The need for office furniture to create a supportive workplace is rising as a result of the expanding working population throughout the world and the increased construction of information technology (IT) parks and commercial zones. The demand for office furniture is also being stimulated by the rising activities of remodelling, adapting, and changing workplace spaces. Additionally, the market growth is being bolstered by the proliferation of start-ups as a result of the rising demand for employment. Hence, a number of public and commercial businesses are putting an emphasis on developing casual work environments to encourage social interaction among coworkers and foster a collaborative atmosphere. The introduction of intricately designed office furniture is being driven by the changing workplace culture.
The recession will have a significant effect on the market for office furniture. As a result of cost-cutting measures, firms may spend less on office furniture during a recession. The demand for office furniture products may decline as a result, lowering sales. The demand for office furniture may also decline as a result of a decline in the construction of new offices during a recession. The market may become overstocked with used office furniture as a result of existing enterprises shrinking or shutting down completely. Also, rather than purchasing new office furniture amid a downturn, companies may decide to increase the lifespan of their current pieces. New office furniture may become less popular as a result of this tendency.
IT Sector Development is a Major Driver of the Office Furniture Market
The ICT sector has made a substantial contribution to the economies of numerous nations worldwide. The ICT sector needs proper infrastructure development since it is crucial to its operation in order to achieve optimal performance and deliver necessary services. It has two parts: IT application, engineering, and electronically delivered services. Governments have thus been spending money on building infrastructure and luring MNCs and startups to the nation. For instance, the Singaporean government declared in June 2022 that it will invest USD 3.8 billion in the ICT sector. Also, ICT businesses have opened numerous offices to broaden their presence in other regions, which has increased expenditure on furniture and equipment.
Fluctuating Price of Raw Material to Limit Market Growth
Raw materials like wood, metals, fabrics, plastics, and cartons have seen significant price increases in recent years. The fluctuation in input and transportation prices as well as the ongoing reduction in the manufacturing capacity of furniture makers have all contributed to an increase in the price of wood particleboard. Due to the high cost of wood and its scarcity, the price of ordinary grade furniture increased by 25% to 30%. Since furniture shipping makes up a significant portion of the supply chain in this sector, global variations in transportation prices are also having an impact on manufacturers. Fuel costs make up a sizable amount of a vendor's transportation costs, and they change regularly. These elements can limit market expansion in the upcoming years.
Based on type, the office furniture market is segmented into seating, tables, storage, desks and other office furniture. The seating category dominated the market in 2022. When employees spend more than 8 to 10 hours at work each day, proper seating has become more crucial. As the ideal posture when working has a significant impact on health, office chairs must be created using scientific principles to reduce illness and weariness. The need for ergonomic seats is rising as they help to increase worker productivity, workplace effectiveness, and attractiveness.
By Distribution Channel
Based on distribution channel, the office furniture market is segmented into home centers, flagship stores, specialty stores, online stores and other distribution channels. The specialty stores category dominated the market in 2022 because of several things, such how easy it is to check the product's quality and authenticity. Specialty stores make up the offline channel. People typically favour speciality shops since they may display a variety of goods there. Specialty stores often offer a wide range of goods in a single location and cover a sizable space. Customers expect the products to be confirmed before purchase because office furniture represents a significant financial investment for most businesses.
North America is projected to hold the largest share of the office furniture market over the forecast period. Corporate office expansion has been greatly impacted by factors including rising commercial real estate, increased ICT spending, and the increase in startups in this region. Furthermore, the United States is regarded as the world's foremost centre for innovation, creating greater opportunity for new businesses to establish operations and new branches. On the other hand, the Asia Pacific office furniture market is anticipated to grow significantly. To strengthen their distribution network, many major players in the office furniture sector are forming alliances with online retailers. The demand for office furniture expanded in tandem with the exponential growth of commercial real estate and service sector jobs. Another element anticipated to fuel the market's progress in the area is an increase in new business openings and company expansions.
LIST OF KEY COMPANIES PROFILED:
- Steelcase Inc. (U.S)
- MillerKnoll, Inc (U. S.)
- Nilkamal Ltd. (India)
- Kimball International Inc. (U.S)
- Haworth Inc. (U.S.)
- HNI Corporation (U.S)
- Krueger International, Inc. (U. S.)
- Humanscale (U.S.)
- Global Furniture Group (U.S.)
- Vitra International AG. (Switzerland)
- In September 2022, Steelcase Inc. has introduced the Steelcase Karman, a new ergonomic chair that responds to human movement and offers comfort naturally. It is made of an ultra-light, flexible frame and a new proprietary mesh fabric.
|Market Size in 2022||USD 45.2 Billion|
|Market Forecast in 2030||USD 73.5 Billion|
|Compound Annual Growth Rate||7.20 %|
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Type, By Distribution Channel and By Geography|
|By Distribution Channel||