Furniture Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Furniture Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • January 2021 •
  • 400 pages •
  • Report ID: 6009744 •
  • Format: PDF
Major companies in the furniture market include IKEA AB; Ashley Furniture Industries Inc; Steelcase Inc; Tempur Sealy International Inc and Leggett & Platt Incorporated.

The global furniture market is expected to grow from $564.17 billion in 2020 to $671.07 billion in 2021 at a compound annual growth rate (CAGR) of 18.9%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $850.38 billion in 2025 at a CAGR of 6%.

The furniture market consists of sales of furniture by entities (organizations, sole traders and partnerships) that produce furniture including tables, chairs, desks, cabinets or fixtures that are used in a room or building to support various human activities. The furniture market is segmented into institutional and office furniture; household furniture and kitchen cabinet and mattresses, blinds and shades.

Asia Pacific was the largest region in the global furniture market, accounting for 45% of the market in 2020. North America was the second largest region accounting for 21% of the global furniture market. Africa was the smallest region in the global furniture market.

Furniture manufacturers are investing in augmented reality technologies to help sales representatives present their products and customers in decision making. Augmented reality mobile applications allow customers to place a virtual 3D model of a furniture in a real room in real time. This also helps customers view the furniture in all angles and positions. For instance, IKEA’s augmented reality application Place allows customers to preview over 2,000 pieces of furniture at home before purchasing them.

The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the furniture manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in halting of manufacturing activities and a decline in economic activity with countries entering a state of ’lock down’ and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the furniture manufacturing market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy.

Increasing demand for online shopping is expected to help the furniture manufacturing market grow. Manufacturers can now sell their products on a larger platform than before, which will increase their customer base geographically driving the growth of the furniture manufacturing market. In countries such as India, for instance, e-commerce portals have boosted the sales of furniture manufacturers by giving larger exposure to producers who were confined to one geography.