The growing urbanization & population along with the widespread adoption of e-commerce are driving the growth of the furniture industry.

According to a new research report by Next Move Strategy Consulting, the Global Furniture Market was valued at USD 649.91 billion in 2023, and is expected to reach USD 930.43 billion by 2030, with a CAGR of 5.3% during the forecast period, 2024–2030.

The remarkable growth observed in the global furniture market is influenced by the concurrent trends of urbanization and population growth, particularly evident in emerging economies. According to the World Bank, approximately 56% of the world's population, equivalent to 4.4 billion individuals, currently resides in urban areas.

This trend is anticipated to persist, with the urban population projected to more than double by 2050, accounting for nearly seven out of ten people. The surge in urban living underscores a rising demand for housing, consequently driving the need for furniture to outfit these evolving living spaces. This dynamic shift in demographics and urban development trends significantly shapes the trajectory of the global furniture market.

Another significant catalyst for the substantial growth in the global furniture market is the robust expansion witnessed in the hospitality and commercial sectors, encompassing establishments such as hotels, restaurants, and offices. The escalating demand for commercial-grade furniture plays a pivotal role in driving overall market expansion.

According to industry insights from Condor Ferries, the global hotel landscape comprised a noteworthy 187,000 establishments as of 2023, with a substantial increase in the average U.S. hotel occupancy rate, reaching 63.8% in 2023. This surge in the hospitality and commercial sectors contributes significantly to the thriving momentum of the global furniture market.

The noteworthy growth experienced in the global furniture market is also influenced by the widespread adoption of e-commerce and online retailing platforms. The proliferation of digital avenues has streamlined the furniture shopping process, providing consumers with convenient access to an extensive range of choices, facilitating price comparisons, and ensuring doorstep delivery.

As reported by Forbes, 20.8% of retail purchases occurred online in 2023, marking a substantial shift in consumer behavior. Projections anticipate a further increase, with an expected 24% of retail purchases to take place online by 2026. The pivotal role of e-commerce in reshaping consumer preferences contributes significantly to the expanding landscape of the global furniture market.

However, the fluctuating prices of essential raw materials, including wood, metal, and textiles, pose a significant challenge to the growth of the furniture market. The instability in these material costs directly impacts manufacturing expenses, potentially leading to increased prices for furniture products. Such elevated pricing has the potential to discourage consumer demand, creating a challenging environment for the expansion of the market. The ongoing volatility in raw material costs necessitates strategic measures to navigate these challenges and maintain competitiveness in the furniture industry.

On the other hand, the rapid progress in home automation technology presents abundant opportunities for the furniture industry in the future. These technological advancements enable the seamless integration of furniture into the broader smart home ecosystem, enhancing user-friendliness for consumers with varying technical backgrounds. The collaborative integration of furniture with existing home automation systems, such as voice assistants and smart thermostats, streamlines the user experience and adds appeal to smart homes.

Moreover, this synergy between furniture and home automation contributes to energy efficiency, aligning with the growing trend of eco-friendly living. With an array of user-friendly, stylish, and environmentally conscious options available, the furniture industry is well-positioned to thrive as it caters to the evolving needs of homeowners.

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According to the report, leading players operating in the furniture market include IKEA, MillerKnoll, Durian, Steelcase, Inc., HNI Corporation, Okamura Corporation, Ashley HomeStore, Berkshire Hathaway, La-Z-Boy Inc, and Kukoyo among others.

Key Insights from the Furniture Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the furniture market is provided in the report.

• The value chain analysis in the market study provides a clear picture of the role of each stakeholder.

• The market share of the players in the global furniture market along with their competitive analysis are provided in the report.