PUBLISHER: Grand View Research | PRODUCT CODE: 1588699
PUBLISHER: Grand View Research | PRODUCT CODE: 1588699
The global home furnishing market size was estimated at USD 948.0 billion in 2023 and is expected to grow at a CAGR of 9.0% from 2024 to 2030. The real estate market's health plays a crucial role in driving demand for home decor. A stable housing market encourages renovations and new home purchases, boosting sales of decor products. Rising disposable incomes, especially in emerging economies like China and India, further enhance consumer spending on home aesthetics. Shifting consumer tastes toward sustainability and eco-friendly products are influencing purchasing decisions. As awareness of environmental issues grows, consumers increasingly seek decor items made from sustainable materials34. Additionally, trends such as DIY home improvement projects and personalized decor options are gaining traction, encouraging consumers to invest in unique and customizable items that reflect their individual styles.
With urban living spaces becoming smaller, there is an increasing demand for furniture that serves multiple purposes. Consumers seek stylish yet functional solutions that maximize space while enhancing aesthetic appeal. As more people live in smaller homes, innovative storage solutions that combine functionality with design are becoming essential. The incorporation of innovative technologies into home furnishings is becoming more prevalent. Consumers seek convenient products, such as intelligent lighting and automated furniture solutions. Manufacturers respond to consumer demands with multifunctional furniture that maximizes space utilization while maintaining aesthetic appeal. The limited indoor space has resulted in growing interest in outdoor decor. Urban consumers invest in outdoor furniture and decor to enhance their balconies and patios, creating additional living areas that reflect their style.
The increase in rental living is also expected to be a key market driver in the near future. Urban areas often see a high proportion of rental properties due to high real estate costs. Renters typically move more frequently, leading to a demand for affordable, lightweight, and easily movable furniture. Rental markets encourage furniture that is easy to disassemble and reassemble. Flat-pack furniture from companies like IKEA has thrived in this environment. Renters also look for budget-friendly yet durable options, emphasizing affordability without sacrificing design.
The market is expected to face challenges in the form of higher costs and price-sensitive customers. The market for home furnishing is highly price-sensitive, particularly in emerging economies. Consumers often prioritize affordability over quality, which pressures manufacturers to lower prices while managing rising production costs due to raw material price fluctuations. This dynamic can lead to reduced profit margins and challenges in maintaining product quality. The availability of counterfeit or low-quality products at affordable prices poses a significant challenge for legitimate manufacturers. Consumers may choose these cheaper alternatives over higher-quality options, further restraining market growth.
Economic downturns, inflation, and recession fears can decrease consumer spending on non-essential items like home furnishings. Furniture is often considered a discretionary purchase, and consumers may prioritize essentials over home decor when faced with economic uncertainty.
While e-commerce has expanded the home furnishing market, it also presents significant challenges, especially for traditional brick-and-mortar stores. The shift to online shopping demands robust digital infrastructure, including user-friendly websites, secure payment systems, and efficient delivery options.
Global Home Furnishing Market Report Segmentation
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global home furnishing market report based on product, application, and region: