Furniture Market is Estimated to Observe 5.1%CAGR till 2025
Posted by markettrends on January 8th, 2020
The global Furniture Market size is expected to reach USD 718.3 billion by 2025, according to a study conducted by Grand View Research, Inc. It is projected to expand at a CAGR of 5.1% over the forecast period. High demand for branded home furniture coupled with rising spending capacity of consumers on home decor products are some of the driving factors for the growth of this market. Additionally, government initiatives to provide housing for all is also expected to positively impact the growth. For instance, since the last few years, Germany has witnessed immigration of various refugees and migrants resulting in rising demand for housing or shelter. Owing to this, the government of Germany is encouraging public and private developers to build new rental flats to solve the issues like shortage of affordable housing, resulting in a supplementary demand for furniture products.
The commercial segment includes hotels, offices, and other public buildings. It held a market share of more than 30.0% in 2017 and is anticipated to register substantial CAGR over the forecast period. This growth is attributed to extensive industrialization due to expanding development of corporate offices and hotels. For example, India is one of the key countries witnessing an extensive establishment of IT parks.
Furthermore, increasing job opportunities and employment across the globe creates a need for additional office spaces, which subsequently fuels demand for office furniture. This is also a prominent factor expected to bolster growth of the furniture market. Companies are adopting innovative furniture to enhance workforce productivity and to inculcate creativity in workspace. For instance, in March 2017, Microsoft Corporation announced its collaboration with Steelcase. Steelcase offers a diverse range of architecture, furniture, and other technology products. This collaboration was intended to introduce creative and modern furniture in the work space with a view to boost productivity and creative thinking.
Additionally, growing global population has led to a requirement for an increase in the number of schools, colleges, and other educational institutions, resulting in rapid infrastructural growth. The growing demand for furniture from the hospitality industry is also a key factor boosting growth of the commercial segment. Furthermore, rising requirement for furniture from restaurants, coffee shops, and bars, among others is expected to accelerate market growth. Increasing global competition, high cost of raw material processing and labor, and ageing workforce are some of the key challenges likely to hinder market growth.
The residential segment in North America is expected to expand at the highest CAGR over the forecast period owing to the presence of key players offering luxurious interior design products. Consumer inclination towards purchasing luxury furniture can further drive the regional demand. Additionally, increasing adoption of modern furniture and the growing popularity of online distribution channels that offer convenience and time-saving during furniture purchase are anticipated to fuel growth. Furthermore, growing demand for multi-functional products, in addition to the rising awareness about environmental concerns and the use of eco-friendly products are anticipated to gain prominence in U.S.
Middle East is expected to witness significant growth over the forecast period owing to boosming commercial and industrial sectors. The government of Kuwait has invested substantial amount of capital in the construction of public hospitals and other healthcare infrastructure. Additionally, increasing investments from private and public sectors aimed at expansion of commercial and residential construction projects in the country is another factor contributing to market growth.
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Further key findings from the study suggest:
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