The furniture market demand is majorly driven by escalating expenditure on residential construction for the growing populace along with the ongoing trend of urbanization reinforced by regional governments in tandem with the increasing demand for remodeling services in the developed economies of North America and Europe. As the global tourism sector depicts an increase in popularity and remuneration, particularly in MEA, Europe and Asia Pacific, the overall furniture market share is anticipated to exhibit an upsurge.
Garden dining and outdoor living have emerged as two of the most popular fads post the millennium. In conjunction with the prevailing social gatherings and the rise in the number of restaurants and hotels, this would further help augmenting the demand for outdoor furniture. The advent of smart and eco-friendly furniture has also helped stir consumer interest, that would provide furniture market players with novel growth opportunities. Of late, there has been a massive turnaround in the way in which residential homes are constructed – the change has paved the way for easily movable and multipurpose furniture, which would further impel the global furniture market.
What are some of the crucial factors that will be driving the market globally?
Increasing household spending along with rapid commercialization have been responsible for the growth of the furniture industry, specifically in the emerging economies. Growth in service sector in developing nations is also steering the demand for office furniture. Additionally, the industry is expected to receive a boost via geographical expansion of multinational ventures and a sharp rise in retail network.
An upgrade in the distribution network coupled with the penetration of low cost products would help expedite the valuation held by the industry. As disposable incomes continue to surge and design innovations become commonplace, the demand for luxury furniture is anticipated to increase. The perforation of online stores and e-commerce marketplaces in emerging economies have also substantially contributed to the industry growth.
Which is one of the most prominent applications in this market?
Commercial applications are projected to depict the fastest growth rate in the ensuing years, perhaps on account of the increasing count of tourists in Asia Pacific and Middle East in conjunction with a rise in the number of luxury hotels in these zones. The sector is inclusive of sub-verticals such as healthcare, hospitality, education, corporate, and the like. As per report, educational institutions and the hospitality industry will exhibit a major demand for furniture, thereby emerging as the key contributors for the overall furniture market from commercial applications.
Which material will be most preferred by consumers?
In 2017, the material wood dominated the global furniture market with a revenue share of 60%. The material is anticipated to remain one of the most preferred materials for consumers, perhaps driven by the extensive availability of options such as Cedar, Fir, Redwood, Teak, mahogany, and others, along with superior product finish. The material strength as well as high durability coupled with lower price variants would escalate the demand of wood, enabling the material to continue its dominance over 2018-2024.
Which region will emerge as a lucrative growth ground for furniture market contenders across the globe?
The Asia Pacific is anticipated to dominate the furniture market by 2024, aided by the contribution from countries such as South Korea, Japan, India, and China. As per estimates, APAC furniture industry size will be valued at more than US$400 billion by 2024, powered by the expanding real estate sector supported by the easy availability of economic labor and raw material. The ever-growing hospitality industry in China, India, Indonesia, and Malaysia would further boost the regional industry growth.
Another factor that will drive the expansion of APAC furniture market is the demand for balcony and outdoor furniture coupled with government spending on public infrastructure.