Office furniture market is expected to reach USD 95,274.2 Million by the end of 2024 from USD 58,135.9 Million in 2018. The market is expected to expand at a CAGR of 9.1% in the terms of value during the time period i.e. 2019-2024. Increase in the employment rate and rising consumption of office spaces are few of the key factors impelling the growth of the market. Various companies and corporates are making significant investment in office space interior designing to promote productive environment. In line with the same, leading office furniture companies are manufacturing which offers better comfort and can improve productivity. Moreover, increasing office construction spending across the globe is expected to behold the growth of the market. Further, the launch of innovative and advanced office furniture is expected to intensify the demand for office furniture in the near future. Furthermore, increasing demand for home office furniture coupled with rising investment in home office spaces is anticipated to positively impact the growth of global office furniture market during the forecast period.
IoT furniture's such as smart office tables are gaining traction among consumers. Smart furniture's are being increasingly used in office spaces to improve the well-being of the employees. These smart furniture's come with various features such as monitoring employee for how long employee is on their desk and away from their seat. Also, these furniture's can be programmed to alert employee to stand up if he/she is sitting for long time.
Growth Drivers – Office Furniture Market
Rise in Number of Offices Worldwide
Growth in number of start-ups across the globe is envisioned to bolster the growth of global office furniture market. Favourable support and incentives offered by government of various nations to start-ups is further believed to increase the number of start-ups. This factor will intensify the demand for office furniture. Moreover, increasing acceptance of home office and work from home concept is also contributing to the growth of market.
According to the International Labor Organization, world economic growth increased by 3.6% in 2017 as compared to 3.2% in 2016. This growth also marked decrease in unemployment across the globe.
Positive GDP growth figures of developed and developing regions across the globe are believed to positively impact the growth of the market. Further, new employment opportunities in developing nations are believed to escalate the growth of the market. With the increasing number of employed people across the globe, the demand for new offices is also increasing.
Launch of Innovative Office Furniture
Rapid introduction of innovative and advanced office furniture will intensify the growth of the market in the upcoming years. Key vendors are offering advanced & innovative designed furniture which are healthier and more comfortable. This factor is bolstering the growth of the furniture market across all regions. Consumers such as enterprises and others are preferring modern and modular office furniture’s to improve the productivity which bodes well for the growth of the market.
Vendors are increasingly focus on producing aesthetic, ergonomic and high-quality office furniture. Furthermore, launch and penetration of advanced and ergonomic office furniture in the market is anticipated to intensify the growth of the office furniture market in the years ahead. Apart from this, manufacturers are also offering their product through various leading e-commerce giants such as Amazon, Wayfair and others. Also, benefits of online stores such as low pricing and availability of variety of products is believed to impetus the growth of office furniture products through online stores.
Rise in Commercial Space Construction
According to U.S. Census Bureau, residential office construction in the U.S. grew by 3.4% by Nov. 2017 as compared to -2.8% in Dec. 2016. Also, non-residential office construction spending witnesses a growth of 4.2% in 2017. Further, the establishment of new office spaces across all major regions is expected to be the key factor behind the growth of the office furniture market during the forecast period.
Rising online spending of consumers is also expected to positively impact the growth of office furniture market. Factors such as increasing internet penetration among population and rising number of vendors offering their product through online stores is anticipated to drive the growth of market.
Barriers – Office Furniture Market
Volatility in Raw Material Price
The cost of raw materials used in the manufacturing of furniture remains highly volatile and fluctuating with time. This fluctuation in raw material prices may obstruct the growth of the office furniture market in the future. The cost of raw materials used in the manufacturing of furniture remains highly volatile and fluctuating with time. This fluctuation in raw material prices may obstruct the growth of the office furniture market in the future.
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New Product Launch
The office furniture industry is witnessing high demand for innovative and chic furniture's. This factor has pushed manufacturers to launch various new products in order to capture market opportunities. For instance, Geiger, a brand of Herman Miller introduced a range of furniture including Axon Tables and Reframe Lounge Furniture.
The office furniture product market is segmented into seating, storage unit & files, workstation, tables, and accessories. Among this segment, the seating segment is anticipated to capture a market share of 35.1% in 2018. In terms of value, office seating segment is anticipated to reach USD 35,025.4 Million by the end of 2024 from USD 20,421.9 Million in 2018. Further, this segment is anticipated to flourish at a CAGR of 9.9% over the forecast period. Further, the global office seating market expected to achieve the absolute $ opportunity of USD 13,173.2 Million between 2019-2024.
