Home Decor Market Share Growth Forecasts, 2032

According to Fortune Business Insights, the home decor market is undergoing a significant transformation, fueled by evolving consumer lifestyles, rapid urbanization, and the growing influence of interior design trends worldwide. According to the latest market analysis, the global home decor market size was valued at USD 747.75 billion in 2024 and is projected to grow from USD 802.26 billion in 2025 to reach USD 1,097.51 billion by 2032, registering a CAGR of 4.58% during the forecast period.

From decorative accents to luxury furniture, consumers are increasingly investing in products that elevate both the functionality and aesthetics of their living spaces.

Rising Demand for Home Decor Products

The growing popularity of stylish home decor products—ranging from furniture, floor coverings, home textiles, lighting, and wall art—is reshaping residential and commercial interiors. Decorative accents like candles, throw pillows, and artworks are increasingly being used to create unique, cozy atmospheres.

Moreover, outdoor decor has become a global trend, with more households adding decks, patios, and garden furniture to extend their living spaces. According to the AIA Home Design Trend Survey (2023), nearly 65% of Americans preferred decorative decks and patios, reflecting a cultural shift toward blending indoor and outdoor living.

Global Home Decor Market Snapshot

• 2024 Market Size: USD 747.75 billion
• 2025 Market Size: USD 802.26 billion
• 2032 Forecast: USD 1,097.51 billion
• CAGR: 4.58% (2025–2032)
• Regional Leader: Asia Pacific with 45.74% market share in 2024
• Top Country Growth: U.S. home decor market expected to hit USD 305.51 billion by 2032

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Key Market Drivers

1. Sustainability in Home Decor

Eco-friendly materials are reshaping the home decor market. Consumers are increasingly choosing upcycled and recycled furniture, textiles, and floor coverings. For instance, Laurence Carr Inc. launched a collection of sustainable sculptural vessels made from biomaterials in 2023, highlighting the industry’s push toward greener solutions.

2. Smart Home Integration

The demand for smart decorative lighting, connected home appliances, and voice-controlled decor solutions is driving innovation. In the U.K., 25% of potential homebuyers already view smart technology as a "must-have" in their homes, underscoring the merging of technology and design.

3. Personalized and Luxury Products

Consumers are leaning towards custom-made furniture, DIY décor, and monogrammed accessories. Luxury furniture brands offering curved sofas, vintage-inspired chairs, and multifunctional furnishings are witnessing rapid adoption. This personalization trend is particularly strong among millennials and Gen Z homeowners.

Challenges Restraining Growth

Despite promising expansion, the home decor industry faces challenges:

• High costs of premium furniture and flooring make luxury products less accessible for middle-income households.
• Counterfeit products continue to flood the market, impacting brand trust and revenues.
• Economic disruptions such as the COVID-19 pandemic temporarily reduced retail operations, leading to price hikes in some regions.

Home Decor Market Segmentation

By Product

• Floor Covering: Dominates due to high renovation-related spending. Advanced products like PVC-free flooring by Unilin Technologies are fueling growth.
• Furniture & Home Furnishings: Fastest-growing segment, driven by multifunctional and luxury furniture demand.
• Home Textile: Growth supported by luxury bedding and curtains.
• Others: Includes wall art, lighting, and decorative accents.

By Distribution Channel

• Hypermarkets & Supermarkets: Leading channel due to wide accessibility.
• Specialty Stores: Growing segment for luxury buyers.
• Online Channels: Fastest expansion due to digital shopping trends.
• Others: Includes upholstery shops and wholesale stores.

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Regional Insights

• Asia Pacific: The largest and fastest-growing region, valued at USD 342.09 billion in 2024. Strong demand in China, India, and Southeast Asia is driving growth, fueled by residential projects and modern furniture demand.
• North America: High spending on renovations, smart decor, and sustainable furnishings are boosting growth. In 2020 alone, Americans spent USD 420 billion on home renovations.
• Europe: Leading in eco-friendly furniture, with companies like Omega PLC introducing products made entirely from recycled wood.
• South America: Brazil and Argentina are witnessing rising demand for luxury decor and kitchen furnishings.
• Middle East & Africa: Wealthier households are upgrading kitchens and storage solutions, while Africa is seeing growing demand for affordable furniture.

Competitive Landscape

The home decor market is highly competitive, with key players focusing on product innovation, retail expansion, and sustainable offerings.

Leading Companies:

• Inter IKEA Systems B.V. (Netherlands)
• Williams-Sonoma Inc. (U.S.)
• Ashley Furniture Industries, LLC (U.S.)
• Ethan Allen Global, Inc. (U.S.)
• Welspun Flooring (India)
• Herman Miller, Inc. (U.S.)

Recent developments include:

• Williams Sonoma Inc. expanding retail presence with a new store in San Diego (2023).
• Vaaree, a home furnishing startup, raising USD 4 million to enhance online user experiences (2023).
• Remax Furnitures launching a luxury store in New Delhi (2024).

Conclusion

The home decor market is evolving rapidly, driven by sustainability, personalization, and smart technology integration. With Asia Pacific leading global demand and North America embracing renovation projects, the industry is poised for steady growth through 2032.

For brands and businesses, focusing on eco-friendly innovations, online expansion, and personalized luxury offerings will be key to capturing market share in this competitive landscape.