Home Decor Market Size, Share, and Growth Forecast for 2024 - 2031

Home Decor Market Size and Share Analysis

The global home decor market is estimated to reach a size of US$ 735.4 Bn in 2024. It is predicted to rise at a CAGR of 4.5% through the assessment period to attain a value of US$ 1,075.91 Bn by 2031.

Combining functionality and aesthetic appeal in domestic areas, the home decor industry is a vibrant and competitive sector. Driven by changing consumer tastes, design breakthroughs, and the need for personalized living environments, it includes lighting, textiles, and decorative items.

Rising demand for sustainable goods and awareness of interior design are also boosting growth in the global home decor market. For instance, in October 2024, the Bali-based furniture company Nusantara Lifestyle created designs for boutique villas, hotels, and homeowners that blend modern and rustic elements.

Surging demand for eco-friendly products is influenced by social media trends. Worldwide cultural exchanges, enabled by globalization, enrich the industry with a variety of design inspirations that foster originality and diversity.

Key Highlights of the Market

• Rising DIY projects and personalized home decor items has surged market diversity to cater to individual preferences.
• Expansion of omni-channel and online shopping has facilitated consumers' access to a wide variety of home decor items.
• To improve living spaces, urbanization is fueling an increase in demand for chic and useful home decor.
• Demand for both traditional and contemporary designs is being driven by consumers' desire for eco-friendly home decor items as they adjust to shifting lifestyles and interior design trends.
• In 2024, based on product type, home furniture holds a market share of 25.3%, owing to the popularity of novel designs.
• With a 17.3% market share, the direct-to-consumer distribution channel is leading as companies invest in strengthening their networks.
• Need for comfortable and visually appealing living spaces has resulted in North America to lead the industry with a market share of 39.8% in 2024. 
• Demand for decor products that are ethically and ecologically sourced supports Europe's 15.7% market share in 2024.

Market Attributes	Key Insights
Home Decor Market Size (2024E)	US$ 735.4 Bn
Projected Market Value (2031F)	US$ 1,075.91 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	4.5%
Historical Market Growth Rate (CAGR 2019 to 2023)	4.1%

Digitization in Home Furnishing Spurs Demand in North America

In 2024, the home decor market in North America will likely hold a 39.8% share due to high demand for comfortable and visually beautiful living spaces. Customer tastes for eco-friendly and recycled home products are evolving. Hence, manufacturers are working to reduce the generation of waste. For instance,

• In October 2024, in Brentwood, Tennessee, Ashley and Samsung partnered to launch The Connected Home Experience. It is a showroom featuring SmartThings-enabled furniture and Samsung tech. The showroom showcases how living areas can transform into perfect spaces and plans to extend across the Ashley network.

Focus on Functioning Decor to Create Novel Opportunities across Europe

The trend of outdoor living spaces and home improvement projects is driving demand for home decor items in Europe. The market is fueled by the need for non-slip floor design, smart furniture, and grab bars.

Europe will likely account for 15.7% of the worldwide market share in 2024, with the U.K. leading the way. This is due to its innovative home decor items and strong interior design culture.

Local designers develop distinctive and striking designs by fusing modern technology with historic landscapes, ensuring long-lasting and intelligent home decor.  For instance,

• In October 2024, the Conran Shop launched a new trade concept for U.K. design and interior professionals. It is offering consultations, support, exclusive previews, special event invitations, and competitive discounts.

Popularity of Home Furniture Skyrockets Amid Need for Customized Products

In 2024, home furniture such as couches, sofas, beds, cabinets, and tables accounted for 25.3% market share. These essential items are vital for living spaces, storage, and decorative purposes.

Consumers are spending money on furniture to enhance their home's decor and look, choosing furniture based on theme, design, color, and style. Customized furniture is also sought for room design and layout. The trend of stylish, space-optimized, and novel technology-based furniture with unique looks is driving the market for home decor products.

Bath textiles, on the other hand, is anticipated to generate a share of 23.7% in 2024. Rising focus on aesthetics and increasing awareness of personal hygiene are projected to propel the segment.

