Global AI In Interior Design Market By Component (Solution, Service), By Application (Space Planning and Design, Furniture and Decor Selection, Virtual Reality and Augmented Reality (VR/AR) Visualization, Material Selection and Optimization, Others), By End User (Interior Design Firms, Architects & Real-Estate Developers, Furniture Manufacturers, Others), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global AI In Interior Design Market size is expected to be worth around USD 7,299 Million by 2033, from USD 829 Million in 2023, growing at a CAGR of 24.3% during the forecast period from 2024 to 2033.

AI In Interior Design is a rapidly emerging field that leverages artificial intelligence technology to revolutionize the way interior spaces are created and optimized. It including websites, presentations, logos, portfolio designs, animations, architectural training, and others, at a reasonable cost. The development of creative AI in the interior design industry is being propelled by advances in machine learning and deep learning techniques, as well as rising processing power.

The AI In Interior Design market has witnessed significant growth in recent years, as more individuals and businesses recognize the potential of AI to streamline and enhance the design process. This market encompasses various stakeholders, including AI technology providers, interior designers, architects, and furniture manufacturers.

One of the primary advantages of AI In Interior Design is its ability to generate a multitude of design options quickly and efficiently. By analyzing vast amounts of data, such as user preferences, design trends, and spatial constraints, AI algorithms can produce tailored design recommendations that align with the client’s vision and functional needs. This not only saves time but also expands the possibilities for creative exploration.

Furthermore, AI In Interior Design systems can simulate and visualize designs in 3D, allowing clients to experience virtual walkthroughs and make informed decisions before any physical changes are implemented. This virtual representation of the space enables stakeholders to assess the design’s aesthetics, functionality, and overall appeal, minimizing the risk of costly mistakes or dissatisfaction with the final result.

According to data from the U.S. Bureau of Labor Statistics, there was a noticeable decrease in the number of interior designers employed in certain regions of the United States between 2019 and 2021. Specifically, in the U.S. Northeast region – excluding Connecticut, Massachusetts, and New York – the number of interior designers dropped by 430, which represents a 23% decrease. Similarly, in the Midwest, excluding Illinois and Nebraska, the number of employed interior designers fell to 2,300, marking a decrease of 22.5%

The AI In Interior Design market is experiencing a surge in adoption across various sectors, including residential, commercial, and hospitality. Homeowners can benefit from AI-powered design tools that help them transform their living spaces according to their preferences and budget. Similarly, businesses can leverage AI to optimize office layouts, retail store designs, and hotel room configurations to enhance customer experience and operational efficiency.

In a broader perspective focusing on generative AI applications, the market dynamics show significant growth opportunities. The Global Generative AI in Construction Market, valued at approximately USD 142 Million in 2023, is expected to escalate to around USD 2,855.1 Million by 2033. This market is projected to expand at a compound annual growth rate (CAGR) of 35% during the forecast period from 2024 to 2033.

Similarly, the Global Generative AI in Real Estate Market is also on a robust growth trajectory. Starting from a market size of USD 393 Million in 2023, it is projected to reach approximately USD 1,177.7 Million by 2033, growing at a CAGR of 11.6% over the same forecast period.

The application of artificial intelligence (AI) within the design and construction industries is projected to see substantial growth and integration by the year 2025. According to recent surveys, 72% of design firms anticipate that AI will be capable of managing complex space planning tasks effectively by 2025. Additionally, it is forecasted that 68% of interior design firms will implement AI for comprehensive project management from start to finish by the same year.

