PUBLISHER: The Business Research Company | PRODUCT CODE: 1428202
PUBLISHER: The Business Research Company | PRODUCT CODE: 1428202
Contract furniture encompasses furniture specifically designed and manufactured for use in commercial or institutional environments, tailored to withstand rigorous use while meeting durability, resistance, safety, and quality standards essential for business settings and promoting environmental protection practices.
The primary products in the contract furniture category include chairs and stools, tables and desks, storage furniture, sofas and couches, and other miscellaneous items. Chairs are designed to accommodate one sitting or reclining person, providing back and often arm support, and typically standing on four legs. Stools, on the other hand, are seats without back or armrest support, used in contract furniture to offer comfortable seating in various business settings, emphasizing durability and visual appeal. These furniture items are crafted from a range of materials, including upholstered and non-upholstered components, and are distributed through both offline and online channels to cater to diverse end-users such as government institutions, corporate offices, healthcare facilities, hospitality establishments, and others.
The contract furniture market research report is one of a series of new reports from The Business Research Company that provides contract furniture market statistics, including contract furniture industry global market size, regional shares, competitors with a contract furniture market share, detailed contract furniture market segments, market trends and opportunities, and any further data you may need to thrive in the contract furniture industry. This contract furniture market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The contract furniture market size has grown strongly in recent years. It will grow from $59.81 billion in 2023 to $63.61 billion in 2024 at a compound annual growth rate (CAGR) of 6.4%. The expansion observed in the historical period can be ascribed to factors such as the expansion of corporate offices, evolving trends in office design, the growth of the hospitality and tourism sector, the adoption of sustainable and eco-friendly practices, and the globalization of business.
The contract furniture market size is expected to see strong growth in the next few years. It will grow to $78.93 billion in 2028 at a compound annual growth rate (CAGR) of 5.5%. The anticipated growth in the forecast period can be linked to the emergence of a remote work culture, a focus on wellness and ergonomic design, the popularity of flexible and modular furniture solutions, a demand for customization and personalization, and the rapid expansion of co-living spaces. Notable trends expected in the forecast period encompass the integration of technology, the incorporation of biophilic design elements, the adoption of smart furniture and IoT integration, the utilization of virtual and augmented reality in design, and innovations in sustainable materials.
The anticipated growth in the contract furniture market is expected to be propelled by the global increase in commercial spaces. Commercial space, a comprehensive term in real estate, encompasses areas dedicated to business or professional activities. Contract furniture, specifically designed for high-traffic public and commercial locations such as lobbies, waiting rooms, and offices, caters to the demand for durable and functional solutions in the business sector. As an example, data from Commercial Edge, a Canada-based commercial real estate software company, reported an annual increase of 2.1% in the average office listing rate to $38.36 per square foot in the United States in 2023. The national vacancy rate also saw a yearly increase of 30 basis points to reach 17% in 2023. Additionally, the under-construction office space in the United States accounted for 116.2 million square feet in 2023, representing 1.8% of the total stock. Consequently, the surge in global commercial spaces is a driving force behind the growth of the contract furniture market.
The contributing factor to the growth of the contract furniture market is the increasing number of businesses. Businesses, entities engaged in commercial, industrial, or professional activities for profit, contribute to the rising demand for office furniture. This is particularly evident in the growth of small and medium enterprises (SMEs) requiring functional, ergonomic, and visually appealing furniture solutions as they expand. Notably, data from the Economic Innovation Group, a US-based advocacy organization, revealed a noteworthy trend. Between January and June of 2023, there were almost 2.7 million applications submitted to initiate a business, marking a 5% increase compared to 2022 and an impressive 52% surge compared to the corresponding period in 2019. Thus, the escalating number of businesses is a key driver for the growth of the contract furniture market.
Product innovation stands out as a prominent trend gaining traction in the contract furniture market. Leading companies in the contract furniture sector are dedicating their efforts to developing inventive furniture solutions to solidify their market positions. As an illustration, in February 2022, Godrej Interior, an India-based furniture company, unveiled Move Up-an ergonomic desk innovation designed to encourage alternating postures. Move Up boasts an inclusive design with easy adjustability, utilizing software that identifies individual preferences and promotes seamless transitions between working postures. The program monitors the duration a user spends sitting or standing and adjusts the desk accordingly.
Major players in the contract furniture industry are directing their focus towards the development of innovative solutions, including centralized platforms. A centralized platform is a unified system where various functions, data, or services converge and are managed from a single central point. In June 2022, a US-based furniture manufacturing company launched its product offering on the 'Configura Extension Technology' platform for commercial furniture. This platform streamlines the design, specification, and order placement process for furniture. It provides furniture sales representatives, dealers, and designers with a centralized platform for the entire furniture specification process. This innovative platform empowers users to combine various products within the software, facilitating the creation of fully realized furniture settings. Users can explore optimal product pairings and generate detailed 2D and 3D floor plans and renderings.
In May 2022, Steelcase Inc., a US-based producer of office, medical, school, and residential interior furniture, storage, and partitioning solutions, completed the acquisition of HALCON Corporation for approximately $140 million. This strategic move by Steelcase Inc. aims to leverage HALCON Corporation's production flexibility, craftsmanship, and exceptional service to meet the specific demands of its clients. HALCON Corporation, based in the US, operates in the contract furniture sector, specializing in precision-tailored workplace furniture.
Major companies operating in the contract furniture market report are Inter IKEA Systems BV,Herman Miller Inc., Steelcase Inc., Haworth Inc., LA-Z-Boy Inc., HNI Corporation, Okamura Corporation, Global Furniture Group, Arhaus Inc., Knoll Inc., Kimball International, Hooker Furniture, Kinnarps AB, OFS Brands Holdings Inc., Cabot Wrenn, Teknion Corporation, Pioneer Contract Furniture Ltd., Keilhauer Industries Ltd., Allseating Corporation, Allermuir Inc., Hauser Industries Inc., Jack Cartwright Inc., Carlick Contract Furniture Limited, Casala Limited, Modern Line Furniture, Aceray LLC.
North America was the largest region in the contract furniture market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the contract furniture market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the contract furniture market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.
The contract furniture market consists of sales of outdoor benches, bookcases, acoustic booths, bedroom furniture, lounge furniture, and dining furniture. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Contract Furniture Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on contract furniture market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for contract furniture ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The contract furniture market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.