India’s home decor market is on a robust growth trajectory. Valued at USD 26.88 billion in 2025, the sector is projected to reach USD 42.36 billion by 2034, growing at a compound annual growth rate of 5.18%, according to IMARC Group. The expansion reflects changing lifestyles, rising disposable incomes, and the aspirations of India’s growing middle class, which is expected to account for 61% of the population by 2047.
Urbanization, evolving design preferences, and a surge in digital retail are reshaping how Indians furnish and decorate their homes. Consumers are no longer satisfied with basic functionality—they seek spaces that are both aesthetically pleasing and tailored to their daily lives.
Drivers of Growth
Several key factors are fueling this growth. Rapid urbanization has created demand for contemporary home solutions that optimize compact apartments in cities. Government housing initiatives, like the Pradhan Mantri Awas Yojana, are generating steady demand for mid-priced home furnishings. At the same time, e-commerce penetration is allowing brands to reach beyond metro areas, into Tier-II and Tier-III cities, where over 20 million consumers purchased home decor online in 2024 alone.
The real estate boom, particularly in residential construction, has also contributed to the demand for complete furnishing solutions. For new homeowners, the market increasingly offers ready-to-live interiors, modular furniture, and multifunctional pieces designed to maximize space efficiency.
Sustainability and Eco-Conscious Decor
One of the most notable shifts in the market is the rise of sustainable and eco-friendly home decor. Indian households are increasingly choosing products made from bamboo, jute, reclaimed wood, and organic cotton. Low-VOC finishes, recycled materials, and environmentally responsible manufacturing processes are no longer niche—they are becoming standard expectations.
This move toward sustainability reflects broader lifestyle trends. Consumers are seeking homes that align with their values, favoring products that are good for the environment while remaining functional and stylish.
Digital Transformation and Omnichannel Retail
Technology is reshaping the way consumers shop for home decor. Online platforms now offer augmented reality (AR) tools that allow buyers to visualize furniture in their homes before purchase. Traditional retailers are also expanding experience centers, combining in-store displays with digital tools for seamless shopping.
Online stores already lead the market, accounting for 32.08% of the total home decor sector in 2025, while home furniture remains the largest product category with a 40.12% market share. These digital innovations are making it easier for consumers across India to access modern, high-quality furnishings.
Multifunctional and Smart Furniture
With urban apartments shrinking in size, multifunctional furniture is gaining popularity. Hydraulic storage beds, modular sofas, foldable dining sets, and integrated storage solutions are helping homeowners make the most of limited space. At the same time, smart home integration is on the rise, with IoT-enabled lighting and furniture features enhancing convenience and efficiency.
This combination of functional design and technology is redefining modern Indian homes, creating spaces that are versatile, comfortable, and tailored to the way people live today.
Regional Trends
North India currently dominates the home decor market, accounting for 33% of total sales in 2025. The region has witnessed strong expansion by retailers, such as India Circus, which opened its 18th store in Lucknow in March 2025. Similarly, IKEA has strengthened its presence in Delhi-NCR and nine satellite cities, supported by a new distribution center in Gurugram.
The south, west, and east of India are also seeing growing interest in contemporary and eco-friendly decor, signaling that these trends are spreading nationwide.
Market Segmentation
The market is diverse, with furniture, home textiles, lighting, wall decor, and flooring all contributing to growth. Home furniture continues to lead in market share, followed closely by home textiles. Retail channels include home decor stores, supermarkets, online stores, and gift shops, reflecting the wide variety of ways consumers access products.
Looking Ahead
As India’s middle class grows, urbanizes, and embraces modern lifestyles, the demand for home decor that combines style, functionality, and sustainability will only increase. Trends such as multifunctional furniture, smart home integration, and eco-conscious design are expected to shape the market well into the 2030s.
For homeowners and businesses alike, the India home decor market represents an exciting opportunity, a space where innovation, design, and lifestyle converge, offering products that are practical, beautiful, and increasingly responsible.