Key Takeaways

• The AI In Interior Design Market is estimated to reach the market size of USD 7,299.04 Million in 2033 witnessing a CAGR of 24.3% during the forecast period from 2024 to 2033 and was valued at USD 829 Million in the year 2023.
• Based on segmentation by components, the solution segment has a largest market share of 65% in the year 2023.
• Based on the application, the market is segmented into Space Planning and Design, Furniture and Decor Selection, Virtual Reality and Augmented Reality (VR/AR) Visualization, Material Selection and Optimization, and other segments, where Space Planning and Design has the largest market share of 37% in the year 2023.
• Based on end users, the Interior Design Firms segment has the major market share of 43% in the year 2023.
• Approximately 40% of interior design professionals hold the belief that AI will be capable of replicating human creativity by the year 2030.
• Nearly 47% of the interior design industry has already integrated AI technology for virtual reality modeling, showcasing a significant adoption rate.
• The application of AI in the field of interior design is expected to drive a 22% increase in job opportunities by 2030, indicating a positive impact on employment within the sector.

By Component Analysis

In 2023, the Solution segment in the AI In Interior Design market held a dominant position, capturing more than a 65% share. This substantial market share is largely due to the increasing demand for advanced and efficient design software that integrates AI capabilities. These AI-driven solutions provide interior designers with powerful tools for creating detailed, realistic visualizations of interior spaces quickly and with high precision.

The solutions often include features such as automatic room measurement, furniture placement, and color scheme selection, which significantly streamline the design process. The lead of the Solution segment can also be attributed to its ability to offer highly personalized design experiences. AI algorithms analyze user preferences, behavioral data, and spatial requirements to generate customized design options.

This level of customization is particularly appealing in today’s market, where consumers demand unique and personalized interior designs that reflect their style and functional needs. Additionally, as the technology advances, these solutions continue to become more accessible and user-friendly, encouraging wider adoption across both professional and amateur interior designers.

Furthermore, the integration of AI in design solutions enables continuous learning and improvement, adapting to new trends and user feedback. This ability to evolve makes AI-driven design solutions increasingly indispensable in the competitive field of interior design. As more designers recognize the benefits of reduced time and increased accuracy, the adoption of these solutions is expected to grow, further solidifying the dominance of the Solution segment in the AI In Interior Design market.

By Application Analysis

In 2023, the Space Planning and Design segment held a dominant market position within the AI In Interior Design market, capturing more than a 37% share. This segment’s leadership is primarily due to the crucial role space planning plays in the foundational stages of interior design.

AI enhances this process by offering sophisticated tools that automate layout suggestions, optimize the use of space, and ensure compliance with building codes and accessibility standards. These tools help designers create more efficient and functional spaces, significantly reducing the time and effort required in the planning phase.

The appeal of the Space Planning and Design segment is also bolstered by the integration of AI with existing CAD (Computer-Aided Design) tools and data analytics. AI algorithms can analyze historical data and current trends to predict client preferences, which assists designers in creating more personalized and optimized spaces.

Additionally, these AI tools can simulate different configurations and their impacts on space usability, allowing for adjustments before any physical changes are made, thus minimizing costly errors. Moreover, as the real estate market continues to grow, and as commercial and residential spaces shrink in urban areas, the demand for efficient space utilization increases.

AI-driven space planning tools are becoming indispensable for maximizing the utility of limited spaces, making them highly attractive to developers and private homeowners alike. This trend is expected to drive further growth and innovation in the Space Planning and Design segment, maintaining its lead in the AI In Interior Design market.

By End User Analysis

Based on End-user segmentation, the AI interior market is segmented into Interior Design Firms, Architects & Real-estate Developers, Furniture Manufacturers, and other segments. Amongst these segments, the Interior Design Firms held the largest market share of 43% in the year 2023.

This leading position is primarily due to the growing reliance of these firms on advanced AI tools to enhance their design capabilities and streamline operations. AI technology offers interior design firms the ability to quickly generate design concepts, make real-time modifications, and visualize outcomes more efficiently, which significantly enhances client satisfaction and operational productivity.

The dominance of the Interior Design Firms segment is also supported by the competitive edge that AI technology provides in terms of personalization and precision. AI systems can analyze vast amounts of data from client preferences to latest design trends, allowing designers to create highly tailored solutions that resonate well with clients. This personalized approach not only improves client engagement but also enhances the reputation and brand value of the design firms.

