Contract Furniture Market Size, Share & Trends Analysis Report By Product Type (Chairs & Stools, Sofa & Couch), By End-user (Corporate Offices, Hospitality), By Region (APAC, North America), And Segment Forecasts, 2023 - 2030

Report Overview

The global contract furniture market size was valued at USD 140.17 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.1% from 2023 to 2030. The increasing demand for commercial furniture across the globe is the major driving factor for the market. The use of contract furniture is steadily expanding in business settings, such as corporate parks, five-star hotels & restaurants, healthcare/medical facilities, and institutions are accelerating the industry growth. Moreover, the average amount spent on contract furnishings has increased due to an increase in investments in interior decoration, which makes the surroundings attractive and well-organized.

In addition, it is designed to withstand frequent use in busy places and even harsh situations, which is propelling the industry's growth. Furthermore, the development of the e-commerce sector as well as product promotion and advertising on social media and other online platforms are expected to accelerate industry growth during the forecast period. The global economy was severely impacted by the coronavirus outbreak that spread across the world. Many nations had imposed lockdown restrictions to stop the chain and spread of the coronavirus. The COVID-19 pandemic had a significant impact on demand for the commercial furniture due to the closure of restaurants, corporate offices, and institutions as well as manufacturing trends in the industry.

The COVID-19 pandemic's increased furniture sales on various e-commerce sites may also increase demand for these goods during the forecast period. Moreover, the increasing demand for corporate office furniture due to big tech companies expanding their office spaces is propelling industry growth. In addition, Meta and Google have been spending billions of dollars expanding their office spaces. For an instance, in August 2020, Meta, the parent company of Facebook, leased 730,000 square feet in Midtown Manhattan and has added space in Silicon Valley as well as in Austin, Texas; Chicago; Boston; and Bellevue, Washington. Such initiatives are expected to boost industry growth over the forecast period.

The rising demand for ergonomic furniture in the commercial space is expected to propel the industry growth during the forecast period. Workplace design is considered to have a profound impact on employees’ productivity. Making the best use of commercial space with optimum placement of furniture, integrating workers’ comfort factors into workplace design, and efficiently aligning the workplace with the surrounding setting are some of the crucial aspects of ergonomics. These factors are propelling the industry's growth. The increasing demand for smart and modular furniture has increased among offices, institutions, healthcare/medical facilities, the hospitality sector, and other end-user segments.

Smart furniture, which allows for several functional activities, such as charging mobiles, browsing the internet, listening to the news or radio, and more, is a rapidly growing market and is considered the future of furniture. This may boost industry growth. The rising cost of furniture raw materials, including springs, fabrics, wood materials, mechanisms, feathers, fibers, and packaging goods, is restraining the industry market growth. Due to the rising cost of contract furniture increases, end-users are preferring sustainable solutions, such as used or upcycled furniture. It has been also noticed that consumers wait a few years before upgrading their office, restaurant, institutional, and healthcare/medical facilities furniture again; this is also hindering the market growth.

Product Type Insights

In terms of revenue, the chairs & stools segment dominated the industry in 2022 and accounted for the maximum share of more than 34.15% of the overall revenue. The increasing demand for computer chairs, conference chairs, executive chairs, etc. from various end-users is propelling the growth of this segment. Office chairs are extremely useful in ensuring the productivity of employees at the workplace. According to the U.S. Bureau of Labor Statistics 2021, each day, the average American spent almost 8.53 hours in front of the computer plowing through emails, making calls, or writing proposals.

The sofa & couch segment is projected to register the fastest growth rate during the forecast period. The increasing popularity of sofas and couches in government offices, restaurants, hotels, pubs & cafes, waiting rooms, lobbies, etc. among developed and developing nations is propelling the demand for sofas and couches. Moreover, the increasing expansion of commercial spaces and growing renovation activities of the existing furniture by various end-user are anticipated to accelerate the segment growth over the forecast period.

