The global luxury furniture market was valued at USD 21,389.5 million in 2014 and is expected to reach USD 28,600.7 million in 2022, growing at a CAGR of 3.7% over the forecast period. Major factors owing to progress in this sector include rise in disposable income that leads to rise in demand for luxury living thus influencing sector growth.
The development of multi-functional furniture coupled with adoption of online retailing methods in order to reduce the operating expenses involved in sales and distribution is anticipated to poise development in the industry through to 2022.
Real estate industry has experienced steady development worldwide in the last few decades. It is expected that the real estate industry would experience moderate progress in the future as well. Expansion of the real estate industry for residential as well as commercial places would drive the luxury furniture industry.
Lifestyle of consumers, especially in urban areas, is changing significantly due to increased disposable income. Luxurious product is becoming an essential part of their life; as a result, they are ready to spend more on luxurious products. This would contribute to drive the industry in the coming years. In addition, increasing disposable income of individuals has led to think regarding the social status, driving the increased spending on products including furniture.
However, expenses for raw material procurement required for furniture designing is expected to hinder growth in this market.
Furthermore, the absence of skilled workforce for the incorporation of aesthetic designs in the furniture is also anticipated to restrain sector development to a certain extent.
Presence of teak, mahogany, and jackfruit trees as a source for the furniture designing owing to higher durability strength are attributive for larger share of this material in market revenue generation.
However, restrictions imposed by the regulatory organizations pertaining to use of wood for the manufacture of furniture with respect to environmental perspective is expected to hinder growth in this segment over the forecast period.
Due to seemingly innovative and breakthrough developments in other materials that are used for designing luxury furniture such as stone and marble are anticipated to propel segment demand. Moreover, other factors that are expected to be responsible for comparatively higher demand of these materials include low maintenance cost, high durability, and long-lasting beauty and style are the key factors influencing the demand for stone furniture.
Amongst the domestic and commercial usage, domestic use accounted for the larger share of market revenue in 2014 because of the higher use of luxury furniture in different areas of the residence and adoption of luxurious amenities by the builders and architects that ultimately affects the demand for luxury furniture positively.
Living & bedroom dominates the rest of segments with respect to revenue generation in 2014 owing to presence of consumers that are particular in purchase of right kind of furniture to give a rich, aesthetic look to their living room.
Luxury lighting products add to the ambience in the kitchen, living & bedrooms, bathrooms, and outdoors. This has created a positive environment for lighting furniture; as a result, it is gaining popularity among consumers and is anticipated to witness significant growth.
The hospitality segment is registered the largest share in revenue in commercial usage of luxury furniture and is expected to continue its dominance over the forecast period. In order to provide better servicing experiences to customers, hotels and restaurants install luxury furniture which subsequently impacts market demand significantly. Traditional as well as modern furniture designs are receiving high acceptance thus attributing towards the growth in this segment.
Europe dominated the industry in 2014, with revenue estimated at USD 7,329.8 million. Presence of large number of players in this region and changing lifestyle of consumers due to substantial increase in disposable income are factors responsible for larger share of this region.
Asia Pacific is expected to witness a lucrative CAGR of 5.5% from 2014 to 2022 due to rapid developments in the residential real-estate industry in Asian countries such as India and China, which in turn opens up notable opportunities for the sector during the forecast period.
Major participants present in the luxury furniture market are involved in the adoption of e-commerce platforms for the sales and distribution of their finished products. Manufacturers operating in this industry also carry out usage of other materials such as stone, acrylic, and marble for development of attractive and aesthetic furniture.
These operating entities include Muebles Pico, Giovanni Visentin s.r.l., Scavolini S.p.a., Laura Ashley Holding Plc, Valderamobili s.r.l, Iola Furniture Limited, Nella Vetrina, Henredon Furniture Industries Inc., Duresta Upholstery Ltd, and Turri S.r.l.
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