Furniture market growing at 5.5% CAGR, expected to reach $750 bn by 2024
The Global Furniture Market size is estimated to surpass USD 750 billion by 2024; according to a new research report by Global Market Insights, Inc. Wooden furniture currently dominates the global furniture market with a 60 per cent share in 2017, and is expected to continue its dominance during the forecast timeframe.
According to Global Market Insights, superior product finishes, along with the availability of extensive wood options including Mahogany, Teak, Redwood, Fir, Cedar, and others, are some of the key factors driving the growth of the wooden furniture market.
High durability and strength along with availability in lower price variants and higher-end segment are expected to proliferate the wood material demand over the next few years. Preference in green buildings will also positively influence the product sales.
Rapid urbanisation supported by high private and government spending on urbaresidential construction to accommodate the increasing population will boost the global furniture market share. Increasing remodelling service demand in the developed economies of Europe and North America will stimulate the industry development. Expanding the tourism sector particularly in Asia Pacific, Europe, and the Middle East will propel business demand.
A trend towards outdoor living and garden dining, supported by a rise in social gatherings, is augmenting the outdoor furniture market demand. Escalating demand for outdoor restaurants will also strongly support global business development, and increasing the number of eco-friendly and smart furniture product launches will create new growth opportunities over the forecast timeframe.
Reduction in size of new residential construction has paved the way for multipurpose and easily movable furniture.
Commercial application is projected to be the fastest growing segment in the global furniture market. Commercial application majorly includes offices and educational institutions, as well as the hospitality and healthcare sector. Hospitality and educational institutions are among the key contributors to the commercial furniture segment growth. A growing number of tourists in the Middle East and Asia Pacific are supported by an increasing number of luxury hotels, which are stimulating the business expansion.
Rapid commercialisation along with rising household spending is driving the furniture business demand in emerging economies. An increasing service sector in developing countries is propelling the office furniture demand. Geographic expansion of multinational companies along with growth in retail network will boost the industry share.
The Asia Pacific is expected to dominate the global furniture market, accounting at over USD 400 billion by 2024.
China, India, Japan, and South Korea are currently the leading furniture markets in the region, and easy availability of raw material and economical labour supported by a booming real estate sector are fueling the revenues of these businesses. A growing balcony and outdoor furniture demand along with government spending on public infrastructure is expected to enhance the business landscape over the next few years.
The global furniture market share is highly competitive with the presence of large number of domestic and global players. Key industry players include Ashley Furniture Industries, Okamura Corporation, La-Z-Boy Inc., Haworth Inc. Steelcase, Inter IKEA Group, Kohler Co., and Global Furniture Group. Other prominent players include the Home Depot Inc., McCarthy Group Ltd, Heritage Home, Herman Miller, and Humanscale Corporation. The key strategies observed among the industry participants include M&A, distribution channel, and design innovations. For instance, in June 2018, Herman Miller acquired a stake in Nine United Denmark A/S to expand its product portfolio.