India Interior Design Market Outlook to 2028

India Interior Design Market Overview

The Indian interior design market has experienced significant growth over the past five years. In 2023, the market size was at USD 30.75 Billion.

Key players in the Indian interior design market include Livspace, Urban Ladder, Design Cafe, Godrej Interio, and Home Lane. These companies have established strong market presence through innovative design solutions, extensive service portfolios, and robust online platforms that cater to a broad customer base.

In March 2023, Livspace announced a strategic partnership with IKEA to enhance their service offerings and expand their market reach. This collaboration aims to combine Livspace's design expertise with IKEA's extensive range of home furnishing products, providing customers with comprehensive interior design solutions.

India Interior Design Current Market Analysis

The hospitality sector in India has been expanding rapidly, with over 1,500 new hotels and resorts expected to open by December 2024. This growth is driven by the increasing number of domestic and international tourists, leading to a heightened demand for well-designed and luxurious interiors in hotels and resorts.

The growth of the interior design market has a ripple effect on several related industries, including furniture, home décor, and construction. It has also created numerous job opportunities for designers, architects, and craftsmen. Moreover, the market's expansion has led to the development of specialized design services, such as sustainable design and smart home

The metropolitan regions of Mumbai, Delhi-NCR, and Bengaluru dominate the Indian interior design market. Mumbai, in particular, stands out due to its high concentration of affluent households, luxury real estate projects, and commercial spaces.

India Interior Design Market Segmentation

By Product: In 2023, India interior design market segmented by product into furniture furnishings, lighting and flooring. Furniture leads because of the necessity of furniture in every interior design project, and the trend towards custom, multifunctional pieces that maximize space and utility.

By Design: In 2023, India Interior design market segmented by design into modern, contemporary, traditional and minimalistic. Modern design is preferred due to its clean lines and functionality, which suit urban lifestyles and smaller living spaces prevalent in metropolitan areas.

By Application: In 2023, India Interior Design Market segmented by application into modern, contemporary, traditional and minimalistic. Residential is dominant due to the continuous demand for home renovations, the growing real estate market, and increasing disposable incomes among the middle class.

India Interior Design Market Competitive Landscape

Company

Establishment Year

Headquarters

Livspace

2014

Bengaluru

Urban Ladder

2012

Bengaluru

Design Cafe

2015

Bengaluru

Godrej Interio

1923

Mumbai

Home Lane

2014

Bengaluru

Livspace: A leading player in the market, Livspace has revolutionized the interior design industry with its tech-driven approach and personalized design services. The partnership with IKEA in 2023, which leverages IKEA’s extensive range of home furnishing products, is expected to significantly bolster Livspace's market position by enhancing its service offerings and expanding its market reach.

Godrej Interio: Godrej Interio continues to lead with its wide range of products and sustainable design practices. The company has a presence in over 430 cities and operates more than 50 exclusive showrooms. With a product portfolio encompassing over 4,000 SKUs, Godrej Interio caters to a diverse clientele, including residential, commercial, and institutional customers.

Home Lane: Home Lane has created a niche for itself by offering end-to-end interior design services, from consultation to execution, ensuring a seamless customer experience. The company has completed over 10,000 projects and served more than 7,000 clients across 12 major cities in India. Home Lane’s innovative online platform enables clients to visualize their designs in 3D, facilitating a smoother and more transparent design process.

India Interior Design Industry Analysis

India Interior Design Market Growth Drivers

Rise in Home Renovation Projects: In 2024, it is estimated that 5 million homes will undergo renovation, driven by changing consumer preferences and the desire for modern living spaces. This growth in home renovation projects has created a substantial market for professional interior designers, as homeowners seek to incorporate contemporary and functional design elements into their renovated spaces.

Expansion of Commercial Spaces: In 2024, India is expected to add around 20 million square feet of office space across major cities. This expansion is fueled by the increasing number of startups and multinational companies setting up operations in India. The demand for aesthetically pleasing and functional office interiors has led to a surge in professional interior design services, catering to the needs of modern workspaces.

Increased Demand for Home Offices: The work-from-home trend has led to a rise in demand for home office setups. In 2024, it is observed that Indian households are investing substantially in creating dedicated home office spaces. Interior designers are playing a crucial role in designing ergonomic and productive home office environments to cater to this growing need.

India Interior Design Market Challenges

High Cost of Raw Materials: The rising cost of raw materials such as wood, steel, and textiles has posed a significant challenge for the interior design industry. In 2024, the cost of wood has increased to INR 30,000 per cubic meter, making it difficult for designers to source quality materials at affordable prices. This increase in raw material costs has led to higher overall project costs, affecting both designers and consumers who may be deterred by the increased expenses.

Shortage of Skilled Labor: The interior design industry in India faces a considerable shortage of skilled labor. This shortage has resulted in project delays and compromised quality of work, as the available workforce struggles to meet the growing demand for interior design services.

Fluctuations in Market Demand: The interior design market is highly sensitive to economic fluctuations and changes in consumer behavior. In 2024, market demand for interior design services has shown variability, with a notable slowdown during economic downturns. This unpredictability makes it challenging for interior design firms to maintain a consistent workflow and manage their resources effectively.

India Interior Design Market Government Initiatives

Smart City Mission (2015): The Smart City Mission aims to develop 100 smart cities across India, promoting sustainable and efficient urban living. By 2024, it is projected that 50 of these cities will have undergone significant development, driving demand for modern and innovative interior design solutions that align with the smart city concept.

Atal Mission for Rejuvenation and Urban Transformation (AMRUT) (2015): The AMRUT scheme aims to provide basic urban infrastructure and improve the quality of life in urban areas. By the end 2024, it is observed that over 500 cities will benefit from AMRUT projects, leading to an increased demand for interior design services in urban rejuvenation and redevelopment projects. Interior designers are contributing to the creation of vibrant and livable urban spaces, enhancing the overall urban environment.

India Interior Design Market Future Outlook

The India interior design market is expected to grow at a steady pace by 2028. The integration of smart home technologies and sustainable design practices will further propel market growth.

Future Market Trends

Integration of Smart Home Technologies: The integration of smart home technologies into interior design is a significant trend in 2024. Around 1.5 million homes in India are expected to feature smart home solutions such as automated lighting, climate control, and security systems. This trend reflects the increasing preference for technologically advanced and convenient living spaces.

Growth of Online Interior Design Services: The rise of online interior design platforms has transformed the industry, making professional design services more accessible to a broader audience. In 2024, over 5 million consumers are expected to use online interior design services for their home and office projects. These platforms offer virtual consultations, 3D design visualizations, and easy access to a wide range of design options, simplifying the design process and enabling consumers to achieve their desired outcomes from the comfort of their homes.
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