Published on: November 22, 2019
Modular kitchen is a term that is used to describe a modern kitchen furniture layout which includes modules of cabinets designed to hold accessories to ensure efficient space utilization in kitchen areas. The global modular kitchen market has been categorized under the global home furnishings market. The global home furnishings market includes manufacturers of soft home furnishings or furniture, including upholstery, carpets and wall-coverings.
The global modular kitchen market is expected to reach USD 30.01 billion by 2024, growing at a CAGR of 4.67%. Floor cabinets dominate the global modular kitchen market by product type. Europe is the key contributing region in the global modular kitchen market. Growth in residential construction and remodeling activities is expected to aid market growth in Europe during the forecast period.
Many factors are expected to influence growth in the global modular kitchen market during the forecast period. Our analysis identifies the following factors to be driving the growth of the global modular kitchen market:
A modular kitchen offers a wide variety of designs to choose from compared to the traditional kitchen. Factors such as change in lifestyles and consumer preferences have resulted in growing demand for organized kitchens that would enhance ease in cooking. While traditional kitchen spaces may typically have rough edges and uneven finishing, a modular kitchen can be designed and customized as per user’s requirements. Tall storage spaces enable the storage of all sizes of food containers even in a small area. Corner spaces in a modular kitchen enable maximum utilization of space. Several modular kitchens, such as Sleek, provide easy replacement and contracts for regular services to maintain high kitchen quality.
A key driver for the growth of the global modular kitchen market is the growth of real estate and commercial construction worldwide. Developed economies such as the US are planning to invest billions in infrastructural development. Factors such as innovation in interior design concepts such as open kitchens at homes and rising number of compact residences and an increasing number of renovation and modification projects across key countries such as the US, China, and India are aiding the growth of the global modular kitchen market.
An increase in smart devices and internet penetration has created awareness about home décor as it can aid in home remodeling. Two preferred areas with a high demand for remodeling include kitchen and bathroom. Advances in material technologies have made the design and installation of modular kitchen cabinets an easy task. Additionally, the easy assembly and dismantling processes associated with modular kitchens enable consumers to easily shift kitchens when they move to a new house.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
The global modular kitchen market is highly fragmented, not only in terms of manufacturers but also in terms of the range of products. Unorganized players command a significant portion of the modular kitchen market in many countries. The local market players provide products and services at a lower price than the established players. Additionally, many price-conscious consumers opt for semi-modular kitchens. These kitchens are a combination of features related to traditional kitchens and modular kitchens. Local carpenters are preferred to design and build semi-modular kitchens, as it involves greater degree of customization to consumers.
Modular kitchens are typically customized as per the needs of customers. Various parts and accessories are purchased for installing a modular kitchen. Continuous advances in innovation lead to the introduction of new accessories periodically, thereby rendering older accessories obsolete and unavailable for purchase. In case of breakage or loose fittings, getting the exact accessory or spare parts that were earlier installed would be difficult. This may lead to changing all parts of the modular kitchen to accommodate the new spare part, incurring heavy costs for the owner.
The high cost of modular kitchens depends on several factors such as the design, area, and materials that are used to make the cabinets, drawers, trolleys, and shelves. Setting up a modular kitchen requires significant use of raw material and machinery and less dependence on carpenters or traditional tools. These factors add to the installation costs. Executing a makeover for the kitchen involves a change in the cabinets and the use of the latest trends in color and material. Additionally, improper cleaning and maintenance of hardware may result in rust formation, which will lead to the requirement for replacement of components. Overall, the high capital and maintenance costs related to modular kitchens are expected to hamper the growth of the global modular kitchen market during the forecast period.
The global modular kitchen market can be segmented into the following:
The global modular kitchen market is fragmented with the presence of several international and regional players. We provide a detailed analysis of around 25 vendors operating in the global modular kitchen market, including some of the prominent vendors such as Häfele GmbH & Co KG, Nobia AB, Häcker Küchen GmbH & Co. KG, LINEADECOR, and Boston Cabinets Inc. Mergers and acquisitions and expansion of production facilities are among the strategies adopted by manufacturers in the global modular kitchen market.
Backed with competitive intelligence and benchmarking, our global modular kitchen market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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