The global furniture market size is expected to reach USD 718.3 billion by 2025, according to a study conducted by Grand View Research, Inc. It is projected to expand at a CAGR of 5.1% over the forecast period. High demand for branded home furniture coupled with rising spending capacity of consumers on home decor products are some of the driving factors for the growth of this market. Additionally, government initiatives to provide housing for all is also expected to positively impact the growth. For instance, since the last few years, Germany has witnessed immigration of various refugees and migrants resulting in rising demand for housing or shelter. Owing to this, the government of Germany is encouraging public and private developers to build new rental flats to solve the issues like shortage of affordable housing, resulting in a supplementary demand for furniture products.
The commercial segment includes hotels, offices, and other public buildings. It held a market share of more than 30.0% in 2017 and is anticipated to register substantial CAGR over the forecast period. This growth is attributed to extensive industrialization due to expanding development of corporate offices and hotels. For example, India is one of the key countries witnessing an extensive establishment of IT parks.
Furthermore, increasing job opportunities and employment across the globe creates a need for additional office spaces, which subsequently fuels demand for office furniture. This is also a prominent factor expected to bolster growth of the furniture market. Companies are adopting innovative furniture to enhance workforce productivity and to inculcate creativity in workspace. For instance, in March 2017, Microsoft Corporation announced its collaboration with Steelcase. Steelcase offers a diverse range of architecture, furniture, and other technology products. This collaboration was intended to introduce creative and modern furniture in the work space with a view to boost productivity and creative thinking.
Additionally, growing global population has led to a requirement for an increase in the number of schools, colleges, and other educational institutions, resulting in rapid infrastructural growth. The growing demand for furniture from the hospitality industry is also a key factor boosting growth of the commercial segment. Furthermore, rising requirement for furniture from restaurants, coffee shops, and bars, among others is expected to accelerate market growth. Increasing global competition, high cost of raw material processing and labor, and ageing workforce are some of the key challenges likely to hinder market growth.
The residential segment in North America is expected to expand at the highest CAGR over the forecast period owing to the presence of key players offering luxurious interior design products. Consumer inclination towards purchasing luxury furniture can further drive the regional demand. Additionally, increasing adoption of modern furniture and the growing popularity of online distribution channels that offer convenience and time-saving during furniture purchase are anticipated to fuel growth. Furthermore, growing demand for multi-functional products, in addition to the rising awareness about environmental concerns and the use of eco-friendly products are anticipated to gain prominence in U.S.
Middle East is expected to witness significant growth over the forecast period owing to boosming commercial and industrial sectors. The government of Kuwait has invested substantial amount of capital in the construction of public hospitals and other healthcare infrastructure. Additionally, increasing investments from private and public sectors aimed at expansion of commercial and residential construction projects in the country is another factor contributing to market growth.
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Further key findings from the study suggest:
In 2017, the wood furniture segment accounted for more than 30% market share in terms of revenue attributed to usage of wood in combination with other materials for the production of different furniture products. For instance, objects classified as metals also use wooden components or wood in furniture fittings.
Middle Eastern and African is also anticipated to witness substantial growth over the forecast period accredited to growing residential and commercial construction industry
The furniture market is highly fragmented and has an array of players across different regions holding varied market shares. Major players include Herman Miller, Inc.; Kimball International; HNI Corporation; and KOKUYO
These players engage in partnerships and collaborations with a view to expand their market presence. For instance, in June 2018, HNI Corporation announced partnership with Nowy Styl Group, a Europe-based manufacturer of office furniture and chairs. As a result of this partnership, both companies expect to establish a homogenous support and service network to ensure consistency in client services and solutions.
Grand View Research has segmented the global furniture market based on material, end use, and region:
Furniture Material Outlook (Revenue, USD Billion, 2014 - 2025)
Furniture End-Use Outlook (Revenue, USD Billion, 2014 - 2025)
Kitchen & Dining
Furniture Regional Outlook (Revenue, USD Billion, 2014 - 2025)
Middle East & Africa
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