The furniture market is anticipated to grow at a CAGR of around 5.3% and reach USD 571.69 billion in terms of value by the year 2026.
|Market Size||USD 571.69 billion by 2026|
|Fastest Growing Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The availability of designer furniture and growing preference towards outdoor seating drive the demand for furniture, alongside mainstream factors such as the growing construction sector. Do-It-Yourself furniture models are also gaining popularity, as they offer a unique experience and customization as per consumer demand.
Governments have increased investments and expenditure in healthcare to ensure better access for their populace. The World Bank estimated the global expenditure on healthcare as a percentage of GDP at 10.02% for 2016 – a significant rise over 9.89% in 2015. The rising expenditure on healthcare is indicative of the increasing number of hospitals and dispensaries, which have been leading to an upsurge in demand for furniture such as hospital beds and chairs.
The U.S. and Canada remain attractive destinations for education and work. Higher income, better public facilities, and high regard for public welfare have seen an increasing number of people migrating to these countries for education and work. This population has been surging the demand for rental accommodations and driving the expansion of educational institutions to accommodate better learning facilities for domestic and international students, both of which require furniture. In 2017, the U.S. was host to around 1.1 million students, out of the 4.6 million students enrolled worldwide, as per the Migration Policy Institute. Most of the students here prefer settling down in the same country, which has led to a significant increase in the younger population. Furthermore, schools and colleges seek ergonomically suitable furniture to cater to this generation’s offspring.
Europe has considerable forest cover across economies such as Russia, Sweden, and Finland, among others. The region’s furniture industry has been highly impressive over the past few years as it employs around 1 million workers in over 1,21,000 manufacturing firms, which are largely small- and medium-sized. Furthermore, the furniture sector in most of the European nations contributes to around 1–4% of the GDP to the nation’s economy. The region held around a 44% share in global furniture imports in 2017, as per the Centre for Industrial Studies. The presence of prominent manufacturers such as IKEA, relatively stable economies, and technological superiority are some of the factors leading to impressive growth in the region. On the flip side, with Brexit around the corner, changes in trade relations may restrict market growth to some extent, with increasing prices fending off sales.
China, India, Thailand, and Malaysia are expected to lead market growth in Asia-Pacific. Many multinational conglomerates are shifting or expanding operational and marketing activities in these emerging economies to reap the benefits of inexpensive labor, land availability, government subsidies, and the rising urban middle-class. Population growth drives the region’s construction sector; as per statistics released by the UNWTO (United Nations World Trade Organization), the number of international tourist arrivals increased by 6% in 2017 and reached a total of 323 million. Furthermore, Malaysia, Singapore, Thailand, and Vietnam are rapidly emerging as favorites for international tourists, which has led to an increase in the demand for furniture from hotels and guest houses.
Brazil, Argentina, and Chile are witnessing considerable industrial growth and urbanization. After a brief spell of economic recession, Latin American is expected to witness healthy growth in the construction sector. As per statistics cited by the Association of Equipment Manufacturers, the region is expected to grow at a rate of 1.9%. Growth in the construction sector and increasing infrastructure investments by PPPs (Public-Private Partnerships) are some of the factors that will positively impact market growth in the future.
The Middle East’s construction and tourism sectors are expected to drive the demand for furniture in the region. Various hotels in the region procure furniture to offer the best in comfort while catering to their various tastes.
Based on material, the market can be segmented into wood, plastic, and metal. Education and better job opportunities have led to an increase in disposable income. Companies offer attractive packages and employ marketing strategies to ensure customer loyalty and increase their client base as a means to tap into the higher spending capacity among masses. In terms of preference, people are increasingly opting for furniture that is aesthetically pleasing and environment-friendly at the same time. Among the various segments by materials type, the wood segment is expected to register the highest CAGR.
By end user, the market can be segmented into residential and commercial. The residential segment can be further categorized into kitchen, dining, shades and blinds, bedroom, and others while the commercial segment can be categorized into educational, business, hospitality, healthcare, and others. Rapid urbanization and the rise in the number of nuclear families have led to an increase in residential housing. Manufacturers are providing customizations and design variations to cater to niche clients in a bid to capture the market, and construction companies are coming up with affordable housing schemes with the aid of governments to provide housing for low-income groups. In light of these factors, the residential segment is expected to perform relatively better among the two segments during the forecast period.
Some of the key players engaged in the global furniture market are,