Interior Design Services
Companies in this industry plan and design interior spaces such as hotels, hospitals, residences, commercial businesses, and offices. Although no major companies dominate the industry, a number of large architecture and design firms offer interior design services, such as AECOM, Gensler, HOK, and Perkins&Will (all based in the US), as well as DB&B (Singapore), M Moser Associates (Hong Kong), and Stantec (Canada).
Global construction output, a key driver for interior design services, is growing quickly and will reach $15.5 trillion by 2030, according to PricewaterhouseCoopers. China's construction growth is forecast to slow due to a decline in housing output, while the construction market in India expected to grow considerably as urban populations in the country swell.
The US interior design industry includes about 13,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $12 billion.
Competitive Landscape
Construction and renovation of residential, commercial, industrial, and institutional buildings drive demand for interior design services. The profitability of individual companies depends on accurate bidding, timely delivery, and a steady volume of projects. Large companies have advantages in marketing, developing partnerships, building a large client referral list, and getting priority service from suppliers. Small companies can compete effectively by providing better service, specializing, and using unique or custom product sources. The US industry is highly fragmented: the 50 largest US firms account for about 10% of revenue.
A number of large architecture and design firms also offer interior design services. Other competitors include suppliers and consumers. Suppliers compete by expanding their services to include interior design; consumers with an interest in interior design, especially the decorator aspect of operation, may attempt these services on their own home, office, or business location.
Products, Operations & Technology
Full-service interior design accounts for about 90% of US industry revenue; interior decorating services account for 8%, while retail sales are about 1%.
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Finance & Regulation
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Regional & International Issues
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Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms