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The furniture logistics market size is estimated to grow at a CAGR of 6.71% between 2022 and 2027 and the size of the market is forecast to increase by USD 42.23 billion. The expansion of the market hinges on various elements, such as the surging requests for furniture in both residential and commercial domains, the escalating disposable income among consumers in emerging nations, and the mounting preference for modular furniture and personalized designs.
This report extensively covers market segmentation by type (transportation, warehousing, and distribution), end-user (furniture factory and furniture distributor), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
This is due to increasing consumer disposable income, economic growth, and rising levels of urbanization along with changing lifestyle patterns of the middle class who seek furniture pieces that meet their personal style and taste. For instance, consumers who are environmentally conscious are increasingly demanding eco-friendly furniture. Additionally, workplaces are transforming due to the recognition of the importance of productive and collaborative work environments, in which furniture plays a part and influences interaction and productivity. There is also greater ease of furniture shopping through e-commerce platforms with a wide variety of furniture designs, styles, prices, features, and the option of doorstep delivery services as well. Hence, these factors are likely to result in the growth of the global furniture logistics market during the forecast period.
Automation, AI, and predictive analytics are transforming supply chain management and optimization, improving the efficiency of their core business activities. For instance, IKEA has cut costs by 20% by dependence on automated systems, such as warehouse management systems (WMS) to streamline their processes and manage their warehouse operations.Additionally, AI-based forecasting systems can analyze sales data and trends, incorporate customer feedback, and forecast demand with greater accuracy. Yet another innovation, predictive analytics can also result in massive cost savings by utilizing weather forecasts, traffic data, and social media trends. It then forecasts demand, reducing delivery times and providing a better customer experience. Hence all the above factors are likely to propel the growth of the market during the forecast period.
The high cost of transportation directly impacts the profitability of the global furniture logistics market and is due to the large costs of transporting large, bulky, and often fragile furniture items across long distances. One more factor that adds to this cost is the rising cost of fuel which results in transportation costs increasing even further. As a result, the end price that the consumer bears is also increased.Additionally, the cost of heavy transport equipment such as large trucks, cranes, forklifts, and loading docks and the cost of manual labor used in the transportation process is also high increasing the total logistics costs. Hence, these features of furniture transportation are likely to negatively impact the global furniture logistics market during the forecast period
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Furniture Logistics Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Anton Rohr GmbH and Co. KG - The company offers furniture logistics services such as cabinet furniture logistics, upholstered furniture logistics, and warehouse logistics.
D.B. GROUP Spa - The company offers furniture logistics solutions such as FCL and LCL sea and air consignments, and daily departures for Europe and Russia.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the transportation segment will be significant during the forecast period. Out of the various modes of transportation available, air transportation is preferred for the long-distance transportation of high-value, low-volume furniture items. Sea transportation is also a cost-effective method for the transportation of large shipments of furniture, especially for large shipments. When it comes to domestic transportation, land transportation by road and rail is preferred.
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The transportation segment shows a gradual increase in the market share of USD 51.04 billion in 2017 and continued to grow by 2021. Companies are seeking out innovations to further optimize transportation and delivery, to ensure fast, cost-effective, and environmentally friendly services to their customers, such as Amazon investing in electric vehicles (EVs) for transporting furniture. Hence, the above factors are likely to boost the growth of this segment of the global furniture logistics market during the forecast period.
The furniture factory segment possesses state-of-the-art machinery and skilled workers who are specially trained to produce high-quality furniture items. One of the largest success stories in the global furniture logistics market is IKEA, a Swedish furniture manufacturer with operations across 52 countries in the world. These furniture factories also are vital in ensuring the timely transportation of furniture items from the factory to retailers and finally to consumers. They must ensure coordination between retailers and logistics companies across the globe throughout the process. Hence, all these factors are likely to result in increased demand from the furniture factory segment of the global furniture logistics market during the forecast period.
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Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. APAC is a huge global player in the global furniture logistics market with some of the world's largest economies including China, Japan, and India. Part of the reason this is observed is due to the high population in this region with more than four billion people living in the region and forming a large market for furniture manufacturers and retailers. Particularly, China and India have seen an increase in the disposable income of their middle-class population, low labor costs, and various furniture outlets. Furthermore, the shifting trend towards E-commerce is also likely to propel the growth of the regional furniture logistics market during the forecast period.
Major supply chain disruptions and closures of various operations in the regional furniture logistics market occurred in 2020 due to the COVID-19 outbreak. They caused large-scale logistical challenges and negatively impacted the regional furniture logistics market. However, the resumption of manufacturing activities and the increasing trend towards e-commerce models by various end-user industries are predicted to boost the growth of the market during the forecast period.
The furniture logistics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Furniture Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.71% |
Market growth 2023-2027 |
$ 42.23 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.9 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anton Rohr GmbH and Co. KG, ASHLEY LOGISTICS SOLUTIONS LTD., Asian Logistics Agencies Srl, Barrett Distribution Centers, Bocker Maschinenwerke GmbH, CITYXFER, ColliCare Logistics AS, D.B. GROUP Spa, DACHSER and KOLB, DB Schenker, Deutsche Post AG, FOCUS FURNITURE LOGISTICS, Gebr. Roggendorf GmbH, Homepack Smart Logistics, Noatum Holdings SLU, Rohlig Logistics GmbH and Co. KG., Savino Del Bene Spa, Trans.INFO Sp z o o, Trasporti Internazionali Transmec SPA, Warehouse Specialists, LLC, and Xp log |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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