The global small space furniture market is expected to register a staggering double-digit CAGR of 5.9% by garnering a market value of US$ 6 Billion. The growth of the market can be attributed to:
Advances in design and technology have allowed manufacturers to create furniture that is both stylish and functional, while also being smaller in size. More and more people are shopping for furniture online, which has made it easier for consumers to find small space furniture options and compare prices.
Small space furniture is designed to take up less room, making it perfect for small apartments, homes, and dorm rooms. Small space furniture is often more affordable than larger furniture pieces, making it a great option for people on a budget. Many small space furniture pieces are designed to be multi-functional, such as a sofa bed or a coffee table with storage, which can save space and serve multiple purposes.
Small space furniture is often lighter and easier to move around, making it easier to rearrange a room or clean. Small space furniture is designed to be flexible and adaptable, making it easy to change the layout of a room or add new pieces as needed. With small space furniture, manufacturers are forced to be creative, which leads to new and innovative designs.
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The growth of the small space furniture market is driven by the increasing popularity of compact living spaces, leading to a rise in demand for furniture that can save space and serve multiple purposes. The trend of millennials choosing to rent homes is also driving the market, as they tend to prefer multifunctional and compact furniture. As a result, companies are introducing new products such as folding chairs and tables, study tables, racks, and storage boxes that feature foldable designs and are made of materials such as wood and metal, to replicate the aesthetic appeal of traditional furniture.
The rise in prices of traditional wood furniture due to environmental concerns has led to an increase in demand for modern furniture made of lightweight materials such as plastic and mild steel. These materials are more cost-effective and more durable than wood, and therefore, plastic and metal folding furniture is gaining popularity.
On the other hand, the average size of new apartments in the USA is 941 sq. ft and it has reduced by 5% in last 10 years. This downsizing of living space in apartments has led to an increase in demand for folding furniture in the market.
The future of the small space furniture market looks promising as the demand for space-saving and multi-purpose furniture is expected to continue growing. Urbanization, rising housing costs, and changing lifestyle trends are all contributing factors that will drive the market forward.
Smart furniture is also expected to be a trend in the future, with the incorporation of technology into furniture, making it more efficient, interactive and user-friendly. This will also enhance the functionality of small space furniture.
Overall, the small space furniture market is expected to grow in the future, driven by the growing demand for smaller, more compact furniture that can fit into smaller living spaces.
In today’s world, small space living has emerged as the new normal. As urbanization gathers momentum, the need for urban housing is surging rapidly. By 2050, over 6 billion people will reside in urban dwelling, with a major chunk of this population being concentrated in cities across the developing world.
Against this backdrop, the nature of housing is bound to undergo a metamorphosis. The trend of studio apartments and small-sized houses is already widespread in countries such as Japan and Singapore.
Consequently, the demand for small-space furniture has witnessed a major upsurge and will remain on a high pedestal during the 2020-2030 forecast.Small-space furniture is manufactured using a range of materials such as glass, wood, leather and plastic.
Most of this furniture is portable, thus making it easier to accommodate more space for navigation and movement within the house. Going further, small space furniture is also touted as a frontrunner of sustainable living.
Small space furniture typically include foldable beds, retractable and mounted tables, island kitchens, ottomans, foldable kitchens, compact coffee tables, wardrobes, portable book shelves and expanding tables to name a few.
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As apartment sizes shrink, the nature of furniture demanded is also shrinking. As a result, manufacturers are increasingly seeking to introduce solutions to address the problem of small spaces. Therefore, the concept of multifunctional furniture and transformable rooms have acquired precedence.
For instance, a table and chair can serve a dual function of offering seating while working or dining. When not using them, these tables and chairs can serve as a bookshelf or storage drawers as well.
With respect to transformable rooms, arrangements such as convertible beds and sofa are becoming increasingly common.
Also, modular couches are becoming highly popular. As space constraints increase, high demand for flexible furniture has bolstered demand for portable sofas, beds and dining furniture.
These add a high degree of versatility, permitting individuals to alter the room layout for different purposes. They also come in different designs, appealing to consumers’ aesthetic indulgences.
