Australia Interior Design Market

Australia Interior Design Market Size and Share:

The Australia interior design market size was valued at USD 2.51 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 3.85 Billion by 2033, exhibiting a CAGR of 4.67% from 2025-2033. The market is fueled by urbanization, population growth, demand for sustainable and eco-friendly designs, technological advancements like smart home integration, and changing lifestyles, particularly remote work. These factors are fueling the need for innovative, energy-efficient, and adaptable residential and commercial spaces across the country.

Environmental concerns have become central to the market growth. The Australian government’s focus on green building initiatives and regulations that encourage sustainable practices has led to increased demand for eco-friendly designs. Homeowners and businesses are prioritizing energy-efficient, low-carbon solutions, such as the use of sustainable materials, smart energy systems, and water-saving technologies. According to the Australia interior design market forecast, designers are responding to these needs by integrating sustainable practices into residential and commercial spaces, emphasizing renewable energy sources, efficient use of resources, and long-lasting materials. For instance, in October 2024, CPB Contractors announced the launch of EcoPro Site Facilities, its first zero-emission and self-sufficient mobile site office, as part of its commitment to environmental innovation. Designed in-house by its NSW/ACT Plant Facility team to meet the demands of large-scale projects, this 100% sustainable solution is easily transportable and suitable for use on transmission projects, wind farms, battery storage facilities, as well as metropolitan road, rail, health, and building projects.

The integration of smart home technologies and advanced design tools is influencing the Australia interior design market growth. The rise of smart homes, with features like automated lighting, security systems, and climate control, is driving the demand for innovative interior solutions. Additionally, technologies like 3D modeling, virtual reality, and augmented reality are helping designers deliver more immersive, interactive experiences and enhance the design process, catering to the growing interest in tech-savvy homes and offices. For instance, in January 2024, Hisense Australia plans to launch a greater selection of ConnectLife-enabled smart home appliances in the Australian market throughout 2024. The news comes after displays of advances in the kitchen, living rooms, and home ecosystems at the Consumer Electronics Show (CES) 2024.

Australia Interior Design Market Trends:

Urbanization and Population Growth

Australia's rapid urbanization, particularly in cities like Sydney, Melbourne, and Brisbane, is a significant factor driving the interior design market. According to the Australian Bureau of Statistics (ABS), Australia's capital cities witnessed significant population growth during the fiscal year 2022-23. These cities' combined population increased by 517,200 individuals, reflecting a 3.0% growth rate. This increase was mostly driven by overseas migration (454,900 people), followed by natural growth (89,200 people), with domestic migration declining slightly (-26,900 people). Melbourne had the largest population gain, adding 167,500 people, while Perth had the fastest growth rate, at 3.6%. Regional Australia, on the other hand, witnessed a 1.4% growth in population, with 117,300 added.  As the population continues to grow, the demand for new residential and commercial properties increases, creating a need for innovative interior design solutions. This growth leads to the construction of mixed-use developments, high-rise apartments, and commercial spaces, all requiring expert interior design services. As urban areas expand, interior designers are tasked with addressing challenges such as limited space, functionality, and sustainability while incorporating modern design trends.

Sustainability and Eco-friendly Design

Sustainability is a key driver in the Australian interior design market. With growing awareness of environmental issues, there is a greater demand for eco-friendly materials, energy-efficient designs, and sustainable construction processes. For instance, in January 2025, The Australian government established the National Circular Economy Framework (NCEF), a historic project aimed at doubling the circularity of Australia's economy by 2035. This ambitious plan seeks to reshape how resources are utilized, reused, and regenerated across all industries, thereby increasing environmental sustainability and economic resilience. By focusing on sustainable design and longer-lasting materials, Australia hopes to lower its per capita material consumption, which is now the highest among G20 countries. According to the Australia interior design market forecast, both residential and commercial clients will continue to prioritize designs that reduce energy consumption, incorporate recycled materials, and minimize waste. The Australian government’s incentives for green building practices and stricter building regulations also promote sustainable design choices. Interior designers are responding by focusing on biophilic designs, low-carbon materials, and renewable energy solutions, aligning with both environmental goals and client preferences for eco-conscious spaces.

Technological Advancements and Smart Design

The integration of technology in interior design is rapidly growing in Australia. Smart homes and commercial spaces equipped with automation systems, IoT devices, and energy-efficient solutions are gaining popularity. This trend is being driven by the increased use of smart home technologies, such as lighting control, security systems, and climate control, which are enhancing the functionality and convenience of living and working environments. For instance, in February 2025, Smart joined Intellihub to provide a subscription service that aims to encourage Australians to electrify their homes by lowering upfront costs. Smart, Australia's largest novated leasing provider, introduced the service in cooperation with Intellihub, a smart meter supplier, to combine solar panels, batteries, and electric vehicle (EV) leasing into a single cheap subscription model. This effort tries to remove financial barriers to home electrification. As technology continues to evolve, interior designers are integrating cutting-edge tools such as virtual reality, 3D modeling, and advanced software to create immersive, interactive, and efficient design solutions for clients.

Australia Interior Design Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Australia interior design market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on decoration type, and end use.

