Japan Interior Design Market Size, Share, and COVID-19 Impact Analysis, By Project Type (Residential, Commercial, Hospitality, Healthcare, Retail, Educational, Public Buildings), By Client Type (Homeowners, Businesses, Architects, Contractors, Developers, Property Managers), and Japan Interior Design Market Insights, Industry Trend, Forecasts to 2035

Japan Interior Design Market Insights Forecasts to 2035  

• The Japan Interior Design Market Size Was Estimated at USD 6,382.5 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 6.08% from 2025 to 2035
• The Japan Interior Design Market Size is Expected to Reach USD 12,215.7 Million by 2035

According to a research report published by Spherical Insights & Consulting, the Japan Interior Design Market Size is anticipated to reach USD 12,215.7 Million by 2035, Growing at a CAGR of 6.08% from 2025 to 2035. The interior design market in Japan is rising due to the growing number of buildings under construction and existing residential sectors being renovated, all as a result of the demand for bespoke and comfortable living areas. Home furnishings activity is also fuelling demand because of a robust economy with high discretionary spending, a desire for function and minimalism, and a strong influence of Japanese design elements.  

Market Overview

Interior design is a branch of the interior furnishings industry. It covers the residential market and commercial market, it provides support for space planning, specifying furniture and furnishings, lighting design, decoration, and advice. The methods and requirements for planning space have changed with increasing urban density, reducing living space, and more complicated living conditions, which have resulted in the need for planning and efficient design. One of the reasons that the availability of quality interior design services has improved is the increase in middle-class wealth, as middle-class customers are more likely to spend some of their disposable income on market accessibility. In addition to the influence of economic status driving customers' behaviours towards better professional interior design services is product sustainability and eco-friendly trends in materials used. Both commercial and residential customers are searching for design ideas for their spaces, energy efficiency, and natural products that enhance the inherent attributes of their space. The additional influence affecting buyer behaviour within the interior design industry is the integration of technology and rapidly changing digital innovation and smart home systems. Consumers prefer that their technologies are integrated into their designs to improve efficiencies while improving safety, functionality, and comfort.

Customisation options that allow clients to change their furniture, colour schemes, layouts, and decor to fit their own tastes and preferences are a growing trend that many designers and manufacturers are adapting to.  This trend is a result of the necessity to create environments that depict individuality and the dynamic of self-expression. There is a bright future ahead for major players in the Japanese interior design industry in renovation/remodelling, and new construction because of urban trends, the changing nature of lifestyles, and rising incomes.  Also, sustainable design, high-end furnishings, and advancements in digital technology are also creating potential opportunities.

The Ministry of Economy, Trade, and Industry (METI) has facilitated the development and implementation of the design policy component with a particular focus on design promotion, awareness and public engagement in design management.  The Establishment of Design Policy for the 21st Century aims to promote the value of design for economic development and innovation, along with encouraging design-focused thinking across industries such as government and industry.

Report Coverage

This research report categorizes the market for the Japan interior design market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan interior design market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan interior design market.

Driving Factors

Japan's rapid urbanisation and increased space optimisation have strongly influenced the market for interior design, especially in urban areas. The pressures of urban living and the need for imaginative space use are growing as people multiply in developed cities. The market is on the rise with increased interest in efficient, yet minimalist style interior design, which dovetails with Japan's anthropological affinity for harmony and simplicity. Interior designers are including tech-driven solutions that create convenience and increase space efficiency as city dwellers continue searching for comfortable yet visually attractive spaces. Furthermore, in Japan, with improving economic stability and disposable income levels rising among the population, there has been a rise in demand for premium interior design services. As customers become increasingly willing to spend money on an interior design and home remodelling project that reflects their comfort and style, and large number of homes and businesses, as well as even the community and urban environment, put more importance on modern, visually impressive and aesthetically pleasing interiors. The way people live their lives is changing in response to social media and global design trends, and major spending on such interiors seems to be a growing trend. Rising consumer awareness and regulatory emphasis on sustainable design are influencing the market in the forecasted period, as homeowners and businesses search for designs that use sustainable materials, energy-efficient lighting, and careful consideration of the building and construction processes.

Restraining Factors

The high cost of luxurious design services, materials, and professional labour is one of the greatest challenges confronting the Japanese interior design industry. The rising cost of materials, especially luxury imports and sustainable products, has increased the cost of projects. Several customers will not pay for high-end design services and are restricted by their budgets. This is especially so in the residential market. The interior design market in the major urban areas is very competitive, making it difficult for smaller businesses and new entrants to gain a position in the market. New entrants face restrictions due to the vast representation of well-established Design Firms. The professions are witnessing a scarcity in the number of people entering the industry, stimulating a loss of trained labour. The number of skilled craftspeople and construction workers declines, complicating delays on projects and raising labour costs. Zoning laws and construction codes are another big issue for architects and interior designers in Japan. The strict codes governing environmental disruption, earthquake resistance, and fire safety all directly affect material choice and affect the overall execution of designs. Structural limitations and government administrative approval protocols pose limitations for renovation projects on older buildings.

Market Segmentation

The Japan interior design market share is classified into project type and client type.

• The residential segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan interior design market is segmented by project type into residential, commercial, hospitality, healthcare, retail, educational, and public buildings. Among these, the residential segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. This segment's growth is predominantly being driven by increasing trends in home remodelling and a growing interest in urban interiors that are space-efficient. Additionally, the growth of the residential interior design industry is being aided by a growing willingness to invest in uniquely customised and elegantly designed homes due to shifting lifestyle preferences and the growing awareness of interior design trends.

• The homeowners segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan interior design market is segmented by client type into homeowners, businesses, architects, contractors, developers, and property managers. Among these, the homeowners segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The continuing demand for homeowners to create livable, attractive, and usable spaces will sustain the growth of the segment and the demand for interior designers. Additionally, demand for interior design services is supported by trends in social media and the ways homeowners are changing their lifestyle of living; an approach that is becoming attractive as some homeowners seek to best utilise their living spaces.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan interior design market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Gensler
• Perkins and Will
• Cannon Design
• Hirsch Bedner Associates
• Aoyama Nomura Design
• Arata Isozaki
• Others

Recent Developments:

• In January 2025, Jacobs Engineering Group Inc. announced that they had a contract for Japan from the US Army Corps of Engineers. Under the contract, Jacobs will provide host nation construction, maintenance, repair, and modernisation services for U.S. military and host nation activity. The proposed work applies Jacobs' design/build experience for in-kind support of essential local infrastructure on the base and U.S. military sites.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan Interior Design Market based on the below-mentioned segments:

Japan Interior Design Market, By Project Type

• Residential
• Commercial
• Hospitality
• Healthcare
• Retail
• Educational
• Public Buildings

Japan Interior Design Market, By Client Type

• Homeowners
• Businesses
• Architects
• Contractors
• Developers
• Property Managers