Furthermore, AI tools in interior design help firms manage project timelines and budgets more effectively. By automating elements of the design process, such as material selection and layout planning, AI reduces the time and labor traditionally required, leading to cost savings and higher profit margins. As AI technology continues to evolve, it is expected that even more interior design firms will adopt these tools, further cementing their leading position in the AI In Interior Design market.

Key Market Segments

By Component

• Solution
• Services

By Application

• Space Planning and Design
• Furniture and Decor Selection
• Virtual Reality and Augmented Reality (VR/AR) Visualization
• Material Selection and Optimization
• Others

By End-user

• Interior Design Firms
• Architects & Real-Estate Developers
• Furniture Manufacturers
• Others

Drivers

Higher accuracy of the outputs generated tends to boost the market

Because AI models can learn from a massive collection of data encompassing both organized and unstructured information and content on a wide scale, AI-generated content is more accurate than the data created by humans. AI allows interior designers to explore new avenues and produce more imaginative and distinctive design solutions. This contributes to the creation of a wider range of customized services, each with distinctive qualities of its own.

Furthermore, interior designs produced by AI models can be customized to fit into a certain category, like execution or cost-effectiveness, which enables designers to produce high-quality solutions. AI skills lead to the delivery of high-quality content, which in turn promotes the adoption of AI models and expands the market.

Restraints

The shortage of highly skilled workforce hampers the market growth

The requirement for more skilled designers and engineers in these domains has been challenging for businesses operating in the market. AI in interior designing mostly depends on design content, personalization data, and user demand. Organizations may be reluctant to deploy AI-based interior design solutions due to issues about data privacy, security lapses, and abuse of sensitive information, particularly in regulated regions or those with stringent data protection regulations.

Opportunities

Developing technologies across the globe is a huge opportunity for the market to grow

In the interior design sector, there is a great need for creative skills, and employers are willing to pay a high salary for it. Enhancing abilities via ongoing education initiatives, effective communication strategies, and online outreach initiatives can help achieve this. The market is witnessing enormous development prospects as a result of these quickly evolving innovations in the services provided. By providing a platform for iterative design exploration, artificial intelligence (AI) enables huge cooperation among engineers, designers, and stakeholders.

Additionally, it enhances development by fostering extraordinary creativity and customized interior design solutions. Given the enormous advantages of AI for the industry’s innovation process, it is anticipated that the use of these AI platforms will increase shortly, offering substantial growth prospects.

Challenges

Complexity of designs preferred by the customers

There are several obstacles that the AI in the interior design industry faces. There are various issues that the market faces due to the complexity of design preferences and personal inclinations. A substantial financial commitment and a high level of technical knowledge are needed to integrate AI technology with current design tools and software.

Additionally, when AI systems gather and examine personal data to generate design recommendations, issues such as privacy and data security issues are encountered. Furthermore, the creation of strong AI models tailored to interior design jobs is hampered by the absence of standardized datasets and benchmarks.

It will be difficult for users to accept and trust AI-generated designs since human creativity and knowledge is still preferred overthe automated solutions. To ensure ethical and efficient practices in the interior design sector, regulators, AI developers, and designers must work together to overcome these obstacles.

Latest Trends

Advancements in technology

Numerous trends are changing the interior design sector in the world of artificial intelligence. The use of generative design algorithms that use artificial intelligence (AI) to produce a variety of design solutions based on predetermined criteria, allowing for the exploration of novel ideas is increasing. Virtual reality (VR) and augmented reality (AR) are also becoming highly popular.

The AR/VR technology facilitates, with immersive experiences that let them see designs in actual settings, which helps with decision-making and enhances communication between clients and designers. Furthermore, the integration of natural language processing (NLP) technology facilitates efficient communication between designers and clients by automating tasks like requirement collection and design proposal creation. Collectively, these tendencies show the efficiency of AI in developing the interior design field, with improved productivity, increased creativity, and client-specific experiences.