End-user Insights

In terms of revenue, the corporate offices end-users segment dominated the industry in 2022 and accounted for the largest share of more than 42.40% of the overall revenue. The expanding business environment, rapid creation of IT parks, increase in the number of start-ups, corporate expansion, and increasing commercial zones have led to increased demand for office space and employment, which is further accelerating the market growth. Moreover, the increasing number of startups across the globe is creating a demand for office space, thereby supporting industry growth. According to Startup Ranking, as of 24th August 2022, approximately 73,254 startups are operating their business in the U.S.

The hospitality segment is estimated to grow at the fastest CAGR during the forecast period. The growing number of hotels, restaurants, bars and cafés around the world is accelerating the demand for commercial furniture. Furthermore, the increasing demand for high-end design and amenities, even in budget-level hotels from travelers is putting pressure on mid-range and luxury hotel owners to upgrade finishes, and furniture, add features and rethink the guest experience. This may propel the growth of the segment during the forecast period.

Distribution Channel Insights

On the basis of distribution channels, the global industry has been further categorized into offline and online channels. The offline distribution channel segment dominated the global industry in 2022 and accounted for the largest share of more than 77.15% of the overall revenue. The segment is projected to expand further at a steady growth rate from 2023 to 2030. Better consumer product visibility, easy access, and immediate availability owing to the organized offline retail sector’s structure are among the key factors expected to boost the growth of this segment.

In addition, retail stores that offer furniture create a demo office environment in the store, helping customers visualize furniture in their office space. The online distribution channel segment is expected to register the fastest growth rate from 2023 to 2030. The growth of this segment can be attributed to the growing popularity and usage of e-commerce platforms across the globe. Moreover, consumers have started switching to e-commerce channels to shop for their furniture needs, which helps reduce their need to visit physical retail stores to compare their product features and prices.

Regional Insights

The Asia Pacific region dominated the industry in 2022 with a share of more than 35.40% of the overall revenue owing to the increase in the need for operational spaces and the growing construction of offices and corporate buildings across the region. Moreover, the number of offices has expanded along with the working population, which has led to a rise in the need for office furniture. Furthermore, China is one of the world’s top producers and exporters of commercial furniture.

This is also propelling regional market growth. The Middle East & Africa region is expected to witness the second-fastest growth rate from 2023 to 2030. This growth can be attributed to the expanding hospitality industry and the increasing need for office space. In addition, the market expansion is being accelerated by the increased demand for furniture in establishments like bars, coffee shops, and restaurants; among other end-users.

Key Companies & Market Share Insights

The global industry is characterized by the presence of a few established players and new entrants. Many big players are focusing on growing trends of contract furniture. Players are diversifying the service offering to maintain their industry position and share. For instance:

• In July 2022: HNI Corp. announced that it has completed the sale of its China- and Hong Kong-based Lamex office furniture business to Kokuyo Co., Ltd. for USD 75 million

• In 2021, Herman Miller and Knoll merged to establish the preeminent leader in modern design, catalyzing the transformation of the home and office

Some of the key players operating in the global contract furniture market include:

• Haworth Inc.

• Herman Miller Inc.

• Kinnarps Ab

• Steelcase Inc.

• HNI Corp.

• Knoll Inc.

• KI

• Global Furniture Group

• Kimball International Inc.

• Teknion Corp.

• OFS Brands Inc.

Contract Furniture Market Report Scope

Global Contract Furniture Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global contract furniture market report based on product type, end-user, distribution channel, and region:

• Product Type Outlook (USD Million, 2017 - 2030)

  • Chairs & Stools

  • Tables & Desks

  • Storage Furniture

  • Sofa & Couch

  • Others

• End-user Outlook (USD Million, 2017 - 2030)

  • Government

  • Corporate Offices

  • Institutional

  • Healthcare/Medical Facilities

  • Hospitality

  • Others

• Distribution Channel Outlook (USD Million, 2017 - 2030)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)

    • South Africa