The global Furniture industry is projected to generate over USD 270 billion by 2020. Factors driving this expansion include the growing hospitality and real estate sectors, increased per capita disposable income, and the availability of a low-cost and skilled workforce. These factors have created demand for a variety of products, including office furniture. This industry is predicted to grow at a high rate over the next several years. The following is an overview of key factors driving the industry’s growth.
The expansion of the hospitality and real estate sectors, as well as rising disposable incomes, are the main drivers of the furniture industry. To boost their business, many leading global players have begun shifting their manufacturing core to Asian countries. These countries provide cheap labor and skilled workers, which is likely to have a positive impact on the furniture market’s outlook. In addition to this, the growth of the economy in the region will benefit the industry, as consumers will still prefer to visit physical stores for purchasing goods.
The Indian furniture industry has been on a steady rise for the past decade, and growth in the third quarter of this year was a 12.5% increase over the third quarter of last year and 40% over the second quarter of this year, which was plagued by closures in the retail sector. The industry reported total sales of $4.75 billion in the third-quarter, but this figure is still preliminary. The trend will likely continue, however, as supply chain development increases in India. In addition, improved services in the logistics and supply chain sectors will drive the furniture industry growth.
The growth of the furniture industry in Europe is expected to continue its upward trajectory through 2027. The region is home to several leading manufacturers of furniture, including HNI Corporation, Her Miller, Inc., and KOKUYO. In addition to rising demand for luxury furnishings, the region is also expected to grow rapidly. Moreover, the cost of labor in Asia will boost the global market for furniture. Lastly, the growth of the furniture industry is boosted by the development of infrastructure in metropolitan areas.
Increasing urbanization and rising personal disposable income have significantly boosted the growth of the global furniture industry. By 2020, 54% of the world’s population will live in an urban area, which is expected to boost the demand for new furniture. As a result, millennials are now more likely to make purchases online than ever before. The millennial generation is especially enthusiastic about new technologies, and they are increasingly comfortable with making purchases online.
Growth in the furniture market is expected to be driven by increasing demand in developing economies and increasing investment in infrastructure projects. Infrastructural development is also expected to spur the market, while government regulations are a factor. According to the British Contract Furnishing Association, furniture used in hospitals must be compliant with strict guidelines and regulations. In addition, the furniture used in hospitals should be sealed with high-quality clear lacquer. This type of finish will ensure durability and should contain antimicrobial agents.