Furniture Market Size, Share & Trends Analysis Report By Material (Metal, Wood, Plastic, Glass), By End Use (Residential, Commercial), By Region (North America, Europe, APAC, MEA), And Segment Forecasts, 2020 - 2025

Report Overview

The global furniture market size was valued at USD 531.5 billion in 2019 and is expected to grow at a CAGR of 5.1% from 2020 to 2025. The market is driven by various factors such as rising disposable incomes, growth of real estate and hospitality industries, and demand for luxury and premium furniture from certain consumer sections. Additionally, increasing government investments in infrastructural development is contributing towards demand for the residential and commercial sector can propel product demand in the near future.

For instance, Governments in the Middle East, especially Saudi Arabia’s government focus on the development of real estate through various residential and commercial projects that will ultimately help to foster their economy. Furthermore, high investment in tourism, healthcare, and education sectors has spurred proliferation of the construction industry in Saudi Arabia, which is subsequently expected to drive product demand from the country.

Furniture not only supports and enables basic everyday functions such as sleeping and eating but has also been considered as an essential element for home décor. Furthermore, purchasing furniture has become easier due to the availability of online platforms. Pepperfry, FabFurnish, and Urban Ladder are some of the popular online platforms for buying furniture in India.

Demand for versatile and multi-functional products that offer portability and can easily be accommodated in small spaces is also driving the market. Rising number of nuclear families is increasing resulting in demand for portable and space-saving products. This factor is anticipated to drive the demand the market growth in the forthcoming years.

Residential and infrastructural development, for instance, the establishment of churches or community centers, hospitals, and government institutes also impels product demand. Furthermore, government regulations with regards to furniture, especially the products used in hospitals, require manufacturers to specially design and manufacture furniture that complies with the government regulations. For instance, the British Contract Furnishing Association specifies that the wooden furniture in hospitals should be sealed with high quality clear lacquer. The application of clear lacquer not only ensures durability but also includes antimicrobial agents that prevents the growth of micro-organisms.

Additionally, with the growing size and number of hospitals worldwide, their requirements have also changed. For example, the new Queen Elizabeth Hospital in Birmingham, England includes four bedrooms with en-suite facilities and individual rooms for visitors or relatives accompanying the patients. Such factors are ultimately anticipated to contribute to market growth.

Furniture Market Trends

The increasing demand for branded home furniture coupled with rising consumer spending capacity on home décor products is driving the furniture market. Moreover, increasing government investments in infrastructure development is creating demand for furniture in residential and commercial constructions. Several construction projects initiated by the government across the globe, particularly in the urban areas, are also expected to emerge as one of the primary factors fueling the furniture market growth. For instance, in India, the government has formed a dedicated ministry called the Ministry of Housing & Urban Affairs and tasked it toward initiating and approving infrastructure development in urban areas and other metropolitan cities.

Globally, new building construction accounts for over 75.0% of the construction market. The launch of new infrastructure and development projects is increasing globally owing to the growing population, which is necessitating the construction of new hotels, office buildings, hospitals, schools, colleges, education centers, and other public buildings. The existing infrastructure is also being refurbished to support the growing population. The demand for furniture is anticipated to continue to increase over the forecast period as there has been growing investments in establishing new infrastructure and refurbishing the existing infrastructure.

Additionally, the government of Middle East especially in Saudi Arabia is focused on expanding its economy through development of various residential & commercial construction projects. The surging investment by the government in areas pertaining to tourism, healthcare, and education is expected to boost the construction market in Saudi Arabia, thereby spurring the demand for furniture in this country.

Versatile and multi-functional furniture is also gaining popularity in the market. Single- and two- person households’ accommodation is increasing, resulting in the demand for portable and small furniture. Furthermore, consumers are keen towards furniture that is foldable and are capable to accommodate in small living spaces. Such additional requirements are expected to fuel the furniture industry growth.

Organizations or offices are adopting innovative and furniture designs coupled with modern colors over conventional furniture as employees may find the work area boring which will eventually impact the productivity. For instance, in March 2017, Microsoft Corporation announced its collaboration with Steelcase. Steelcase is engaged in offering varied range of architecture, furniture and other technology products. This collaboration was intended to introduce creative and modern furniture at work spaces to boost productivity and creative thinking.

The positive outlook of consumers toward environment protection is enabling various companies to introduce environment-friendly furniture. Cisco Home, Eco Balanza, Anton Doll Holzmanufactur, and Vermont Wood Studios are some companies engaged in offering high-end and eco-friendly furniture that is manufactured without any toxic carcinogens and chemicals. For instance, Cisco Home offers eco-friendly furniture through categories such as seating, bedroom, lighting, and other essentials. All the furniture offered by this company is made through non-toxic components and uses FSC certified wood, which has led to its increased popularity in the residential segment.

