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The Global Home Decor Market size is estimated to grow by USD 289.49 billion between 2022 and 2027 accelerating at a CAGR of 7.27% during the forecast period. The growth of the market depends on several factors, including rising smartphone penetration and online platforms, the growing importance of innovative, customized furniture, and the rising popularity of blogs related to interior design.
This report extensively covers market segmentation by product (furniture, floor coverings, and others), distribution channel (offline and online), and Geography (APAC, North America, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
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APAC is estimated to contribute 50% 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 home decor market in APAC captured the highest share of the market in 2022. This is attributed to the rising disposable income, the recovery of the real estate industry, increasing urbanization rates, and rising awareness levels. Rising urbanization has increased the number of new households being set up. Currently, nearly half of the APAC population lives in urban areas, and this is expected to increase further in the coming years. Thus, this will create a positive impact on the demand for home decor products. Additionally, the recovery of the regional real estate industry is expected to drive homeownership rates, creating a positive impact on this market. Another major factor driving this market is the strong performance of the online retail sector. The advent of online retail has made home decor products easily available, affordable, and convenient to buy. Thus, the aforementioned factors are expected to drive the growth of the regional market during the forecast period.
COVID-19 led to the imposition of lockdowns in 2020-2021. This has further led to the closure of offices and the shifting of operational activities to homes. However, in 2021, mass vaccination drives and other government initiatives resulted in the removal of lockdowns and the resumption of business operations. The home furniture segment is flooded with many online startups and various already-established companies venturing into the digital space to reach out to a larger customer base. Hence, this will drive the growth of the market in the region during the forecast period.
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.
The market is experiencing notable growth, primarily propelled by the increasing significance of innovative and personalized furniture. The trend of customizing furniture has gained substantial momentum, driven by growing awareness of technologically advanced smart furniture. This awareness has led consumers to exhibit a heightened interest in tailoring furniture units to align with their individual preferences.
Prominent furniture manufacturers like IKEA and Ethan Allen are actively involved in pioneering furniture and fabric customization. They are attracting a diverse range of consumers who seek to design their furniture, including specifying the type of wood used in its construction. For instance, in December 2022, IKEA unveiled plans to create multifunctional furniture capable of seamlessly transforming from one function to another, adapting to changing needs throughout the day and night. As a result, the ongoing innovation in furniture by market vendors will be a driving force for market growth in the forecast period.
The market trend is towards enhancing consumer experience through technology. The home decor segment has witnessed the evolution and development of technology, where the use of augmented reality (AR) and virtual reality (VR) applications has become prominent. These apps enable users to input room dimensions into the app and select items from a catalog offered by the company. By pointing their smartphone at a particular item of furniture, consumers can virtually see the different colors and textures of the product. They can also view similar products in the same range, helping them select the desired home decor items. Additionally, customers can order the items online directly through the app.
For example, in July 2022, Nextech AR Solutions Corp., a global AR provider, announced that it is now a supplier of three-dimensional models for the largest e-commerce marketplaces such as Amazon and other home decor companies. Such technological advancements are expected to drive the growth of the market during the forecast period by enhancing the consumer experience.
The primary obstacle hampering market growth is the considerable volatility in both raw material prices and transportation costs. The shortage of furniture has led to a significant increase in raw material costs. For instance, polyurethane foam, used in seat cushioning, faced shortages in late 2020, resulting in persistently high prices. Other essential furniture materials like springs, fabrics, board materials, mechanisms, feathers, fiber, and packaging materials have also experienced escalating costs, creating pricing challenges due to continual fluctuations.
Furthermore, transportation capacity limitations and tariff hikes have compounded the issue. Freight expenses have surged from comprising around 5% of sourcing costs to exceeding 20% for lower-value product shipments. These cost increases or shifts in product availability can be the initial indicators affecting consumers. Manufacturers, facing elevated expenses, are forced to raise the final product prices. Consequently, this constraint is expected to impede market growth during the forecast period.
The market 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 Home Decor Market Customer Landscape
Vendors 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.
Armstrong World Industries Inc. - The company offers home decor solutions such as raised panels, EASY ELEGANCE deep coffer white, WOODHAVEN beadboard under the architectural specialities segment. Under this segment, the company produces designs and sources ceilings and walls for use in commercial settings.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The home decor market share growth of the furniture segment will be significant during the forecast period. The furniture segment captured the highest share in the global home decor market in 2022. The growth is linked to the rising popularity of wooden furniture among middle- and high-income communities, who value it for its higher quality and aesthetic appeal. The growing use of modular kitchens and closets is also significantly influenced by Western society.
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The furniture segment was valued at USD 316.14 billion in 2017 and continued to grow until 2021. Additionally, changing trends toward the adoption of eco-friendly products has led to an increase in the usage of eco-friendly products in various sections of the home, including the bedroom, bathroom, outdoor space, and indoor space. In addition to pinewood as an alternative, various raw materials such as metal, plastic, glass, and leather have made strides in the market. These factors will drive the growth of the furniture segment in the market 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 2017 to 2027.
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Home Decor Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.27% |
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Market growth 2023-2027 |
USD 289.49 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.75 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 50% |
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Key countries |
US, China, India, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Armstrong World Industries Inc., Ashley home stores Ltd., Bed Bath and Beyond Inc., Costco Wholesale Corp., Duresta Upholstery Ltd., Forbo Management SA, Global Home Interiors, HANSSEM Co. Ltd., Home24 SE, Inter IKEA Holding BV, Kimball International Inc., Mannington Mills Inc., MillerKnoll Inc., Mohawk Industries Inc., Otto Home Goods, Penney IP LLC, Shaw Industries Group Inc., Springs Window Fashions LLC, Suofeiya Home Collection Co. Ltd., and Wayfair Inc. |
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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. |
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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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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 Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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