Furniture Market Size, Share, Opportunities, COVID 19 Impact, And Trends By Furniture Type (Residential, Commercial), By Distribution Channel (Online, Offline), And By Geography - Forecasts From 2022 To 2027
- Published : Aug 2022
- Report Code : KSI061613447
- Pages : 130
The furniture market is estimated at US$480.700 billion for the year 2020. The market is projected to grow at a CAGR of 6.37% to attain a value of US$740.670 billion by 2027.
The growing investments in infrastructural development coupled with impressive economic growth in some economies around the globe are some of the key factors driving the furniture market’s growth during the next five years. The booming construction activities are leading to the construction of new houses, offices, and various industries. Significant growth in the number of industries, houses, and offices is expected to significantly drive the demand for furniture in the coming years and add to the market growth. In addition, rising disposable income is leading to changing lifestyles. Also, there is a significant increase in the urban population, especially in the developing economies of the world.
All these factors are projected to boost the demand for furniture and propel market growth over the coming years. Furthermore, government initiatives of various countries for the movement towards smart cities are one of the key factors that are expected to propel the market's growth opportunities over the forecast period and beyond. For instance, the smart cities mission by the government of India, in which the government identified 99 cities to be converted into smart cities throughout the country. Similarly, in China, the Chinese government announced an investment of around US$255 billion for its Shantytown Redevelopment Project in 2018, whose construction began in 2018 on roughly around 6 million housing units. Similarly, in the Middle East region, the government's focus on boosting the real estate sector is further leading to the expansion of residential and commercial construction activities, which is also projected to boost the market growth in the near future. Additionally, the government policies aimed towards infrastructural development in the Middle East region, such as the Saudi Vision 2030, UAE Vision 2021, and UAE Vision 2023, in which construction of airports, metros, and new hotels is anticipated to be undertaken, will positively impact the market growth in the coming decade also.
The booming residential construction around the globe on account of rising disposable income and growing middle-class population, coupled with the decent surge in the urban population, are the key factors driving the market for residential furniture during the next five years. Further, the growing travel and tourism sector across the world is further leading to the construction of new hotels, and airports, which are also expected to supplement the market‘s growth over the coming years.
Improving economic conditions are driving the demand
The impressive economic growth in developing, as well as developed economies, is one of the major factors which is driving the furniture market’s growth throughout the forecast period. The improvement of the economic conditions in countries such as China, India, and Japan along with rising disposable income are some of the reasons which are boosting the investments in construction activities by both private and government sectors which are boosting the construction activities in both residential and commercial infrastructures which are positively impacting the market growth. In 2018, the number of new housing units in India increased to 182,861 from 125,551 in 2015 (Source: Ministry of Housing and Government Affairs). In addition, by 2020, India’s real estate market is expected to reach USD $180 billion. All these factors are supplementing the demand for furniture throughout the forecast period.
Commercial furniture to show notable growth
On the basis of furniture type, the global furniture market has been segmented into residential and commercial. Residential furniture is all types of furniture for household purposes, whereas commercial furniture is that type of furniture used in hotels, offices, industries, and other places such as airports and metros among others. The market for residential furniture is poised to hold a noteworthy share of the market as the growing high demand for furniture is present in the residential segment, coupled with growing residential construction across the globe. Similarly, growing investments in housing projects also support the market growth for residential furniture during the forecast period.
The commercial segment is anticipated to propel at a noteworthy rate as the burgeoning commercial infrastructural development in various countries, especially in airports, and the corporate sector is supporting the market growth in the coming years. Similarly, the growth in the construction of new hotels on account of the rising hospitality industry is also fuelling the demand for commercial infrastructure during the forecast period and beyond.
Offline sales hold a significant share
The global furniture market, on the basis of the distribution channel, has been segmented into online and offline. The offline segment is projected to hold a significant share in the global market on account of a higher proportion of the population still preferring offline shopping, especially for durable products on account of personal touch. The online distribution channel is anticipated to surge at a notable rate on account of shifting consumer preference towards online shopping coupled with the rising penetration of online platforms, particularly for furniture. All these factors are contributing to the growth of this segment significantly.
