North America continues to control the largest piece of the pie when it comes to the global contract furniture market, with consumption of office, education and healthcare furniture estimated at $18.41 billion in 2016, the most recent figures published by BIFMA/IHS Markit.
Growth in the global market is expected to continue over the next few years, with Research Nester Pvt. projecting a compound annual growth rate of 5.2% through 2021 for the industry worldwide. This also bodes well for U.S. and Canadian manufacturers, whose product sales accounted for nearly 38.6% of the market share in 2016.
The ability to quickly react to changing workplace needs helps give North American manufacturers a competitive advantage. As seen at NeoCon, current market trends include: privacy on demand within the open plan workplace, incorporating partitions and mobile pods; adaptive furnishings that can be reconfigured for collaborative or private work; biophilic design which incorporates natural materials and light into the office; and products for acoustic comfort.
Seating and systems each account for 28% of office furniture products by category, according to BIFMA 2015 information. Tables are roughly 12% of the product mix, followed by files and casegoods at 11% each, and storage at 5%. Other types of products account for the remaining 5%.
According to Research Nester Pvt., the European office furniture market saw an increase of 5% in 2015, and projected to continue at a robust growth rate over the next few years. The Asia Pacific office furniture market, which was estimated at $7.2 billion in 2014, is projected for modest growth rate over the next 5 years.
Domestically, the contract furniture market is also growing at a steady pace, with material costs and healthcare costs the most frequently cited perceived threats to the industry, according to MADA/OFI Trends Survey, conducted by Michael A. Dunlap & Associates LLC.
The value of shipments of U.S. institutional furniture is expected to dip slightly through 2018, before reaching $4.92 billion in 2019. U.S. Census Bureau and Statista project dollars at $4.73 billion in 2017, and $4.67 billion in 2018, before the rise in 2019. 2020 projections call for a decrease down to $4.82 billion.
Total revenue of Canadian office furniture manufacture is projected to reach $4.41 billion in 2017 and $4.43 billion in 2018, before leveling out in 2019 and 2020 at $4.51 billion, according to information from StatCan and Statista.
Market Data Sources: Business & Institutional Furniture Manufacturers Assn., IHS Markit, Research Nester Pvt. Ltd., Michael A. Dunlap & Assoc. LLC, Statista, StatCan/Statistics Canada, U.S. Census Bureau, Foreign Trade Division
Category: Contract furniture: business/office furniture, government furniture, home office, education furniture, healthcare furnishings, institutional furniture, hospitality furniture.
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