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As the interior design industry continues to navigate shifting economic, technological, and demographic landscapes, ThinkLab’s 2025 U.S. Design Industry Benchmark Report provides a comprehensive look at the forces shaping the architecture and design (A&D) profession. From the growing influence of AI to demographic shifts and market-specific insights, this year’s findings highlight critical trends and opportunities for both residential and commercial sectors.
Key Findings from the 2025 Report
- AI Integration and Digital Tools: The New Frontier
For the first time, the report tracks AI adoption in the A&D industry. Approximately one-third of respondents actively use AI tools in their work, leveraging them for tasks such as rendering, material selection, and project management. Another third anticipate adopting AI soon, while the remainder remain skeptical. This division underscores the industry’s evolving relationship with technology and its potential to transform workflows.
Additionally, software preferences differ by sector. Revit, Material Bank, and Bluebeam are essential tools for commercial designers, whereas residential professionals prioritize AutoCAD, PowerPoint, and SketchUp.
- Employment Shifts: Regional Trends and Sector Growth
While the overall number of designers in the U.S. decreased by 3%, the architecture sector experienced a 3% growth. Cities like Miami, Dallas, and Atlanta emerged as hubs for designer employment, with Florida continuing to show a high concentration of interior designers. Notably, Denver re-entered the list of top cities for design employment, replacing Philadelphia.
The report’s inclusion of location quotients highlights areas of above-average employment density, such as Naples, FL, where designer employment is over five times the national average. These insights offer direction for brands looking to expand their geographic reach and connect with A&D.
- Economic Power: Designers as Key Influencers
Designers wield significant specification power, influencing product choices far beyond the average consumer. The average designer’s impact is estimated to be 40 times greater than a typical American’s buying power, with top firms’ specifiers achieving a multiplier of 140. This year’s report emphasizes the importance of engaging with these influential decision-makers who not only set the product selections for today’s clients, but shape market trends for the future.
- Commercial vs. Residential Dynamics
While commercial designers continue to focus on corporate workplace, healthcare, higher education, and hospitality projects, residential designers increasingly emphasize renovation over new construction (70% vs. 30%). Rising construction costs have shifted budget allocations, with residential designers dedicating more resources to design fees and commercial projects allocating higher percentages to construction.
Inspirational and informational preferences also vary by sector. Manufacturers’ sales representatives have overtaken websites as the primary information source for commercial designers, whereas residential designers rely more heavily on showrooms and design centers.
- Sustainability and Healthy Spaces: Persistent Priorities
The demand for sustainable and healthy design solutions remains strong, with most designers expecting increased client interest in these areas over the next two years. This aligns with ongoing market shifts toward environmentally friendly and wellness-focused products.
Opportunities for 2025 and Beyond
This year’s findings reinforce the importance of adapting to technological advancements, particularly AI, and addressing demographic shifts to ensure a thriving industry. Brands that proactively engage with influential A&D specifiers, prioritize sustainability, and tailor their approaches to regional dynamics will be well-positioned for success.
Beyond these areas, the 2025 report underscores a growing need for personalized client experiences. Both residential and commercial designers must adapt to heightened client expectations, including faster timelines and tailored solutions. Additionally, as construction costs rise, firms can differentiate themselves by offering innovative budget management strategies and transparent communication.
Finally, the rise of AI tools presents not just a challenge but a monumental opportunity. Designers who embrace AI as a collaborator rather than a competitor can unlock efficiencies and creative possibilities that redefine the design process. By investing in education and staying attuned to market trends, the industry can turn potential disruption into a catalyst for innovation.
For more insights, download ThinkLab’s full report and join the conversation at our upcoming 2025 AI event.
Erica Waayenburg leads the Research & Content Development team for ThinkLab, the research division of SANDOW DESIGN GROUP. At ThinkLab, we combine SANDOW Media’s incredible reach to the architecture and design community through brands like Interior Design Media, Metropolis, and Luxe, with proven market research techniques to uncover relevant trends and opportunities for the design industry. Join in to explore what’s next at thinklab.design/join-in.
