificial intelligence (AI), machine learning, and virtual reality into daily operations. One example is the use of AI-driven platforms such as AECOM’s Capture, which helps streamline project management tasks and tighten up coordination. Virtual reality, meanwhile, gives clients a way to explore multiple design options before they commit, reducing guesswork and making decisions faster and more confident.
What Clients Want Right Now
Preferences are shifting toward spaces that feel personal and responsible. Property owners increasingly ask for designs that reflect cultural diversity and emphasize sustainability. There’s growing attention on wellness as well—how materials, light, layout, and finishes can support health and comfort. Technology is helping on the service side, too. Virtual consultations let clients connect with designers more easily, widening access and making the process more flexible, whether the project is a single room or an entire building.
Competition and a Fragmented Market
Even with growth on the horizon, the market remains highly competitive. A mix of small studios and established firms creates a fragmented landscape where price, style, and service all matter. Larger players continue to innovate and refine their offerings, while smaller companies often compete aggressively on price, pulling market attention toward value and speed. In this context, the call for one-of-a-kind designs pushes firms to sharpen their identities, highlight their strengths, and adapt quickly as client tastes evolve.
Where Firms Can Win
Interior design sits at the crossroads of creativity and technology, and that blend is where opportunity lives. Companies are broadening their services with tailored solutions for both residential and commercial clients. The push toward smart cities, for example, is shaping demand in commercial buildings, offices, and retail spaces, where fresh concepts, efficient layouts, and responsive environments matter. Customization is the throughline—meeting specific needs while using modern tools to deliver clarity and speed.
Segments and What’s Moving Them
The market is commonly viewed through two lenses: residential and commercial. Each segment follows its own rhythms, influenced by broader economic and social factors. The commercial side has benefited from ongoing construction and renovation cycles, which lift demand for professional interior designers to improve both function and aesthetics in workspaces. Residential projects, by contrast, tend to center on personal expression and comfort, yet both segments share a push toward purposeful design that works hard day to day.
What’s Next
Looking ahead, modern technologies and sustainable practices are likely to shape how the market evolves. Designers are focusing on spaces that fit specific needs—practical where they must be, personal where they can be—while also keeping health and wellness in view. The path forward blends the familiar with the new: traditional elements that stand the test of time, paired with cutting-edge tools that make the experience smoother for clients from first concept to final handoff.
Frequently Asked Questions
What’s driving market growth between 2024 and 2028?
Stronger global construction activity is the main engine, and it’s paired with greater use of technology in design. Together, they support the projected USD 31.10 billion increase and a 4.6% CAGR over the period.
How is technology used in interior design today?
Firms are integrating AI, machine learning, and virtual reality to streamline work and improve client experiences. Tools such as AECOM’s Capture help with project management, while virtual reality lets clients review and compare design options before deciding.
What challenges do firms face in this market?
The field is fragmented, with both small providers and large firms competing on service, style, and price. That mix intensifies pressure to stand out, keep costs in check, and stay aligned with changing client preferences.
How are client preferences changing?
Clients increasingly look for designs that reflect cultural diversity, prioritize sustainability, and support wellness. Convenience matters as well, with virtual consultations making it easier to start and manage projects.
What’s the outlook for the interior design services market?
The outlook remains positive. Continued technology adoption and a focus on personalized, eco-conscious, and wellness-oriented spaces are expected to guide how services are delivered and how projects take shape.
About The Author
Contact Ryan Hughes privately here. Or send an email with ATTN: Ryan Hughes as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.