In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
June 2019: Inter IKEA Systems B.V. announced that they have teamed up with ORI, that has developed ROGNAN robotic furniture, a smart furniture for modern small space living so as to turn small spaces into smart spaces.
July 2018: Hi-Interiors srl announced that it has launched its product “HiCan”, which is a smart bed, at the Milano Design Week. The product helps the user to control their bed and change their position, close their privacy blinds, watch a movie, listen to music or turn off the lights with the help of a multiplatform app.
Smart Furniture is referred to all those furniture solutions that uses surrounding environment information to provide integrated functionality and comfort to its users. It includes all the object that supports various human activities, such as, seating, eating, sleeping and others. A smart furniture usually has the characteristics of style, which might be traditional, modern or extravagant, and is build with the sole concern of saving space. Serving multiple purposes, smart furniture is built with a focus on its appearance and impression and may also be integrated with latest IT technologies that provides the user to connect the smart furniture with their smartphone devices.
The global smart furniture market is thriving on the back of growing demand for smart home automated devices amongst consumers. Smart furniture provides consumers the ease to access various comfort applications, such as controlling of temperature in electric mattresses of smart beds, and also helps the user to transform the basic furniture into various space saving furniture forms, for instance, transformation of a sofa to bed and vice-versa. Additionally, growing consumption of furnishings and durable household equipment amongst consumers is also anticipated to contribute significantly towards the growth of the global smart furniture market. According to Federal Reserve Economic Data (FRED) of the Federal Reserve Bank of St. Louis, personal consumption expenditures for furnishings and durable household equipment increased from USD 238.28 billion in the year 2009 (1st of January) to USD 341.21 billion in the year 2018 (1st of January).
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The market is anticipated to record a robust CAGR throughout the forecast period, i.e. 2020-2028. The global smart furniture market is segmented by application into residential and commercial, out of which, residential segment is anticipated to hold the largest market share on the back of changing lifestyle and increasing discretionary income of population around the globe. Additionally, shifting trend of consumers towards the adoption of furniture which are interconnected to IoT is also anticipated to drive the growth of the segment during the forecast period. According to Organisation for Economic Co-operation and Development (OECD), household disposable income in the USA increased from 40624.23 USD/capita in the year 2010 to 50294.00 USD/capita in the year 2017.
Moreover, the commercial segment is anticipated to gain significant market share on the back of major focus by corporate offices across the world towards employee welfare and ergonomics, coupled with growing need amongst employers to track and monitor an employee’s activity, in order to increase the productivity of all employees.
According to the Bank for International Settlements (BIS), commercial property price index in the United States grew from 400.10 index, 2010 = 100 units in the year 2010 to 687.20 index, 2010 = 100 units in the year 2018, and in the Euro area, grew from 39.31 index, 2011 = 100 units in the year 2010 to 467.30 index, 2011 = 100 units in the year 2018.
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Moreover, the statistics also stated that residential property price index in the United States grew from 416.60 index 2005 = 100 units in the year 2013 to 528.40 index 2005 = 100 units in the year 2018, and in the Euro Area, it grew from 392.05 index 2015 = 100 units in the year 2013 to 454.66 index 2015 = 100 units in the year 2018.
There is a rising concern amongst individuals around the globe for the increasing prices of commercial and residential property spaces. Additionally, numerous people stay at small living spaces to avoid the increasing cost of property spaces. Many people are even shifting to mobile homes so as to reduce their recurring cost of rent for property spaces. Owing to such factors, consumers are shifting towards furniture and home furnishings that saves space and also can be transformed to multiple furniture types. Smart furniture serves numerous benefits to the consumers, such as, it serves numerous functions, the moveable and foldable parts stow furniture or minimize wasted space when it is not in use and also the furniture is interactive as well as transformative to serve one or more persons.
Smart furniture manufacturers are increasingly developing new furniture that facilitate various technologies, such as wireless charging of smartphones, mirror display of time, date & news, as well as sensors deployed in furniture that detect the well-being of the user. Owing to such a factor, employers in offices are increasingly adapting to smart office furniture so as to monitor employee activities, such as how long the employee sits, stands or is away from the desk, and the calories burnt by the employee. Furthermore, many end consumers are increasingly shifting towards smart furniture owing to the multiple transformation facilities provided by the furniture, such as stools transforming from modular sofas just at the press of a button in the user’s smartphone, and smart beds that helps to maintain health of the user by keeping a track of the user’s heart rate, respiration rate, sleeping posture and others. Such factors are anticipated to drive the growth of the global smart furniture market during the forecast period.
Smart furniture is priced increasingly high owing to the numerous facilities provided by these furniture types. As a result, it is not feasible for many consumers to purchase the product, which might impact the sales of the smart furniture manufacturer. Additionally, lack of awareness amongst many consumers, and competitive pricing offered by the unorganized sector in the smart furniture industry are some of the factors anticipated to hinder the growth of the global smart furniture market.
Our in-depth analysis of the global smart furniture market includes the following segments:
On the basis of regional analysis, the global smart furniture market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is anticipated to hold the largest market share, especially in the provinces of U.S. and Canada, owing to increased awareness amongst the population and increasing prices of commercial and residential spaces. According to Statistics Canada, the Canada’s national statistical agency, retail trade sales of furniture stores in Canada increased from USD 9.47 million in the year 2011 to USD 11.56 million in the year 2018.
The global smart furniture market is further classified on the basis of region as follows: