Australia Interior Design Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2025-2034)

Australia Interior Design Market Overview

Rapid infrastructure development activities, growing population levels, and increasing urbanisation are driving the construction sector’s growth in the country, bolstering the Australia interior design market expansion. Australia also boasts one of the highest rates of new home construction per capita in the world. The growing residential and commercial construction activities are boosting the demand for interior design services as the demand for functional and appealing living spaces catering to diverse preferences and lifestyles surges. Homeowners and businesses are also increasingly investing in quality interiors that enhance their spaces amid the rising awareness of the importance of good design.

The country is witnessing a renovation boom, attributed to the growing disposable incomes of the bourgeoisie population. In Australia, a home renovation costs between USD 2,000 and USD 70,000 for a single room. In Q3 2023, Australians spent over USD 3 billion on alteration and addition to their homes, a 4.2% surge from the previous quarter. This is driving the demand for interior space expertise to modernise existing spaces.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Australia Interior Design Market Trends

Emergence of Wellness-Oriented Spaces

An average Australian spends 90% of their time indoors and nearly 30 minutes in the bathroom per day, accumulating to 182 hours per year. As per the Australian Bureau of Statistics, 37% of Australians work from home on a daily basis. This is surging investments in interior upgrades, a 13% increase of up to USD 17,000 in 2022 as compared to 2021. Wellness-oriented spaces that prioritise health, well-being, rejuvenation, and relaxation to promote emotional and physical wellness are gaining popularity. Furthermore, interior designers are incorporating natural elements such as indoor plants, natural materials, and organic patterns into interior spaces to create a calm and rejuvenating ambience. There is also a rising demand for customised and multifunctional furniture that can promote comfort and proper posture and accommodate activities such as yoga and relaxation.

Australia Interior Design Market Growth

Growing Focus on Sustainability

Residential properties contribute 10% to Australia’s carbon emissions and 24% of the country’s overall electricity consumption. A study by Domain in 2024 revealed that two-thirds of buyers prefer energy-efficient homes, and houses in most cities, except Sydney, boasted green features. Hence, interior designers are designing buildings with lower requirements for lighting and heating and incorporating energy-saving appliances, improved insulation techniques, and smart lighting systems to lower utility bills. With the growing focus on sustainability, designers are choosing responsibly sourced natural materials such as hemp, stone, bamboo, cork, and wood and integrating upcycling, recycling, and repurposing in their designs to reduce environmental impacts. In addition, growing concerns regarding water scarcity are boosting the adoption of water-saving fixtures such as low-flush toilets, faucets, and showerheads, among others.

Technological Advancements and Innovations

Technological advancements and the advent of smart homes in Australia are shaping the Australia interior design market trends and dynamics. As per a study by Telsyte, 7.6 million Australian homes had at least one smart device installed by the end of 2023, ranging from smart speakers to internet-connected refrigerators. Features such as automated security solutions and lighting and temperature controls are becoming increasingly common in interior design to create an environment that can optimise the comfort and efficiency of inhabitants. Besides, technologies like 3D printing are used by designers to create personalised decorative objects and furniture that meet the unique preferences and needs of clients. Interior designers are also leveraging artificial intelligence (AI) and machine learning to create virtual designs, automate time-consuming tasks like material selection, rendering, and drafting, optimise space planning, predict trends, and offer personalised design solutions.

Market News

July 2024

Architectural firm, Dion seminara architecture, announced the launch of its interior design services in Brisbane. The interior design services offered by the company intend to cover various projects, including commercial and residential spaces.

June 2021

Italian architecture, interior designing, décor, and furnishing firm Laminam launched Laminam Australia amid its increasing attempts at internationalisation. Through the latest branch, the company aims to offer more effective support to businesses in Australia.

Australia Interior Design Market Dynamics

The Australia market for interior design is being aided by the emergence of wellness-oriented spaces, the growing trend of sustainability, and technological advancements and innovations. With Australians spending 90% of their time indoors and significant portions in bathrooms, there is a rising demand for environments that prioritise health and relaxation. In 2022, investments in interior upgrades rose by 13%, highlighting a focus on wellness features, including natural materials, indoor plants, and multifunctional furniture that supports comfort and activities like yoga.

Sustainability is another key trend, as residential properties account for 10% of Australia’s carbon emissions. A 2024 study found that two-thirds of homebuyers prefer energy-efficient homes. Designers are responding by integrating energy-saving appliances, improved insulation, and responsibly sourced materials, while also adopting water-saving fixtures to address concerns about scarcity. Moreover, technological advancements are transforming the growth of the interior design industry in Australia, with 7.6 million Australian homes equipped with smart devices by 2023. Features like automated lighting and security systems are becoming standard, while innovations like 3D printing and AI are allowing designers to create personalised, efficient spaces that meet individual needs.

