Home Décor Market Size, Share, Analysis & Forecast [2031]

Report Description

Home Decor Market Outlook 2031

The global home decor market size was USD 681 Billion in 2022 and is likely to reach USD 838 Billion by 2031, expanding at a CAGR of 3.5% during, 2023–2031. The market growth is attributed to the increasing demand for exterior and interior designing services.

The global home decor market is driven by the increasing interest of people in decorating their living spaces. They are inclined towards enhancing floors & walls, and adding aesthetic pieces to their homes. Moreover, many people look forward to adopting eco-friendly and sustainable products to decorate their homes, especially for outdoor setups, such as balconies and gardens. This helps market players to produce environmentally friendly products. Additionally, it aids in business expansion, which, in turn, propels the market. For instance,

• Ghar, a home decor company based in India, offers artisanal and sustainable decor products. The company launched eco-friendly and handmade carpets to reduce the environmental impact and promote biodegradability.

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The market report states that the COVID-19 pandemic impacted the home decor market, as it resulted in a temporary shutdown of production across various countries. This further disrupted the supply chain of the market, due to insufficient availability of raw material.

Changing customer buying behavior impeded the demand for decorative materials, thus affecting the market. People chose to shop online, due to the availability of e-commerce services and shifting consumer focus on enhancing the look of the house. This helped in the market recovery and aided the market growth.

Impact of Artificial Intelligence on Home Decor Market

The integration of artificial intelligence (AI) in the home decor market aims to provide a virtual experience to the customers, where they see and visualize how the furniture, paints, floorings, and other decorative materials look in their house premises.

In this way, AI aids purchasing decisions for customers by offering a virtual experience. This factor is projected to help in significant market growth during the forecast period. For instance,

• On June 22, 2022, Inter IKEA Systems B.V. launched its AI-powered experience service named IKEA Kreativ. This technology aims to offer a digital design experience and lifelike visualization of designs and products in the customers’ living spaces, through smartphones and computers. Such interactive design and visualizing facilities are driving the global home decor market.

Home Decor Market Dynamics

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Major Drivers

Increasing disposable income of people across the world is expected to drive the home decor market. Many people look forward to improving their home experiences through designing and decorating, which increases the demand for the products and services. In addition, increasing awareness among people through social media about a wide range of design and decorating ideas propels the market.

Rising population aids the growth of the real estate industry, which results in a large number of homes and residential spaces. Many people demand medium to luxury decor methods for their homes, which is expected to boost the market during the assessment period.

Existing Restraints

High cost of implementing decorative products and services is likely to restrain the market. This leads to a decrease in demand for decor among people with inadequate financial resources who want to enhance their living spaces. Additionally, the high cost of raw materials such as wood, used in home furniture, impacts the production rate, which is further anticipated to impede the market growth.

Emerging Opportunities

Increasing globalization results in a wide set of customers looking forward to adopting home decor as a part of their lifestyle, which helps the key players to expand their businesses and creates growth opportunities in the market. In addition, the evolving interior designing industry offers sophisticated and personalized design assistance to customers, creating opportunities in the market.

Surging internet penetration and the use of smartphones across different nations result in easy access to e-commerce services, which further helps market brands to focus on online operations. This further creates lucrative opportunities for the market to generate revenue through online sales.

Scope of Home Decor Market Report

The report includes an assessment of trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Home Decor Market Segment Insights

Product Segment Analysis

Based on product, the home decor market is divided into textile, furniture, flooring, painting, and others. The furniture segment is expected to expand at a major growth rate during the projection period, due to the rising adoption of designer and modular kitchens and wardrobes around the world.

These designs require the use of a large quantity of wood with high quality, thus boosting the number of initiatives taken to adopt sustainable and eco-friendly wood. This factor is expected to drive the segment in the coming years.

The textile segment is anticipated to account for a significant market share during the forecast period, due to the rising textile product range used in home décor, such as curtains, bed linens, and floor covering. These fabrics are essential constituents of a house, which is boosting the use of different textile materials in manufacturing home decor fabrics. Moreover, the easy availability of different colors, textures, and sizes aids in the segmental growth.

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Application Segment Analysis

On the basis of application, the global market is bifurcated into indoor and outdoor. The indoor segment is projected to expand at a considerable CAGR during the forecast period, owing to the increasing application of home décor services inside the house. Indoor rooms, including the living room, kitchen, and bedroom, require well-planned home decor.

Moreover, the increasing trend of stylish home setup is driving the indoor home decor segment. In addition, surging number of product and service launches is fueling the segment. For instance,

• Inter IKEA Systems B.V. launched compact shelves under the IVAR storage product portfolio. It aims to cater to small houses and offer space-saving facilities. Such product updates and novel launches for indoor home decor boost the segment.

The outdoor segment accounts for a significant market share, due to the increasing investments in outdoor seating and garden setup. This increases the demand for decorative lighting, grass floors, and outdoor seats & chairs. Additionally, the rising focus on aesthetic and minimal decorative products among people is expected to boost the segment during the assessment period.

Distribution Channel Segment Analysis

On the basis of distribution channel, the home decor market is segmented into online and offline. The offline segment is expected to register robust growth during the projection period, as customers physically shop in offline setups, such as specialty stores, malls, supermarkets, and hypermarkets.

In these shops, the salesman assists the customer in making purchasing decisions and offer expert guidance for buying home décor, such as large furniture pieces, which further helps in the segmental growth.

The online segment is expected to hold a significant share of the market, due to the rising preference of shopping on e-commerce sites. These sites offer discounts and easy home delivery options, along with return policies. These facilities attract customers to buy home décor at their convenience.

Additionally, the presence of a wide range of product options with different price ranges helps customers to choose a suitable product. In this way, the online segment is expected to grow significantly in the coming years.

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Regional Outlook

In terms of region, the global home decor market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period, due to the presence of a large number of market players in the region, who offer a wide range of products with innovation. This creates high demand for quality home decor products.

Additionally, the increasing disposable income of people in countries such as Canada and the US results in high demand for different decorative and aesthetic products. Thus, these factors propel the market in the region. For instance,

• According to a report published in July 2023, the total contribution of the US and Canada to the total home decor market revenue is around USD 32 million and USD 5 million respectively. These countries contribute to high revenue in the global market.

The market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, due to the rising number of people shifting to urban areas from rural areas. This gives rise to real estate businesses and an increased number of houses, which further aids the demand for home décor.

Additionally, the surging demand for creative interior designing techniques and increasing disposable incomes in countries such as India, China, South Korea, and Japan facilitate the demand for aesthetic and innovative home decor services, thus boosting the regional market. For instance,

• As per a report published in July 2023, the total contribution of South Korea to the overall home decor market revenue in 2023 is around USD 2 million, while China contributes over USD 19 million, and India contributes around USD 1.6 million.

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