OFFICE FURNITURE MARKET ANALYSIS

Office Furniture Market Size and Trends

The office furniture market is estimated to be valued at USD 67.08 Bn in 2024 and is expected to reach USD 99.53 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2031.

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The office furniture market has been witnessing a steady growth over the past few years. There is a rising demand for more flexible and automated furniture solutions that can adapt to the hybrid work models adopted by many organizations post-pandemic. Modular and sit-stand desks as well as storage cabinets on wheels are gaining more traction among office space designers. Sustainability also remains a key factor influencing purchasing decisions in this market. Many companies are investing in furniture made from recycled, recyclable, or remanufactured materials to reduce their environmental footprint.

Impact of COVID-19 Pandemic and Demand for Remote Working Furniture

The ongoing COVID-19 pandemic has significantly impacted the office furniture market as many organizations shifted to remote working setups. With lockdowns being imposed and concerns over virus transmission, most office work shifted to employees' homes overnight. This massive and sudden shift highlighted the need for ergonomic furniture suitable for remote working scenarios. Many employees found themselves working for long hours on dining tables or other inappropriate furniture not meant for office work. This led to many health issues like back pain, eye strain, and others.  To ensure productivity of remote employees is maintained, organizations realized the need to provide proper office furniture. Many started offering allowance or reimbursements to employees to purchase basic furniture like adjustable desk, chairs, laptop stands, etc. This emerged as a big opportunity for office furniture manufacturers and retailers. A variety of adjustable desks, chairs, and laptop stands suitable for small spaces and remote working conditions were developed and witnessed high demand. Special attention was given to ensure comfort, adjustability, and multifunctionality in compact designs. Affordability was another key consideration as these were meant for homes and purchased by individuals rather than organizations. Over the long term as well, many companies have realized the benefits of remote working and have adapted permanent remote or hybrid working models. This is expected to significantly boost the demand for home office furniture on a sustained basis rather than just temporarily. While earlier focus was on disease prevention and basic ergonomics, customers are now more concerned about creating efficient and comfortable workspaces at home as well. Features like sit-stand flexibility, storage, accessorizing are gaining more prominence. This long-term demand shift towards remote working specific furniture sets is a major driver for the industry.

Market Concentration and Competitive Landscape

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There is a strong trend of shifting towards more flexible and collaborative workspace designs in modern offices. The traditional cubicle-based designs are being replaced by open floor plans focusing on mobility, connectivity, and functionality. This concept of Activity Based Working or ABW encourages employees to choose different settings and spaces within the office based on the task or work being performed. It focuses on creating varied environments like areas for focusing individually, collaborative discussion, social interaction, learning, and others. This workplace evolution has created demand for a wider range of versatile and lightweight furniture that can easily be rearranged.

Key Takeaways From Lead Analyst

The office furniture market is projected to see steady growth driven by rising numbers of startups, expansion of corporate offices and remote working culture. However, supply chain bottlenecks continue to pose challenges for timely delivery of products. Raw material prices have increased substantially putting pressure on margins.

North America dominates the current demand led by the U.S. However, Asia Pacific is expected to be the fastest growing region in the long run. Chinese manufacturers are aggressively expanding their export footprint. Countries like India and Vietnam are emerging as alternatives for offshore manufacturing.

Rising employee count in the technology industry will generate increased demand for modern workplace solutions. Adaptability and mobility will be critical to support hybrid work models. Furniture made of recyclable and sustainable materials may gain traction as ESG becomes a priority.

Challenges: Fluctuations in raw material prices

Fluctuations in raw material prices have significantly restrained the growth of the office furniture market in recent times. Office furniture manufacturing relies heavily on various raw materials such as wood, metal, plastic, and leather. However, the prices of these raw materials have witnessed high volatility over the last couple of years due to various global and local factors. This volatility in raw material costs has constrained the office furniture manufacturers from undertaking aggressive capacity expansions and new product launches. It has also impacted their profit margins considerably as high input costs could not be fully passed on to the customers. This unpredictability in raw material costs poses planning challenges for manufacturers and discourages long term investments. With economic activities reviving gradually post pandemic, the global demand for office furniture is projected to grow over the coming years. However, uncontrolled inflation in key raw material prices continues to undermine the stability and steady growth of this market in the near future, unless addressed strategically.

