Global Furniture Market 2020-2024 | Evolving Home and Living Concept to Boost Market Growth

The global online furniture market is expected to grow by USD 84.26 billion during 2020-2024, according to the latest market research report by Technavio.

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The changing trends in the home and living concepts are transforming the buying patterns of customers. As a result, many individuals are making investments in the remodeling of their bedrooms. Their preferences are influenced by the increasing access to blogs, and homestyle, lifestyle, and fashion magazines. For instance, a real-time engagement program, IKEA’s Home Tour Squad, provides solutions and home makeover tips to their customers. This is leading to an increase in the purchase of customized furniture of different size, materials, and colors to add value to the ambiance of a place and provide comfort. For instance, Fursys offers customized office furniture that comes with additional lumbar support. Thus, the evolving home and living concept will boost the growth of the online furniture market during the forecast period.

As per Technavio, the mobile commerce and network marketing will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyzes other significant trends and market drivers that will influence market growth over 2020-2024.

Online Furniture Market: Mobile Commerce and Network Marketing

The emergence of new opportunities for customers to shop through network marketing and increasing purchase volume of new mobile devices has increased the significance of mobile commerce. Flipkart, Snapdeal, Alibaba, and Amazon are some of the major retailers that maintain their own mobile applications. These factors are boosting the online purchase of various commodities including furniture such as chairs, workstations, storage files, tables and desks. The trend for online shopping of furniture will continue to evolve due to the availability of 24/7 customer support, online shipment tracking, cheaper costs, and a wide range of merchandise. Thus, with the growing trend for mobile commerce and network marketing, the market for online furniture is expected to showcase a positive outlook during the forecast period.

Online Furniture Market: Segmentation Analysis

This market research report segments the market by application (online residential furniture and online commercial furniture) and geographic segmentation (North America, APAC, Europe, South America, and MEA).

The APAC region led the online furniture market in 2019, followed by North America, Europe, South America, and MEA. During the forecast period, the APAC region is expected to register the highest incremental growth due to factors such as the increasing demand for furniture supplies and growth in purchasing power.

Developed economies such as the US, Japan, the UK, and Germany, have a developed retail sector. Hence, the sales of furniture is high in such countries. A developed retail sector allows consumers to make informed purchase decisions. The efficient value chain for furniture products is due to the presence of a developed retail sector in these developed economies. The organized retail in developed countries and the growing e-commerce market in emerging economies is expected to drive the growth of the global furniture market.

The growth of the real estate sector and increasing residential and commercial construction are some of the factors which will boost the demand for furniture in the forthcoming years. Significant investments for infrastructural development in developed economies and favorable government initiatives and urbanization in emerging economies are expected to increase the demand for furniture across the world. The number of renovation and modification projects is increasing in countries such as the US, China, and India. Moreover, favorable trade relations between countries and government policies such as FDI relaxation have increased the number of multinational and global companies and technology and business parks. This increasing construction of residences, offices, and commercial complexes will be one of the significant factors influencing the growth of the furniture market size throughout the next five years.

Several vendors in the global furniture market are entering into strategic alliances and partnerships to enhance their operational efficiency. Such strategic alliances and acquisitions will also allow vendors to offer end-to-end furniture solutions, expand their range of services, and transform themselves into global lifestyle brands. For instance, IKEA acquired 49% stake in Traemand Group, a kitchen installation partner in the US. Vendors are also focusing on acquisitions across different verticals. For instance, Williams Sonoma acquired Outward Inc., an augmented reality startup in 2017. This increasing number of strategic alliances and partnerships has been identified as one of the critical furniture market trend, which will fuel the market growth at a CAGR of almost 5% during the forecast period.

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