Commercial Room Divider Market

Market Overview

The global commercial room divider market size was valued at USD 789.19 million in 2022. It is estimated to reach USD 1,308.62 million by 2031, growing at a CAGR of 5.78% during the forecast period (2023–2031). In the past few years, there has been a surge in the commercial construction industry, thereby driving the global commercial room divider market. In addition, there has also been a growth in co-working spaces, wherein employees of different firms share a common workplace. This is anticipated to increase the demand for commercial room dividers to maintain privacy and integrity.

A commercial room divider refers to a furniture piece or partition created to segregate a given space into distinct sections, serving various functions. These room dividers are frequently utilized in commercial or office environments to establish adaptable and dynamic work areas. These structures can ensure privacy, mitigate noise levels, and delineate separate areas within a more expansive open space.

Commercial room dividers encompass various configurations, including screens or partitions, cubicles or workstations, sliding dividers, accordion-style dividers, and moveable walls. The principal objective of commercial room dividers is to maximize the efficient use of space, foster cooperation, and provide enhanced privacy as required. They are a pragmatic resolution for establishing versatile and operational environments across various commercial environments, including workspaces, conference rooms, classrooms, and exhibition areas.

Market Dynamics

Market Drivers

Growth in Commercial Construction

The demand for commercial room dividers positively correlates with the overall expansion observed in the commercial construction industry. The growing construction and renovation of office spaces, hotels, conference centers, and other commercial facilities has led to a heightened demand for interior solutions that are versatile and adjustable, such as room dividers. According to McKinsey, the construction sector is the largest industry worldwide, constituting approximately 13% of the global GDP.

In addition, according to Statista, the global construction sector is anticipated to experience consistent revenue growth in the coming years. It is anticipated to be greater than twice as large in 2030 as in 2020. In 2020, the construction industry witnessed a market value of 6.4 trillion U.S. dollars; by 2030, this figure will increase to 14.4 trillion. Consequently, expanding the commercial construction sector is anticipated to expedite the growth of the global market.

Rise of Co-Working Spaces

Co-working is a collaborative arrangement wherein individuals employed by different companies come together to share a common workspace. The proliferation of co-working spaces has increased the need for room dividers. Space utilization in work environments frequently necessitates accommodating diverse companies and people with distinct privacy requirements, rendering room dividers vital in establishing productive and flexible workspaces.

The article "Global Co-working Growth Study 2020," authored by Alberto Di Risio, was published on Co-working Resources. According to Di Risio's report, it is anticipated that the global number of co-working spaces will reach surpass 40,000 by the year 2024. Although the industry experienced a decelerated growth rate in 2020, there was a resurgence in growth and a further acceleration in subsequent years, particularly from 2021 onwards, with an annual growth rate of 21.3%. Thus, the growth of co-working spaces is driving the global market. 

Market Restraint

Rising Remote Work Environment 

In recent years, there has been a surge in remote work trends. For instance, according to a Forbes report published in June 2023, at present, it is evident that there is a notable trend towards the integration of remote work environments, as indicated by the fact that 12.7% of individuals engaged in full-time employment are currently operating from their homes. Concurrently, a notable proportion of 28.2% of employees have embraced a hybrid work approach.

Furthermore, according to The Home Office, a significant majority of employees, specifically 82%, prefer to work remotely from the comfort of their homes in India. The implementation of the work-from-home concept has resulted in a notable 47% boost in productivity. The increasing prevalence of remote work arrangements has the potential to diminish the requirement for physical office spaces, leading to a decrease in the necessity for room dividers inside commercial environments. This is anticipated to impede market growth.

Market Opportunities

Construction of New Hospitals

In hospitals, commercial room dividers can fulfill a multitude of functions, thereby enhancing the efficacy and efficiency of healthcare provision. Patients' privacy can be maintained in communal areas through temporary partitions made of room dividers. This feature is particularly advantageous in open wards, recovery rooms, and emergency rooms, where individual privacy is paramount. The healthcare industry has also rapidly grown in recent years, especially after the COVID-19 pandemic. 

Furthermore, the growing burden of chronic illnesses and a surging geriatric population are driving the need for enhanced healthcare infrastructure. Thus, there has been a surge in construction projects for developing new hospitals worldwide. For instance, in British Columbia, Canada, the New Cowichan District Hospital project has been initiated to develop a 47,848m2 facility featuring 204 acute inpatient beds. Construction activity for this hospital is anticipated to be completed by Q4 2027, having begun in Q3 2023. Thus, the construction of new hospitals, in turn, increases the demand for commercial room dividers, thereby creating opportunities for market expansion.

Regional Analysis

Based on region, the global commercial room divider market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global commercial room divider market shareholder and is expected to expand substantially during the forecast period. The increased number of offices, startups, and hospitals is primarily responsible for the growth of the North American market. This trend is anticipated to foster the demand for commercial room dividers throughout the region. In New York, specifically, there has been an observed increase of 11.3% in office vacancy rates during the past year, resulting in the highest level recorded in the past 27 years. This increases the demand for co-working spaces, boosting the commercial room divider market.

