Furniture Market Latest Innovations And Challenges By 2030

Furniture Industry

The global furniture market was valued at USD 677.09 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 5.9% during the period from 2023 to 2030. This anticipated growth is attributed to several key factors, including the rise in disposable incomes, expansion in both the hospitality and housing sectors, ongoing advancements in the commercial construction industry, and an increasing worldwide preference for premium and luxury furniture. In addition, the rising capital expenditure on office infrastructure, primarily spurred by the development of regional business hubs across various nations, is likely to stimulate demand for office furniture throughout the forecast timeframe. Supporting this, a 2020 Economic Impact Study commissioned by the Building Owners and Managers Association (BOMA) in the United States indicated a growing trend in the establishment of business offices within the country.

Despite this positive outlook, the furniture market experienced a notable setback during the COVID-19 pandemic, which significantly influenced consumer purchasing behavior and disrupted manufacturing operations. Due to the financial strain faced by many during this time, consumers became hesitant to allocate spending toward non-essential goods, including home furnishings. Consequently, there was a marked decline in residential furniture demand. However, in the aftermath of the pandemic, the housing market has witnessed a gradual revival, with consumers showing renewed interest in enhancing their living spaces. This rebound in consumer willingness to invest in household products is contributing to the renewed demand for furniture over the forecast period.

Additionally, several governments in the Middle East, with particular emphasis on Saudi Arabia, are prioritizing the growth of their real estate sectors through the initiation of large-scale residential and commercial development projects. These initiatives aim to stimulate economic growth. As outlined in Saudi Arabia’s National Transformation Plan, the country has set ambitious goals to construct more than 555,000 residential units, approximately 275,000 hotel rooms, over 4.3 million square meters of retail space, and more than 6.1 million square meters of new office space by the year 2030.

Furniture plays a fundamental role in supporting basic daily activities such as sleeping and eating, while also serving as a crucial component of interior design and home aesthetics. The process of buying furniture has been greatly simplified through the emergence of online shopping platforms. In India, for instance, digital marketplaces like FabFurnish, Pepperfry, and Urban Ladder have gained popularity among consumers seeking furniture solutions. Moreover, there is a growing preference for multi-functional and adaptable furniture products that offer ease of portability and can be conveniently placed in compact living environments. This trend is particularly driven by the increasing number of nuclear families worldwide, which has created a strong demand for furniture that is both portable and space-efficient. This factor is expected to further propel the global furniture market.

Curious about the Furniture Market, Download your FREE sample copy now and get a sneak peek into the latest insights and trends.

1. How big is the furniture market?

The global furniture market was valued at USD 677.09 billion in 2022 and is projected to reach USD 1,070.87 billion by 2030. This substantial growth reflects the increasing demand for furniture across various sectors and regions .

2. What is the furniture market growth?

The furniture market is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2030. This growth is driven by factors such as rising disposable incomes, urbanization, and the expansion of the hospitality and real estate sectors .

3. Which segment accounted for the largest furniture market share?

In 2022, the beds segment held the largest share in the furniture market, generating revenue of USD 168.76 billion. This dominance is attributed to the essential nature of beds in both residential and commercial settings .

4. Who are the key players in the furniture market?

Key players in the global furniture market include:

• IKEA
• Ashley Furniture Industries
• Steelcase Inc.
• Herman Miller, Inc.
• HNI Corporation

5. What are the factors driving the furniture market?

Several factors are propelling the growth of the furniture market:

• Increasing Disposable Incomes: Higher income levels enable consumers to spend more on home and office furnishings.
• Urbanization and Housing Development: The expansion of urban areas and housing projects boosts the demand for furniture.
• Growth in Hospitality and Real Estate Sectors: Hotels, restaurants, and commercial spaces require substantial furniture investments.
• Rising Demand for Premium and Luxury Furniture: Consumers are increasingly seeking high-quality, aesthetically pleasing furniture pieces.
• Online Retail Expansion: E-commerce platforms have made furniture more accessible, offering a wide range of options to consumers.
• Government Initiatives: Policies aimed at housing development and infrastructure improvement contribute to market growth.

Order a free sample PDF of the Furniture Market Intelligence Study, published by Grand View Research.