Contract Furniture Market

Contract Furniture Market Outlook

The Contract Furniture Market is anticipated to have a valuation of USD 148.72 billion in 2023. Future Market Insights predicts the market is anticipated to expand at an adequate CAGR of 6.1% and reach a value of USD 268.86 billion by 2033.

Global market is influenced by rising commercial furniture demand. In commercial contexts including corporate parks, restaurants, five-star hotels, healthcare/medical facilities, and institutions, the application of contract furniture is constantly growing.

Due to this, contract furniture has one of the most promising shares in the global furniture and furnishings market.

Countless Factors Influencing the Investment Potential in the Sector

• Due to increased investments in interior decoration, which creates a pleasing and orderly environment, the average amount spent on contract furnishings has increased.
• The development of the e-commerce sector, as well as product marketing or advertising on social media and other online platforms, significantly contributes to the growth of the contract furniture industry.
• Increasing demand for ergonomic furniture in business spaces is a key trend supporting the key players to make lavish profits.
• It is believed that workplace design has a significant impact on workers' productivity. One of the most important components of ergonomics is making the most use of commercial space by strategically placing furniture.
• Contract furniture manufacturers are likely to miss out on market opportunities if office infrastructure and modern technology are not planned strategically.

Attributes	Details
Contract Furniture Market CAGR (2023 to 2033)	6.1%
Contract Furniture Market Size (2023)	USD 148.72 billion
Contract Furniture Market Size (2033)	USD 268.86 billion

Past Changes Reflect the Future's Transformation of the Contract Furniture Industry

Large tech corporations are increasingly supporting global economic expansion. Industry growth is being fueled by the rising demand for corporate office furniture as a result of large tech businesses extending their office premises.

The market consequently expanded, going from USD 111.03 billion in 2018 to USD 140.17 billion in 2022.

For instance, the expansion of Meta's and Google's offices has cost billions of dollars. The parent company of Facebook, Meta, has expanded its space in Silicon Valley, Boston, Austin, Texas, Chicago, and Bellevue (Washington).

This is in addition to leasing 730,000 square feet in Midtown Manhattan in August 2020. Over the projection period, such activities are anticipated to support the demand for contract furniture.

Market Growth Rate (Between 2022 and 2023)	1.06x
Market CAGR (2018 to 2022)	6%

• Short Term (2023 to 2026): demand is anticipated to increase in the near future as more consumers adopt eco-friendly contract furniture and furnishings. By 2026, it's expected to have a market valuation of USD 177.63 billion.
• Medium Term (2027 to 2029): Fast-moving urban migration in developing nations and flourishing global trade are prompting a variety of capabilities to open offices around the world. This promotes contract furniture sales, which are anticipated to reach USD 212.6 billion by 2029.
• Long Term (2030 to 2033): Due to the mass furniture requirement in high-tech industries, key players in the contract furniture sector are seeing multiple opportunities during the forecast period.

Market Dynamics Accelerating the Adoption of Contract Furniture

• The smart furniture market, which enables a variety of functional activities like browsing the internet, charging mobile devices, listening to the news or radio, and more, is expanding quickly. That is thought to be the route that the furniture industry is likely take in the future.
• The growth of the contract furniture sector is being held back by the rising cost of raw materials like springs, wood, textiles, mechanics, feathers, and packaging. End-users favor sustainable options like secondhand or upcycled furniture as a result of the rising cost of contract furniture.
• As many businesses have entirely switched to working from home, downsized, or even shut down, there is a significant oversupply of old furniture and very little demand for new products, which has a negative impact on the sales of contract furniture.

Category Analysis

Chairs & Stools: Most Popular Product Type Among End Users

In 2022, the chairs and stools category dominated the market in terms of revenue, accounting for the leading share of more than 34.15% of total sales. The expansion of this segment is being driven by the rising demand from various end-users for computer chairs, conference chairs, executive chairs, etc.

Office chairs play a huge role in ensuring that workers are productive at work. The sector for sofas and couches is anticipated to increase at the significant rate throughout the projection period.

The need for sofas and couches is rising as they become available in waiting rooms, lobbies, restaurants, hotels, government offices, pubs & cafés, etc. in both developed and developing countries.

Demand in Corporate Offices are Foundation of High Profits in Contract Furniture Business

The corporate offices end users segment, which accounted for the leading share of more than 42.40% of the total revenue in 2022, dominated the market in terms of revenue.
Global demand for office space is being driven by the rising number of startups, which is fostering industry expansion.

As of the 24th of August 2022, around 73,254 businesses were doing business in the United States, according to Startup Ranking.

The market growth is being further accelerated by the rising business environment, the quick development of IT parks, the rise in start-ups and corporate expansion, and the expansion of commercial zones. These factors have increased demand for office space and jobs, and consequently influence the contract furniture adoption.

During the forecast period, it is predicted that the hospitality segment is likely to expand at a significant CAGR. The global demand for business furniture is accelerating due to the increase in restaurants, hotels, bars, and cafés.

Due to the rising demand from travelers for high-end design and amenities, even at low-cost hotels, mid-range and luxury hotel owners are being pushed to upgrade finishes, furnishings, add services, and rethink the guest experience.

Which Distribution Channel Dominates the Market?

In 2022, the offline distribution channel segment dominated the global market and was responsible for more than 77.15% of total revenue. The organized offline retail sector's structure, which provides better consumer product visibility and immediate availability, is the key element anticipated to drive this segment's expansion.

Also, furniture sellers create a mock office environment within the shop to help customers see the furniture in their office. By 2033, the online distribution channel category is anticipated to develop at a quick rate.

The expansion of e-commerce platforms' acceptance and use on a global scale is responsible for this sector's growth. Also, people are beginning to purchase furniture through e-commerce channels, which lessens the need for them to visit physical retail locations in order to evaluate the features and costs of various products.

