The office furniture market is estimated to be valued at USD 67.08 Bn in 2024, exhibiting a CAGR of 5.8% over the forecast period (2024-2031). The growing number of startups and expansion of office spaces are spurring the demand for office furniture. Furthermore, rising e-commerce sales and online availability of a wide range of products are supporting the market growth.
Increasing Commercial Infrastructure Development
Rapid urbanization and growth of the commercial real estate sector globally is driving the demand for office furniture. Many companies are expanding their facilities and offices which requires new furnishings. This is positively impacting the market growth.
Growing Demand for Ergonomic Furniture
With rising health awareness and work from home culture, the demand for ergonomic and adjustable office furniture is increasing. Features like adjustable chairs, desks, and electronic gadget holders are becoming popular. This is promoting innovations in products and further boosting the office furniture market. The drivers explained above are expected to propel the office furniture market significantly during the forecast period. However, a detailed analysis of challenges and restraints is required to make an informed business decision.
Demand from Growing Number of Startups and Small Businesses
The number of startups and small businesses is growing rapidly around the world. As more entrepreneurial individuals and teams decide to build their own companies, they require office spaces to work from. This growing demand for office space directly increases the need for purchasing office furniture like desks, chairs, storage units, and others. According to recent studies, over 50% of new businesses need to purchase basic office furniture packs within the first 6 months of opening. This growing customer base is a major driver fueling growth in the office furniture market.
Trend of Activity-based Flexible Workspaces
Another key driver is the rising trend of activity-based and flexible workspaces. Many large corporations are moving away from assigned desks and cubicles to open collaborative workspaces. Furniture needs to support employee mobility, easy reconfiguration, and focus on specific tasks. Modular furniture allowing reorganization and mobile, ergonomic chairs are gaining popularity. According to market reports, over 30% of total office furniture sales currently cater to activity-based workspace demands. As more companies adapt flexible workspace models, it will continue boosting demand and revenue opportunities for innovating office furniture makers.
Economic Slowdowns Reducing Business Spending
Periods of economic slowdown tend to negatively impact spending across business segments, including on office infrastructure. During recessions, organizations focus capital on essential operations and delay furniture refreshes or expansions. The COVID-19 pandemic led to widespread shutdowns impacting revenues and cash flows of many companies. As a result, planned office refurbishments and purchases were postponed. Slow economic growth poses a key restraint if businesses prioritize costs over workspace upgrades.
Rise of Remote Working Reduces Need for Traditional Offices
The shift to remote and hybrid work models during the pandemic has disrupted conventional office setups. With more employees working from home permanently, the office space requirements and corresponding furnishing needs have reduced substantially for many organizations. There is lesser spending on cubicles, desks, or chairs as dedicated workstations see less utilization. Even post-pandemic, a segment of employees will continue operating remotely, diminishing the future capital expenditure potential for traditional office furniture supplies. Unless new types of collaborative furniture fill this gap, remote work proliferation will curb the market growth.
Green and Sustainable Furniture Becoming Mainstream
Corporate social responsibility is a thriving trend across industries today. More and more workspaces are pursuing eco-certification and shifting towards renewable materials, emissions compliance, and zero-waste goals. This drives the demand for green furniture made from recycled, FSC-certified (Forest Stewardship Council), biodegradable, or non-toxic components that reduce environmental footprint. Those manufacturers developing sustainable options as per LEED (Leadership in Energy and Environmental Design) standards will have a competitive edge over others to tap into this market opportunity.
Rise of Smart Furniture Integrated with IoT Technologies
Internet of Things (IoT) is revolutionizing every aspect of lives. Its integration into office equipment is the next logical step. Smart furniture controlled through apps, embedded with sensors and connectivity allows for features like adjusting settings automatically via user profiles or ambient conditions. This improves employee experience and productivity. Early adopters of smart furniture integrated with collaborative tech, lighting control, or built-in charging will gain first-mover advantages to scale up in innovative segments.
Link: https://www.coherentmarketinsights.com/market-insight/office-furniture-market-4501
Key Development
- In February 2024, Fast Office Furniture announces its Collection which includes office chairs, desks, storage solutions, and accessories that allow businesses to have an area full of style while being highly productive
- In April 2024, Bentley Home launched office furniture at Milan design week
- In 2023, Knock on Wood, a pioneer in furniture design and state-of-the-art manufacturing, announced the launch of its highly anticipated collection of office furniture. Knock on Wood aims to revolutionize workplaces and the way people work and collaborate in contemporary office environments with its exceptional craftsmanship and cutting-edge designs of office furniture
- In 2023, CoLab,' collaborative and customizable furniture for new-age learning and working
Key Players: 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, and Sunon Furniture
