E-Commerce Furniture Market by Type (Ready-to-Assemble (RTA), and Assembled), by Product Type (Beds and Mattresses, Sofas and Armchairs, Entertainment Units, Storage Units, Tables and Desks, and Other E-commerce furniture), by Material Type (Wooden E-commerce furniture, Metal E-commerce furniture, Plastic E-commerce furniture, Leather E-commerce furniture, and Glass E-commerce furniture), by Price Range (High-End Price E-commerce furniture, Medium Price Range E-commerce furniture, and Low-Price Range E-commerce furniture), and by End User (Residential, Commercial, and Industrial)– Global Opportunity Analysis and Industry Forecast, 2024–2030
Industry: Retail and Consumer | Publish Date: 29-Nov-2024 | No of Pages: 763 | No. of Tables: 1003 | No. of Figures: 504 | Format: PDF | Report Code : RC455
Market Overview:
The global E-commerce Furniture Market size was valued at USD 30.23 billion in 2023 and is expected to reach USD 40.87 billion by 2030, with a CAGR of 4.4% from 2024 to 2030. E-commerce furniture refers to the segment of electronic commerce dedicated to the online buying and selling of various types of furniture through digital platforms, websites, and virtual marketplaces.
This specialized form of e-commerce enables consumers to browse, select, purchase, and often customize furniture items using electronic means. The entire transaction process, from product exploration to payment and delivery, occurs through digital channels, allowing consumers to shop for furniture conveniently from their computers, tablets, or smartphones.
Digital Transformation and Technology Adoption to Augment Market Growth
Digital transformation and the adoption of advanced technologies are pivotal factors boosting the growth of the e-commerce furniture market. The seamless integration of cutting-edge tools such as augmented reality (AR), virtual reality (VR), and 3D visualization has elevated the online furniture shopping experience to unprecedented levels. By leveraging these technologies, customers gain the ability to virtually visualize how furniture will look and fit in their own living spaces before making a purchase.
For instance, NXT Interactive, a Singaporean startup, has developed a web-AR furniture app that showcases real-time 3D models of furniture. This app, using augmented reality, enables customers to visualize how furniture will look in their personal spaces, aiding in purchasing decisions. These interactive experiences empower customers to make informed decisions about their furniture choices without physically visiting a store, ultimately improving the overall shopping experience.
Mobile Commerce (M-Commerce) and Easier Payment Options Fuels Market Growth
Mobile commerce (M-commerce) and the availability of easier payment options are significant drivers in the growth of the e-commerce furniture market. The widespread use of smartphones and mobile devices has become instrumental in facilitating a substantial portion of e-commerce transactions. With mobile apps and responsive websites designed for these devices, consumers can seamlessly browse and shop for furniture while on the go, enhancing accessibility and overall convenience.
For example, in September 2023, IKEA announced its collaboration with Afterpay, a prominent player in the Buy Now, Pay Later (BNPL) services sector. This strategic partnership marks a significant shift in retail dynamics and represents a major advancement for IKEA as it embraces flexible payment choices. This collaboration reflects the industry's recognition of evolving consumer preferences and the importance of providing diverse payment options, further propelling the growth of the e-commerce furniture market. The integration of BNPL services adds an extra layer of convenience for customers, contributing to an even more seamless and user-friendly purchasing experience.
Social Media Marketing and Influencer Collaboration Boosts Market Expansion
Social media marketing and influencer collaboration stand as significant factors boosting the growth of the e-commerce furniture market. In the contemporary landscape, social media platforms serve as potent marketing channels for e-commerce furniture brands, playing a pivotal role in connecting with consumers.
Collaborating with influencers and leveraging visually appealing content on platforms such as Instagram and Pinterest have become strategic approaches employed by brands. This dynamic combination of social media marketing and influencer collaboration goes beyond traditional advertising methods, creating a more engaging and personalized experience for consumers. It allows e-commerce furniture brands to connect with their target audience, build a community, and stay at the forefront of consumers' minds, ultimately driving the growth of the e-commerce furniture market.
Security Concerns and Online Fraud hinders the E-Commerce Market Growth
A notable factor restraining the growth of the global e-commerce furniture market is the prevalent concern regarding security issues and online fraud. Customers engaging in high-value transactions for furniture purchases on e-commerce platforms may hesitate due to fears of potential risks associated with online transactions.
Instances of data breaches, unauthorized access to personal information, and the potential compromise of financial details contribute to a lack of confidence among potential buyers. The perceived vulnerability in online transactions can dissuade customers from embracing e-commerce furniture platforms, impacting their willingness to make substantial purchases without the assurance of robust security measures.
Technological Integration for Personalization to Create Future Market Prospects
A pivotal factor creating promising opportunities for the future of the e-commerce furniture market lies in the strategic deployment of technological integration, specifically through the utilization of artificial intelligence (AI) for personalized product recommendations and tailored shopping experiences. This innovative approach opens doors to a host of possibilities that can significantly reshape and elevate the online furniture shopping landscape.
AI-driven technologies empower e-commerce furniture platforms to dynamically adjust the entire shopping experience. This includes personalized interfaces, custom content delivery, and tailored promotional offerings, creating a more engaging and satisfying online journey for each customer.
North America Holds the Dominant Market Share in the Global Market
The seamless integration of smart home technologies is a driving force behind the e-commerce furniture market's expansion. North American consumers exhibit a clear preference for furniture products that effortlessly integrate with their smart home systems. This trend reflects an increasing demand for technologically advanced and interconnected living spaces, contributing to the region's dominant position in the global e-commerce furniture market.
