Market Summary

The global Carpet and Rug Market size was valued at USD 74.5 billion in 2025 and is projected to reach USD 130.2 billion by 2033, growing at a CAGR of 6.80% from 2026 to 2033. The pace of urbanization is expected to escalate by a maximum of 68% in the year 2050, mainly due to up-and-coming countries like China and India, who are contributing to the pace of urbanization. The speedy pace of urbanization, combined with an increase in consumer expenditure, has been one of the reasons for the appeal to the consumers to invest in interior design, thereby triggering their demand for home decor. In an additional feature and for the comfort of the customers, carpets, and rugs are continuously being in great demand. In offices, hotels, and similar institutions, the product has been welcomed for its aesthetic appeal and sound and safety features. The recent outbreak of the pandemic and the boom in the tourism and hotels industry have resulted in an increased demand for quality and customized floor coverings for the luxury hotels and resort hotels.

Market Size & Forecast

• 2025 Market Size: USD 74.5 Billion
• 2033 Projected Market Size: USD 130.2 Billion
• CAGR (2026-2033): 6.80%
• North America: Largest Market in 2026
• Asia Pacific: Fastest Growing Market

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Key Market Trends Analysis

• One of the dominant trends identified in the market for this forecast period has been the growing need for environment-friendly & sustainable products, as well as modular & functional flooring products. This has been due to the increased awareness of consumers about the impact of their consumption patterns on the environment, thus the need for carpets made of natural & recycled materials, such as wool, jute, sisal, PET, & nylon, respectively.

• The companies have begun embracing eco-friendly manufacturing procedures, conserving the use of water and energy, and adhering to the requirements of eco-friendly certifications such as Cradle to Cradle, Green Label Plus, and GUT certification.

• Although the requirement for sustainable development has come to be recognized only in the regions that have tough environment-related bylaws, mostly within the European as well as the North American market, it has even begun to be accepted within the Asia-Pacific Market. The recent awareness regarding sustainable development has begun to affect the marketing as well as branding of this industry.

• The next big trend that has been on the rise recently has been related to the mounting demands for functional flooring products, especially in the institutional market. Such of carpet tiles, area rugs, and others, are currently gaining immense attraction due to the simplicity of installation, maintenance, and replacement, hence being the best fit for the places where the foot traffic remains to be high, for instance, offices, schools, hospitals, and so on.

• The products will be developed using multifunctionality such as sound absorption, non-slip effects, and insulations due to the increasing demand for function-driven interior design ideas. The trend above identifies the move from the aesthetic-driven approach to the demand for function-driven Flooring Solutions.

The international market faces the challenge of being affected by the growing trend of sustainability and functionality. This is because of the growing need and pressure from environmental groups regarding the need for sustainable floor material and green processes because sustainability has become a factor of differentiation in the international market for most companies. On the other hand, the need for functional and sustainable floor solutions in the healthcare sector has led to the rise of the international move towards sustainability.

Carpet and Rug Market Segmentation

By Product Type

• Knotted Pile

Generally, the pile carpets are knotted in a handwoven way. For their durability, designs, and quality, these carpets are primarily recognized. Usually, the carpets are in use in residential sectors.

• Needle Punched

Needle punched carpeting is made through the mechanical bonding of fibers, which provides excellent resilience and economy. It is quite commonly used for use in the commercial, industrial, and automotive sectors.

• Woven

The type of carpet that is made from threads woven on a carpet loom will offer good resilience as well as detailed patterns on it. This type of carpet is widely used at home or in commercial buildings, which require long-lasting and detailed flooring patterns.

• Tufted

Tufted carpets occupy the prominent market because of the low cost of manufacture and the shorter manufacturing time compared to other carpets. There are various designs of tufted carpets.

• Others

These carpets consist of braided rugs, flat weaves, and specialty carpets. These carpets are aimed at the design needs, culture, and uses worldwide.

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By Application

• Residential

The comfort of carpets and rugs, their appearances, and insulation properties have driven the demand from the residential sector. Increasing renovation of homes and desire for home interiors are expected to continue to support a smooth growth trajectory for the sector worldwide.

• Commercial

It is the commercial segment: offices, hotels, retail, and institutions provide a natural outlet for carpets because they offer durability and noise control. Increased construction in the commercial sphere coupled with growing demand for functional, low-maintenance flooring options across the globe propels this segment.

Regional Insights

This dominance can be attributed to a combination of reasons such as the strong housing market, high consumer spending on home improvement, and the developed infrastructure base to manufacture and distribute it. The U.S. also has a developed commercial property sector, with carpets and rugs being greatly in use in offices, hotels, and commercial spaces because of their aesthetic and acoustic qualities and functionality.

Further, the rise in home renovation and remodeling, driven by modification in lifestyle patterns, has contributed to the increase in residential demand. The presence of leading market participants has added to the strength of the market in the United States, who are innovating on the fronts of designs, sustainability, and online business models.

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Recent Development News

• In May 2025: Oriental Weavers launched a polyester yarn dyeing unit to boost in-house yarn capacity, reflecting vertical integration efforts that align with growth strategies. Interface has made a significant investment of USD 45 million to expand modular carpet tile production utilizing 100% recycled nylon, combining innovation and sustainability.

Source: https://menacovering.com/oriental-weavers-polyester-yarn-dyeing-unit-2025/

• In July 2023: The textile and carpet company Jaipur Rugs collaborated with the late jeweller and artist Jocelyn Burton to introduce a unique luxury collection. The brand has recently broadened its retail footprint in the UAE by inaugurating an exclusive brand outlet in Dubai.

Source: https://in.fashionnetwork.com/news/Jaipur-rugs-launches-collaboration-with-late-jeweller-jocelyn-burton-launches-dubai-store,1537109.html

Key Carpet and Rug Company Insights

With its broad portfolio-including IoT-enabled precision equipment, autonomous machinery, and data analytics platforms-Deere & Company is a clear market leader. Its global presence and significant investment in research and development allow the company to continue to innovate, providing scalable solutions for farmers that help improve operational efficiency and sustainability. Deere's ability to integrate hardware and software ecosystems provides a competitive advantage, which fosters wide diffusion across large commercial farms worldwide.

Key Carpet and Rug Companies:

• Tai Ping Carpets International Ltd.
• Mohawk Industries Inc.
• Lowe's Companies Inc.
• Tarkett Group
• Victoria Carpets Ltd.
• Shaw Industries Group Inc.
• Inter Ikea Systems B.V.
• Genie Carpet Manufacturers
• Beaulieu International Group
• Royalty Carpet Mills Inc.
• Oriental Weavers Company

Global Carpet and Rug Market Report Segmentation

By Product Type

• Knotted Pile
• Needle Punched
• Woven
• Tufted
• Others

By Application

• Residential
• Commercial

Regional Outlook

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • Australia & New Zealand
  • South Korea
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • United Arab Emirates
  • South Africa
  • Rest of the Middle East & Africa