MENA design outlook 2015: MENA design sector to outpace global growth rate by 2019
The growth rate for the MENA design industry is expcted to double that of the global design sector and account for 5.2% of the global total by 2019, according to the MENA Design Outlook 2015. The new report released by the Dubai Design and Fashion Council estimates the architecture and interior design sector to experience a CAGR of 4.9% and 5.7% respectively by 2019.
Design in the Middle East and North Africa (MENA) region is gaining ground with a market value of over US$ 100 billion in 2014 and a growth rate more than double that of the global industry over the last four years (CAGR of 7.4% for MENA market vs. 3.7% CAGR for global market).
The MENA design market accounts for approximately 4.5% of the global design market, valued at US$ 2.3 billion in 2014. Growth is expected to continue outperforming the global design industry. At an average growth of 6%, the MENA design industry is expcted to double that of the global design sector and account for 5.2% of the global design sector by 2019.
In architecture, revenues are estimated at US$ 9.9 billion in 2014 growing at a CAGR of 5.8% vs. a global CAGR of 3.5% between 2010 and 2013. Saudi Arabia and the UAE dominate the market, with 33.3% and 25.3% revenue share respectively, followed by Qatar with 5.6% MENA market share.
The MENA architecture market is inherently tied to the health of the construction sector, which has been driven in part by public sector projects for a number of countries, mainly in the GCC. While the construction market has started to gain confidence since the 2009 real estate slump, the market has seen some volatility.
The market is expected to continue growing until 2017 at a CAGR of 7.4%, and subsequently by a CAGR of 4.9% to 2019, outpacing the global market. Residential construction and ‘mega projects’ are the key market drivers for architecture in the region while sustainability and smart design are the most prominent demand trends.
The MENA interior design market reached approximately US$ 7.1 billion in 2014. Saudi Arabia and the UAE dominate the landscape, with 34.0% and 25.7% of revenues respectively, followed by Qatar with 5.7% of the MENA market share. MENA revenues for interior design services have grown at a significantly faster pace than the global industry since 2010, with a CAGR of 20.4% vs. a global CAGR of 3.6%. The growth has been driven by the Saudi and Qatari markets, which were largely unaffected by the economic downturn, experiencing notable increases in their interior design sectors of 46.5% and 42.9% respectively, albeit from a low base.
The MENA interior design services market is expected to continue growing between 2013 and 2017 at a CAGR of 11.5%, and subsequently by a CAGR of 5.7% to 2019, outpacing the global market growth.
Source: 2015 MENA Design Outlook/ Dubai Design and Fashion Council
Edited by: Panels & Furniture Asia