Furniture has wide application in the residential and commercial such as in spa, office, clean room, camping, bedroom, outdoor, parks, library, restaurants among other places. Furniture is highly movable with wide applications and can be customized according to the end-users by machine-based processing or handcrafting. The furniture market is driven by the growing hospitality sectors and infrastructure, other factors include changing preferences of the consumers in the developing economies, growing residential and commercial development, and the growth in the organized retail. The rise in urbanization especially in the developing regions, along with the rising disposable income is leading to change in the lifestyle is adding up to the market growth of the furniture market.
In addition, the growing investment in smart city projects and infrastructural development is leading to increasing in the number of houses and extra spaces for an office. For instance, the Government of India identified 99 cities to be converted into smart cities throughout the country. In the Middle East region, the focus of the government on the growing real estate sector is leading to expansion of the residential and commercial construction activities which is projected to boost the market growth in the forecasted period. Thus, the rapid rise in the construction sector due to the impressive economic growth is expected to boost the demand of house and office furniture. According to the Ministry of Housing and Government Affairs, the number of new construction of housing units in India reached 182,861 by 2018 from 125,551 units in 2015.
The manufactures of the furniture market is innovating the market considering various factors such as consumer income, fluctuating urban landscapes, shifting lifestyles and economic factors. However, the lack of skilled labour, the growing cost of production, and cumulative growth of the market is pose a significant challenge and to hinder the market growth of the furniture market.
Market Size of the Furniture Market
The furniture market is highly fragmented on account of various market player in both international and regional players. The booming of the real estate industry is driving the global furniture market, in addition, the increase in the investments by the government in the infrastructural development of the residential and commercial is boosting the demand. There is an increase in the disposable income which is influencing the consumers to increase their expenditure on the furniture to raise their standard of living. The consumers are trying to meet the market trends by demanding innovative furniture that also functions in the save of the space this further impelling the sale of the branded furniture items in the furniture market. The rising construction due to increasing demand for commercial and residential spaces along with the increase in the middle-class income and government investment in the infrastructure development is among the key factors that will further improve the market size of the furniture market. The increasing number of strategic alliances and partnerships are expected to drive the market growth of furniture market.
The furniture market is continual striving to advance and present the products that will appeal to variety of lifestyle of the consumers globally. The integration of the internet of things in the furniture has substantially reduce the cost of the furniture which is revolutionizing the furniture market. The development and offering of the automated manufacturing system are expected to have a significant impact on the furniture market in the forecasted period. However, the low-cost furniture is also boosting the market growth of the market and the producers of the low-cost furniture such as Vietnam and China are contributing to the growth.
The market in Asia Pacific are experiencing a significant structural revolution due to the factors such as declining tariffs, penetration in the developing economies, expansion of the leading retail chains internationally and the partnerships between the foreign suppliers and large-scale distributors along with improvements in infrastructure and logistics, consequent growth in the demand of the low-price items and the receding per capita expenditure in the developed economies especially during and post-recession. Many key players are launching their own online platform and entering in the partnership with the online retail store to strengthen the network of distribution.
Market Growth of Furniture Market
The market of furniture is driven by the factors such as the growth of the real estate & hospitality industries, rise in the disposable income, and the demand for the premium and luxury furniture from the certain consumer sections. The significant rise in the number of industries, offices, and houses is boosting the market of furniture in the forecasted period. The government is also investing in various countries for the movement towards smart cities. For instance, the government in China has announced an investment of around US$255 billion in 2018 for its Shantytown Redevelopment Project for 6 million housing units. Additionally, in the Middle East, the government policies aimed towards infrastructural development such as the Saudi Vision 2030, UAE Vision 2021, and UAE Vision 2023 in which construction of metros, new hotels and airports is expected to impact the market growth in the forecasted period. The construction and architectural firms in the endeavours are using wooden framing as the environmental-friendly materials to build a ‘Green Building’. Other factors contributing to the market growth include rising disposable income, change in the lifestyle and the expansion of the construction sector. Asia Pacific region is expected to dominate the market of furniture during the forecasted period on account of rapid expansion of the furniture market and the growing per capita income with the presence of developing countries such as India, China and Japan are expected to offer significant market opportunities in the forecasted period. Further, the rise in the travel and tourism sector globally is leading to the construction of airports and new hotels which is expected to supplement the furniture market in the forecasted period.
Furniture supports basic everyday functions such as sitting, eating, and sleeping, currently the furniture is being modernized and is customised to match the consumers’ needs and is considered as an essential element for home décor. Furniture are widely used in spa, office, clean rooms, camping, bedroom, outdoor, laboratories, and many more places. The furniture market is shifted to the online channels of distribution, for instance, Pepperfry, Urban Ladder, and FabFurnish, Flipkart are some of the popular online platforms for the purchase of furniture.
The introduction of new species of wood tree used for the manufacturing of the furniture is expected to contribute to the market growth of the furniture globally. The manufactures are continual innovating the furniture to match the expectations by offering a variety of products that matches the preference and taste of the consumers and to capture the market share of the furniture market. The manufactures of the furniture market are trying to meet the rising demand for the multi-functional furniture with various features including a maximum storage facility, stylish design, various storage facility and innovative designs for space-saving is changing the furniture market and is expected to drive the furniture market in the forecasted period.
Ready-To-Assemble (RTA) furniture is flat-pack furniture which is not assembled by the manufactures and is delivered to the consumers in parts with the instruction manual for the assembling of the furniture. It is gaining traction especially among the homeowners and renters on account of its lower cost and compact designs. Rise in the disposable income is leading to the increasing brand consciousness and expenditure on the furniture goods especially with the aim for home décor are supporting the market growth of the furniture market.