Additionally, the sustained economic prosperity in North America, particularly observed in the United States and Canada, stands out as a significant factor propelling the growth of the e-commerce furniture market. This economic affluence plays a pivotal role in fostering higher consumer spending on furniture as individuals allocate resources towards home improvements and décor.
According to the U.S. Bureau of Labor Statistics (BLS), there has been a noteworthy uptick in average annual expenditures for all consumer units in 2022, reaching USD 72,967, reflecting a substantial 9% increase from the previous year. Within this economic landscape, the housing sector emerges as a dominant player, claiming the largest share at 33.3 percent. This robust economic condition not only underscores the financial well-being of North American consumers but also serves as a significant impetus for increased investment in e-commerce furniture, thereby propelling the growth trajectory of the global e-commerce furniture market in the region.
Asia-Pacific is Expected to Show Steady Growth in the Global E-commerce Furniture Market
The growth of the e-commerce furniture market in Asia Pacific is further propelled by the rising effect of population growth and escalating housing needs. The surge in population, particularly in densely populated countries like China and India, triggers a heightened demand for housing. Consequently, this demographic reality fuels a parallel need for e-commerce furniture, establishing a consistent market demand across both residential and commercial segments.
According to the United Nations, the Asia and the Pacific region are home to 60% of the world's population, approximately 4.3 billion people, encompassing the world's most populous nations, China and India. This demographic presence underscores the substantial and enduring market for e-commerce furniture in the region, affirming its pivotal role in driving growth within the global e-commerce furniture market.
Moreover, the remarkable surge in urbanization and evolving lifestyles across the Asia-Pacific region is a pivotal catalyst propelling the growth of the e-commerce market. This transformative trend is notably shaping consumer behaviors and preferences, particularly in the context of e-commerce furniture, and holds significant implications for the region's market dynamics.
According to the UN-Habitat, urbanization stands as a defining megatrend in the Asia-Pacific region, hosting over 2.2 billion people and constituting 54% of the global urban population. Projections paint a compelling picture of sustained momentum, anticipating a 50% growth in the urban population in Asia, resulting in an additional 1.2 billion people by the year 2050. This remarkable surge in urbanization underscores an ongoing and escalating demand for e-commerce furniture.
Competitive Landscape
Several market players operating in the e-commerce furniture market include IKEA, MillerKnoll, Steelcase, Inc., HNI Corporation, Ashley HomeStore, La-Z-Boy Inc, Bassett Furniture Industries Inc., Cymax Group Technologies Ltd., Hooker Furnishings Corporation, Home Depot, Inc., and others. These market players are adopting strategies, such as product launches, across various regions to maintain their dominance in the e-commerce furniture market.
For instance, in June 2023, HNI Corporation successfully acquired Kimball International, Inc., a distinguished leader in commercial furnishings, specializing in workplace, health, and hospitality solutions. By joining forces, these two industry giants aspire to create an unparalleled and comprehensive product portfolio, strategically positioned to capitalize on emerging post-pandemic trends.
Moreover, in October 2022, IKEA launched DIRIGERA, a Matter-ready hub and new IKEA Home smart app. This new hub, accompanied by the IKEA Home smart app, offers users the ability to effortlessly connect and control all of IKEA's smart products. This development from IKEA underscores the increasing capabilities within the smart home market, providing consumers with enhanced personalization and functionality for their connected living spaces.
E-Commerce Furniture Market Key Segments
By Type
-
Ready-to-Assemble (RTA)
-
Assembled
By Product Type
-
Beds and Mattresses
-
Sofas and ArmChairs
-
Entertainment Units
-
Storage Units
-
Tables and Desks
-
Other E-commerce furniture
By Material Type
-
Wooden E-commerce furniture
-
Metal E-commerce furniture
-
Plastic E-commerce furniture
-
Leather E-commerce furniture
-
Glass E-commerce furniture
By Price Range
-
High-End Price E-commerce furniture
-
Medium Price Range E-commerce furniture
-
Low-Price Range E-commerce furniture
By End Use
-
Residential
-
Commercial
-
Industrial
By Region
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North America
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The U.S.
-
Canada
-
Mexico
-
-
Europe
-
The U.K.
-
Germany
-
France
-
Italy
-
Spain
-
Denmark
-
Netherlands
-
Finland
-
Sweden
-
Norway
-
Russia
-
Rest of Europe
-
-
Asia Pacific
-
China
-
Japan
-
India
-
South Korea
-
Australia
-
Singapore
-
Taiwan
-
Vietnam
-
Rest of Asia Pacific
-
-
Rest of the World (RoW)
-
Brazil
-
South Africa
-
Nigeria
-
Israel
-
KSA
-
Turkey
-
Remaining Countries
-
Key Players
-
IKEA
-
MillerKnoll
-
Steelcase Inc.
-
HNI Corporation
-
Ashley HomeStore
-
La-Z-Boy Inc.
-
Bassett Furniture Industries Inc.
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Cymax Group Technologies Ltd.
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Hooker Furnishings Corporation
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Home Depot Inc.
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 30.23 Billion |
|
Revenue Forecast in 2030 |
USD 40.87 Billion |
|
Growth Rate |
CAGR of 4.4% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Countries Covered |
31 |
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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