Furthermore, the United States allocates a greater proportion of its GDP towards healthcare costs than all other nations globally, as evidenced by the fact that healthcare spending constituted 17.7% of its GDP in 2019. In 2018, the aggregate expenditure on healthcare in the United States amounted to USD 3.6 trillion, which equates to an average of USD 11,172 per individual. The anticipated trend indicates a persistent increase in healthcare expenditure in the forthcoming years, with projections indicating a potential escalation to over USD 6 trillion by 2027. This high healthcare spending is also used to construct new regional hospitals. For instance, as per the American Hospital Association Annual Survey, in the United States, there were 6,093 in 2020, which increased to 6,129 hospitals in 2021. Thus, with the increase in the construction of new hospitals, there is also an increased demand for commercial room dividers in the North American region.

The Asia-Pacific region is expected to expand at a significant pace. The government and authorities in this region are taking initiatives to promote the commercial construction industry. For instance, the Government of India has introduced numerous development schemes such as Make in India, Smart Cities Mission, Pradhan Mantri Awas Yojana, Industrial Corridors Development, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Modified Industrial Infrastructure Upgradation Scheme, Mega Ports Development, Infrastructure Debt Fund, etc. These initiatives have created significant opportunities in the construction sector, including commercial construction, leading to growth in various construction segments. Moreover, in India, co-working spaces are becoming increasingly popular among businesses, as demand has doubled over the last four years. Co-working spaces comprised 27% of the net absorption of 8.2 million square feet in the top seven cities during the first quarter of 2023, a substantial increase from their 14% share in 2019. Thus, all these factors are boosting Asia-Pacific's commercial room divider market expansion.

In Latin America, the market's growth is attributed to the construction of new hotels and the expansion of the hospitality industry in the region. The events and hospitality business frequently need flexible and temporary measures to establish distinct partitions within a more expansive area. Portable room dividers are frequently utilized in hotels, conference centers, and event venues to customize areas according to the specific requirements of various events. In Latin America, the increasing demand for hotels is driving the rapid expansion of the building industry. As of 2021, there is ongoing construction for approximately 228 properties. It is anticipated that by 2022, more than 106 hotels will be completed, and an additional 55 hotel projects are now in progress with an expected completion date in 2023. Thus, the construction of new hotels will drive this region's commercial room divider market.

Segmental Analysis

The global commercial room divider market is segmented by type and application.

Based on type, the global commercial room divider market is divided into fabric room dividers, metal room dividers, wooden room dividers, glass room dividers, plastic room dividers, and others. 

The wooden room divider segment dominates the global market. A wooden room divider is a furniture item or ornamental feature specifically crafted to create a physical division or partition within a given space, establishing separate and distinct zones. It is commonly constructed from wood and comprises panels or slats organized within a framework, facilitating its independent stability or positioning within a designated area to partition a space. Wooden room dividers exhibit diverse forms, shapes, and finishes, offering advantages in functionality and aesthetics.

Wooden room dividers can be fashioned in many designs, ranging from conventional to contemporary, and may be constructed using diverse wood varieties, each exhibiting distinct qualities and visual appeal. They are a well-liked option for people who value wood's inherent beauty and need a long-lasting and classic dividing solution for their offices or other commercial setting.

Based on application, the global commercial room divider market is segmented into offices, dorm rooms, hospitals, hotels, basements, and others. 

The offices segment owns the highest market share. Commercial room dividers are paramount in office environments as they facilitate adaptable space utilization, boost productivity, and elevate the overall work atmosphere. Room dividers assist in dividing contemporary office layouts, which frequently feature open work areas, into distinct zones for various teams or tasks. This permits a more dynamic and adaptable utilization of space, accommodating a variety of work methods and requirements. Discrete workspaces or meeting areas may be established in an open office using commercial room dividers. This is particularly critical for discussions involving sensitive information or duties that require concentration.

Temporary solutions are frequently employed to establish workspaces or meeting areas within the office premises during events, conferences, or seminars. Commercial room dividers are considered an essential component of contemporary office design due to their positive impact on work environments' adaptability, functionality, and aesthetics. 

Recent Developments

• September 2023- WILsquare Capital, a private equity firm headquartered in St. Louis, declared the successful acquisition of Screenflex Portable Partitions, LLC, a pioneering manufacturer of portable room dividers and a pioneer in the space-efficiency sector, by its portfolio company, Versare Solutions, LLC ("Versare").
• February 2023-Connection, a manufacturer and designer of commercial furniture, announced a partnership with Inscape. The brands are ecstatic to introduce Harp, the first of numerous collections, as they commence this new partnership. The bungee cords space divider Harp is the first product to be introduced as a result of the collaboration between Inscape and Connection.