Regional Analysis

In 2023, North America held a dominant market position in the AI In Interior Design market, capturing more than a 39% share. This leadership can be attributed to several factors, including the presence of established AI technology providers, a robust infrastructure supporting innovation, and a high level of adoption of advanced technologies in the design industry.

The demand for AI In Interior Design in North America was valued at USD 323.3 Million in 2023 and is anticipated to grow significantly in the forecast period. North America boasts a mature market for AI solutions, with a wide range of applications across various sectors, including interior design.

Additionally, the region’s strong economy and high disposable income levels contribute to a thriving market for luxury and customized interior design services, further driving the demand for AI-powered design solutions. Moreover, North America’s dynamic and diverse business landscape fosters a culture of innovation and entrepreneurship, attracting top talent and investment in AI research and development.

This favorable ecosystem enables continuous advancements in AI technology, leading to more sophisticated and user-friendly design tools tailored to the needs of interior designers and firms. Furthermore, the region’s early adoption of AI in various industries, such as technology, healthcare, and finance, has created a fertile ground for cross-sector collaborations and knowledge sharing, accelerating the pace of innovation in AI In Interior Design solutions.

Looking ahead, North America is poised to maintain its leadership position in the AI In Interior Design market, driven by ongoing technological advancements, a strong focus on user experience and customization, and a growing demand for sustainable and energy-efficient design solutions. As the market continues to evolve, North America is expected to remain at the forefront of innovation, shaping the future of AI-driven interior design on a global scale.

Key Regions and Countries

North America

• US
• Canada

Europe

• Germany
• France
• The UK
• Spain
• Italy
• Russia
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• Australia
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Rest of MEA

Market Share and Key Players Analysis

The AI In Interior Design market has shown significant growth, driven by advancements in artificial intelligence technology and increasing demand for personalized and efficient design solutions. The competitive landscape in the AI In Interior Design market is characterized by rapid technological advancements and a strong emphasis on user experience and data-driven design.

Companies compete on various fronts, including the depth of their AI algorithms, ease of use of their platforms, and the integration of virtual reality (VR) and augmented reality (AR) to enhance the visualization capabilities. Strategic partnerships with furniture retailers and real estate firms also play a crucial role in expanding market reach and enhancing service offerings. With cutting-edge tools and platforms, major companies in the AI In Interior Design market are reshaping the industry.

These companies are focusing on implementing various strategies such as joint ventures, mergers, collaborations, and innovations that could help them generate higher revenue. For instance, as a leader in design software, Autodesk incorporates AI into Fusion 360 and AutoCAD, among other products, to enable sophisticated design automation and optimization.

Top Key Players in the Market

• Autodesk
• Houzz Inc.
• Box Clever Interiors
• Collov
• Homedesign AI
• Space Designer 3D
• Interior Design AI
• RoomGPT
• Coohom
• ai
• ManyCore Technology
• Morpholio
• Other key players

Recent Developments

• In February 2024, V Starr Interiors, a firm by famous tennis player Venus Williams, launched an AI space with a new platform named Palazzo, that would help people revive their space effectively.
• In September 2023, AirBrick Infra launched an AI-driven design library for office designs that would help in solving complex design iterations and enhance the decision-making process.
• In September 2023, Morpholio launched a new tool called Trace, featuring RoomPlan Technology. This innovative tool uses the LiDAR scanner on an iPhone or iPad to create a detailed 3D floor model of a room. It includes key information like measurements and furniture placement, revolutionizing how interior designers and architects work.
• In November 2023, Autodesk, Inc. introduced Autodesk AI. This technology enhances creativity, helps solve problems, and cuts down on unproductive tasks in design fields. Autodesk AI has generative capabilities and provides intelligent support, allowing users to think freely and explore ideas while producing precise and creative results.

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