Home Office Furniture Market

Market Overview

The global home office furniture market size was valued at USD 19.87 billion in 2022. It is expected to reach USD 35.49 billion by 2031, growing at a CAGR of 6.66% during the forecast period (2023–2031).

The term home office furniture refers to ergonomic items used to personalize a worker's workspace at home and increase their overall productivity. Typically, it is made from various raw materials, including wood, glass, plastic, steel, and leather. These days, it is offered in multipurpose versions that are perfect for creating a workspace in small spaces. As a result, it promotes effective space utilization while lowering furnishing expenses. Sales of modern home office furniture are currently significantly increasing all over the world.

Market Dynamics

Global Home Office Furniture Market Drivers

Rapid Urbanization

The global market will be driven by rapid urbanization and the booming office construction industry in nations like India, the Philippines, and Poland. The companies are now aligning with the other players to strengthen their supply chains by incorporating technological advancements and geographical expansions. Employees' perceptions of their office furniture have changed due to workplace culture. Emerging markets in Asia, such as India, Malaysia, Vietnam, and the Philippines, and nations in the European Union, including Switzerland, Germany, and Poland, will drive future market demand. Many emerging economies are driving the market by enhancing their geographic reach and technological innovation capabilities. Strategic acquisitions have become much simpler thanks to the availability of bank credit, making them a notable trend in the home office furniture market.

Global Home Office Furniture Market Restraints

High Cost of Manufacturing and Finished Goods

Home-based workers are more inclined to save money by not buying luxury items. Since many people are anxious about keeping their jobs, the cost has risen to the forefront of their minds. Many significant manufacturers face a challenging and competitive market. The production of many components is now outsourced, with many manufacturers instead opting to buy bases from a single company and assemble them into finished products according to blueprints. Manufacturers only interact with a small number of consumers. Their inability to deal with even the most basic customer service issues, like missing screws, could prevent them from becoming a major player in the industry.

Global Home Office Furniture Market Opportunities

Comfortable Furnishings and Rentals

Renting furniture has increased due to businesses and independent consumers renting ergonomics and curated products to increase the efficiency of working from home, particularly in major cities. Employees, as well as many companies, are in favor of the idea of renting furniture for a set amount of time. This trend has given manufacturers new opportunities because of the ability to produce individualized products. Many corporations have partnered with startups and other businesses to provide their employees with comfortable work environments.

Multinational or conglomerate corporations typically offer these facilities to their employees. With the help of rentals or purchases, businesses are using their capital to set up cozy work environments for their employees at their residences. Due to this circumstance, there has been an increase in demand for office furniture among homeowners. Large multinational corporations, IT companies, consumer products, banking companies, and financial services and insurance (BFSI) companies are the leading providers of these incentives, typically in tier-I cities, by fully or partially sponsoring the furniture.

Eco-Friendly Wood Products

Sustainability has changed over time. Recent research shows that the manufacturers and retailers  have great opportunities to address these changes, engage their customers more effectively, and meet societal needs. Younger generations, like millennials and generation Z, are thinking about how sustainable their products are. For instance, Germans are conscious of their products and strongly emphasize sustainability. Therefore, generational shifts have also increased market demand for long-lasting and sustainable furniture. This trend is anticipated to lead to market expansion in the upcoming years.

Regional Analysis

The global home office furniture market is segmented by region: North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant revenue contributor and is expected to grow at a CAGR of 5.47% during the forecast period. The demand for home office furniture is rising in the United States and Canada due to factors like the high preference for work-from-home policies and the number of people engaged in other entrepreneurial activities outside their regular jobs. People in the area prefer to work from home frequently and have been setting up dedicated offices at their homes. The primary driver of this trend is the need for telecommuting, which allows people to work seamlessly from home and eliminates the need for daily commutes. People are also deciding to open home offices to cut down on time spent traveling and provide clients with a private, secure, and enclosed space. Customers in the US prefer to purchase high-quality furniture that looks great and is constructed from high-quality materials. Due to this interest, ergonomic and leather-covered office chairs are trendy in the area. Manufacturers' convertible workstations are a recent development that is gaining traction in the area, particularly in the United States.

Asia-Pacific is expected to grow at a CAGR of 8.18 % during the forecast period. The geographical area of the market under study with the fastest rate of growth is the Asia-Pacific region. As more and more working professionals are adopting the work-from-home protocol, the region is expected to see a significant increase in revenue and sales transactions in the market. Large populations and a lack of office space in nations like Japan, Singapore, and other regions in the region are pushing businesses to offer remote working, which is also assisting businesses to record higher levels of work efficiency. Additionally, the region's enormous population, particularly in nations like China and India, and the prevalence of low- to middle-income groups prevented the market from expanding quickly during the study period.