Brands Opt for Direct-to-consumer Channels to Offer Affordable Options

In 2024, 17.3% of the global market share will likely be held by the direct-to-consumer category, making it the most popular distribution channel. Compared to shops, such a strategy offers more product options, convenience, and affordable solutions.

To attract a wide array of customers, brands are set to collaborate with regional distribution chains. For instance,

• In November 2024, Creaticity partnered with Thailand's Index Living Mall (ILM) to launch a furniture and home décor store in India. It is targeting urban middle-class families, young professionals, and design-focused individuals.

For efficient marketing, customer service, and product development, the direct-to-consumer channel also offers transparency. At the same time, it fosters confidence in the caliber of the products and improves brand image.

Market Introduction and Trend Analysis

The DIY and personalized home decor market is rising due to the popularity of DIY projects and customized items. Growth of online and omni-channel retail has made it easier for consumers to access a wide variety of home decor items.

Given their distinctive look, handcrafted goods are becoming popular, and virtual reality purchasing lets customers see how their homes will look. For example,

• At HITEX in October 2024, India-based designer Gaurang Shah launched the new ‘NEEL’ line. It includes personalized furniture, tableware, and ceramics that blends traditional craftsmanship with contemporary utility.

Companies are also offering subscription services for eco-friendly home decor. These are gaining popularity in the e-commerce sector due to consumer demand for convenience and curated solutions. Popular brands include Decocrated, Norlii, and Habitation Box.

• Based on a few studies, an average individual in the U.S. spends around US$ 1,598 annually on home decor, driving demand for personalized items and marketing tactics through platforms like YouTube and Instagram.

Historical Growth and Course Ahead

The global home decor market recorded a decent CAGR of 4.1% in the historical period from 2019 to 2023. The worldwide home improvement business has surged due to increasing consumer demand for interior designs and personalized decorations.

The trend toward well-oriented homes and non-toxic materials is attracting modern consumers. The popularity of interior designs like furniture modification, television setups, and bookshelf designs is also driving interest.

E-commerce platforms are a popular source for purchasing these items, accelerating the industry's growth. Manufacturers have been enhancing home decor design in recent years. Demand for home decorations is estimated to record a considerable CAGR of 4.5% during the forecast period between 2024 and 2031.

Market Growth Drivers

Popularity of DIY and Personalization to Push Demand

The popularity of Do-It-Yourself (DIY) projects and personalized home decor items enriches market diversity and caters to individual tastes. Brands in the market are envisioned to develop decor items that can easily be installed by a single user. For instance,

• In March 2024, Govee introduced the Neon Rope Light 2, an enhanced smart lighting strip with an AI bot, customizable settings, and integration with the Govee Home app as well as Matter-compatible ecosystems.

To craft DIY furniture, brands like IKEA are estimated to lead the way by offering novel and efficient designs and lucrative offers. For instance,

• In August 2024, IKEA launched IKEA Preowned, an online marketplace aiming to become a circular business by 2030, trialed in Madrid and Oslo, with a global rollout planned if successful.

Shifting Consumer Tastes Drives Innovation in Home Improvement

The shifting tastes of consumers, impacted by social, cultural, and individual variables, have led to a notable expansion in the worldwide home decor sector. Customers want to create living areas that reflect their personal taste and follow current design trends as their disposable income rises. Social media platforms have democratized the spread of styles and enabled this rapid development.

A global standard for fashion and attractive lives has been established by ‘Instagrammable' culture, which features eye-catching photos of people's personal living areas. Digital platforms impact customers by presenting tailored lifestyles in addition to influencing traditional design sources.

Market Restraining Factors

Instability in Supply Chain and Product Pricing to Restrain Growth

Disruptions to the supply chain, a complicated network that includes manufacturing, distribution, and procurement, are posing serious issues for the home furnishing industry. Due to its reliance on an international network of suppliers, the industry is susceptible to interruptions in production and material transit.