Material Insights

The material segment is further segmented into metal, wood, plastic, glass, and others. The other segment includes leather, rubber, and hardware components. The wood segment held the largest market share in 2017 and is expected to expand at the highest CAGR over the forecast period. This growth is expected to accelerate as wood is one of the raw materials naturally available in abundance and can be used in production of almost all types of furniture products. Wooden furniture is primarily produced by processing raw timber. The three main categories of wooden panels are plywood, fiberboard, and particleboard.

Nowadays, theme-based home decor and conducting regular renovation of homes is an on-going trend followed by consumers belonging to middle and upper-middle-class populations of the urban economy. These classes of urban population tend to look beyond the basic functionality of furniture and thus, may look for additional attributes such as style and comfort. Glass is one of the materials expected to witness significant growth over the forecast period owing to its rising adoption in luxury furniture which adds elegance and sophistication to the decor.

End Use Insights

The end-use segment is categorized into residential and commercial. Residential segment is further categorized into kitchen and dining, living room and bedroom, outdoor, and others. The others segment includes furniture used in bathroom and lighting such as lamps. The residential segment is anticipated to proliferate over the forecast period owing to growing demand for furniture in living room and bedroom coupled with rise in real estate construction projects initiated by governments especially in urban areas. For instance, the Ministry of Housing and Urban Affairs in India is responsible for initiating and approving infrastructure development in urban towns and other metropolitan cities of India.

The commercial segment is expected to expand at the second-highest CAGR exceeding 4.0% over the forecast period. High demand from offices and hotels is projected to bode well for the expansion. Rising demand for office space and expanding the hospitality sector can further fuel the demand. For instance, by 2025, the global hospitality industry is expected to exceed 120.0 billion.

Regional Insights

The Asia Pacific furniture market accounted for over 40.0% of the overall revenue share in 2017. This growth can be accredited to rising disposable income of the upper and middle class population. Additionally, increasing demand for living room furniture followed by bedroom and kitchen and dining furniture is anticipated to drive the market. This growth is driven by booming real estate industry coupled with government-initiated housing projects. For instance, residential segment in Asia Pacific is anticipated to attain a market size exceeding USD 90.0 billion by 2025. Moreover, rapid urbanization coupled with growth of IT industry is expected to positively impact demand.

Europe is projected to expand at a CAGR exceeding 5.0% over the forecast period ascribable to the rising tourism industry driving hospitality sector, which is eventually creating demand for luxury furniture. Europe is one of the major regions wherein the furniture export ratio is higher than imports. Italy, Germany, and France are the major countries in the industry owing to concentrations of major key players.

Several governments are perceiving international tourism as not only a tool to create job opportunities but also to eradicate poverty. In the Middle East, several countries, including the UAE and Saudi Arabia, are investing aggressively in developing infrastructure in order to attract international tourists and create opportunities for economic growth. For instance, in Dubai, the government is expected to invest significantly in infrastructure in order to attract a large number of visitors.

Additionally, prominent events are also expected to play a significant role in attracting the future inflow of tourists. For instance, the 2022 FIFA World Cup is scheduled to take place in Qatar. Similarly, in Oman, the government is investing in various construction projects such as the Omagine Pearl Project of 2017, which involves the construction of hotels, amphitheaters, malls, and other commercial and residential buildings. All these factors are expected to provide growth avenues for the market growth. 

Key Companies & Market Share Insights

The competitive rivalry in market is high owing to the presence of major global players such as HNI Corporation; Kimball International, Inc.; Herman Miller, Inc.; and KOKUYO. Introduction of products with additional features suitable for exercise and sports is gaining consumer attention.

In June 2018, Inter IKEA Systems B.V. announced its collaboration with Adidas Group to offer products that integrate sports -  a core competency of Adidas Group -  with home décor in living spaces, which is the primary competency of Inter IKEA Systems B.V. Through this collaboration, both companies expect to combine their competencies and offer an easier way to introduce exercise to their home by analyzing and researching individualistic patterns of the way people incorporate wellness in their homes. They plan to customize their offerings to meet unique consumer lifestyle patterns and requirements.

Furthermore, increasing awareness and importance of environment protection measures among consumers is encouraging various companies to introduce low-cost environment-friendly products while reducing or possibly avoiding the use of toxic chemicals in the manufacturing or design process. For instance, Cisco Home, Eco Balanza, Anton Doll Holzmanufactur, and Vermont Wood Studios, among others are few companies that offer multi-purpose and eco-friendly products manufactured without any toxic carcinogens and chemicals. To put this in perspective, Cisco Home offers eco-friendly products through categories such as seating, bedroom, lighting, and other essentials. All products offered by this company are manufactured using non-toxic chemicals and Forest Stewardship Council (FSC)-certified wood.

Furniture Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Grand View Research has segmented the global furniture market report based on material, end use, and region:

• Material Outlook (Revenue, USD Billion, 2014 - 2025)

  • Metal

  • Wood

  • Plastic

  • Glass

  • Others

• End-Use Outlook (Revenue, USD Billion, 2014 - 2025)

  • Residential

    • Kitchen & Dining

    • Living Room

    • Bedroom

    • Outdoor

    • Others

  • Commercial

    • Office

    • Hotels

    • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

    • Malaysia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa