Office Furniture Market – Forecast and Analysis

Technavio

The office furniture market share is expected to increase to USD 18.92 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 4.66%.

The growing urbanization, improving lifestyles of individuals, and the growth in real estate and construction industries will facilitate the office furniture market growth over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

Office Furniture Market: Key Drivers, Trends, and Challenges

Based on research output, there has been a negative impact on the market growth during and post COVID-19. The growing demand for modern and luxury furniture is notably driving the office furniture market growth, although factors such as fluctuating prices of raw materials may impede market growth. Research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the office furniture industry. The holistic analysis of the drivers will help infer end goals and refine marketing strategies to gain a competitive edge.

Key Office Furniture Market Driver

A key factor driving the growth of the global office furniture industry is the growing demand for modern and luxury furniture. Developing countries such as China and India are estimated to witness significant growth due to their growing economies and rising number of technology parks. The increasing number of theme-based food service chains, hotels, and restaurants has fueled the demand for luxury furniture in the food service industry. Some of the major trends followed in workspaces in the past couple of decades are as follows:

  • Incorporating natural flora patterns and wooden panel installations
  • Use of height-adjustable tables and oval-shaped desks for multiple work purposes
  • Inclusion of dedicated lounge spaces to make the workspace more enjoyable
  • Organization of workplaces by color
  • Use of mixed texture for creating a varied, personalized, and inspiring work environment
  • Use of luxury and modular furniture that allows users to create dynamic and collaborative workspaces

Modern, luxury furniture is sold at higher costs than traditional furniture, which will drive the market growth in the forecast years.

Key Office Furniture Market Challenge

One of the key challenges to the global office furniture industry is the fluctuating prices of raw materials. The costs of raw materials such as wood, steel, textiles, plastics, and cartons have recently increased considerably. The cost of wood particleboard has also increased because of volatility in input and transportation costs and the continued downsizing of furniture manufacturers’ production capacities. The price of average quality furniture registered an increase of 25%-30% due to the high cost of wood and its shortage. The fluctuations in transportation costs worldwide are also affecting manufacturers as the transportation of furniture accounts for a significant part of the supply chain in this market. Fuel expense accounts for a substantial portion of the transportation cost incurred by a vendor, and it fluctuates frequently. Such factors may hamper the market growth in the forecast years.

COVID Impact and Recovery Analysis

In 2020, the office furniture market slowed down due to the outbreak of COVID-19, and there was a decline in office furniture sales in 2020. However, the market started recovering in the second half of 2021 as industrial activities resumed in the region. To recover from the slump, companies invested in this region to seize growth opportunities in the key markets. The increase in spending across industries will boost the market’s growth in the region during the forecast period. Hence, the office furniture market started recovering by the end of 2021, with restrictions and increased vaccine drives gradually lifting.

What are the Revenue-generating Distribution Channel Segments in the Office Furniture Market?

The office furniture market share growth by the offline segment will be significant during the forecast period. The growth is attributed to the multiple advantages of offline stores, such as:

  • Convenience in terms of contacting the vendor and briefing on the functionality of the furniture
  • Enormous SKUs leveraging end-users to choose from a wide variety of products 
  • Availability of a wide variety of brands at multistore retail units and dealers 
  • Direct sales  

This report provides an accurate prediction of the contribution of all the segments to the growth of the office furniture market size and actionable market insights on the post-COVID-19 impact on each segment.

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