GMI: Worldwide Furniture Market to surpass USD750 Billion by 2024

The residential furniture market is expected to expand at over five per cent CAGR up to 2024 driven by socioeconomic development along with housing subsidies by governments along with increasing necessity to accommodate a rising population. Household renovations have observed a strong demand in the past and are anticipated to witness significant gains over the forecast timespan.

Commercial application crossed USD 150 million in 2017 and is projected to be the fastest growing segment in the global furniture market. Commercial application majorly includes offices, educational institutions, hospitality, and healthcare sector. Hospitality and educational institutions are among the key contributors to the commercial segment growth. Rising count of tourists in Middle East and Asia Pacific supported by increasing number of luxury hotels are stimulating the business expansion.

Wood furniture will continue to dominate global market

According to Global Market Insights, Inc., furniture market size is estimated to surpass USD 750 billion by 2024. Wood furniture dominates the global market with 60% share in 2017 and is expected to continue its dominance during the forecast timeframe. Superior product finishes along with availability of extensive wood options including mahogany, Teak, Redwood, Fir, Cedar, and others are among the key factors driving the wooden furniture market growth. High durability and strength along with availability in lower price variants and higher-end segment will proliferate the wood material demand over the next few years. Preference in green buildings will positively influence the product sales.

The U.S., China, Japan, India, and Brazil are among the potential countries for market growth. As per FurnitureToday report published in 2017, the U.S. is the largest furniture importer globally, registered over USD 24.5 billion imports. Residential construction is the fastest growing segment in the North American construction market. Substantially lower lending rates coupled with higher consumer spending are among the major factors which make the region most lucrative for manufacturers.

APAC expected to account for USD 400 billion by 2024

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 the leading markets in the region. Easy availability of raw material and economical labour supported by the booming real estate sector are fueling business revenues. The developing hospitality industry in Malaysia, Indonesia, India, and China will boost the industry’s growth. Growing balcony and outdoor furniture demand along with government spending on public infrastructure will enhance the business landscape over the next few years.

The global furniture market share is highly competitive with the presence of a large number of domestic and global players. The 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.