Global demand for furniture is on the rise, driven by factors such as rapid urbanization and the strong purchasing power of the millennial demographic, as per research from Allied Market Research. The residential segment currently leads the market, propelled by infrastructure development and technological advancements in manufacturing, which have reduced costs and production time. However, manufacturers express concern over potential long-term impacts due to rising raw material prices.
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The global furniture market, valued at $556 billion in 2020, is projected to reach $877 billion by 2031, with the residential segment expected to maintain its dominance. Factors such as increased consumer spending, infrastructure growth, and the emergence of new wood species for manufacturing contribute to market expansion. Furthermore, integration of the Internet of Things (IoT) and automated manufacturing systems are anticipated to significantly impact industry growth, along with the demand for versatile, multi-functional furniture suited for compact spaces.
Segmented by type, distribution channel, and region, the commercial segment is forecasted to grow at a faster rate than others, driven by investments in office furnishing for enhanced employee comfort and productivity, including the adoption of smart furniture. North America leads the market, benefiting from strong domestic demand and lifestyle changes, while the Asia-Pacific region is expected to witness the highest growth rate.
Key players in the industry include Haworth, Inc., Inter IKEA Systems BV, Steelcase Inc., Masco Corporation, and others. Overall, the furniture market is poised for significant growth, fueled by shifting consumer preferences, technological advancements, and increased investments in infrastructure and commercial spaces.