Furniture Rental services Market

Furniture Rental Service Market Outlook for 2023 to 2033

The global furniture rental service market size reached US$ 72.5 billion in 2022. Revenue generated by furniture rental services sales is likely to reach US$ 80.1 billion in 2023. Sales are poised to soar by 9.0% CAGR over the forecast period between 2023 and 2033. Demand is anticipated to total US$ 190 billion by 2033.

The furniture rental services market offers various customizable options, enabling customers to tailor furniture to their specific tastes and needs. This customization appeals to consumers seeking unique and personalized furnishings. This factor is likely to drive demand in the global market.

Providing customization options allows customers to tailor furniture to their specific needs. This might involve selecting the type of fabric, color, size, or style. Offering these choices can attract a broader customer base.

Keeping abreast of seasonal trends in interior design is vital. Furniture rental companies must know what's popular and adjust their offerings accordingly. For instance, light, beach-themed furniture might be in demand during the summer, while warmer, cozy options might be preferred in the winter.

Understanding the local culture and traditions is also crucial. Specific cultural elements must be incorporated into furniture designs in a few markets. For instance, certain color schemes or motifs might be significant to some consumer segments.

Historical Performance of Furniture Rental Service Market

The global furniture rental service market experienced growth at 12.7% CAGR during the historical period 2018 to 2022. Sales are estimated to propel at 9.0% CAGR between 2023 and 2033. It generated the total revenue of US$ 72.5 billion in the base year 2022.

Providing a range of furniture options with varying price points and quality levels is essential. Few customers prioritize affordability, while others seek high-end, premium options. Gathering customer feedback and analyzing data can help tailor offerings to market demands. This includes monitoring which items are most frequently rented, which styles receive the most attention, and which customization options are popular.

Collaborating with local designers, architects, and real estate companies can provide insights into market-specific demands. These partnerships can also help in sourcing unique, locally crafted furniture pieces.

Being mindful of local sustainability trends and regulations is important. Only a few markets might prioritize eco-friendly and sustainable furniture options. Ensuring companies' offerings align with these values can be a competitive advantage.

Customization and variety should be highlighted in marketing efforts. Showcasing the range of options available and how they can be tailored to individual preferences can attract more customers.

Managing a diverse inventory and ensuring timely customized furniture delivery and pickup is crucial. Market-specific logistics challenges should be addressed to meet customer expectations. Furniture rental companies are diversifying their subscription plans, allowing customers to choose from short-term, long-term, or even pay-as-you-go options to suit their needs.

The industry has seen a surge in online rental platforms and mobile apps, making it easier for customers to browse, select, and manage their furniture rentals. Few companies offer customization options, allowing customers to personalize rented furniture pieces to match their preferences and style.

Key Furniture Rental Service Market Trends

• Sustainability Focus:

Several consumers are opting for furniture rental due to its eco-friendly aspect. Rental companies increasingly offer sustainable and eco-conscious furniture options to cater to this demand.

• Flexible Subscription Models:

Furniture rental companies are diversifying their subscription plans, allowing customers to choose from short-term, long-term, or even pay-as-you-go options to suit their needs.

• Online Platforms and Apps:

The industry has seen a surge in online rental platforms and mobile apps, making it easy for customers to browse, select, and manage their furniture rentals.

• Customization and Personalization:

Companies also offer customization options, allowing customers to personalize rented furniture pieces to match their preferences and style.

• Virtual Reality and Augmented Reality (VR/AR):

VR/AR technologies are being integrated into the furniture rental experience, enabling customers to visualize how furniture will look in their space before renting.

• Furniture for Remote Work:

With the rise of remote work, furniture rental services offer home office furniture solutions, including ergonomic chairs and desks.

• Customer Reviews and Ratings:

Reviews and ratings on social media and review platforms significantly impact a company's reputation. Positive reviews and word-of-mouth recommendations are crucial for success.

Sudip Saha

Principal Consultant

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Challenges Hindering Furniture Rental Service Market Growth

• Limited Selection:

Furniture rental services often offer limited furniture styles and options, restricting consumers' choices to what's available in their inventory. This can be a disadvantage for those with specific design preferences.