Opportunities: Growth of co-working spaces

The rise of co-working spaces has been one of the biggest trends to emerge in the commercial real estate sector over the past decade. As remote work has increased flexibility and more entrepreneurs and small businesses operate virtually, the demand for shared, flexible workspaces has surged. According to data from a leading flexible workspace provider, WeWork, the global co-working market grew over 30% in 2020 and is expected to continue expanding by over 25% annually through 2023. This rapid growth of co-working is creating an enormous opportunity for office furniture providers. Unlike traditional offices with long furniture replacement cycles, co-working operators need to quickly and regularly refresh their spaces to keep up contemporary design trends and cater to a diverse set of clients. This means a constant need for new chairs, desks, storage units, and other modular furniture pieces that can be easily reconfigured as members and floorplans change. Rather than large one-time purchases, co-working operators spend steadily on inventory through furniture subscription and rental programs.

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In terms of material type, wood is expected to contribute 34.2% share of the office furniture market in 2024, owing to its natural durability properties. While wood requires more maintenance than other materials, it retains its structural integrity well over time if properly finished and sealed. The natural aesthetics of wood also appeal to many clients and workers compared to harsher artificial materials. Various wood types each have their own unique grains, knots, and textures that make for visually appealing desk tops, chairs and partition panels. Withstanding wear-and-tear from daily use, wood maintains its integrity of form without cracking or breaking down. Its ability to be refinished also extends the productive lifecycle of wood furniture pieces for decades to come. While more expensive up front than plastic or metal, wood furniture represents a long-term investment and contributes to a warmer, more organic atmosphere in offices.

Insights by Product Type: Versatility Drives the Demand for Desks and Tables

In terms of product type, desks and tables is expected to contribute 37.2% share of the office furniture market in 2024, owing to their versatile functionality. From personal work stations to conference room setups, desks and tables provide surfaces for a variety of tasks throughout the work day. Individual desks allow for focused work while tables are ideal for collaborating in teams. Features like leg heights, desktop sizes, filing compartments, and electrical connections allow desks and tables to be customized for different work environments and employee roles. Mobility is also an advantage, as desks and tables can be easily rearranged or redistributed as needs change. Available in a diversity of styles from modern to traditional, desks and tables meet the design preferences of various corporate cultures. Their central usefulness in any office space solidifies desks and tables as fundamental product types within the industry.

Insights by End User: Corporate Demands Drive Volume

In terms of end user, corporate offices is expected to contribute 39.7% share of the office furniture market in 2024, owing to high work space volume demands. Large corporations occupy sizeable commercial real estate footprints nationally and globally. When companies expand or relocate offices, they require complete furniture overhauls at scale. Corporate procurement teams coordinate major installations involving hundreds of pieces. Strict branding and quality standards must be met for suites, workstations, and common areas. Furniture acts as a non-monetary form of compensation for employees as well. Large staff counts translate into bulk order volumes that fuel significant business within the contract furniture segment. Government offices and other workplace environments also purchase, but corporate needs present the most consistent market potential due to vast staff sizes and periodic refresh cycles.

Regional Insights

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North America has established itself as the dominant region in the global office furniture market over the past few decades. The region is expected to account for 37.5% of the market share in 2024. The large and developed economies of U.S. and Canada have provided considerable growth opportunities for industry players. Major office furniture companies have their headquarters located within the region that allows them to cater effectively to the demands of clients. A strong presence of multinational corporations from various industry verticals has generated a steady demand for high-quality and ergonomic office furniture. Moreover, the focus on employee well-being and productivity has prompted organizations to invest more in furnishings that promote healthy work environments. Popular furniture categories purchased widely include seating solutions, storage units, desks, and workspace dividers. The emphasis on flexible workspaces has boosted sales of modular and configurable furniture pieces that optimize limited floor spaces within offices. North American brands are known to offer innovative furniture lines integrating latest design aesthetics and technological features.

