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The global office furniture market size was valued at USD 44.27 billion in 2021 and is projected to grow from USD 48.64 billion in 2022 to USD 80.62 billion by 2029, exhibiting a CAGR of 7.48% during the forecast period.
The global COVID-19 pandemic has been unprecedented and staggering, with office furniture experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -19.21% in 2020 as compared to 2019.
Workplaces or business spaces consider furniture as their centerpiece objects, such as a chair, tables, and others, that are moveable and used to support various human activities at the workplace. Furniture settings at commercial spaces such as corporate spaces, business establishments, co-working spaces, and others are essential to set the right environment and ambiance of the workplace to be safe, relaxing, and comfortable for all employees. In addition, furniture plays a vital role in the productivity of employees.
The office furniture industry comprises various large and small pieces of equipment that contribute to the ambiance and atmosphere of the organization. The products with the highest demand are office chairs, tables, and storage units. They can be manufactured with wood, steel, and others based on the design and requirements. The products can be brought through online and offline sales channels per the consumer's requirement of quantity and feasibility.
Workspaces throughout the years have changed their designs from cubicles to more modern and interactive workplaces based on the evolving demand from consumers. The consumers are various companies and modern-day startups, believing the company’s culture, values, and vision are reflected through its interiors. The market has seen a paradigm shift in designs, sales channels, and consumer demands over the last few years, owing to technological advancements among market players and consumer base.
Strong Decline for Office Furniture was Observed During the Pandemic
Due to the COVID-19 pandemic, the government took various actions such as lockdowns, the closing of borders, and other suspensions of non-essential business operations to combat the spread of COVID-19. These restrictions and regulations further resulted in causing significant disruption in the manufacturing, supply chain, and other operations during 2021. In addition, many companies, such as IT service providers, were required to work from home for an extended period, which significantly impacted global demand for storage units, tables, and others, resulting in a decline in revenue generation.
The work-from-home trend saw rapid growth as the COVID-19 infection spread exponentially across the globe. The companies adopted the work-from-home model with a higher intensity. Furthermore, the pandemic significantly impacted the manufacturing and supply chain. As the lockdown duration increased, so did the severity of its impact on business operations. Demand steeply declined as the market revenue is generated predominantly from MNCs, startups, and others. Demand for furniture at a workplace is influenced by macroeconomic factors such as corporate profits, non-residential fixed investment, commercial construction, and others. The COVID-19 pandemic caused a global economic downturn resulting in a significant negative impact on demand factors.
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Growing Trend of Co-working Spaces to Fuel Growth of the Office Furniture Market
Co-working spaces are where people or groups assemble in neutral spaces and work independently on different projects. Amenities and equipment, such as WiFi, printers, and conference rooms, are similar to a private workspace to provide the same comfort to the individuals working. The flexibility offered by co-working spaces, such as no long-term lease, attracts a significant crowd of startups, freelancers, and others.
Co-working spaces have seen massive growth in the last few years owing to a significant rise in the startup ecosystem and growing number of freelancers around the globe, which significantly increased the dynamics of furniture design. The open office and informal co-working spaces are creating informal workplace culture, thus influencing consumers' demands. There is a wide variety of co-working spaces such as open workspaces, industry-specific, and venture/incubators.
Significant Growth in ICT Industry Drives the Office Furniture Market Growth
The ICT industry has been contributing significantly to the economy of many countries globally. The ICT industry requires an adequate amount of infrastructural development as it is essential for its operation to obtain optimal performance and provide essential services. It includes two components, IT application, engineering, and services offered through electronic means. Thus, governments have been investing in developing infrastructure and attracting MNCs and startups in the country.
For instance, in June 2022, the Singapore government announced its plan to spend USD 3.8 billion on the ICT industry. Furthermore, ICT companies have been expanding their reach in different regions with multiple office launches, resulting in a rise in spending on furniture and equipment. For instance, as per the annual report of Cognizant, the company's furniture and equipment were valued at USD 772 million, which was USD 761 million in 2020.
