Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Office furniture is gaining more importance nowadays with the continuous expansion in business environment in both developing and under-developed nations across the globe. The rise in number of makeover and modification projects in emerging economies such as Japan, China, and India is fueling the growth of the market.
The global office furniture market was valued at US$ 74,428.57 Mn in 2019, and is expected to reach US$ 96,642.94 Mn by 2027, exhibiting a CAGR of 3.1% during the forecast period.
The emerging economies such as India is undergoing industrialization and economic development, which is leading to infrastructural transformation. For instance, according to the World Bank Group, per capita income in Asia Pacific was US$ 10,368 in 2017, which increased by 3.85% from 2016. Office buildings are being considered as real estate assets, as they provide income and growth opportunities. Moreover, growth of the private sector is leading to increasing office infrastructures for micro, small & medium enterprises (MSME). Moreover with focus on construction of new offices, enterprises are also focusing on alteration and renovation of existing offices. The refurbishment of offices require investments on new office furniture.
Figure 1. Global Office furniture Market Revenue Share (%), By Region, 2019
Among regions, Asia Pacific held dominant position in the global office furniture market in 2019, accounting for 37.46% market share in terms of revenue, followed by North America and Europe.
The cost of raw materials such as wood, plastic, metals, and others used in manufacturing of furniture remains highly volatile. Moreover, advanced office furniture such as tech-charging furniture and multi-touch tables are of high cost. These factors are expected to hinder growth of global office furniture market over the forecast period.
Office furniture Market Report Coverage
||Market Size in 2019:
||US$ 74,428.57 Mn
|Historical Data for:
||2017 and 2018
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 96,642.94 Mn
- North America: U.S. and Canada
- Latin America: Brazil, Mexico, and Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, and Rest of Asia Pacific
- Middle East: GCC Countries, and Rest of Middle East
- Africa: Northern Africa, Central Africa, and Southern Africa
- By Material Type: Metal, Wood, Plastic, and Others
- By Product Type: Storage Units, Seating, Desks & Tables, Workstation, and Accessories
- By Price Range: Premium, Economic, and Medium
- By End User: Corporate Offices, Government Offices, and Others
- By Distribution Channel: Online and Offline
Knoll Inc., LLC., HNI Corporation, Herman Miller, Inc., Teknion Corporation, Kimball International Inc., Berco Designs, Kokuyo Co., Ltd., Haworth Inc., Okamura Corporation, and Steelcase Inc.
- Increasing adoption of ergonomic chairs
- Infrastructural transformation and developments in the private sector
|Restraints & Challenges:
- Intense competition from local players and fluctuating raw material prices
Countries across the globe are witnessing high growth in the e-commerce industry. For instance, according to India Brand Equity Foundation (IBEF) report on e-commerce, published in July 2017, e-commerce market is expected to exhibit a CAGR of 44.77% from 2016-2020 to reach US$ 63.7 billion by 2020 in India and is expected to reach US$ 188 billion by 2025. This growth in the e-commerce industry is also facilitating the growth of office furniture market. As office furniture manufacturers are getting acquainted with online channels, they are selling their products on a larger platform, thereby increasing their customer base geographically. E-commerce portals boost the sales of furniture manufacturers by providing larger exposure to manufacturers, who were confined to one geography.
To cater to the customer requirements, manufacturers are also focusing on developing new products. The leading market players are launching innovative furniture solutions such as Do It Yourself (DIY) office furniture, which is also beneficial in shifting of offices from one location to another. For instance, IKEA furniture offers dismantled form of furniture, which can be assembled according to the size and structure of the office.
Figure 3. Global Office Furniture Market Revenue Share (%), By Product Type, 2019
On the basis of product type, in 2019, the seating segment accounted for 43.70% of the revenue share, followed by desks & tables and workstation. Pepperfry, an online furniture shop in India, suggested that the demand for office chairs has grown by 175% in June 2020 in comparison to pre-COVID period. Moreover, the reports by the company also suggest that home-office furniture contributes over 25% of its overall sales, a category that accounted for about 10% of their total sales before the coronavirus pandemic.
Global Office furniture Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 is affecting the global economy in three major ways - by directly affecting production and demand for all necessary commodities, by negatively impacting the supply chain, and by financially impacting the firms. The outbreak of the coronavirus disease (COVID-19) was a major restraining factor for the office furniture manufacturing market growth in 2020. There were huge disruptions in the supply chains due to trade restrictions. Moreover, the demand for furniture also declined due to lockdowns imposed by governments globally.
Key players operating in the global office furniture market include Knoll Inc., LLC., HNI Corporation, Herman Miller, Inc., Teknion Corporation, Kimball International Inc., Berco Designs, Kokuyo Co., Ltd., Haworth Inc., Okamura Corporation, and Steelcase Inc.