The global office furniture market is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa, out of which, Asia Pacific accounted for the dominating market share of 45.4% (in terms of value) in 2016 and is believed to account for a leading share by 2024 in the overall office furniture market owing to the expansion of multi-national companies, rising demand for office leasing and growing rate of employment in the region. China and India are the prominent countries behind the growth of the office furniture market in Asia-Pacific. In the terms of volume, China office furniture market is anticipated to mark 7.3% growth rate in 2024.
The region to hold second largest market share was North America that accounted for 26.8% of market share in terms of value in 2016. The region is believed to showcase lucrative growth by registering a CAGR of 6.1% in the terms of value over the period 2017-2024. The U.S. is the highest revenue contributing country in the region and is predicted to cross 30 Million Units in terms of sales volume by 2024 in overall office furniture market in North America. Further, the growing economy and increasing demand for offices in the region are predicted to positively impact the growth of the office furniture market in Europe.
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Rising awareness towards environment is driving people to adopt for eco-friendly solutions around the globe. Moreover, consumer’s preference for green office spaces is encouraging the demand for eco-friendly furniture. These days, consumers are adopting office furniture products that are more environment and health friendly such as ergonomic office chairs. Other than that, consumer’s preference for any product is highly dependent on numerous reasons such as price, design, fashion trends and consumer tastes among other reasons. Thus, the adoption of any office furniture product can be directly impacted by consumer behavior across all regions. Additionally, the office furniture market is growing at a rapid pace on the back of growing number of offices across the globe which is further influenced by their design and requirement. These factors are expected to impact the demand for office furniture with a CAGR of 6.7% between 2017 and 2024. The global office furniture market accounted for USD 52.7 Billion in 2016 and is predicted to reach USD 87.6 Billion by the end of 2024.
The global office furniture market is segmented by product type into seating, overhead bins, storage units, tables, accessories and workstations. Among these segments, the seating segment occupied the largest market share of office furniture market across the globe and is predicted to flourish at CAGR of 6.7% (in terms of volume) over the forecast period. As compared with other segments in office furniture market, seating office furniture segment is expected to remain biggest which would open fresh avenues for new and existing players. Further, the accessories segment is predicted to observe the growth rate of 1.4x over the forecast period.
The global office furniture market is segmented by material into wood, metal, plastic and others, out of which, the wood segment dominated the market in 2016 and is predicted to continue with its positive growth with a growth rate of 1.5x over the forecast period. The wood office furniture segment is anticipated to be the most attractive market in overall office furniture market. . However, plastic office furniture segment is projected to showcase highest CAGR growth during the forecast period and is estimated to account for second largest market value by 2024. Further, the other materials segment is anticipated to achieve absolute $ opportunity of USD 2.6 Billion between 2017 and 2024.
The global office furniture market is segmented by price range into low price, medium price and high price, out of which, the low price segment is predicted to drive the office furniture market by dominating volume share by 2024. In addition to that, the low priced office furniture segment is expected to grow at a CAGR of 6.3% in the terms of value during the forecast period.
The global office furniture market is divided by distribution channel into online and offline stores, out of which, the offline distribution channel segment stood at market share of 97.1% in 2016 and is expected to hold its dominant market stance by the end of 2024. Further, in terms of value, the online store distribution channel segment is expected to reach USD 3.6 Billion by the end of 2024 from USD 1.5 Billion in 2016.
The global office furniture market is segmented by end user into enterprise, hospitals, schools and others. Among these segments, the enterprise segment held the largest market value share in 2016 and is estimated to attain highest market share by witnessing Y-o-Y growth of 6.4% in 2024. The expansion of enterprise segment is attributed to the positive GDP growth around the globe.
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).
The global office furniture market is thriving on the back of strong economic growth, especially in developed countries owing to the new employment opportunities, changes in job quality and ease of recruitment through social media and other platforms. In addition to that, the increasing rate of employment is one of the major reasons behind the rise in number of offices worldwide which is further driving the demand for office furniture products. Factors such as growing small business, adoption of collaborative workspaces and start-ups, rapid introduction of innovative and advanced office furniture such as standing desks, nap pods, bean bags along with rising popularity of foldable furniture, are fuelling the growth of the market. Apart from this, increasing health and environment awareness amongst the population has led manufacturers to develop more health beneficial, eco-friendly and ergonomic office furniture to create a healthier workplace.
Additionally, rising trend for home office is also believed to intensify the demand for furniture products such as armchair, desk etc. which is one of the additional growth factor to aid the global office furniture market to grow in near future.
The fluctuating cost of raw material, lack of skilled workforce and growing popularity of virtual workspace are limiting the expansion of the global office furniture market. Further, economic challenges regarding high cost of transportation and advanced office furniture, low spending budgets etc. are driving the consumers to adopt every possible cost effective furnishing solution such as online rental and second hand furniture. This rising trend of furniture rental and adoption of old furniture are reducing the demand for new furniture which is likely to hinder the growth of market over the forecast period.
Author Credits: Anil Kumar, Ipsheeta Dash