Volatility in Cost Incurred by Manufacturers Hinders Market Growth
Various raw materials such as steel, plastics, foam, aluminum, wood, particleboard, and others are procured by the manufacturers from the source network, which is spread globally. The cost incurred while procuring these raw materials depends on several factors such as fuel, freight, energy, labor, and other input costs. Thus, raw material procurement costs are highly volatile as changes in trade barriers, tariffs, large currency moments, and others have a significant influence.
For instance, as per Steel case Q1 report of 2022, in the U.S., the foam supply chain was disrupted due to severe weather events and the availability of foam saw a negative impact.
Thus, significant increases in input costs make it difficult for manufacturers to offset increased prices owing to the existing contractual commitments with customers. Therefore, a negative impact on gross margins is observed due to significant increases in these costs, further restraining the market growth.
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Ergonomic and Modular Development of Office Chairs will Further Fuel Market Growth
By product type, the market is segmented into office chair, table, storage furniture, and others. The office chair segment has the highest market share in the industry owing to the higher dependency of an individual on comfortable seating equipment. Furthermore, there has been a rise in technologically driven developments in the office chair segment to bring more ergonomic and modular office chairs into the market. The growing investments by market players in technological-driven products will further fuel the market growth.
For instance, in September 2020, X-Chair launched a new ergonomic office chair X-HMT. The X-HMT is a heat and massage chair targeted toward the body’s core.
Office tables are used to keep a laptop or desktop with essential documents while an individual is working. Tables are continuously used in workplaces and provide comfort and convenience while working. The rising innovations for ergonomic tables have contributed to market growth and demand for tables. Furthermore, the availability of height-adjustable office tables made from different materials such as wood, fiber, steel, and others will further bring more growth opportunities in the market. Storage units are used to further store important materials or equipment that may be frequently required at a workplace. Storage units come in various types such as individual, shared, and others. Furthermore, the others segment includes workstations and accessories used while working.
Higher Durability, Easy Maintenance, and Elegant Designs of Wood will Further Boost Market Growth
Wood has traditionally been chosen for furniture manufacturing by the players operating in the market due to its high durability and strength. Wooden furniture further adds a more elegant look to the workstation. Furthermore, the changing workspace and its requirements can be ideally addressed through wood. In addition, consumers are more inclined toward sustainable products, and manufacturers prefer carbon-efficient manufacturing processes to attract the growing prevalence of sustainable consumers. The product requirements in the market are more customized, and higher feasibility for customization by wood further contributes to market growth.
For instance, in May 2022, Benchmark, in collaboration with AHEC, launched a new wooden office furniture collection during Clerkenwell Design Week 2022 at St James’ Crypt. The collection is called the Victoria collection.
Steel is known for its sturdy nature and safety. It is the least reactive metal, thus further nullifying the chances of shock as wires and cables surround the maximum area at a workplace. Furthermore, steel is environment-friendly, allowing manufacturers to meet Sustainable Development Goals (SDG). Steel also has a higher resistance to dents than other metals, making it an ideal choice for office furniture. In addition, the growing innovations in sustainable chairs, tables, and other products and to further improve the sturdiness and safety of various equipment used at workplaces, corporates, and others with the use of steel will further drive the market growth.
Others include glass, aluminum, and plastic. Plastic is known for its durability and various types, such as PVC and polypropylene, are used for manufacturing products in the market. The qualities such as no rusting, no effects of termites, and others make them a desired choice of individuals. Moreover, manufacturers' launch of new fiber chairs with recycled plastic significantly impacts the demand. For instance, in February 2022, Muuto, a Danish furniture brand, launched the recycled version of its Fiber Chair designed by Copenhagen studio Iskos-Berlin.