• Quality Concerns:

Some rental furniture options may not be of the same quality as what consumers would purchase for themselves. This can result in discomfort or early wear and tear issues.

• Hidden Fees:

Rental agreements might include hidden fees or charges for damages, maintenance, or late payments. Consumers need to read the fine print of their rental contracts to not be surprised later.

• Delivery and Pickup Hassles:

Coordinating the delivery and pickup of rented furniture can be inconvenient and time-consuming. Delays or mishaps in these processes can disrupt the customer's plans.

• Deposits and Credit Checks:

Several furniture rental companies require security deposits and perform credit checks, which can be a barrier for individuals with limited financial resources or poor credit histories.

• Lack of Personalization:

Renting furniture may allow customers to personalize their living spaces differently than they would with purchased items. They are limiting consumers’ ability to create a unique and comfortable home environment.

• Sustainability Concerns:

The furniture rental market might contribute to the disposable culture, as rented items are frequently replaced, potentially contributing to waste and environmental concerns.

Country-wise Insights

The table below gives information about the top 5 leading countries in the global furniture rental service market. Based on this information, the United States is expected to expand to US$ 33.4 billion by 2033. On the other hand, China is poised to soar to US$ 28.5 billion by 2033 end.

E-commerce Sector is Driving Sales in the United States

The United States is projected to soar at 9.3% CAGR from 2023 to 2033. The United States furniture rental service market is set to generate a revenue of about US$ 33.4 billion by 2033.

The United States market caters to a diverse consumer base, including individuals, businesses, event planners, and real estate staging companies. Furniture rental companies typically offer various furniture categories, including sofas, tables, chairs, bedroom sets, and office furniture.

Several furniture rental companies are expanding their services to offer furniture, decor, and accessories for various occasions. With the growth of e-commerce, furniture rental services have established a strong online presence. This allows customers to browse, select, and order furniture conveniently.

Consumer Affinity for Sustainability Propelling Sales in the United Kingdom

The United Kingdom is set to expand at 10.2% CAGR in the furniture rental service market during the assessment period. By 2033, the United Kingdom market size is expected to reach US$ 7.3 billion. The United Kingdom furniture rental market is driven by changing consumer preferences, a mobile workforce, and a desire for more sustainable living.

Sustainability is a key driving factor, with consumers increasingly opting for rental furniture to reduce waste and carbon footprint associated with buying and disposing of furniture. Urbanization and a rising rate of people living in rented accommodations, especially in cities, have further augmented such consumer behavior. These factors will likely boost the demand for rental furniture in the United Kingdom.

Furniture rental offers flexibility, allowing customers to change their furniture as their needs or style preferences evolve without the commitment of purchasing. Besides residential customers, the corporate sector also plays a significant role in the market. Companies often opt for furniture rental for their offices and employee accommodations.

Rising Preference for Flexible Living Arrangements to Boost Growth in China

China is poised to expand at a CAGR of 9.6% between 2023 and 2033. Revenue generated by the furniture rental service market will likely be worth US$ 28.5 billion by 2033.

China's furniture rental market is expected to be driven by a rising preference for flexible living arrangements during the forecast period. Several furniture rental companies offer customization options for different customer preferences and apartment sizes.

The sustainability trend will likely also influence the furniture rental market, focusing on eco-friendly and modular options. Efficient logistics and delivery networks are crucial for the success of furniture rental companies, as they need to transport and assemble furniture at customers' locations.

Space-efficient Interior Decor to Push Need for Furniture Rental Services in Japan

Japan is likely to reach a total of US$ 18.7 billion by 2033. Sales in the Japan furniture rental service market will likely surge at 9.9% CAGR from 2023 to 2033. The furniture rental market in Japan is driven by high demand for space-efficient and flexible furniture solutions.

Rental companies typically offer a variety of furniture, including sofas, dining sets, beds, and appliances, to cater to different household needs. Few rental providers allow customers to customize their furniture packages based on their preferences and space requirements.

With increasing sustainability awareness, rental companies might emphasize eco-friendly practices, such as recycling and reusing furniture to reduce waste. Furniture rental services might be subject to regulations related to consumer protection, rental agreements, and product safety standards.

