The Furniture market is divided into seven segments: Living Room Furniture, Bedroom Furniture, Kitchen & Dining Furniture, Outdoor Furniture, Home Office Furniture, Lamps and Lighting, and Home Decor. Due to rising living standards and a higher income, consumers are replacing their furniture more frequently. Revenue in the Furniture market amounts to US$729bn in 2023. The market is expected to grow annually by 5.03% (CAGR 2023-2028).
The Furniture market is mostly driven by consumer spending in general. Consumer spending takes various factors into account; such as per-capita income, household debt levels, and consumer expectations. The steady increase in disposable income and the consequent rise in living standards are responsible for the continuous growth of the market, as is the constant demand for furniture. The growing number of internet and smartphone users has not only changed consumer behavior, but has also fundamentally changed the sales channels and retail landscape. The adoption of online shopping by consumers has made furniture one of the fastest growing markets in that regard.
The main key player in the Furniture market with regards to market share is the Swedish company, IKEA. With more than US$45bn, IKEA has by far the highest sales among furniture companies. However, since eCommerce is further driving the growth of the furniture industry, Wayfair, one of the largest online-only home goods retailers, has a major potential for its future business.
The following trends currently shape the market: augmented reality apps, generative designs, eco-friendly materials, and integrated technology. From 3D-printed furniture to smart lightening, the Furniture market is experiencing innovations in design, production, and material.