Global Furniture Market to witness massive growth by 2024

September 05, 2019

Global furniture market is predicted to grow substantially by the year 2024, according to the latest research available at Market Study Report LLC, report provides extensively data on market share, growth, trends and forecasts for the period 2018-2024.

Growing investments in residential infrastructure assisted by material & technological developments, offering innovative storage solutions and durability are boosting furniture market growth. Rapid increase in population along with growing disposable income, mainly in developing economies, is positively influencing residential furniture market growth.

Based on regional landscape, the U.S., India, Japan, Brazil, and China are some of the prominent countries for market growth. According to a report published by Furniture Today in 2017, the U.S. was the biggest furniture importer in the world with more than US $24.5 billion worth imports. Residential construction sector is rapidly growing in Northern America. Lesser lending rates along with higher spending power are the main factors making the region most profitable for furniture manufacturers.

Moreover, APAC is the fastest growing region in construction industry due to lower interest rates and growing FDI (Foreign Direct Investment) inflows. The rising tourism supported by expansion of hospitality industry, specifically in Indonesia, Malaysia, and Thailand is driving the demand for furniture in the commercial segment. Citing an instance, according to the India Ministry of Tourism, number of tourists in the country has gone up  from 5.78 million in 2010 to 8.03 million in the year 2015.

Betterment in standard of living due to growing disposable income, rising purchasing power, and willingness to live in a good environment is fueling the investments on decoration and home improvements in China. Low product cost, due to the high competition in country’s furniture market is supporting the market outlook.

European furniture industry has more than 130,000 companies producing an annual turnover of around US $110 billion. European Union production satisfies most of the in-home demand. The region is known to have consumed more than 85% of its total production in the year 2017. Rising demand for imported furniture is restricting the local manufacturing market stake.

However, Europe is expected to surpass US $200 billion revenue by the year 2024,owing to the fact that the production of regional companies coming from plants outside the region has increased over the last 10 years. Quarter of world’s furniture market share is held by Europe, while Italy, Germany, Poland, and France rank among the top ten global manufacturers with 13% stake of global production, cites the report.

Based on the material type, wood held over 60% of the demand and is anticipated to continue its dominance in the market overthe projected time period. Some of the wood types commonly used across furniture market are Teak, Cedar, Mahogany, Birch, Redwood, Fir, etc. Based on its physical structure, wood can be classified as hardwood andsoftwood. Hardwood is extensively used insuperior quality furniture while softwood is used in medium density products.

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According to the report, furniture market from commercial application recorded more than US $150 million in 2017. Rapid commercialization in emerging economies coupled with the subsequent directives for operational spaces are driving market growth. The need for real estate construction is predicted to foster during the projected time period, thereby guaranteeing sustainable growth for the market participants.

Additionally, furniture market from residential application is anticipated to grow with a CAGR of more than 5% by the year 2024. Growing necessity to accommodate increasing population is likely to fuel the residential market over the projected time period. Socioeconomic development coupled with housing subsidies by governments will positively impact the market growth. Household renovations have registered a strong demand in the past and are predicted to witness substantial profits over the analysis period.

Global market share is highly fragmented owing to the presence of companies at global and regional levels. Some prominent companies functioning in the furniture market include Inter IKEA Group, Ashley Industries, Steelcase, Herman Miller, Inc., Okamura Corporation, Home Depot, Inc.,La-Z-Boy, Inc., Godrej &Boyce Manufacturing Co., Ltd., and HNI Corporation among others.