Analysis by Decoration Type:

• New
• Renovation

New construction projects in Australia are expected to hold significant Australia interior design market share because infrastructure and urban expansion continue to increase. An expanding Australian population drives the necessity to build more residential, commercial and mixed-use structures. The escalations in development activities create substantial requirements for interior design assistance that encompasses both layout design solutions and decorative product decisions. Modern home design trends demand specially trained interior designers for new construction projects to combine aesthetic style with functionality along with sustainable and smart home capabilities.

Renovation is anticipated to hold a significant share of the market due to the increasing preference for home and office upgrades. Economic factors such as rising property prices and a desire for more personalized spaces lead to higher demand for renovation services. Increasingly more homeowners and business owners prefer interior upgrades by modernizing their current buildings instead of building new ones. Renovation projects combine creative space re-imagining with energy-efficient solutions, upscale finishes and modern designs to satisfy homeowners and commercial property owners who seek functional and visually appealing renovations.

Analysis by End Use:

• Residential
• Commercial
  • Hospitality
  • Offices
  • Others

The residential segment is expected to lead the Australian interior design market because homeowners devote attention to making their homes both personalized and functional. The increasing disposable income of average Australians drives them to spend money on luxurious decorative interiors for their homes. The residential segment dominates Australia's interior design market because the market grows from homebuyers wanting personal spaces and automated functions powered by new technology. Australians shifting their home priorities toward comfort with style and sustainability has led interior designers to create innovative custom solutions that boost market demand by serving various consumer needs.

The commercial sector is anticipated to hold a large share of the Australian interior design market because companies actively pursue contemporary worker-friendly workspaces. Major corporations choose interior design services to enhance staff productivity alongside promoting both their brand vision and creating better working conditions for their personnel. Additionally, the shift toward hybrid and flexible work environments has increased the demand for adaptable office designs. Retail spaces are also evolving to create immersive brand experiences for consumers. These trends, along with rising investments in hospitality, healthcare, and educational facilities, are driving growth in commercial interior design, making it a key market segment.

Regional Analysis:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

In the ACT and NSW, rapid urbanization and infrastructure development are key drivers of the interior design market. High demand for residential spaces due to population growth, coupled with a flourishing commercial sector, particularly in Sydney, is fueling the need for innovative interior design solutions. Additionally, government investments in public infrastructure and commercial real estate development are driving demand for modern, sustainable, and functional interior designs in both residential and commercial projects.

In Victoria and Tasmania, the growing focus on sustainable design, particularly in Melbourne, is a major driver. Increasing demand for eco-friendly and energy-efficient homes and commercial spaces is influencing design trends. The expansion of the construction industry, supported by state government initiatives and infrastructure projects, also plays a role in boosting the interior design market. The rise of remote working and lifestyle changes post-pandemic has driven demand for home offices and flexible residential spaces.

In Queensland, rapid population growth, especially in cities like Brisbane, is driving the residential interior design market. The state's focus on eco-friendly designs and sustainable construction, along with the popularity of coastal living, is fueling demand for innovative, climate-responsive interiors. Additionally, the expansion of the tourism and hospitality industries in Queensland, including major projects in the Gold Coast, is increasing demand for commercial interior design services, particularly in hotels, resorts, and public spaces.

In the Northern Territory and South Australia, the interior design market is being driven by government investments in infrastructure, such as new residential and commercial developments in Darwin and Adelaide. There is also an increasing demand for heritage conservation and adaptive reuse of old buildings, especially in historic areas. The growth of the defense, mining, and tourism sectors in these regions contributes to the demand for functional and aesthetically pleasing interiors in both residential and commercial projects.

Western Australia is seeing significant growth in interior design driven by mining and resource sector expansions, especially in Perth. High demand for residential housing due to population growth, coupled with the boom in luxury homes, is boosting the residential market. Additionally, the commercial sector, particularly in retail, hospitality, and healthcare, is seeing growth as businesses invest in creating unique customer experiences. The state's focus on sustainability and green building practices is further enhancing demand for eco-friendly interior design solutions.

Competitive Landscape:

The Australian interior design market is highly competitive, with a mix of established firms and emerging startups. Major players such as Lendlease Design, Bates Smart, and Geyer dominate the commercial sector, providing integrated design services for large-scale projects. In the residential sector, boutique firms are gaining popularity, offering personalized design solutions focused on sustainability, smart homes, and innovative aesthetics. Technology-driven firms are leveraging advanced tools like virtual reality and 3D modeling to enhance client experiences. Regional differences influence competition, with firms in major cities like Sydney and Melbourne facing more intense rivalry. Smaller markets in regional areas see a blend of local designers and larger national players entering to capture growing demand for both residential and commercial designs.

Latest News and Developments:

• In April 2024, David Phillips Group announced its entry into Australia's fast-developing living sector industry. With over 2,500 Build-to-rent units already secured for outfitting around the country, and over 30 custom-designed display apartments completed from idea to installation, their clients can expect a smooth experience characterized by personalized attention and unrivaled competence.
• In July 2024, Design Partnership Australia announced its relaunch as COOOP. As they expand internationally, this new focus reflects their commitment to innovation and forward-thinking design.

Australia Interior Design Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia interior design market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Australia interior design market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia interior design industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.