Increasing infrastructural development coupled with rising design innovations to drive the global furniture market by 6%
The furniture market is driving due to increasing residential and commercial investments combined with product design innovations. The major construction markets in the world include India, China and the US. Changed consumer trends and increasing launch of products will stimulate growth of the global market over the forecast period. Changing lifestyles and changes in consumer buying patterns will boost the demand for furniture across the globe. Regional expansion of famous brands will boost the development of industry by offering low cost residential furniture. IKEA, for example, started its first business in India in August 2018 to increase its share in the industry.
Increasing demand for outdoor furniture, especially in developed countries, will fuel the development of the industry; thanks to open-air dining — one of the major drivers in the global furniture market. Increasing number of outdoor restaurants supported by high leisure expenses will have a positive impact on the industry’s turnover. Over the predicted timeframe the industry will continue to benefit by technological advances to the development of smart furniture.
The demand for luxury furniture will significantly increase with increasing disposable income, accessibility and new designs. The business growth will increase with easier access to raw materials, greater competitiveness of the industry, as well as improved product and colour options. The major contributors to commercial furniture growth are offices, hospitality institutions and educational institutions. With growing investment, travel & tourism is expanding further, increasing the size of the furniture market between 2018 and 2025. According to the WTCC, the investment in travel and tourism in the next few years will increase by around $883 billion in 2017 and will grow by 4.3%. The global market share will increase with lower prices along with online shop penetration in emerging economies. The growth of industry will be strongly supported by increasing residential renovation and remodeling demand. Increased demand for replacement infrastructure supported by increased social meetings offers possible opportunities over the timeframe of the forecast.
Asia-Pacific region to dominate the global market with residential to be the major application segment
Asia-Pacific is expected to grow by approximately 5.5% by 2024. Regional growth is driven substantially due to the development of the economy in the regional construction sector and favorable FDI policies. Through favorable areas of geography and favorable FDI policies, the thriving hospitality sector will stimulate business development, particularly in Thailand, Indonesia, Singapore, Malaysia and Vietnam.
In 2017, North America’s furniture industry stood at more than 6.5 million tons, with significant growth expected by 2025. Tendency to eat and live outside supplements the expansion of furniture business. Government initiatives to support other residential and commercial buildings will also stimulate the growth of the global furniture market.
The residential furniture market is projected to produce more than USD 499 billion by 2025. Booming private housing construction and government spending on new residential infrastructure will boost business demand. The growth of the market is being fueled by the expansion of residential and remodeling projects in Europe. In line with the U.S. demand for furniture, the Census Bureau, completed 795,000 homes in the country in 2017. Rapid city development and rising household income are key factors that stimulate market growth in developing countries. Dining area and bedroom area play an important role in the growth of this market.
Ashley Furniture Industries, Steelcase, Okamura Corporation, Inter IKEA Group, La-Z-Boy Inc., Kohler Co. as well as Haworth Inc. among others are some major players operating in the global market.