Area Rugs Carpets Market Forecasts to 2032 - Global Analysis By Product Type (Tufted, Woven, Needle-Punched, Knotted / Hand-Knotted and Hybrid / Specialty), Material, Distribution Channel, End User and By Geography

According to Stratistics MRC, the Global Area Rugs Carpets Market is accounted for $12.54 billion in 2025 and is expected to reach $19.62 billion by 2032 growing at a CAGR of 6.6% during the forecast period. Area rugs and carpets are key decorative elements that elevate comfort, acoustics, and style in homes and workplaces. By anchoring furniture and outlining functional areas, they bring structure to open spaces while softening sound and improving traction. Offered in a wide range of fibers, colors, and designs, they enhance interiors and shield underlying floors from damage. Carpeting further supports thermal retention, helping maintain inviting indoor conditions. Rising lifestyle aspirations, remodeling activities, and preference for refined interiors are boosting adoption worldwide, positioning rugs and carpets as practical yet stylish furnishings that successfully merge utility, design value, and long-term performance across residential, commercial, hospitality, and evolving global interior markets driven by consumers.

According to the World Bank, data shows that urbanization rates are projected to reach 68% worldwide by 2050, with emerging economies such as India and China driving demand for residential and commercial flooring solutions, including carpets and rugs.

Market Dynamics:

Driver:

Rising home renovation and remodeling activities

An increase in residential renovation and remodeling projects is strongly influencing the growth of the area rugs and carpets market. Consumers are prioritizing interior enhancements that boost visual appeal, comfort, and resale value. Rugs and carpets serve as cost-effective decor upgrades that instantly transform rooms without major construction. Their versatility allows homeowners to experiment with colors, textures, and layouts while adding insulation and noise reduction. Factors such as urban living, higher household spending power, and greater emphasis on personalized interiors are encouraging renovation spending. This ongoing trend is driving consistent demand for area rugs and carpets across modern housing environments worldwide.

Restraint:

High maintenance and cleaning requirements

The demanding upkeep associated with area rugs and carpets restrains market growth. Carpets easily accumulate dirt, allergens, spills, and odors, making regular cleaning essential for health and aesthetics. Deep cleaning services and specialized products add to long-term ownership costs. Families with pets or individuals sensitive to dust often avoid carpets due to hygiene concerns. In commercial environments, maintaining carpets to required cleanliness standards increases operational expenses. When compared with hard surface flooring that is easier to clean, carpets are often viewed as less practical. This perception of higher maintenance continues to reduce consumer preference for area rugs and carpets in many markets.

Opportunity:

Growth of e-commerce and digital retail platforms

Rapid growth in online retail is opening new opportunities for the area rugs and carpets market. Digital platforms provide easy access to extensive product catalogs, allowing customers to compare styles, prices, and materials conveniently. Advanced tools like augmented visualization and user feedback enhance buying decisions. Online channels help brands expand market reach, especially in emerging regions, while lowering operational costs. Increasing internet penetration and comfort with online transactions support this trend. As consumers increasingly prefer digital shopping for home furnishings, e-commerce is emerging as a powerful channel to boost sales and brand visibility in the rugs and carpets industry.

Threat:

Intense competition from alternative flooring solutions

Strong competition from non-carpet flooring materials is a significant threat to the area rugs and carpets market. Consumers are increasingly drawn to options like tiles, vinyl, and wooden floors because of their sleek appearance, minimal upkeep, and long service life. These surfaces are often viewed as cleaner and more suitable for fast-paced modern living. Advancements in flooring technology have enhanced comfort and visual appeal, narrowing the advantages once held by carpets. As households and businesses continue shifting toward easy-to-maintain flooring, dependence on rugs and carpets declines, posing a sustained challenge to market growth across global residential and commercial spaces.

Covid-19 Impact:

The COVID-19 crisis significantly influenced the area rugs and carpets market, creating both challenges and recovery opportunities. Early stages of the pandemic caused manufacturing shutdowns, logistics constraints, and a slowdown in global trade, negatively affecting supply and sales. Commercial demand weakened as hospitality, corporate, and retail projects were halted. In contrast, increased time spent indoors encouraged homeowners to invest in decor upgrades, boosting residential purchases. The shift toward e-commerce gained momentum as consumers avoided physical stores. Post-pandemic reopening led to gradual demand revival, supported by renewed renovation activities and improved supply chains, allowing the market to stabilize and regain growth momentum.

