CIFF Shanghai recognizes that in 2026, the home decoration industry is undergoing profound structural transformation.

Smart, green, self-indulgent, and age-friendly have become the mainstream of home consumption. The industry has bid farewell to low-price competition, with integrated turnkey solutions gradually replacing fragmented construction. AI technology has emerged as the core force driving industrial upgrading.

The home decoration industry has fully entered the stock competition phase, with old home renovation becoming the primary growth driver. Relevant data shows that in April this year, building materials and home furnishing store sales rose steadily, indicating a stable recovery trend. Consumer demand is gradually shifting toward new first-tier cities, which, leveraging advantages in population inflow and active second-hand housing transactions, have seen their share of renovation demand rise to 45.70%.

Consumers' renovation choices have shifted from price-first to quality living. One-stop turnkey solutions now account for over 80% of market share. Mid-range improvement budgets of RMB 80,000–120,000 have become mainstream, with consumers willing to pay premiums for eco-friendly building materials and refined construction.

Home decoration aesthetics have returned to simplicity and practicality. Custom designs with cultural attributes such as new Chinese style and vintage aesthetics are widely favored. The current prevailing consumption philosophy of self-indulgence has taken hold: nearly 90% of consumers prioritize eco-friendly building materials, and over 60% are willing to bear a certain premium for green home decoration. Environmental protection, texture, and intelligence have become the three core criteria for material selection.

AI digitization is reshaping the full-process service model of home decoration. Over 30% of users now leverage AI for space planning and design scheme generation, with the adoption rate of smart home decoration tools rising significantly year after year. The global AI home design market is expanding rapidly, with design software evolving from traditional drafting to cloud-native intelligent systems. Home decoration AI is no longer limited to producing renderings—it can now build complete, deliverable living spaces.

The industry has officially entered the spatial intelligence development stage. A relevant industry white paper has defined the three core capabilities of spatial intelligence: spatial perception, spatial reasoning, and spatial interaction. Currently, only a handful of intelligent design products can fully implement all three functions, far exceeding industry averages in delivery dimensions such as construction coordination and quotation accuracy. Such technology draws on years of R&D accumulation by home furnishing enterprises, integrating modular craftsmanship with artificial intelligence to achieve efficient delivery of personalized customization.

The competitive focus of the home decoration industry has shifted from design renderings to full-chain delivery service. One-stop smart home decoration has connected the entire process of design, procurement, construction, and after-sales service. Future industry development will advance around three directions: the continuous expansion of the existing stock and old home renovation market, AI design tools becoming standard for renovation, and industry evaluation standards tilting toward delivery feasibility. In 2026, the home decoration industry has officially bid farewell to traditional drafting models, steadily advancing toward efficient delivery and quality-oriented development under the empowerment of spatial intelligence.

Source: goldenhome