The Asia Pacific to rule the market
Geographically, the global furniture market has been segmented on the basis of North America, South America, Europe, the Middle East, Africa, and Asia Pacific. The Asia Pacific region is projected to hold a notable share in the global furniture market owing to the presence of major developing countries such as India, China, Indonesia, and others. In addition, the presence of a considerably large population also supports the market growth in the APAC region.
Key developments in the Market
- In June 2022, IKEA, a leading Sweden-based furniture and homeware retailer, opened its third store in Bangalore, India, expanding its footprint further. Spread across 4.60 lakh sq feet, the store features more than 7,000 furnishing products, a 1,000-seater restaurant, and a kids' play area.
- In February 2022, Hooker Furnishing completed the acquisition of a California-based outdoor furniture manufacturer, Sunset West. The transaction was completed via cash completely. Through this acquisition, the former is able to expand its products and services in the outdoor furniture segment. Furthermore, Sunset West was able to obtain access to the former's warehousing and distribution chain, allowing it to spread its footprints across the central and eastern regions of the country.
- In October 2021, Gap Home, an online seller of furniture products exclusively on Walmart's digital platform, expanded its product portfolio with new offerings. The latest line comprises over 150 items, including headboards, couches, TV stands, and many more, ranging from $49.88 – $629.
- In April 2021, the leading furniture brand Herman Miller acquired Knoll to develop a new, integrated site for the duo. Through this merger, the duo aims to emerge as a 'leader in modern design' in the furniture market. The developments were further driven by COVID, enabling the duo to bring the transformation of office and home amid supply-chain disruptions.
COVID-19 had a significant impact on the global furniture market. The social distancing and mandated lockdown measures led to little or no foot traffic in the offline retail stores, affecting sales. Furthermore, the border restrictions and lack of manpower also significantly impacted the supply chain. However, the furniture makers' rapid adoption of the e-commerce segment resulted in increased online sales.
Furniture Market Scope:
|Market Size Value in 2020||US$480.700 billion|
|Market Size Value in 2027||US$740.670 billion|
|Growth Rate||CAGR of 6.37% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Furniture Type, Distribution Channel, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||KOKUYO Co. Ltd., Ashley Home Stores Ltd., Haworth Inc., OKAMURA CORPORATION, Inter IKEA Systems B.V., HNI Corporation, Kimball International, Inc., Herman Miller, Inc., Godrej and Boyce Mfg. Co. Ltd., Steelcase Inc.|
|Customization Scope||Free report customization with purchase|
- By Furniture Type
- By Distribution Channel
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. COVID-19 Impact
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Furniture Market Analysis, By Furniture Type
6. Furniture Market Analysis, By Distribution Channel
7. Furniture Market Analysis, By Geography
7.2. North America
7.3. South America
7.4.3. United Kingdom
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.3. South Korea
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
9.1. KOKUYO Co. Ltd.
9.2. Ashley Home Stores Ltd.
9.3. Haworth Inc.
9.4. OKAMURA CORPORATION
9.5. Inter IKEA Systems B.V.
9.6. HNI Corporation
9.7. Kimball International, Inc.
9.8. Herman Miller, Inc.
9.9. Godrej and Boyce Mfg. Co. Ltd.
9.10. Steelcase Inc.
KOKUYO Co. Ltd.
Ashley Home Stores Ltd.
Inter IKEA Systems B.V.
Kimball International, Inc.
Herman Miller, Inc.
Godrej and Boyce Mfg. Co. Ltd.
|Report Name||Published Month||Get Sample PDF|
|Wood Adhesives Market Size & Share: Industry Report, 2023 - 2028||May 2023|
|Spray Adhesive Market Size & Share: Industry Report, 2022 - 2027||Sep 2022|
|Green Coating Market Size & Share: Industry Analysis, 2019-2024||May 2021|
|Home Decor Market Size & Share: Industry Report, 2022-2027||Sep 2022|
|Laboratory Furniture Market Size & Share: Industry Report, 2021–2026||Jul 2021|