Regional Analysis

High product uptake in the United States Influence the Contract Furniture Industry

United States Market CAGR (2023 to 2033)	5%
United States Market Size 2022	USD 13.89 billion
United States Market Size 2023	USD 14.59 billion
United States Market Size 2033	USD 23.76 billion

Multiple factors, including the increased desire for contemporary and ergonomic furniture designs, are responsible for the expansion of contract furniture in the United States market. Furthermore, the use of e-commerce platforms is growing, and the need for smart and sustainable furniture solutions is rising.

Despite the abundance of prospects, the market faces a number of difficulties, including the instability of the economy, shifting customer preferences, and environmental laws, all of which can slow its rate of expansion.

Asia Pacific Market to Transform their Business Style with Growing Demand for Office Furniture

Due to the growing working-class population, the demand for contract furniture in Asia Pacific is predicted to rise significantly during the projected period. In Asia Pacific, contract furniture holds a 10 to 12% share of the global furniture market. It is expected to develop at a significant CAGR of 5.5 % by 2033.

• The multipurpose, foldable, and technologically advanced furniture that consumers today want can now be produced by businesses thanks to technology. One of the world's top producers and exporters of contract furniture is China.
• China's expansion of its economy has led to the establishment of several novel forms of businesses. Contract furniture has thus been quickly expanding as a result of this.
• The number of offices has expanded along with the working population, which has led to a rise in the need for office furniture. In 2022, 3.32 billion people were employed worldwide, which impacts the global office furniture market size.
• By 2033, the corporate sector is anticipated to grow by 5% and likely to hold a market share greater than 45%. This research covers significant international companies active in the Asian-Pacific contract furniture market. Demand for modular offices is rising as the market is flooded with increasingly creative designs.

The United Kingdom to Follow Sustainable Practices for Better Growth

With an anticipated CAGR of 4.8% by 2033, the market expansion is largely being driven by the increasing popularity of contract furniture among end customers. Emerging trends in the European contract furniture sector include increasing environmental practices.

An important market trend in the United Kingdom is the rise in environmental worries regarding deforestation. United Kingdom sustainable practices can lessen negative environmental effects. For instance, eco-friendly materials are used to create sustainable furniture. These materials can be reused or recycled with ease.

How Contract Furniture Start-ups Strategically Transform the Global Market?

Recent years have seen a number of new businesses enter the market for contract furniture, which is propelling the sector's overall growth. The main goal of these firms is to offer unique and tailored furniture solutions for commercial settings, including workplaces, hotels, and restaurants.

Popular Start-ups Contributing to the Market are:

Start-up	Furlenco
Year Founded	2012
Information	Customers can rent designer furniture, appliances, laptops and other devices, workout gear, and more from Furlenco. The firm advertises speedy deliveries and affordable rental rates per month, with its present concentration on many Indian towns.Midway through 2021, Zinnia Global Fund and other investors helped the company raise a sizable USD 140 million in a Series D fundraising round. With the additional funding, the business plans to grow in the South Asian and global markets and achieve a USD 300 million revenue target by 2026.

Start-up	Oliver Space
Year Founded	2018
Information	Customers can rent furniture from technology-driven home goods firm Oliver Space on a month-to-month basis, and effortlessly swap out items based on their needs.The business model promotes the notion of a circular economy and matches the evolving needs of American customers.

Start-up	Kaiyo
Year Founded	2014
Information	An online retailer called Kaiyo focuses on lightly used furniture. On Kaiyo's marketplace, customers buy and trade goods while also promoting greater sustainability.To support its growth in the United States, the company obtained a USD 36 million investment in March from Edison Partners, the round's initiator.

Recent Development by Established Key Players

• In July 2022, HNI Corp. announced that it had finalized the sale of its Lamex office furniture company, which it had operated in China and Hong Kong, to Kokuyo Co., Ltd. for USD 75 million.
• The merger of Herman Miller and Knoll in 2021 created the dominant leader in contemporary design, which sparked a change of the home and workplace.
• Kokuyo paid USD 75 million to acquire HNI Corporation's Lamex Office Furniture business in China and Hong Kong in July 2022.
• Fursys Inc. and Sidiz Inc. agreed to sell FURSYS VN Ltd. to Fursys Inc. on April 22, 2022, for KRW 50 billion. On April 22, 2022, a transaction board resolution was made. The deal was scheduled to close on May 6, 2022.

Key Segments

By Product Type:

• Chairs & Stools
• Tables & Desks
• Storage Furniture
• Sofa & Couch
• Others

By End Users:

• Government
• Corporate Offices
• Institutional,
• Healthcare/Medical Facilities,
• Hospitality
• Others

By Distribution Channels:

• Online Platform
• Offline Platform

By Region:

• North America Market
• Latin America Market
• Europe Market
• East Asia Market
• South Asia & Pacific Market
• Middle East and Africa (MEA) Market

Frequently Asked Questions

What will be the Yearly Growth Rate in Sales of Contract Furniture Globally?

The y-o-y sales of contract furniture are to surge at 6.1% through 2033.

What will be the Total Uptake of the Global Contract Furniture Market by 2033?

The total sales achieved by the global market could be around USD 268.86 billion by 2033.

What is the Market Projection for the Contract Furniture in the United States?

Contract furniture demand in the United States is to witness a 5% y-o-y growth rate through 2033.

Which Country is Driving the Contract Furniture Market in the Asia Pacific?

China is driving the Asia Pacific Market having a global market share of 10 to 12%.

What will be the Growth Rate of the United Kingdom Contract Furniture Market?

The adoption of contract furniture in the United Kingdom to grow at 4.8% CAGR until 2033.