To know what to expect, we got to discuss from where the push of growth started substantially. The global furniture market size extended to USD 545.78 billion in 2020 and is evaluated to display a 5.4% CAGR from 2021 to 2027. The development of new residential and commercial projects across the globe will pace the industry’s evolution to result in an outshining growth rate. Increasing disposable income coupled with sectors like residential and hospitality are projected to create significant and sustaining demand for furniture solutions.
In addition, the global pandemic has also raised the market demand for innovative design possibilities. Space-saving and multipurpose furniture units have lifted the bar for creativity and design improvement. Hence, an increasing expansion rate is expected for the global furniture market by 2025.
Some critical points that support this estimation are:
Import and Export
Global import and export of wooden furniture and handicrafts are notable contributors to the expansion of the worldwide furniture industry. Wooden handicrafts and detailed furniture have face value internationally, and some countries are renowned for their unique production of furniture styles. India is one such country; with Sheesham wood being legal, India holds a significant face in the global market for exquisite traditional carved furniture. Potential companies should compete to produce innovative furniture to increase the export and import rates globally. This would create a great flow of furniture production, resulting in an up-scaled market growth rate internationally.
Residential and commercial projects are on the rise globally.
Commercial projects include hotels and public buildings, which are anticipated to be a notable CAGR because of their sizeable market share.
The extensive modernization and establishment of sectors like IT have increased job opportunities and improved living styles. It will subsequently bloom the demand for purposeful and innovative office furniture in the coming years. The need for ergonomics has surpassed the walls of the office and is in high demand in homes as well. In addition, the growing population is another reason that would push the furniture production rate to a drastic change of improvement globally.
Demand for Innovation
Brands coming up with visionary furniture possibilities that increase the convenience and style of living are at their peak. With space restrictions and a growing population, multipurpose and space-saving furniture designs triumph in the global market. The new age demands innovation and design improvement, raising healthy competition to increase the production rate of furniture industries globally.
All these critical factors are anticipated to increase the production rate and refine the growth rate of the global furniture industry by $ 134.70 billion during 2021-2025, advancing at a CAGR of over 4%. Hence, a lot is to come for the global furniture industry that would open new gates of advancement.
Authored by – Lokendra Singh Ranawat, CEO, WoodenStreet.