WILMINGTON, Del. — Global demand for furniture is expected to increase, owing to rapid urbanization and high-purchasing power of the millennial generation, according to research from Allied Market Research.
The residential segment dominates the market, owing to the growing phase of infrastructure and the real estate market. Moreover, advanced manufacturing technology has lowered the cost and time for manufacturing. However, manufacturers believe that a rise in raw material prices would have a long-term impact on the market and hamper the growth of the market during the forecast period
According to the new report, "Global furniture market by type, distribution channel, and region," the global furniture market size was valued at $556 billion in 2020, and is projected to reach $877 billion by 2031, registering a CAGR of 3.8% from 2022 to 2031.
The residential segment in the furniture market is anticipated to have the highest market share during the forecast period. The rise in the global economy has increased the spending capacity of consumers, which, in turn, has led to a rise in sales of branded furniture items in the furniture market. The growing phase of the infrastructure and real estate market has led to a rise in demand for residential furniture products in various countries across the globe.
The furniture market is driven by emerging new species of wood trees for furniture manufacturing and marketing through the internet are some of the factors that are expected to boost the market growth. Furthermore, the furniture market is driven by various factors such as a rise in disposable income, growth of real estate and hospitality industries, and demand for luxury and premium furniture from certain consumer sections. In addition, an increase in government investments in infrastructural development will boost demand for the furniture products in the residential and commercial sectors in the future. Integration of the Internet of Things into furniture products is projected to further escalate the furniture market growth. Moreover, the development of automated manufacturing systems is anticipated to have a significant impact on the industry during the forecast period. Furthermore, demand for versatile and multi-functional products that offer portability and can easily be accommodated in small spaces also drives the market growth.
The global furniture market is segmented based on type, distribution channel, and region. By type, it is classified into RTA, residential, and commercial. The distribution channel comprises supermarkets & hypermarkets, specialty stores, e-commerce, and others. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, Spain, the UK, Italy, France, and the rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, the UAE, and rest of LAMEA)..
The commercial segment is expected to grow comparatively faster than other types witnessing a CAGR of 4.1%. Growth of the segment is driven by large enterprises, corporates, and even emerging small companies that are investing heavily in furnishing and interiors of office spaces to provide employees with comfortable and productive environments. Thus, vendors are designing office furniture that offers better comfort and minimizes stress. In addition, smart furniture is also gaining popularity.
On the basis of region, the market is dominated by North America, particularly owing to large domestic demand coupled with a rise in disposable income and change in lifestyle of consumers across the region. Moreover, the integration of IOT into furniture products and development of automated manufacturing systems are anticipated to have a significant impact on the furniture industry during the forecast period. In addition, LAMEA is expected to witness a 4.1% CAGR during the forecast period.
Key findings of the study
• By type, the residential segment accounted for the highest furniture market share in 2020, growing at a CAGR of 3.6% from 2022 to 2031.
• By distribution, the specialty stores segment accounted for about 48.8% share of the furniture market share in 2020, and is expected to experience growth at CAGR of 3.5%.
• Region wise, North America accounted for about 37.1% of the furniture market size in 2020, and is expected to grow at a CAGR of 3.6%.
• By type, the commercial segment accounted for 29.3% market share in 2020, growing at a CAGR of 4.1% from 2022 to 2031.
• Region-wise, the Asia-Pacific market is expected to grow at the highest CAGR of 4.6%.
The key players operating in the furniture industry are Haworth, Inc., Inter IKEA Systems BV, Steelcase Inc., Masco Corporation, HNI Corporation, L. & J.G. STICKLEY, INC., Kimball International, Inc., Okamura Corporation, Heritage Home Group LLC, and Durham Furniture Inc.
For more information on the report, click here.
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