PORTLAND -- According to a new report published by Allied Market Research, titled, “North America furniture Market by Type and Distribution Channel: Opportunity Analysis and Industry Forecast, 2021–2030,” the North American furniture market size was projected to grow from $249.4 billion in 2020 to $400.07 billion by 2030, registering a CAGR of 4.9% from 2021 to 2030.
The residential segment in the furniture market is anticipated to have the highest market share during the forecast period. The rise in the economy has increased the spending capacity of consumers, which in turn drives the sale of branded furniture items in the furniture market. The surge in infrastructure and the real estate market boosts the demand for residential furniture products in the U.S. across the region.
According to the report, the furniture market is driven by various factors such as a rise in disposable incomes, growth of real estate and hospitality industries, and demand for luxury and premium furniture from certain consumer sections. Furthermore, increased government investments in infrastructure development are projected to improve furniture demand in the residential and commercial sectors in the near future.
The integration of the internet of things into furniture products is projected to further boost the furniture market growth. The development of automated manufacturing systems is anticipated to have a significant impact on the furniture industry during the forecast period.
According to North American furniture market analysis, the North American furniture market is segmented based on type, distribution channel, and country. By type, it is classified as RTA, residential, and commercial. The distribution channel comprises supermarkets & hypermarkets, specialty stores, e-commerce, and others. By country, it is analyzed across the U.S., Canada, and Mexico.
Based on type, the residential segment was the highest contributor to the market, accounting for 47% of the market share in 2020, because the furniture is used for residential purposes on large scale. Also, the surge in sales of home office furniture contributes toward the growth of the residential segment.
The commercial segment is expected to grow comparatively faster than other types witnessing a CAGR of 5.1%. The 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.
By distribution channel, the specialty stores segment was the prominent segment, owing to the high popularity and wide-scale penetration of specialty stores in the leading North American furniture market. Wide-scale adoption of the internet, online shopping platforms, and changes in consumer buying behavior due to COVID-19 are expected to boost the growth of the e-commerce segment. Moreover, the e-commerce segment is anticipated to be the fastest-growing distribution channel during the forecast period, owing to growth in popularity and developing infrastructure of e-commerce channels in the North American region.
By country, the North American furniture market is dominated by the U.S., particularly owing to large domestic demand coupled with a rise in disposable income and change in the lifestyle of the consumer across the region. Moreover, the integration of the internet of things into furniture goods and the development of automated manufacturing systems are expected to have a substantial impact on the furniture industry, during the forecast period.
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