Home Furniture Market Size & Forecast

The Home Furniture Market is expected to reach $720.9 Billion by 2031, at a CAGR of 5.5% from 2024 to 2031. The growth of the home furniture market is driven by increasing demand for luxury furniture, the growing focus on customized home furniture, and the increase in disposable income. However, the inclination towards rental furniture and issues around the availability of suitable raw materials at competitive prices are factors restraining the growth of this market.

Furthermore, the growing focus of key players on omni-channel presence, adoption of technology to visualize the placement of furniture, and rise in urban population are expected to generate growth opportunities for the stakeholders in this market. However, the growing demand for second-hand furniture is a major challenge impacting market growth. Additionally, the rise in demand for sustainable furniture and the development of smart furniture are prominent trends in the home furniture market.

Home Furniture Market Growth Drivers

Increase Demand for Luxury Furniture, Boosting Market Growth

The demand for luxury furniture is flourishing, serving consumers looking for premium home decor. Luxury furniture is known for its premium materials, exceptional craftsmanship, and exquisite designs. Consumers are showing interest in furniture that adds aesthetic value to their homes. Due to the growing demand for luxury furniture, several luxury furniture brands are expanding their business across urban cities. For instance, in October 2023, Durian Industries Ltd. (India)launched a new store in Jaipur, India. This expansive 4800 sq. ft. establishment offers a diverse range of exquisite furniture, including sofas, coffee tables, beds, and more, meticulously crafted to meet the highest standards of quality and durability. Factors such as disposable income, globalization, urbanization, and evolving consumer preferences are driving the demand for luxury furniture.

Growing Focus on Customized Home Furniture Drives the Demand for the Home Furniture

Custom furniture is crafted to fit space perfectly, ensuring optimal functionality and aesthetics. Many furniture companies focus on the mass production of furniture that often lacks the uniqueness and character that many consumers desire. This leads to a growing appreciation for customization, where individuals look for furniture that reflects their personal style and preferences. Furthermore, customized furniture is often perceived as being of higher quality than mass-produced furniture. Companies and artisans majorly focus on selecting the finest materials and paying meticulous attention to detail, resulting in furniture that is not just aesthetically pleasing but also durable and long-lasting. This focus on quality craftsmanship has further contributed to the popularity of customized furniture.

Home Furniture Market Trend

Rising Demand for Sustainable Furniture

In recent years, as environmental awareness has grown, the furniture business has experienced an increase in sustainable practices and eco-friendly initiatives. Customers are looking for eco-friendly furniture that has less impact on the environment. This approach is shifting the customer's preference towards sustainable furniture crafted from recycled materials and eco-friendly woods such as bamboo and acacia. Sustainable furniture is made from renewable, recyclable, or biodegradable materials and is designed to have a minimal negative impact on the environment. This includes using materials like bamboo, recycled wood, and organic cotton and avoiding materials that are harmful to the environment, like plastics and toxic chemicals. This approach of companies and growing preference for sustainably made furniture is expected to drive the demand for furniture.

Home Furniture Market Opportunity

Growing Focus of Key Players on Omni-channel Presence Expected to Generate Growth Opportunities for Market Players

Omnichannel commerce is a multi-faceted approach to sales that is focused on providing seamless customer experiences across multiple channels. With a strong omnichannel strategy in place, key players operating in the home furniture market are offering customers more value, personalized communication, and 24/7 availability of customer service. This translates to superior customer experience management, optimal brand performance, customer retention, and lasting brand loyalty. Key players are focusing on strategies to strengthen their omnichannel presence. For instance, in April 2023, Ingka Group (Netherlands), the largest IKEA retailer, announced an investment of more than USD 2.2 billion (EUR 2 billion) in omnichannel growth in the United States over the next three years. Hence, the increased focus of key players on strengthening omni-channel presence is expected to provide opportunities to players operating in the home furniture market.

Adoption of Technology to Visualize the Placement of Furniture Expected to Generate Growth Opportunities for Market Players

The furniture industry is experiencing a remarkable transformation with the adoption of technology for the visualization of furniture placement. AR/VR is a revolutionary technology in the furniture industry, allowing manufacturers, designers, and customers to superimpose virtual furniture pieces in real-world settings. The AR/VR applications are useful for placing the preferred furniture piece in a real space, thus giving a perception of scale, design, color, and the way the space will look after the placement of the furniture pieces. Several players are implementing AR capabilities in applications and websites. For instance, IKEA Group (Netherlands) offers IKEA Place, an augmented reality (AR) application, to let customers experience how furniture pieces look in space. Hence, the increased adoption of such technology for the visualization of furniture is expected to create demand for home furniture in the coming years.