Major nations in the European Union have been allowing a disproportionately high percentage of workers to work from home. Since working from home produces more efficient and effective results, European businesses have found it more flexible to allow employees to do so, assisting the market's growth in the region. More home office setups are becoming necessary as the trend toward working from home increases, helping the need to produce more transactions. As of 2018, the Netherlands had the highest percentage of workers in the region who typically prefer to work from home (14%). The target market for the market study consists primarily of executives, financial analysts, IT managers, and accountants who frequently prefer to work from home.

Due to the high preference for chairs when buying furniture for the home office, several reputable brands are now providing office chairs in the affordable range in the area. Chairs that offer neck support and extended lumbar support for prolonged sitting are becoming more popular in the area, followed by features like cushioned armrests and tilt control. Since many people in the area use their office chairs for gaming, brands that provide high resistance to additional weights are also well-liked there. Customers prefer to assemble products themselves, so the demand for ready-to-assemble furniture is rising in the area, including work desks, tables, and storage units.

The Latin American region's market is expanding due to many workers or professionals who have chosen the work-from-home protocol. It is anticipated to do so throughout the forecast period. Additionally, one of the region's top nations, Mexico, has long provided a sizable number of employees the opportunity to work from home, contributing to the market's expansion during the study period. Other nations, such as Brazil, Chile, and Peru, have chosen the new routine and are therefore anticipated to support the market's expansion over the forecast period.

The Middle East and Africa have been making less of an impact on the market than other regions due to the Gulf Corporation Council (GCC) countries' preference for working exclusively from office spaces, which has hampered demand in the market under study. While most GCC nations have relatively high affordability for market products, the region's market has been constrained from expanding because most jobs in petroleum, infrastructure development, etc., require on-site visits.

Segmental Analysis

The global home office furniture market is segmented by product and distribution channel.

Based on the product, the global market is bifurcated into seating, storage units, and desks and tables.

The seating segment is the highest contributor to the market and is expected to grow at a CAGR of 7.14% during the forecast period. The market, which includes a variety of products in its portfolio, is only complete with office chairs. The more popular seating product variations for use in home offices include executive chairs, mesh office chairs, drafting chairs, and ergonomic chairs. Lumbar support, adjustable headrests, armrests, and seat height; ease of swiveling; an extended stable base with a padded seat and back; adjustable tilt tension and lock; and other basic features are what consumers should expect from the seating products on the market under study. Extended support and user comfort are the main goals of the seating components. Workers typically put in nine to ten hours a day at their jobs, so they must maintain good posture to prevent neck and back pain.

After the seating segment, desks and tables are the most popular. The demand for this subset of the market under study is rising globally as desks and tables provide working professionals with a more organized workspace to collaborate effectively. Home office desks and tables are available in different types, shapes, and formats. Work desks and tables with mobile storage units and drawers are among the models that the manufacturers are offering customers as more convenient options. To enhance the value of their product line, manufacturers are implementing the most recent technologies to include built-in charging stations for laptops and mobile devices. Due to the increasing demand in the market, more value-added features are being added, such as height adjustment, which will help the user by allowing them to use it as a standing desk instead of sitting for long periods.

Based on the distribution channel, the global market is bifurcated into flagship stores, specialty stores, and online.

The specialty stores segment owns the highest market and is expected to grow at a CAGR of 5.19% during the forecast period. The main factors assisting the specialty stores in recording more business transactions during the study period are occasional discounts, free home delivery same-day day or flash delivery of the products, and after-sale services. Although deliveries were delayed in most regions due to lockdown measures, the practice helped manufacturing brands record sales during COVID-19. It assisted customers in purchasing their desired products. Specialty stores are expanding shop online and picking up in-store protocol and vice versa to reach customers faster.

Flagship stores are designed to draw customers into the brand and serve as the "Showcase" for the company or retailer. The flagship stores are typically found in prominent urban retail locations and are designed to draw large numbers of brands or retailers and make sales. They provide a glimpse into the brand's entire product lineup and are typically bigger than the average retail space. They have impressive architecture and beautiful interior designs and are furnished with goods made with cutting-edge technology and unique artwork. Customers can experience exclusive products and specialty services the brands provide at flagship stores in the market distribution channel, increasing brand awareness.

Recent Developments

• September 2022- The iconic Eames plastic chair from Herman Miller was reintroduced and made entirely of recycled plastic.
• May 2022- The acquisition of HALCON, a Minnesota-based designer and producer of precisely tailored wood office furniture, was announced by Steelcase Inc. By providing A+D professionals and customers with uncompromising design and master craftsmanship, this acquisition will enhance the current Steelcase wood product line.