- The global demand for Commercial and Residential Furniture Rental is increasing on the back of rapid growth of urbanization in developing countries. Further, frequent change in employment locations of the present generation is increasing the adoption rate of commercial and residential rental furniture. JMT International, Aaron’s Inc., CORT (a Berkshire Hathway Company) are some of the leading players in the Commercial and Residential Furniture Rental Market.
- Chair segment is projected to acquire the largest market of commercial and residential rental furniture across the globe.
Commercial and Residential Rental Furniture are hired furniture with a base of agreement for temporary use. There is monthly or yearly rental package offered by service provider coupled with refundable security amount in the initial stage. Products categorized within the commercial and residential furniture rental market are of various types and are used in residential and commercial areas such as corporate offices, construction sites and residence. These furniture are rented on a certain tenure within which the rent is paid periodically. The furniture is subject to maintenance and returned intact to the service providers after the tenure to avail the full refund of the security amount.
Market Size and Forecast
The rented furniture are mostly used in urban areas as the rate of migration of people and business opportunities very high. Most of the migrated population opt for rented furniture as they are more affordable and feasible. Rising expenses coupled with changing lifestyle is expected to prompt the consumers towards furniture rental further in the forthcoming years. The primary factor responsible for the growth is an increase in number of employers that are incorporating Furniture Rental’s into their corporate mobility policies as a core service offering. Low maintenance and service costs, increasing number of people residing out of their hometowns are some of the factors which is boosting the growth of the global commercial & residential furniture rental market over the forecast period.
Increasing convenience and flexibility provided by the rental furniture companies, higher focus on value experience are some of the factors which is fueling the growth of the global commercial & residential furniture rental market over the forecast period. Growing demand of flexible and multifunctional product that can be easily accommodated in small space and increasing number of residential and infrastructural development such as hospitals, government institutes and library drives the product demand in forthcoming years. The market size of commercial & residential furniture rental market was valued at USD 4,269.7 Million in 2018, and is expected to cross USD 33861.19 Million by the end of 2025, growing at a CAGR of 14.89% over the forecast period i.e. 2018-2025.
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Region-Wise Growth Highlights – 2018-2025
The global Commercial & Residential Furniture Rental Market is segmented region wise into 5 major regions comprising of North America, Europe, Asia Pacific, Latin America and Middle East & Africa. In North America, the US commercial & residential furniture rental market is expected to grow on account of increasing disposable income and the youth population demands for new innovative products at resident houses. The market in the region is projected to garner an estimated revenue of USD 2828.19 Million by end of the forecast period. Additionally, the market in North America region is expected to achieve a CAGR of 11.07% by 2025. The Asia Pacific market is expected to witness highest growth rate of CAGR of 12.33% over the forecast period, owing to rising urban population coupled with growth of IT industries. Further, increase in the HDI index in countries such as China, India, Bangladesh, Indonesia, Malaysia, Vietnam and others are expected to escalate the growth of furniture rental market over the forecast period.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
The global commercial and residential furniture rental market is segmented by product into chair, table, sofas, desks, storage units & files, work stations and others.
Among these chair segment accounts for leading market share and is expected to occupy a global market share of 27.18% by 2025, while growing at a CAGR of 9.03% during the forecast period. Growing outsourcing service industry over the years contributes to considerable growth of rental training table segment over the forecast period. Rental utility tables segment shows significant surge on the advent of increase in number of cafeterias in educational, government and corporate institution. Whereas, expansion of service industry corroborates to the growth of Conference Tables.
Furthermore, rental sofas permute the growth in the rental furniture market due to the prevalence of decent office environment in MSME Industry. Other segments such as desks, storage units and files, overhead bins, accessories and workstations also exudes substantial demand due to recovery of U.S. and European economy after the crisis.
By Distribution Channel
The global commercial and residential furniture rental market is segmented online and offline channel, out of which the offline distribution channel segment held the largest market size in 2018 and is estimated to occupy 21431.83 million by 2025, while growing at a CAGR of 14.25% during the forecast period. Strong volume of offline distribution channel for rental furniture consists of organized and unorganized market. It is anticipated to exude a super normal growth during the forecast period on advent of increasing adoption of rental furniture by startups accompanied by rising service industry across the globe.
Furthermore, Online distribution channels induce substantial development due to high penetration of internet in developed countries along with higher volume of cyber literacy rate. Acceleration of internet penetration rate in developing and developed countries accumulates apparent growth of online distribution channel. Online channel reach to remote locations catalyzes the online companies to target larger potential market.
The major factors driving the growth of commercial & residential furniture rental market includes cost efficiency, higher convenience and flexibility, and changing consumer behavior. Rented furniture are comparatively more cost effective as compared to purchasing new furniture. It requires less maintenance and low-cost service which makes them highly affordable. Several new startup companies would preferably opt for having a rented furniture than purchasing new furniture. Furthermore, rising number of college student population opting for independent housing instead of on-campus accommodations and similarly rising number of young professionals who seek aesthetically furnished apartments that would suit their lifestyle, are resulting in a demand for rented furniture.
Availability of other financing such as banks are giving attractive personal loans and credits to their customer for purchasing goods including furniture is projected to hamper the market growth over the forecast period. The banks provide loans and credits at zero percent down payments with EMI’s at a lower interest rate. The presence of banks gives options to customers to purchase furniture in monthly instalments’ is one of the prime factors which is resulting in increasing demand for purchased furniture in comparison to rented furniture.
Top Featured Companies Dominating the Market
Aaron’s Inc, CORT, Rent- A- Centre, Rent Wow Furniture and Executive Furnishing Rentals are some the key players across the global commercial & residential furniture rental market.
Aaron's, Inc. is a multinational company of furniture rental that operates as an Omni channel that serves for lease-purchase solutions to underserved and credit-challenged customers. The company also provide range of living room sets, sofa, office furniture, recliners & chairs, and kid’s bed in furniture rental market for its various clients and customers.