Consumers in South Korea Increasingly Desire Customized Solutions

South Korea is likely to hit US$ 11.9 billion by 2033 in the furniture rental service market. In between 2023 and 2033, sales will likely reach an 11.8% CAGR.

South Korea's furniture rental market has been experiencing steady growth due to rising demand for sustainable furniture solutions. E-commerce platforms and tech-driven rental services have made it more convenient for consumers to rent furniture online, with easy delivery, setup, and pickup options.

Furniture rental companies in South Korea often offer flexible rental terms, allowing customers to choose the duration of their rental. It is provided either for a few months or several years. Few rental services provide options for customizing furniture to fit the customer's preferences, such as color, style, and size.

Category-wise Insights

The table below provides information about the different categories in the global furniture rental service market. Based on material, the wood segment is expected to expand at 8.8% CAGR between 2023 and 2033. In terms of application, a commercial division is poised to soar at 8.5% CAGR from 2023 to 2033.

Wood is Highly Preferred Due to its Range of Styles

Regarding material, the wood division is set to witness an 8.8% CAGR from 2023 to 2033. Wood furniture is often favored for its durability and longevity. Customers looking to rent furniture for an extended period prefer wood pieces due to their ability to withstand wear and tear.

Wood furniture is known for its timeless and classic aesthetic. Customers choose wood furniture for its beauty and the warmth it adds to a living space. Wood furniture comes in many traditional and modern styles, making it suitable for various interior design preferences. This versatility can attract a broad customer base. With growing environmental concerns, customers might prefer wood furniture due to its perceived sustainability compared to certain plastic or composite materials.

Wood furniture tends to retain its value over time, which can appeal to rental companies. They can lease wood furniture for extended periods and recoup a significant portion of their initial investment when they choose to sell it. Wood furniture often allows easier customization than a few other materials. This also makes it convenient for rental companies to cater to specific customer requests for wood furniture modifications.

Commercial Segment to Retain Center-stage due to Demand from Corporate Events

In terms of application, the commercial division is set to witness an 8.5% CAGR from 2023 to 2033. Businesses and offices often require large furniture for short-term projects, events, or temporary office setups. This consistent demand from the corporate sector contributes significantly to the commercial segment's dominance.

Commercial clients often enter into long-term contracts with furniture rental companies, providing a stable source of revenue. These contracts can include furnishing office spaces, trade shows, and conventions. Furniture rental services are frequently used for corporate events, conferences, and exhibitions. The commercial sector is a key driver of this market, particularly for large-scale events where renting furniture is more practical than purchasing.

Commercial clients value the flexibility of furniture rental, as it allows them to adapt to changing needs without the commitment of buying and storing furniture. This is particularly relevant for businesses that frequently change office locations or layouts. Renting furniture is often more cost-effective for businesses than purchasing, especially for short-term or one-time needs. This cost-conscious approach appeals to the commercial sector.

Competitive Landscape

Key manufacturers aim to offer various furniture styles and designs to cater to various customer preferences. They provide customization options, such as choosing colors or materials, allowing manufacturers to meet specific customer demands. They are also expanding operations to reach a broad geographical market and tap into new customer segments.

Key Companies in Furniture Rental Service Market:

• In September 2022, Fernished Inc. created an in-house delivery service to increase its home furniture and rental company. This advancement will assist the business in streamlining its supply chain procedures and promptly delivering items to clients.
• In June 2021, John Lewis Inc. revealed the doubling of its product range in the furniture rental market. From mattresses to bar stools sofas to dining tables. The firm said their furniture rental company will provide 200 different types of furniture.
• In July 2021, the top furniture rental business in India, Furlenco, introduced 'UNLMTD by Furlenco,'. The yearly subscription-based furniture service gives Indian customers free furniture and appliance switching and hassle-free migration.

Scope of the Report

Furniture Rental Service Market Outlook by Category

By Material:

• Wood
• Metal
• Plastic
• Glass
• Others

By Application:

• Commercial
• Residential

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• East Asia
• South Asia and the Pacific
• Middle East and Africa