The market has to deal with price volatility for fundamental resources like metals, wood, textiles, and polymers. Changes in supply chain and geopolitical conflicts are the causes of the oscillations. Manufacturers and retailers must hence contend with a challenging and complicated environment, underscoring the necessity of ongoing innovation and industry adaptation.

Key Market Opportunities

Emergence of E-commerce Platforms to Foster Avenues

A vast array of home decor products is now more easily accessible to consumers due to the growth of omni-channel and online shopping. The sector has seen a huge transformation due to the e-commerce revolution, which has created previously unheard-of opportunities for retailers, manufacturers, and artists.

Customers can purchase from the convenience of their homes with the variety of designs, trends, and price points that online platforms provide. The growth of distinctive and handcrafted goods is supported by this democratization of access, which fosters a more inclusive marketplace. Several e-commerce platforms make comparison shopping simple and encourage healthy vendor rivalry.

Proliferation of Smart Home Technology Crafts Innovative Opportunities

Increasing demand for linked technology-based home decor products is creating a significant impact on the smart home market. These include sophisticated security solutions, personalized health management systems, and unique entertainment technologies. Additionally, this trend is raising demand for visually aesthetic products that improve the functioning of living spaces, smart decorative lighting, and top-notch speakers.

As smart technology becomes more commonplace in houses, the real estate sector is surging.

• According to a U.K. Land Registry Office poll, around 25% of citizens in the U.K. believe that smart technology is essential while moving. This demonstrates how crucial cutting-edge technological solutions are in determining the functioning and style of homes as they affect the tastes and choices of modern homebuyers.

Competitive Landscape for the Home Decor Market

In order to produce distinctive, fashionable products, leading vendors in the home decor industry substantially invest in research and development. The emphasis on cutting-edge product development draws customers and improves the operation and potential revenue of the global market. The cutting-edge products appeal to consumers looking for fashionable and useful home furnishings, which fuels a vibrant and cutthroat market for home decor.

Market players in the home decor industry are implementing a variety of marketing strategies to raise their products to new heights. These strategies include mergers, acquisitions, collaborations, and product launches. By introducing innovative and novel technologies, these key players aim to enhance global market growth.

Recent Industry Developments

• In November 2024, Era Lane, a Washington-based premium home decor e-commerce company, launched a collection of modern, functional, and sustainable home furnishings.
• In August 2024, California-based Pottery Barn collaborated with Michael Graves Design to launch an accessible home furnishings collection. It incorporated ethnographic research and functional enhancements to improve safety and accessibility in homes.
• In May 2024, Inditex, based in Spain, opened a flagship store in Paris, targeting sophisticated Saint-Germain-des-Prés clients. Its brand Zara Home plans to extend in Milan, Antwerp, and other European markets.
• In February 2024, Netherlands-based  IKEA introduced the IKEA AI Assistant, an AI-powered home design tool, exclusively on the OpenAI GPT Store, offering personalized furniture and decor suggestions.

Home Decor Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Europe East Asia South Asia and Oceania Middle East and Africa Latin America
Key Market Segments Covered	Product Type Application Distribution Channel Region
Key Companies Profiled in the Report	IKEA The Home Depot Williams-Sonoma, Inc Wayfair Ethan Allen Crate and Barre Bed Bath and Beyond Ashley Furniture Industries Anthropologie Surya Z Gallerie Others
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Home Decor Market Segmentation

By Product Type

• Home Furniture
• Rugs
• Bath Textiles
• Bed Textiles
• Kitchen and Dining Textiles Tiles
• Wood and Laminate Flooring
• Vinyl and Rubber Flooring
• Lighting
• Others

By Application

• Indoor
• Outdoor
• Other Applications

By Distribution Channel 

• Retail Stores
• Direct to Consumer
• Manufacturer Stores
• E-commerce Stores
• Discount Stores
• Rental Stores 

By Region

• North America
• Europe
• East Asia
• South Asia and Oceania
• Latin America
• The Middle East and Africa

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