Wood is anticipated to acquire major traction, generating substantial revenue throughout the upcoming decade’s forecast. Wooden furniture is extremely durable, requires minimum maintenance and prevents undesired deterioration through rot and decay.
They do so by secreting natural oils as effective barriers against external agents. Moreover, they impart antiquity to the house.However, steel furniture is anticipated to remain the dominant choice in terms of small space furniture material. High corrosion resistance and robustness are the key drivers behind its surging popularity.
Additionally, it imparts a modern outlook to the home environment. It is also very environmentally friendly as steel can be easily recycled.
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As rent prices are skyrocketing, people, especially millennials, are seeking inexpensive accommodation facilities. This often involves compromising on the living space, which compels them to seek smaller houses.
Against this backdrop, sales of small space furniture are expanding manifold since the past few years. This has accelerated sales of smart furniture as well.
Expansion is also underway across the commercial sector. Just like residences, offices, hotels, restaurants and other commercial settings are becoming increasingly remote.
This is happening in order to reduce overhead costs in terms of rent and maintenance. Rising demand for more office space is expected to bode well for the commercial segment.
Offline sales channels have largely dominated the furniture landscape, with consumer preferring to visit specialized furniture stores. These stores enable consumers to experience first-hand the quality and feel of the different materials used in constructing them.
Moreover, effective after-sales services are attracting more buyers, thus heightening their revenue prospects.However, with the proliferation of the internet, consumers are becoming digitally empowered. Access to smartphones and other hardware devices make shopping easier, leading to a major tilt in consumer purchasing behavior.
This has prompted manufacturers to open their own online portals or partner with leading retail platforms to remain afloat in the market.
The Asia-Pacific region is home to 3/5th of the global population, around 4.3 billion people. Most of them reside in China and India. By 2050, this number is forecast to climb to 5 billion. Consequently, the demand for housing and construction is bound to accelerate, pushing up demand for household furniture.
With such a large population base, small-space living is acquiring significant ground. People prefer to reside in studio apartments or two-bedroom flats. Owing to the space constraints, investments in small-space furniture such as foldable beds and multi-purpose tables have gathered momentum in this region.
Recognizing this trend, governments are relaxing business laws and regulations, thus enabling major market players to establish their operations across the continent.
They are endowed with several tax incentives and favorable reimbursement policies, leading to increased output and high profit margins. Thus, the Asia-Pacific region is expected to register impressive growth in the coming years.
With respect to commercial grade furniture, Europe is anticipated to hold major sway, due to heightened tourism which in turn is driving the hospitality sector, thereby creating demand for small space furniture in hotels and resorts.
Also, the presence of leading manufacturers across France, Germany and Italy will generate major revenue pools, being primary export hubs.
The global small space furniture market is characterized by the presence of multiple players, rendering is highly competitive in nature. Some prominent players include IKEA, Walmart, Target Corporation, Crate & Barrel, HomeLane, Godrej Interio, Apt 2B, Joss & Main and Wooden Street among others.
These players are investing in providing small space solutions across different geographical regions. For instance, IKEA offers its kitchen island solution, comprising of four cabinets measuring 30 cm and 80 cm respectively, a custom-cut work top and a rolling trolley. This ensures that users have an enjoyable working experience as well as save space.
The company also offers smart bathroom-cum-laundry solutions in the form of stackable SORTERA bins and an adjustable drying rack in the shower or above the bathtub, thus eliminating the need to acquire a separate laundry spot. Other solutions involve a walk-in closet within a bedroom and an all-purpose living room.
On a similar plane, HomeLane offers the Kivaha 4-seater, Cayman and Altura coffee table sets which consist of compact seating stools which can easily fit under the table when not in use. The company also manufactures the Blaine wall mounted dining table, the Kowloon sofa cum bed and the Travis sofa cum bead.
Companies are also concentrating on forging collaborations with players from other verticals to offer diverse products to consumers. For instance, IKEA partnered with Adidas Group in 2018 to introduce a sports based home décor products line.
Market players are also leveraging the trend of environmental sustainability to manufacture low-cost eco-friendly products by avoiding the usage of toxic chemicals during the manufacturing process. For instance, Cisco Home offers eco-friendly seating, bedroom and lighting accessories and are FSC-certified.
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