Interior Design Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 14,100 interior design firms in the US plan, design, and administer projects in interior spaces to meet the physical and aesthetic needs of customers. Revenue comes primarily from design services and product sales. Companies may specialize in a particular sector (hospitality, health care, institutional, residential), room (kitchens, bathrooms, closets), or style (contemporary, traditional).
Demand Driven By Construction Trends
Interior design services are often tied to new construction and remodeling projects.
Design Driven By Trends And Fads
The interior design market is often driven by styles and trends in the fashion world.
Industry size & Structure
The average interior design service provider operates out of a single location, employs 3-4 workers, and generates about $1.2 million annually.
- The interior design services industry consists of about 14,100 companies that employ about 53,700 workers and generate $17.1 billion annually.
- The industry is highly fragmented; the top 50 firms account for 15% of industry sales.
- Large companies that offer interior design as part of a portfolio of services include Gensler, HOK, and Perkins+Will. The majority of firms are small, independent companies with localized operations.
Industry Forecast
Interior Design Services Industry Growth
Recent Developments
Mar 27, 2024 - Moderate Industry Sales Growth
- The interior design services industry’s sales are expected to notch moderate growth over the next several years after substantial gains in the years of the pandemic. The industry’s year-over-year sales rose 1.4% in 2020, 15.5% in 2021, and 10.5% in 2022 before moderating to 6.1% growth in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales are projected to rise a modest 2.9% in 2024, then see average annual growth of about 4.7% through 2027, according to Inforum and the Interindustry Economic Research Fund, Inc.
- Hidden doors and secret rooms are increasingly popular with homeowners seeking to add a hint of mystery or whimsey to their homes, according to The New York Times. Popular projects include bookcases and cabinets that pivot to reveal hidden doorways to a pantry, closet, or wet bar. Website Houzz, which connects homeowners with remodeling specialists, reports that between 2022 and 2023, hidden-feature search terms such as “trap door” and “speakeasy home bar lounge” more than doubled. Remodeling industry observers note the hidden-door trend began during the pandemic when people were stuck at home and looked to maximize the use of existing space. Some homeowners are adding fortified hidden enclosures to serve as panic rooms and emergency preparedness storage.
- The National Association of Home Builders (NAHB) expects the residential remodeling market to remain flat in 2024 compared to 2023, then grow by about 2% in 2025. Remodeling is supported by a lack of existing homes on the market, high homeowner equity, and the aging of US housing stock. However, finding skilled labor is still a challenge for remodelers.
- Spending for residential improvements is forecast to drop 4% in 2024 after posting 3% growth in 2023, according to FMI’s first-quarter 2024 North American Engineering and Construction Outlook. High interest rates have stifled existing home sales, which are the major driver of remodeling spending as most improvements are made after buying or selling a home. However, maintenance and system upgrades are expected to garner a larger share of improvement spending as the median age of homes increases. US residential improvement spending is expected to fall another 2% in 2025 before rising 3% in 2026 and another 4% in 2027.
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