Published on: November 22, 2019
Products offered by companies or manufacturers for soft home furnishings or furniture, including upholstery, carpets, and wall-coverings are categorized under the home furnishing market. The market includes products such as desks, tables, bed frames and headboards, rugs, wallpaper, shades and curtains, entertainment centers, wall units, and others. Our reports on the home furnishing market provide a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis.
The global home furnishing market was valued at around USD 618.25 billion in 2018 which is expected to reach USD 831.04 billion by 2023 growing at a CAGR of 6.09% during the forecast period. Growing urbanization along with factors such as increased disposable income, and high customer preference for interior decor, is fueling the demand in home furnishing products globally. By product, the home furniture market dominates the global home furnishing market covering approximately 50% of the total sales in the home furnishing market. The availability of low-cost home furniture and the introduction of new products with a wide range of designs, fabrics, and colors are some of the factors that are driving the demand in the home furniture market.
Moreover, based on geography, Europe dominates the global home furnishing market with more than 45% market share in the global market. The European dominance in the home furnishing market is driven by the presence of prominent market players like Inter Ikea Systems B.V. and Tvilum A/S. However, the highest growth rate was registered by the APAC region owing to the increasing level of urbanization and rising disposable income among consumers, encouraging consumers to spend on home furnishing products. Also, prominent global players have started expanding their market in the APAC region. This is leading to the introduction of new products, which is driving the growth of the market in the region. For instance, Ikea Systems B.V. opened its first store in Hyderabad, India, in 2018.
Many factors are expected to drive growth in the home furnishing market during the forecast period. Our analysis identifies the following factors to be driving the growth in the home furnishing market:
Consumers worldwide have started investing big in interior decorations. This factor is more prominent in APAC countries, where increased disposable income, growing penetration of the online decor market, and availability of low-cost furniture is driving the market.
The global home furnishing market is observing an increased demand for customized furniture products. This has been witnessed in both residential and commercial spaces. Getting new innovative design and efficient use of space are few of the factors driving the demand for custom furniture.
With high real estate prices, expansion in population base, and rising space crunch, the size of the houses has reduced. Smaller space has led consumers to look for small and movable pieces to make efficient use of available space. To cater to these needs, market vendors have introduced compact and multifunction furniture like RTA furniture.
Collaborations and partnerships will help the vendors in product development and geographical expansion. They will also enable vendors to explore new opportunity areas for products and services. For instance, International Market Centers (also known as Las Vegas Market) announced that it has partnered with more than 40 leading retail and trade groups.
With the growing popularity of e-commerce in other markets like electronics and apparels the credibility of e-commerce has significantly increased. As a result of this, the customer has shown great interest in purchasing home furnishing products from online platforms. Moreover, online stores have helped customers to get access to new and innovative products at low prices.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
Poor logistics, limited distribution network, and scarcity of warehouse facilities create a significant challenge to the global home furnishing market. This factor has a high impact on developing countries and online retail. Poorly established transportation alone can significantly increase the cost of the products.
The rising price of high-quality raw materials has a direct impact on the manufacturing cost of home furnishing products. This increased price is generally transmitted to the consumer resulting in an increase in final manufactured products. If the price increase is significant the impact can be observed with declined sales. Since a wide range of raw materials is used in home furnishing prices, changing prices and scarcity of these raw materials can create high price volatility of final products.
Global home furnishing market can be segmented into the following:
Our reports on the global home furnishing market cover several large and small vendors active in the market, including Bed Bath & Beyond Inc., Inter IKEA Systems BV, Ashley Home Stores, Ltd., Tvilum A/S, and Herman Miller, Inc. Investment in the latest technology, mergers and acquisitions, and introduction of new products are some of the strategies adopted the manufacturers in the global home furnishing market.
Following are a few of the major development in the market:
Backed with competitive intelligence and benchmarking, our home furnishing market research is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
LinkedIn
Facebook 
Twitter
Email
Reddit
Tumblr
Quora
Pinterest
WhatsApp