Convenience Provided by Offline Sales Channel Further Contributes to Market Growth
By distribution channel, the market is divided into online and offline. The offline segment holds a higher market share owing to various factors, such as the convenience of verifying the product and its quality. The offline channel comprises hypermarkets/supermarkets, specialty stores, and others. Individuals usually prefer specialty stores as multiple products are placed in these stores for display. Specialty stores typically cover a large area and offer various products at a single location. The furniture used in an organization is usually a considerable investment, and thus customers prefer the products to be verified before purchase.
For instance, in September 2022, Evok, a furniture and furnishing brand, announced its plan to launch 15 new stores in India in FY 2022-2023.
Products are usually customized based on the workspace, individual requirements, parks and commercial zones. Thus, offline channels offer the convenience of understanding the need and whether the products fit accordingly. Therefore, the comfort provided in quality assurance, customization, and others boosts offline channel sales.
Online channels have recently seen most technological advancements such as AI, AR, and others. Market players have been investing in the launch of technologically driven online sales channels. For instance, in September 2021, Jerome's Furniture announced the launch of augmented reality powered by Marxent 3D Cloud powers called WebAR.
North America Office Furniture Market Size, 2021 (USD Billion)
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The North America region is the highest contributor to the market growth. North America consists of the U.S., Canada, and Mexico, from which the U.S. has the highest office furniture market share. Factors such as growing commercial real estate, ICT spending, and the rising number of startups in this region contribute to the rise in corporate offices, and thus have significantly impacted market growth. In addition, the U.S. is considered the world's leading innovation center, bringing more opportunities for new companies to start their operations and new branches. The rise in the number of co-working spaces and new branch launches in the country is a significant contributor to market development. For instance, according to the U.S. Census Bureau, a part of the U.S. Department of Commerce, from September 2022, 425,741 applications were placed for business formation, which is a 1% increase compared to August 2022. This rapid growth has a significant impact on market growth.
The rapid urbanization in Canada and the rising commercial real estate industry in Mexico further contribute to the demand for tables, chairs, and other products in the North America region. The increasing number of corporate offices by multinationals and startups in Canada also surges the demand in the region. Furthermore, the launch of new co-working spaces in Canada further contributes to the rise in demand for intelligently designed furniture and the creation of informal workplaces.
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Key Players Strongly Focus on Product Innovation and New Product Launches
Key office furniture players in this industry focus on innovations and product developments tailored to customer requirements and sustainability. The manufacturers are launching new products and stores to cater to the growing demand. Furthermore, new product innovations such as ergonomic designs and smart furniture have increased competition. The manufacturers are also collaborating with designers to develop a comprehensive product portfolio per market trends. For instance, in June 2022, MillerKnoll, Inc. collaborated with Studio 7.5 to introduce its new office chair collection, inspired by Eames and called Zeph Chair. The design is implemented to reduce the gap between the mid-century designs and today's ergonomics of office chairs.
An Infographic Representation of Office Furniture Market
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The research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, competitive landscape, product types, materials, and distribution channels. Besides this, the reports provide insights into the market trends and highlight significant office furniture industry developments. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the market's growth.
Value (USD Billion)
By Product Type
By Distribution Channel
North America (By Product Type, Material, Distribution Channel, and Country)
Europe (By Product Type, Material, Distribution Channel, and Country)
Asia Pacific (By Product Type, Material, Distribution Channel, and Country)
South America (By Product Type, Material, Distribution Channel, and Country)
Middle East and Africa (By Product Type, Material, Distribution Channel, and Country)
Fortune Business Insights says that the worldwide market size was USD 44.27 billion in 2021 and is anticipated to reach USD 80.62 billion by 2029.
Ascending at a CAGR of 7.48%, the global market will exhibit steady growth over the forecast period (2022-2029)
By product type, the office chair segment is expected to dominate the market throughout the forecast period (2022-2029).
The rapid growth in the ICT industry and commercial real estate will be driving the market growth in the forecast period (2022-2029)
Steelcase Inc., MillerKnoll, Inc., HNI Corporation, Haworth Inc., Kimball International Inc., and Nilkamal Ltd. are the leading companies worldwide.
North America dominated the global market in 2021.
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