In the price range segment, the office furniture market is sub-segmented into premium, medium, and economy. Among this segment, economy office furniture segment is expected to expand at a CAGR of 8.5% in terms of value over the forecast period i.e. 2019-2024. The global economy office furniture market accounted for USD 23,991.6 Million in 2018 and is predicted to reach USD 38,225.6 Million by the end of 2024.
Moreover, based on the distribution channel, the office furniture market is further sub-segmented into online stores and offline stores. Among this segment, offline stores segment is expected to grow at a CAGR of 8.8% over the forecast period i.e. 2019-2024. The global offline retailing office furniture is projected to brandish an average growth opportunity of USD 31,369.4 Million from the period of 2019-2024. The Y-o-Y growth rate is projected to rise by 12.0% over 2024 as compared with previous years.
Geographically, the report offers an analysis of North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In the office furniture market, Asia Pacific is projected to capture a large market share over the forecast period. The Asia Pacific office furniture market reached USD 27,205.9 Million in 2018 and is expected to witness a CAGR of 10.5% over the forecast period. As the Asian countries such as India, China, and others are growing in terms of GDP, employment rate, urbanization, and infrastructure development, the demand for furniture in offices is also rising as remarkable rate. Furthermore, world-leading furniture manufacturers are expanding their businesses in Asian countries, as they are believing the region holds great market growth opportunities for them. The corporate business owners in the Asia Pacific are now spending more on their office infrastructure in order to improve the work environment which in turn boost the productivity of the employees. Moreover, increasing number of commercial spaces in Asia Pacific is envisioned to strengthen the demand for office furniture during the forecast period.
The report also covers detailed competitive analysis of major market players of the office furniture market, such as Herman Miller Inc., Inter IKEA Group, Okamura Corporation, HNI Corporation, Knoll, Inc., Steelcase Inc., Haworth Inc., Kokuyo Co Ltd., Kimball International Inc., Hooker Furniture and others prominent players. The office furniture market is witnessing a wide range of industry activities such as product launch, acquisition, agreement, and expansion across the globe. For instance, on 23rd January 2019, Haworth Inc. announced the addition of more than 50 products to its portfolio from BuzziSpace. Further, the addition of these innovative products will help the company to increase its market share in the upcoming years.
- Seating (Office Chairs, Guest Chairs, Stools, Sofa, Others)
- Storage Unit and Files (Bins & Shelves, Cabinets, Others)
- Workstation (Individual Workstation, Collaborative Workstation)
- Tables (Conference Tables, Dining Tables, Occasional Tables, Others)
By Price Range:
By Distribution Channel:
- Online Stores
- Offline Stores
- North America (U.S. & Canada)
- Europe (Germany, United Kingdom, France, Italy, Spain, Russia and Rest of Europe)
- Asia Pacific (China, India, Japan, South Korea, Indonesia, Taiwan, Australia, New Zealand and Rest of Asia Pacific)
- Latin America (Brazil, Mexico, Argentina and Rest of Latin America)
- Middle East & Africa (GCC, North Africa, South Africa and Rest of Middle East & Africa)
The report profiles various major market players such as
- Herman Miller Inc.
- Inter IKEA Group
- Okamura Corporation
- HNI Corporation
- Knoll, Inc.
- Steelcase Inc.
- Haworth Inc.
- Kokuyo Co Ltd.
- Kimball International Inc.
- Hooker Furniture
- Other Major & Niche Players
Competitive landscape analysis provides detailed strategic analysis of the company’s business and performance such as financial information, revenue breakup by segment and by geography, SWOT Analysis, key facts, company overview, business strategy, key product offerings, marketing and distribution strategies, new product development, recent news (acquisition, expansion, technology development, research & development and other market activities).
The study also provides a company’s positioning and market share in the office furniture market.
Timeline Considered for Analysis:
- 2018: Base Year
- 2019: Estimated Year
- 2019 to 2024: Forecast Period
Research Scope and Deliverable's
Overview & Executive Summary
Market Drivers, Trends, Challenges and Opportunities
Market Size and Forecast Projections
Macroeconomic Indicators of Various Countries Impacting the Growth of the Market
Extensive Coverage of Industry Players including Recent Product Launches and Market Activities
Porter’s Five Force Analysis
Market Segmentation Analysis:
Industry report analyzes the office furniture market by the following segments:
- Price Range
- Distribution Channel
Customization: We also offers customization’s in the industry report as per the company’s specific needs.
Key Questions Answered in the Office Furniture Industry Report
- What is the overall market size in 2018? What will be the market growth during the forecast period i.e. 2019-2024?
- Which region would have a high demand for the product in the upcoming years?
- What are the factors driving the growth of the market?
- Which sub-market will make the most significant contribution to the market?
- What are the market opportunities for existing and entry-level players?
- What are various long-term and short-term strategies adopted by the market players?