Online Furniture Market Size, Share & Trends Analysis Report By Raw Material (Wood, Metal, Plastic, Jade, Glass), By Product (Living Room Furniture, Bedroom Furniture, Office Furniture, Kitchen Furniture, Others), By Applications (Residential, Commercial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global online furniture market was valued at USD 201.89 billion in 2023. It is estimated to reach USD 1,057.43 billion by 2032, growing at a CAGR of 20.2% during the forecast period (2024–2032).

The immense convenience primarily boosts the global online furniture market; it offers consumers the shopping experience and wide availability of products just with a click. In addition, these online platforms also offer customization options, which can help users personalize their goods, boosting the global market. Moreover, the market leaders are involved in various strategic initiatives to improve their presence in the market, which is estimated to generate market growth opportunities.

Highlights 

• Residential dominates the application segment
• North America is the highest shareholder in the global market

Furniture includes movable products designed to facilitate a range of human activities, including seating (e.g., chairs, sofas), eating (e.g., tables), and sleeping (e.g., beds). It may also encompass items such as cabinets, shelves, and other fixtures that enhance a given area's functionality and visual appeal. Online furniture refers to the purchase of furniture items through internet-based platforms or websites. Instead of physically visiting a furniture store, customers can choose through a wide range of furniture options, make selections, and place orders online.

Online furniture stores typically offer various styles, designs, and price ranges to cater to customer preferences. They frequently offer comprehensive product descriptions, photos, and occasionally tools for virtual or augmented reality to assist customers in seeing how the furniture will appear in their room. Home delivery services are frequently offered when purchasing furniture online, providing customers with the convenience of having their purchases delivered right to their door.

Market Dynamics

Global Online Furniture Market Drivers

Customization Options

Customization options in the online furniture market allow consumers to personalize their furniture to fit their preferences and needs. This customization level, often not available in traditional brick-and-mortar stores, gives online retailers a competitive edge. This customization feature improves the shopping experience, increases customer satisfaction, and fosters a feeling of ownership and uniqueness, attracting more customers to opt for online platforms when buying furniture.

According to Deloitte, 42% of consumers choose furniture stores that can customize their purchases. According to Statista, 71% of customers desire personalized furniture and decorations tailored to their bathrooms. 43% of buyers choose product personalization for their bedrooms, while 38% would buy customized furniture for their home offices. The data shows that people are mostly interested in purchasing furniture that can be personalized to meet their specific preferences, thereby driving the market for online furniture.

Increased Convenience 

Convenience is a key driver behind the growth of the online furniture market, offering customers unparalleled ease and accessibility in their shopping experience. Online furniture shopping has completely replaced traditional brick-and-mortar stores, allowing customers to peruse a vast selection without ever leaving the house. This accessibility particularly appeals to busy individuals who may not have the time or energy to visit multiple stores searching for the perfect piece.

Additionally, online platforms often provide features such as search filters, customer reviews, and comparison tools, making it easier for shoppers to find exactly what they want. Moreover, flexible shipping options and hassle-free returns policies further enhance convenience, providing a seamless shopping experience from start to finish. Overall, the convenience offered by online furniture shopping is a significant motivator for consumers to choose this channel over traditional retail.

Global Online Furniture Market Restraint

Shipping Costs 

Shipping costs are a significant restraint for the global market due to the unique challenges posed by the size, weight, and fragility of furniture items. Unlike smaller products, furniture pieces are often bulky and heavy, increasing shipping expenses. This can deter potential customers unwilling to pay exorbitant fees for delivery, especially for larger items. Moreover, the complexity of shipping large furniture items increases the risk of damage during transit, raising consumer concerns. High shipping costs also impact profit margins for online furniture retailers, potentially leading to increased customer prices or reduced market competitiveness.

Global Online Furniture Market Opportunities

Strategic Initiatives by the Key Players 

The key market players are involved in several strategic initiatives like mergers and acquisitions, expansions, collaborations, investments, etc. For instance, in April 2022, Pepperfry, an online furniture retailer, announced the official launch of a new fulfillment center in Gurgaon to improve customer satisfaction by providing quicker delivery throughout North India, according to a press statement. The fulfillment center is 111,000 square feet and can store over 30,000 goods. Pepperfry's new center seeks to decrease delivery times in the northern Indian market and offer quick delivery to consumers in the Delhi NCR region.

Furthermore, in October 2021, PAN Group, a multi-interest business group from Rajkot in Gujarat, started an online furniture company called InnoDesigns by investing approximately Rs. 75 crores. The venture was conceived by a modern entrepreneur named Nidhey A. Pan from the PAN family. InnoDesigns aims to revolutionize the online furniture market by establishing a unique platform where buyers may select any furniture design to be crafted by local carpenters and small to medium-scale manufacturers listed and reviewed on the platform. This factor creates opportunities for market expansion.

Regional Analysis

Based on region, the global online furniture market is bifurcated into 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 global online furniture market shareholder and is expected to expand substantially during the forecast period. The North American market is primarily influenced by the wealthy financial resources, consumer spending, and lifestyle preferences of the region's residents. These people seek high-quality, ergonomic, and visually appealing furniture for their homes, offices, hotels, and other venues. The region's dominance is growing due to the rising popularity of digital-first retail. Digital-first shopping provides various designs, styles, and patterns to pick from. It also allows comparing the goods based on costs and specifications. Companies like Ikea and Wayfair have been offering online discounts and promotions to expand their consumer base.

