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The home furnishings market size is forecast to increase by USD 472.4 million at a CAGR of 6.78% between 2023 and 2028. The growth of the market depends on several factors, including increasing interest in interior design, growing demand for high-end and luxury home furnishings, and rising demand for multifunctional home furniture. Growing demand for high-end and luxury home furnishings is driving the global market. Consumers seek unique and designer furnishings, especially luxury floor coverings, in emerging markets like Brazil and China. In addition to interior accessories such as bedding, curtains, and rugs, there's a growing demand for high-quality lighting, appliances, and textiles. The allure of designer mirrors and cabinets adds sophistication to modern living spaces, while upholstery and mattresses provide comfort and style.
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The market is evolving with smart furniture gaining popularity, especially among single- and two-person households. Online stores are driving sales, particularly in emerging economies. Trends include small, portable furniture, multi-purpose furniture, and foldable furniture, catering to space-efficient living. Technology-driven furniture is on the rise, addressing sustainability concerns. Despite trade restrictions and lockdowns, the home furniture manufacturing market sees growing revenues. Living room furniture like couches, coffee tables, and entertainment centers are crucial for creating a trendy living room—an inviting space for families, guests, socializing, watching TV, and relaxing.
Increasing interest in interior design is a key factor driving market growth. Consumers worldwide are increasingly investing in the interior design of their homes, opting for the best products and concepts they can afford. This trend includes expenditures on designer home furnishings such as furniture, floor coverings like carpets and rugs, and home textiles such as curtains, cushion covers, beds, and other items that enhance aesthetic appeal.
Furthermore, rising income levels, evolving lifestyles, greater media exposure, and the adoption of various cultural influences have fueled an interest in interior design. Additionally, the growing number of working women and their involvement in home decoration decisions are boosting sales. These factors are prompting consumers to spend more on designer and luxury furnishings, driving market growth during the forecast period.
An increase in demand for eco-friendly home furnishings is the primary trend shaping the global market. Factors such as growing environmental consciousness and concerns for a healthy and green environment have increased the demand for eco-friendly furniture and other furnishings. Awareness about deforestation, climate change, and the effects of toxic finishes in the air inside homes has compelled several manufacturers to practice green and eco-friendly manufacturing processes.
Furthermore, manufacturers use only Moso bamboo, which is stronger and harder than oak, to offer a wide range of furniture that has an aesthetic appeal. For instance, companies such as Bjarke Ingels Group and PALECEK are involved in the manufacture of eco-friendly furniture. A few agencies, including the Forest Stewardship Council and the Sustainable Furnishing Council, certify and help the industry manage issues on environmental sustainability. Thus, increasing demand for Moso bamboo furniture will drive the global market during the forecast period.
Uncertainty in the prices of raw materials is the key challenge impeding the growth of the global market. Owing to the rising prices of high-quality raw materials impact the manufacturing costs of home furnishing products. This additional cost is usually transmitted to consumers through increased prices. This can restrict volume sales. Recent hikes in commodity prices and the scarcity of raw materials have had a potentially negative impact on the global market.
However, the increased manufacturing capacity in China has created a global shortage of raw materials. Similarly, the market has been hit by frequent rises in the prices of raw materials. This is evident in the prices of natural floor covering fibers, such as linen, wool, silk, jute, and cotton. The prices of artificial fibers such as polypropylene and polyamide have also increased. The sheer scale and frequency of commodity price rises for other home furnishing products have also posed a significant challenge to the global market. This factor impedes the global 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 and forecasting strategies.
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.
American Furniture Manufacturing Inc.: The company offers home furnishings services and solutions such as stationary and motion sofas, sectionals, recliners, and chairs complimentary accent tables.
The research 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 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 home furniture segment is estimated to witness significant growth during the forecast period. The segment accounts for more than half the market share due to its necessity in most residential buildings, villas, and bungalows. APAC, especially countries such as China, India, and Japan, is the fastest-growing in the market. This is because of the rise in average dual-household income and an increase in population. The market is expected to receive traction during the forecast period due to the demand for luxury furniture.
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The home furniture segment was the largest segment and was valued at USD 534.80 million in 2018. This segment categories include living room, bedroom, and kitchen furnishings. Consumers have also started to place a high value on bathroom furniture, with a strong demand for country and rustic-style furniture. Furthermore, trends such as the construction of prayer rooms, gymnasiums, children's rooms, and study rooms in modern houses are expected to boost market growth during the forecast period. Thus, because of the above factor, the growth of the market shows growth through the home furniture market segment during the forecast period.
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Europe is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period.
The demand for the European home furnishing market is expected to increase during the forecast period, due to the high demand for aesthetically appealing luxury products made of good-quality raw materials. Germany, Italy, and France are the three leading markets in Europe, with France being one of the largest importers in the European market. Furthermore, another factor that drives the growth of the European market is the increasing construction of residential buildings. For example, according to The World Bank Group, the EU's urban population (% of the total) increased from 74.30% in 2018 to 75% in 2021. Urban population expansion is expected to increase the need for housing construction projects during the forecast period., increasing the demand in Europe during the forecast period. The Europe and US markets showcase robust growth, driven by a blend of traditional craftsmanship and contemporary design preferences, catering to diverse consumer tastes. Therefore, the above-mentioned factors will drive the growth of the regional market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is shaped by changing trends and consumer preferences, impacting the furniture industry. Home furnishing retailers adapt to these shifts, offering trendy living room furniture that enhances aesthetics and creates a perfect gathering space. Items like shelves, artwork, and plants contribute to stylish decor. Additionally, kitchenware remains a key component in the home furnishings industry. Despite fluctuating lending rates, the home furnishing industry continues to thrive, responding to the demands of the home market with innovative and appealing products.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 472.4 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 39% |
Key countries |
US, Germany, France, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Furniture Manufacturing Inc., Ashley Global Retail LLC, Bassett Furniture Industries Inc., Bed Bath and Beyond Inc., Duresta Upholstery Ltd., Ethan Allen Interiors Inc., Future Group, Godrej and Boyce Manufacturing Co. Ltd., Inter IKEA Holding BV, Kroger Co., Mannington Mills Inc., MillerKnoll Inc., Mohawk Industries Inc., Otto GmbH and Co. KG, Penney OpCo LLC, Pepperfry Pvt. Ltd., Shaw Industries Group Inc., Steinhoff International Holdings NV, Tvilum AS, and Wayfair Inc. |
Market dynamics |
Parent market analysis, Market forecast, 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. |
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 Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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