Australia Interior Design Industry Segmentation

The EMR’s report titled “Australia Interior Design Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Renovation
• New

Market Breakup by End Use

• Residential
• Commercial

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Interior Design Market Share

By Type Insights

New constructions in Australia are expected to account for a significant share of the Australia interior design market. In FY 2024, the downturn of the building sector is expected to reach USD 121.4 billion whereas the value of the total building sector in Australia is projected to expand to USD 130.4 billion by FY 2026. There is a rising deployment of advanced smart home technologies such as automated lighting and security systems aimed at enhancing energy efficiency and convenience of new constructions. As homebuyers increasingly seek personalised design solutions that reflect their lifestyles and tastes, the demand for customised interior design solutions is expected to rise in the coming years.

As per the Australian Bureau of Statistics figures from December 2023, Australians spent USD 1 billion on alterations and additions to residential buildings. In 2023, Australians spent over USD 12.4 billion on renovations. Homeowners in the country are prioritising sustainability in renovation projects and a survey by the 2023 AU Houzz & Home Renovation Trends Study found that almost half of renovating homeowners cite improving energy efficiency as important during home improvement projects (46%). The Australia interior design market value is increasing amid the growing need to use recycled and sustainable materials in renovations. Homeowners are also adopting health-conscious designs to improve air quality, and natural lighting, and create serene environments that promote relaxation.

By End Use Insights

As per the Australia interior design market analysis, residential interior design establishes emotional bonds by understanding homeowners' needs, resulting in personalised spaces. Designers enjoy creative liberties, crafting distinctive styles, and fostering enduring client relationships. The field ranges from individual rooms to complete home makeovers, ensuring diverse work opportunities.

Commercial interior design prioritises functionality, optimising spaces for business efficiency. It emphasises branding, conveying professionalism and innovation. Designers ensure adherence to regulations, undertaking projects like offices, restaurants, and retail spaces. Collaboration with diverse professionals builds industry networks, reflecting trends such as open layouts and sustainability.

In February 2024, THE GREAT ROOM by Industrious, a high-end hospitality-centered coworking space, launched its first Australian branch in Sydney. This initiative elevated the dynamic coworking scene with its refined interiors and hospitality-oriented approach. The collaboration with flex operators aimed to boost occupancy in commercial offices, offering major corporate tenants flexibility to reduce leased space while accessing adaptable coworking areas when needed.

Australia Interior Design Market Regional Insights

New South Wales Interior Design Market Trends

The interior design demand growth in New South Wales is being driven by lifestyle changes, growing emphasis on sustainability, demographic shifts, and the rising focus on accessibility and energy efficiency. In apartments and small homes in cities like Sydney, the trend of minimalism, characterised by uncluttered spaces, clean lines, and neutral colours, is gaining prominence. Growing consciousness about the environment and sustainability is driving the usage of natural materials such as stone, wood, and leather in interior design.

Victoria Interior Design Market Outlook

With stunning landscapes in the region, the trend of seamless indoor-outdoor living that blends outdoor and interior spaces through landscaped gardens, expansive glass doors, and covered outdoor entertaining spaces is gaining popularity. Homeowners in Victoria are increasingly incorporating sustainable features and eco-friendly solutions such as solar panels, rainwater harvesting systems, and smart home technologies.

Competitive Landscape

Key Australia interior design market players are focusing on adopting sustainable practices, such as promoting energy-efficient designs and using eco-friendly materials. With the growing emphasis on health and wellness, they are also integrating biophilic design principles to connect indoor spaces with nature.

Recent Developments

September 2024

Vectorworks, Inc. announced the release of Vectorworks 2025, featuring advanced tools and interactive features. The comprehensive design software suite is expected to transform the creative vision of designers while providing flexible room finish management and automated BIM data assignments for interior designers and architects.

September 2024

Australian furniture brand, gohome, opened a new design showroom in Darlinghurst, inner east Sydney.

Key Industry Players

Carr

Carr, headquartered in Melbourne, Australia, is a company that offers architectural and interior design services to meet the functional and aesthetic needs of clients. The company is known for its commitment to innovation, sustainability, and collaboration.

Bates Smart Architects

Bates Smart Architects, founded in 1853, is an architecture and design company based in Melbourne, Australia. It offers comprehensive interior design services and aims to create aesthetically pleasing and functional spaces that can enhance users' experience. The company is renowned for revolutionising the Australian architecture landscape.

Hassell Limited

Hassell Limited is a leading Australian architecture, planning, and design company, headquartered in Sydney. It has worked on several high-profile projects like Sydney’s Barangaroo South development, The Australian Embassy in Washington, D.C., and the redevelopment of the Royal Adelaide Hospital.

Other key market players include Woods Bagot, SJB Architecture NSW Pty Ltd., and IA Group, among others.