The Interior Fit Out Market is estimated to be valued at US$ 58.91 billion in 2022 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Interior fit out refers to the process of refining and finishing the interior of a building to make it suitable for occupancy. It includes installation of flooring, wall paneling, lighting, fixtures, furnishings and other such elements. Interior fit out improves functionality, workflow and aesthetics of commercial spaces like offices, retail stores, restaurants and others. It plays a vital role in branding and creating the right experience for customers and employees.
Market key trends:
One of the major trends propelling the growth of the interior fit out market is increasing adoption of modular construction. Modular construction involves manufacturing components or modules of a structure in an off-site manufacturing facility and then assembling them together on-site. For interior fit outs, prefabricated modular components like walls, ceilings, fixtures etc are manufactured according to design specifications and then installed together. This offers advantages like reduced construction time, minimized wastage, and improved quality control. With construction schedules getting tighter, modular construction is gaining traction in the interior fit out industry as it allows spaces to be completed faster and efficiently. The report expects this trend to significantly drive the demand for interior fit outs globally over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of established suppliers pose low threat of new entrants.
Bargaining power of buyers: Large buyers like governments and corporates have high bargaining power due to their bulk buying capability.
Bargaining power of suppliers: Presence of many suppliers with fragmented supply base gives buyers more negotiating power over suppliers.
Threat of new substitutes: Minimal threat since interior fit out services have limited substitutes.
Competitive rivalry: High competition exists among the established players operating in the market.
SWOT Analysis
Strengths: Established brands and global presence of key players, diversified portfolio of services.
Weaknesses: Cyclical nature of construction industry impacting demand, high dependency on economic conditions.
Opportunities: Growth in commercial sector development projects, rising demand for green building projects.
Threats: Volatility in raw material prices, shortage of skilled workforce.
Key Takeaways
The global Interior Fit Out market is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period, due to increasing commercial construction activities globally. The market size is projected to reach US$ 58.91 billion by 2023.
Regional analysis - North America dominates the global interior fit out market currently owing to rise in industrial and commercial construction in the US. Asia Pacific is expected to witness the fastest growth due to increasing investments in infrastructure development projects in China and India.
Key players operating in the interior fit out market are Turner Construction Company, Jacobs Engineering Group Inc., HOK Group, Inc., Skanska AB, AECOM, Balfour Beatty plc, Gensler, Lendlease Group, ISG plc, DPR Construction, PCL Construction Enterprises, Inc., Structure Tone, Clark Construction Group, LLC, HBA, JLL (Jones Lang LaSalle). The key players are focusing on expanding their service portfolio and geographical footprint through mergers and acquisitions.
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