A number of factors, such as the rising number of real estate activities, growing population, rapid urbanization, surging disposable income, and increasing government initiatives to boost the construction sector, are projected to propel the growth of the Indian interior design market during the foreseeable period (2021–2030). According to P&S Intelligence, the market generated revenue of $22,939.7 million in 2020, and it is projected to witness significant growth in the coming years. Moreover, the market is witnessing a trend of the increasing demand for theme-based offices and home interior designing, in the country.
One of the prime factors propelling the market growth in India is the surging government support to boost the construction sector. For instance, the construction industry in the country grew at a CAGR of 5.6% during 2016–2020 and it attracted institutional investments of $5 billion in 2020. Moreover, the industry is projected to appear as the third-largest market in the world by 2025. Thus, it is essential for the central government, in association with state governments, to support the development in the real estate sector, which, in, turn, driving the need for interior designing services.
The decoration type segment of the Indian interior design market is classified into new and renovations. Of these, the new category held the larger revenue share in 2020 in the market, and it is also projected to witness the same trend in the coming years. This is ascribed to the surging need for residential and commercial spaces, due to the growing population and rising urbanization, in India. Moreover, increasing spending power of people, shifting in work culture, and improving lifestyle are leading to the high demand for well-designed, elegant homes and offices, in the country.
Furthermore, the end use segment of the Indian interior design market is classified into residential and commercial. Between the two, the commercial category accounted for the larger market share in 2020. This is due to the flourishing commercial real estate industry in India. With the undergoing transition in work culture, interiors of commercial spaces are becoming vital. Specialized interior designers are able to make the spaces functional, comfortable, and aligned with a viewpoint of a client’s brand. Also, they can come with improved designs on how to best utilize these spaces and enhance the working environment.
Geographically, North India held the largest share in the Indian interior design market in 2020, and it is projected to lead the market during the forecast period as well. This is ascribed to the growing urbanization rate, surging investments in the real estate sector, mounting number of national and international corporate offices in the Delhi-National Capital Region (NCR), and rising number of housing projects introduced by public organizations and private builders, in the region.
Thus, the rising need for residential and commercial spaces and the increasing government support for the construction industry are projected to propel the market growth in India during the foreseeable period.