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The Furniture and Home Furnishing Market size is forecast to increase by USD 118.88 billion, at a CAGR of 3.46% between 2023 and 2028. Several factors play a crucial role in the market's growth, such as evolving consumer demographics in emerging economies, growth of organized retail sales and increase in residential and commercial construction.
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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.
Evolving consumer demographics in emerging economies are notably driving market growth. This is due to the evolution of consumer demographics, especially in emerging economies, which is increasing the sales of new furniture and home furnishing products. By 2050, approximately 2.4 billion people are estimated to populate urban and semi-urban areas, with a 90% increase in Asia and Africa. Hence, the demand for these products is expected to grow in these regions, which will increase the vendors' sales. Rapid urbanization has resulted in a consistent increase in wages and income levels across the world, especially in countries such as China and India.
In addition, the growth of double-income households in emerging economies, especially due to the rising participation of women in the workforce, is also a key factor in the evolution of consumer demographics. For instance, according to The World Bank Group, in India, the percentage of women in the labor force increased from 21.37% in 2012 to 24% in 2022. Hence, the evolution of consumer demographics in emerging economies is a key factor that will drive the during the forecast period.
Growing demand for personalized furniture and home furnishings is an emerging trend shaping market growth. Modern consumers seek out solutions that are unique and personalized to their specific interests, lifestyle, and aesthetics. This demand for customization spans multiple product categories in the industry, including furniture, textiles, and design items. Consumers, motivated by a desire for self-expression and a particular sense of style, are increasingly drawn to customizable alternatives. Technology plays an important part in supporting this trend, with online platforms and design tools allowing buyers to envision and customize things before purchasing. From sofas and beds to lighting fixtures and wall art, the market believes that each piece can be a distinct representation of a person's taste and lifestyle.
However, the demand for personalized products not only meets the consumer's desire for exclusivity but also fosters a stronger emotional connection between people and their living spaces, resulting in a more personalized and meaningful home environment. Owing to such factors, the market is expected to witness growth during the forecast period.
High exposure to global economic factors is a significant challenge hindering market growth. It also includes business confidence levels, investments, trade volumes, corporate spending, residential and commercial construction, and the globalization of businesses and companies. A downturn in global economic growth or in some key regions such as APAC, North America, or Europe will harm the market. When an economy is depressed and employment rates, as well as disposable incomes, are low, the purchases of furniture and home furnishing products tend to decline.
Furthermore, sanctions imposed by countries on other nations, such as Russia in 2022 after the starting of the Russia-Ukraine war, especially on wood products, can hurt the pricing strategy and profitability of vendors around the globe due to the introduction of counter-tariffs, which increase the cost of sourcing raw materials from other nations. Hence, high exposure to global economic factors is estimated to be a major hindrance to 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.
Ashley Global Retail LLC - The company offers furniture and home furnishing solutions such as Gachester panel bed with mirrored dresser and nightstand, sofa, couches, love seats and reclining.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 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 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 indoor segment is estimated to witness significant growth during the forecast period. he growing importance of providing comfortable and visually pleasing indoor spaces, influenced by home decor and lifestyle trends, drives up demand for indoor furniture and furnishings. Consumers emphasize indoor settings such as living rooms, bedrooms, and dining rooms, increasing sales of sofas, beds, tables, and ornamental goods.
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The indoor segment was the largest and was valued at USD 486.43 million in 2018. The growing emphasis on creating useful and appealing indoor settings, driven by factors such as remote working and home-centric lives, fuels the desire for creative and adaptable furniture options. Interior design trends, such as minimalist and versatile furniture, add to the popularity of interior furnishings. The advent of smart home technology has resulted in the incorporation of intelligent and linked furniture and furnishings into interior spaces, accelerating growth. The indoor application segment offers a varied selection of products, including seating, storage solutions, lighting, and design items. As customers continue to invest in improving their interior living spaces, the indoor application is expected to witness growth, which in turn will drive the market during the forecast period.
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APAC is estimated to contribute 44% 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. The market in APAC is estimated to witness new sales during the forecast period, owing to the onset of urbanization and increasing disposable income in emerging economies, especially due to various government policies and initiatives such as the Smart Cities Mission, the Swachh Bharat Mission (SBM), the Sardar Patel National Urban Housing Mission, the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and the Heritage City Development and Augmentation Yojana (HRIDAY) in India. China is one of the largest producers and exporters in the world. The country is focused on export-driven industrial production and high foreign investments.
In addition, countries such as Vietnam, Indonesia, China, and India are some of the world's fastest-growing economies. For instance, China is estimated to reach an urbanization rate of around 60% by 2020, as a significant proportion of the rural population is migrating to urban areas. This is estimated to increase the number of urban households and lead to a rise in purchasing power among people, which will become a key driver for the market in the region 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 dynamic home furniture market, encompassing both national chains and thriving independent stores, experiences constant evolution with innovative concepts like smart appliance. Amidst the market, factors such as low lending rates fuel the industry's growth, encouraging consumers to explore diverse options through online stores. The market adapts to changing trends, welcoming new entrants and catering to the specific needs of single- and two-person households with versatile solutions like small, portable appliances, multi-purpose appliances, and foldable appliances. The emergence of technology-driven appliances reflects changing consumer preferences, incorporating modern and contemporary designs while addressing sustainability concerns through the use of eco-friendly materials and optimized supply chains.
However, challenges such as trade restrictions and lockdowns impact the sector's dynamics. Within the realm of living room appliances, pieces like coffee tables, entertainment centers, and aesthetically appealing appliances contribute to revenue generation by creating visually appealing and trendy spaces. This makes the living room a central gathering place with comfortable and inviting appliances, ensuring a perfect blend of style and functionality in the ever-evolving home furnishing market.
Furniture and Home Furnishing Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.46% |
Market Growth 2024-2028 |
USD 118.88 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.42 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 44% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ashley Global Retail LLC, Bernhardt Furniture Co., Blu Dot Design and Manufacturing Inc., Ethan Allen Interiors Inc., Flexsteel Industries Inc., Godrej and Boyce Manufacturing Co. Ltd., Heritage Home Furnishings, Hickory Chair LLC, Hooker Furniture Corp., Inter IKEA Holding B.V., Kartell SpA, Kohler Co., LaZBoy Inc., MillerKnoll Inc., Minotti S.p.A., Oppein Home Group Inc., Raymour and Flanigan Furniture and Mattresses, Restoration Hardware Inc., Stanley Lifestyles Ltd., 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, 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 Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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