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The Online Home Decor Market size is forecast to increase by USD 73.93 billion, at a CAGR of 9.26% between 2023 and 2028. Several factors play a crucial role in the market's growth, such as the rise in online spending and smartphone penetration, the increase in demand for multifunctional furniture, and the rising popularity of blogs related to interior designing. The market analysis and report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 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.
The rising popularity of blogs related to interior designing is the key factor driving market growth. Consumers spend more on designer and unique home decor products, including curtains, cushion covers, tables, cupboards, beds, and floor coverings. The growing income of consumers and the increasing penetration of social media have increased consumers inclination toward interior designing and unique designer home-improvement products. Further, online sale platforms play a major role in generating consumer interest in interior design. Independent bloggers and design partners with popular e-retailers and standard-quality websites intimate customers about the latest trends and products.
For instance, Apartment Therapy LLC is a lifestyle blog and publishing company focused on home design and decor. Major home decor players also offer dedicated services to help consumers plan their interior design. For example, Homevista Decor and Furnishings Pvt. Ltd., through its website homelane.com, offers the services of its own interior designers who help homeowners with customized and efficient home designs with great functionality and aesthetics. The rising popularity of interior design blogs will fuel the demand for trendy home furnishings, thereby supporting market growth during the forecast period.
The enhancement of consumer experience through technologies is the primary trend shaping market growth. The integration of various technologies, such as AR and VR, by market players has helped customers to choose the best home decor products for their homes. The AR and VR application allows users to input the dimensions of rooms in their homes into the app and then select items from the catalog offered by the company. Consumers can virtually see all the different colors and textures of the product by pointing their smartphone at a particular item of furniture.
For instance, in July 2022, Nextech AR Solutions Corp., a global provider of AR, announced that it is now a three-dimensional model supplier for the largest prime e-commerce marketplaces, such as Amazon.com Inc. and other home decor companies. Therefore, such technological innovations allign with market trends and analysis will fuel the growth of the market during the forecast period.
A long product replacement cycle resulting in infrequent purchases is a challenge that affects market growth. Unlike fast-moving consumer goods, home decor items typically have a longer lifespan, requiring fewer replacements or upgrades. Several factors influence the extended product life cycle. Further, consumers do not have to replace home decor items like furniture, wall art, and fixtures items as frequently, resulting in fewer transactions in the online home decor market. Also, consumers may decide to keep their current home decor items until a major lifestyle change, relocation, or a significant shift in design trends prompts them to reconsider updating their decor.
In addition, the perception of home decor as a more significant and thoughtful investment than everyday items influences infrequent purchases. Prior to making a purchase decision, consumers frequently conduct extensive research, taking into account factors such as style, quality, and functionality. This deliberate approach leads to longer periods between home decor purchases. Therefore, long replacement cycles of home decor products affect the volume of sales, which serves as a major challenge for the market during the forecast period.
The market forecasting 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 market growth analysis strategies.
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.
The market research and growth 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 online home furniture segment is estimated to witness significant growth during the forecast period. Home furniture includes products such as chairs, tables, beds, sofas, cupboards, stools, desks, and benches. These products are made of metal and wood and are used by residential consumers. The preference for online shopping is increasing, backed by the growing Internet penetration rate and the increasing number of smartphone users worldwide. The online channel allows manufacturers to expand their distribution networks by partnering with third-party e-retailers or establishing their own online shopping portals.
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The online home furniture segment was the largest segment and valued at USD 47.50 billion in 2018. Market players such as Wayfair LLC and Inter IKEA Holding BV are making the best use of these technologies to boost the sales of home furniture items online. The online sale of home furniture products accounts for the smaller sales revenue of the global furniture market as the market is dominated by brick-and-mortar retail outlets and specialty stores. Factors responsible for the growth of online sales are the increasing number of online vendors, increasing Internet penetration rate, improving logistics infrastructure in potential and emerging economies, and growing smartphone adoption. Therefore, the online home furniture segment will witness moderate growth in the market during the forecast period.
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APAC is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In 2023, the market in APAC was led by China, followed by Japan and South Korea. The key factor that drives the market in the region is the growth of the real estate sector for both residential and commercial properties. Japan, China, and South Korea are the three prominent countries that account for a major proportion of the market revenue. China is the most populous country in the world. With increasing urbanization, the demand for real estate is on the rise in the country, which, in turn, will increase the growth of the online furniture market.
Moreover, the region is witnessing demand for multifunctional furniture due to the shrinking residential spaces along with the rise in population. The fast pace of urbanization and increased residential rentals have compelled people and nuclear families, especially in China and India, to opt for apartments or smaller residential spaces. This will trigger the demand for multifunctional furniture in countries such as India and China, which will subsequently support the growth of the market in APAC during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The global home decor market encompasses a wide array of products and designs, catering to various spaces such as the office, clean room, restaurants, camping sites, bedrooms, libraries, and more. From textiles to home textiles, manufacturers employ both machine-based processes and handcrafting techniques to meet consumer demands. The market is characterized by the presence of multiple vendors, including international players and regional players, serving diverse customer segments, including those residing in small-size houses seeking extra storage solutions and aesthetical appearance enhancements. As consumer awareness grows, the demand for eco-friendly home decor products rises, driven by increasing disposable income and higher living standards among high-income consumers.
However, challenges such as the proliferation of counterfeit products and low-quality offerings persist, necessitating stringent quality control measures and leveraging skilled labor for transportation and infrastructure facilities. The market thrives on trendy, customized, and fashionable designs, offering products tailored to different income groups and price points, including luxury home decor products and those from low-cost home decor producers catering to diverse consumer preferences in kitchen, living, bathroom, and beyond.
Online Home Decor Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.26% |
Market Growth 2024-2028 |
USD 73.93 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.84 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 38% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amazon.com Inc., Ashley Global Retail LLC, Beyond Inc., Century Furniture LLC, Chairish Inc., Coyuchi Inc., D decor, Home24 SE, Inter IKEA Holding BV, LaZBoy Inc., LOWES COMPANIES INC., MillerKnoll Inc., Otto GmbH and Co. KG, Pepperfry Pvt. Ltd., Pier 1 Imports Online Inc., Reliance Industries Ltd., The Home Depot Inc., Urban Outfitters Inc., Wakefit Innovations Pvt. Ltd., Walmart Inc., and Williams Sonoma Inc. |
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, and market condition analysis for the 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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