The tufted segment is expected to be the largest during the forecast period

The tufted segment is expected to account for the largest market share during the forecast period because they combine affordability, flexibility, and mass-market appeal. Their production process is faster and less labor-intensive than woven or hand-knotted carpets, resulting in lower costs. The wide variety of designs, patterns, and materials meets the needs of residential homes, offices, and commercial interiors. Ease of cleaning, durability, and adaptability to current decor trends further drive consumer preference. Additionally, tufted carpets allow manufacturers to experiment with innovative textures and finishes. These advantages have positioned the tufted segment as the most preferred and widely adopted category in the global area rugs and carpets industry.

The residential segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the residential segment is predicted to witness the highest growth rate, driven by increased interest in home styling and comfort. Consumers are investing in rugs and carpets to enhance aesthetics, define spaces, and create personalized interiors. Growing renovation projects, exposure to interior design trends, and availability of customized options online have accelerated adoption. Rising urban populations and disposable incomes further encourage homeowners to purchase quality flooring solutions. Compared to commercial applications, residential demand is expanding more rapidly as individuals prioritize decorative, functional, and comfortable living environments, making the residential segment the primary growth engine for the global rugs and carpets market.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share, supported by robust consumer spending, extensive retail networks, and advanced e-commerce platforms. The region benefits from a well-established housing market, urban growth, and higher disposable incomes, driving adoption of decorative and functional floor coverings. Residential demand is strong due to interest in stylish, durable, and eco-friendly rugs. Additionally, commercial and hospitality sectors contribute to market growth. Exposure to interior design trends, availability of diverse materials and designs, and focus on home comfort further reinforce the region's market leadership, making North America the largest contributor to the global area rugs and carpets industry.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR, fueled by urbanization, rising incomes, and heightened home improvement activities. Increasing interest in interior aesthetics, modern living trends, and new residential projects are driving consumer demand for decorative and practical rugs. Growth in e-commerce across countries like India and China has improved accessibility to a wide range of designs and price points. Expansion of commercial infrastructure and hospitality projects further supports market adoption. Economic progress, higher discretionary spending, and modernization of homes are contributing to Asia-Pacific's position as the region with the highest growth rate in the global rugs and carpets market.

Key players in the market

Some of the key players in Area Rugs Carpets Market include Mohawk Industries, Inc., Shaw Industries Group, Inc., Harounian Rugs International (HRI), Balta Industries NV, Milliken & Co., The Natural Carpet Company, Nourison, Capel Rugs (Capel Inc.), The Dixie Group, Inc., Agnella / Brintons Agnella Ltd., Amara Rugs, Antep Rugs Inc., Belysse Group NV, Oriental Weavers Group and Safavieh LLC.

Key Developments:

In October 2024, Shaw Industries and PPG sign strategic agreement for resinous flooring products. The products will be available to Shaw's customers in the commercial property market via its Patcraft(R) brand. The partnership helps expand the market reach for PPG's products and adds to Shaw's expansive portfolio of flooring and surface solutions.

In November 2023, Oriental Weavers signed an agreement with Amarenco Solarize, the leading provider of solar energy solutions, to operate one of its factories in the Tenth of Ramadan area using solar energy. This project is a significant step in Oriental Weavers' sustainability journey, which is aligned with Egypt's Vision 2030 and the company's commitment to reducing its carbon emissions.

Product Types Covered:

• Tufted
• Woven
• Needle-Punched
• Knotted / Hand-Knotted
• Hybrid / Specialty

Materials Covered:

• Synthetic Fibres
• Animal-Based Natural Fibres
• Plant-Based Natural Fibres
• Sustainable Fibres

Distribution Channels Covered:

• B2B (Direct from Manufacturers)
• B2C (Retail / Online)

End Users Covered:

• Residential
• Commercial

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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