The Asia Pacific region has emerged as the fastest growing market for office furniture in recent times. Rapid urbanization and growth of small and medium enterprises have bolstered the commercial real estate boom across major countries like China, India, and Vietnam. This has translated to new office space requirements for various startup cultures. Local furniture manufacturers are building capabilities to cater for the affordable segments by offering diverse collections at competitive price points. Developing trade relations with North America and Europe have supported imports of premium furniture lines as well. Meanwhile, numerous foreign players are setting up manufacturing plants within Asia to leverage lower production costs and tap into the attractive market potentials. The expanding middle class population also contributes towards the increased spending on workplace enhancements. Overall, the Asia Pacific region remains a lucrative prospect for sustained future expansions in the global office furniture landscape.

Market Report Scope

Office Furniture Industry News

• Fast Office Furniture's Latest Collection, unveiled in February 2024, offers a range of office furniture and accessories designed to combine style with functionality, enabling businesses to create productive workspaces. This collection includes office chairs, desks, storage solutions, and accessories, all crafted to enhance the aesthetic appeal of the office environment while promoting efficiency and comfort for employees. By incorporating these pieces into their workspace, businesses can elevate their office design, boost productivity, and create a conducive environment for success.
• In April 2024, Bentley Home, the luxury furniture brand owned by the iconic U.K.-based car manufacturer, Bentley Motors, made its debut in the office furniture market at the Milan Design Week. This highly anticipated launch showcased Bentley Home's commitment to bringing its signature style and craftsmanship to the world of office furnishings.
• In 2023, Knock on Wood, a renowned pioneer in furniture design and state-of-the-art manufacturing, unveiled its much-anticipated collection of office furniture. This launch marked a significant milestone for the brand, as it aimed to redefine contemporary office environments by combining exceptional craftsmanship with cutting-edge designs.
• In 2023, CoLab introduced a groundbreaking line of collaborative and customizable furniture designed to transform the way people learn and work in modern environments. This innovative collection is tailored to meet the evolving needs of educational institutions, offices, and co-working spaces, fostering a culture of collaboration, creativity, and flexibility.

*Definition: The office furniture market caters to the needs of commercial organizations looking to furnish their office spaces. It offers a variety of products that includes desks, chairs, storage units, filing cabinets, shelves, sofa sets and other accessories essential for modern offices. Key customers in this market are corporate offices, billing and accounting firms, architectural and designing companies, and other professional workspaces seeking well-designed, functional, and ergonomic furniture solutions for their employees and visitors.

Market Segmentation

•  Material Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Metal
  • Wood
  • Plastic
  • Glass
  • Others (Steel, etc.)
•  Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Office & Auditorium Chairs and Seatings
  • Desks & Tables
  • Auditorium Podiums
  • Others (Sofa, Dining Table, etc.)
•  End User Insights (Revenue, USD Bn, 2019 - 2031)
  • Corporate Offices
  • Government Offices
  • Others (Factory Offices, etc.)
•  Sales Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Retail Stores
  • Specialty Stores
  • Online Stores
  • Others (Rental Stores, etc.)
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Herman Miller Inc.
  • HNI Corporation
  • Steelcase Inc.
  • Haworth Inc.
  • Knoll
  • Ashley home stores, Ltd.
  • Global Furniture Group
  • Kimball International Inc.
  • Okamura Corporation
  • Affordable Interior Systems, Inc.
  • Itoki Corporation
  • Cherrypick India
  • Onyx Furniture
  • Alfa Furniture
  • Highmoon Home Furnitures Trading LLC
  • MR FURNITURE
  • ENTRAWOOD
  • Offix
  • Dious Furniture Group
  • Sunon Furniture