Furthermore, many major companies in the furniture market have strengthened their position in the region. For instance, Coco Republic, a firm with physical stores and online retail channels in Australia and New Zealand, a flagship store in San Francisco, and a promotional website in the U.S., debuted a full e-commerce store in the United States in May 2023. Moreover, H&M HOME also welcomed American customers to explore its collection of furniture and lights, known for its timeless and design-focused qualities. The collection features seasonal trend items for various areas in the home, children's furniture, and timeless classic styles designed internally to endure changing trends and preferences. H&M HOME's furniture and lamps collection can be purchased online in the U.S. starting August 2023 at www.hm.com/home. Consequently, all these factors drive the regional market growth.

Asia-Pacific is experiencing tremendous growth in the online furniture market due to its increasing population, rising spending power, and fast industrialization. In 2021, consumer spending in the Asia-Pacific region accounted for 29% of the worldwide consumer market, according to Euromonitor. The percentage is expected to rise to 38% by 2040 when adjusted for inflation using 2021 prices. The regional consumer market is forecasted to achieve a value of USD 30.6 trillion by the year 2040, which will further boost market expansion.

In addition, the regional market players are taking initiatives to strengthen their foothold in the market. For instance, in June 2023, Jodhpuri Furniture, a prominent company in the handicraft and furniture sector, strives to become India's top online furniture seller by showcasing the esteemed heritage and unparalleled artistry of Jodhpur furniture to customers nationwide. Similarly, in March 2020, Godrej Interio introduced its e-commerce platform to enhance its position in the Indian furniture market and compete with Pepperfry, Urban Ladder, and Ikea. These factors create opportunities for market growth.

Segmental Analysis

The global market is segmented by raw materials, products, and applications.

Based on raw materials, the global online furniture market is divided into wood, metal, jade, glass, and plastic.

Glass furniture refers to furniture pieces primarily made of glass or featuring significant glass components. This includes tables, chairs, shelves, cabinets, and even beds made entirely or partially of glass. Glass furniture adds a modern and elegant touch to any space, reflecting light and forming an illusion of space and openness. It is often used in contemporary interior design to achieve a sleek and minimalist look. Glass furniture comes in various styles, including clear, frosted, tinted, or even textured glass, offering versatility in design options. While it can be fragile and requires careful handling, high-quality tempered glass is commonly used for durability and safety in glass furniture construction.

Based on product, the global online furniture market is divided into living room furniture, bedroom furniture, office furniture, kitchen furniture, and others.

Living room furniture refers to the various items designed to furnish and decorate the primary gathering space in a home. This furniture typically includes seating options such as sofas, armchairs, recliners, and loveseats, providing comfortable places to sit and socialize. Living room furniture may include coffee tables, end tables, and console tables, which provide surfaces for placing items like drinks, books, and decorative objects. Other common pieces of living room furniture include entertainment centers or TV stands, bookcases or shelves, and storage units like cabinets or ottomans. The style and arrangement of living room furniture can greatly impact the look and feel of the space, making it both functional and aesthetically pleasing.

Based on application, the global online furniture market is bifurcated into residential and commercial. 

The residential segment owns the highest market share. Residential furniture is used in homes for activities including living, dining, sleeping, and other domestic purposes. The residential segment can be subdivided into specific sections such as kitchen, dining, shades and blinds, bedroom, and others. The residential furniture segment dominates the furniture industry primarily because it influences factors such as population increase, urbanization, and housing demands. The increase in nuclear families has led to a rise in the need for housing.

Moreover, customers can now furnish their homes at a lower cost thanks to the frequent discounts and competitive prices offered by numerous online furniture retailers. Growing numbers of customers are using online platforms to purchase home furniture due to the rising acceptance of e-commerce and growing confidence in online transactions. This is propelling the growth of sales in this industry.

Impact of covid-19

The global wireless health market is fragmented in nature. Several large and small-scale players are focusing on price, brand, and new product development to expand their consumer base. Some of the key players are engaging in acquisitions, collaborations, and partnerships to gain a competitive edge.

For instance, Cerner Corporation announced a strategic collaboration with XG Solutions, Inc. to provide access to Cerner's' HealtheIntent' platform. Similarly, WellDoc launched the first FDA-approved mobile app, named ' BlueStar' for type 2 diabetes management. While AliveCor developed an electrocardiogram based on a smartphone. In October 2018, Philips introduced its FDA approved ' IntelliVue Guardian Technology software ' for patient monitoring. In March 2018, Allscripts Healthcare Solutions launched a new Electronic Health Record (EHR), ' Avenel ' to save the time invested in clinical documentation. Lastly, in June 2018, BioTelemetry, Inc. launched its next-generation ‘wireless blood glucose monitor’ for type 2 diabetes management.

Recent Developments

• May 2023 - One of the largest home retailers in the world, Wayfair Inc., announced the introduction of the Digital Design Studio. This patent-pending technology combines the advantages of in-store and online purchasing. The Digital Design Studio is a photorealistic digital 3D room kiosk that enables patrons to experience products while creating and interacting with a variety of design layouts.
• November 2023 - Furniture Outlet, a prominent clearance furniture business in Essex and East London, introduced a new online store. The Furniture Outlet website is meant to provide a shopping experience without any delays. All the furniture displayed is in stock and ready for prompt delivery and home assembly from the company's vast warehouse facilities.