Home Furniture Market Analysis: Key Findings

By Product: In 2024, the Beds Segment to Dominate the Home Furniture Market

Based on product, the home furniture market is segmented into beds, tables & desks, chairs & stools, wardrobes, cabinets & shelves; recliners, sofas & couches; dining table, and other furniture. In 2024, the beds segment is expected to account for the largest share of above 26.0% of the home furniture market. The segment’s large market share is mainly attributed to factors such as the necessity of a bed for resting, growing awareness regarding the need for quality sleep, and increased focus of customers on improving their lifestyles.

However, the wardrobes, cabinets, & shelves segment is expected to record the highest CAGR during the forecast period. This segment's growth is mainly driven by changes in lifestyles, the increasing use of cabinetry in interior design and home décor, and the rise in disposable incomes.

By Material: In 2024, the Wood Segment to Dominate the Home Furniture Market

Based on material, the home furniture market is segmented into wood, metal, glass, plastic, and other materials. In 2024, the wood segment is expected to account for the largest share of above 64.0% of the home furniture market. The wood segment is further segmented into hard wood, soft wood, and engineered wood. The segment’s large share is mainly attributed to factors such as increased demand for handcrafted furniture, availability & suitability of several wood types for manufacturing furniture, and ease of processing and dimensional stability.

Moreover, the wood segment is expected to record the highest CAGR during the forecast period. This segment's growth is mainly driven by increasing demand for sustainable wood furniture, the growing use of engineered wood, and companies' growing focus on using eco-friendly woods such as bamboo and acacia for manufacturing furniture.

By Type: In 2024, the Prefabricated Furniture Segment to Dominate the Home Furniture Market

Based on type, the home furniture market is segmented into ready-to-assemble (RTA) furniture and prefabricated furniture. In 2024, the prefabricated furniture segment is expected to account for the larger share of the home furniture market. The segment’s large share is mainly attributed to the strong focus of companies operating in the furniture industry on mass-producing furniture, the increase in spending on home décor by customers, and the increased demand for furniture on e-commerce platforms.

However, the ready-to-assemble (RTA) furniture segment is expected to record the highest CAGR during the forecast period. The segment’s growth is mainly driven by its affordability than prefabricated furniture, the growing inclination of the customers to build personalize and design furniture on their own, and reduced labor charges.

By Distribution Channel: In 2024, the Offline Channel Segment to Dominate the Home Furniture Market

Based on distribution channel, the home furniture market is segmented into offline channel, and online channel. In 2024, the offline channel segment is expected to account for the larger share of above 71.0% of the home furniture market. The segment’s large share is mainly attributed to the growing number of local players, the increased focus of key players on expanding retail store chains across cities, and the growing customer preference for the touch and feel of the product.

Moreover, the online channel segment is expected to record the highest CAGR during the forecast period. This segment's growth is mainly driven by the increased use of e-commerce furniture sales, the growing focus of retail furniture stores on omni-channel presence, evolving customer preferences, and the growing adoption of AR technology by furniture retailers.

Geographical Analysis

In 2024, Asia-Pacific Region to Dominate the Home Furniture Market

In 2024, Asia-Pacific is expected to account for the largest share of above 42.0% of the home furniture market. The large market share of this segment is attributed to the availability of raw materials such as wood in the region, the presence of local players, the presence of a large number of households, the availability of low-cost and skilled workforce, and the growing investment of key players for expanding operations in the region.

Moreover, the Asia-Pacific region is also projected to register the highest CAGR of 6.5% during the forecast period. The growth of this region is mainly driven by a rise in urban population, increased spending on e-commerce, rapid housing development across the region, and growing disposable income in the region.

Home Furniture Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3 to 4 years. Some of the key players operating in the home furniture market are Inter IKEA Group (Netherlands), MillerKnoll, Inc. (U.S.), The AZEK Company Inc. (U.S.), La-Z-Boy Incorporated (U.S.), Arhaus, Inc. (U.S.), Williams-Sonoma Inc. (U.S.), KARTELL S.p.A. (Italy), RH (Restoration Hardware) (U.S.), Ashley Furniture International (U.S.), Steelcase Inc. (U.S.), Ethan Allen Interiors Inc. (U.S.), The Lovesac Company (U.S.), Hooker Furnishings Corporation (U.S.), Westwing Group SE (Germany), and Flexsteel Industries, Inc. (U.S.).

Home Furniture Industry Overview: Latest Developments from Key Industry Players

• In March 2024, MillerKnoll, Inc. (U.S.), a global furniture provider, announced the opening of its sixth Dealer Showroom in Chennai.
• In September 2023, La-Z-Boy Incorporated (U.S.) launched next-gen 3D product configuration and WebAR OnDemand technology, which is available on their website. The upgraded product configurations and the addition of appless AR provide an immersive brand experience that bridges online product research with the in-store experience.

Home Furniture Market Research Summary

Key questions answered in the home furniture market report: