The demand for ergonomic furniture, the rise of remote and hybrid work models, the growing trend of open office spaces, and technological advancements, especially in the ICT industry, are key drivers of the office furnishings market growth. These factors have created a demand for furniture that is designed to support the changing needs of businesses and their employees, such as furniture that promotes good posture, supports remote and hybrid work, facilitates collaboration and communication, and accommodates technological advancements. As a result, the office furniture industry is expected to experience significant growth in the coming years, with companies seeking innovative, functional, and aesthetically pleasing furniture that can support their business goals and their employees' well-being. Moreover, the growing trend of open office spaces is fueling the demand for the open office furnishings market. As many companies are moving away from traditional closed office spaces and adopting open office concepts. This has created a demand for furniture that can facilitate collaboration and communication among employees, such as modular desks and seating arrangements.
The rise in shipping prices and volatility in the costs incurred by manufacturers can hinder the growth of the office furnishings market in several ways. Here are a few potential impacts:
- Increased production costs: If shipping prices rise, manufacturers may need to pay more to transport raw materials and finished goods, which can increase production costs. This could lead to an increase in for the price of office furniture, thus reducing its demand among consumers..
- Unpredictable pricing: Volatility in shipping and other manufacturing costs can make it difficult for manufacturers to accurately predict their expenses, which can make it harder to set consistent prices for their products. This uncertainty can also make it difficult for buyers to plan their budgets, which could further reduce demand.
- Supply chain disruptions: If shipping costs rise, it may be more difficult for manufacturers to source raw materials from suppliers and transport finished goods to customers. This could lead to delays or interruptions in the supply chain, which could reduce the availability of office furniture on the market.
The IT sector and government support for the development of the private sector can create future opportunities for the growth of the office furnishings market. The IT sector is one of the major contributors to the growth of the office furnishings market. As the demand for technology and digital services continues to increase, there is a growing need for comfortable and functional office furniture that can accommodate the latest IT equipment. This includes computer desks, ergonomic chairs, and storage solutions for cables and other accessories. As the IT sector continues to grow, the demand for office furniture will likely continue to increase as well. Moreover, government support for the development of the private sector can also lead to increased demand for office furniture. Many governments provide incentives, tax breaks, and other forms of support to encourage the growth of the private sector. This can lead to an increase in the number of small and medium-sized businesses, which in turn creates demand for office furniture. Additionally, as more government agencies and departments move towards digitalization and modernization, the need for updated office furniture to support new technology will increase.
Key developments and launches in the office furnishings market
- In February 2022, Godrej and Boyce, a flagship company of Godrej, announced the launch of a new product called Move Up. The product is an ergonomic office table designed specifically for individuals with a home office. This table is designed to improve posture and reduce physical strain. It further helps the users to maintain good health while working from home.
- In September 2022, Steelcase Inc. announced the launch of Steelcase Karman, a new ergonomic chair that responds to body movement and provides comfort naturally. Steelcase Karman is made with a new proprietary mesh material and an incredibly light, flexible frame.
- In September 2022, Steelcase Inc. announced that it had signed an agreement to acquire Halcon. The acquisition aims to expand Steelcase's current line of wood goods.
- In June 2020, the German furniture company, Cor, launched a new line of office furniture designed specifically for people working from home. The line was called "Home Office" and included chairs, desks, and storage units that were designed to be both functional and stylish.
By product type: The segment is divided into tables, seatings, storage cabinet & file cabinet, and others. The seatings segment is predicted to hold the highest market share due to the high demand for comfortable seating equipment in the workplace. Ergonomically designed chairs are essential for long hours of sitting, and a comfortable seating position is known to reduce fatigue and increase productivity. This has led to a high demand for seating equipment that is comfortable and supportive. Moreover, the seating segment has seen a rise in technologically driven developments to bring more ergonomic and modular office chairs to the market. Advancements in design and technology have allowed for personalized comfort, such as the use of sensors and adjustable features that can adapt to an individual's needs. Many market players are investing in research and development to create innovative seating products that meet the changing needs of modern workspaces. This investment in technologically-driven products is expected to fuel the growth of the office seating market even further. In addition, the changing work culture, such as the rise of remote work, has increased the demand for comfortable and ergonomically designed seating for home offices. This trend is expected to continue as more and more people work from home.
By material type: Based on material type, the office furnishings market is divided into wood, metal, and plastic. Wood has traditionally been a popular choice for furniture manufacturing in the office furnishing market due to its high durability and strength. It is also preferred for its aesthetic value, as it can add an elegant and sophisticated look to workstations. In addition to its physical properties, wood is a popular choice for furniture manufacturing due to its versatility. As workspaces continue to evolve, wood can be easily customized to meet changing requirements. This is particularly important in a market where product requirements are becoming increasingly customized to meet the needs of individual workplaces and their employees. Furthermore, a growing preference for sustainable products is boosting the market growth of this segment. Manufacturers are also using carbon-efficient manufacturing processes to attract sustainable consumers. As a natural and renewable material, wood is seen as a more sustainable alternative to other materials, contributing to its popularity in the market. For instance, in May 2022, Benchmark's collaboration with AHEC to launch the Victoria collection of wooden office furniture during Clerkenwell Design Week 2022 demonstrates the continued importance of wood in the office furnishing market.
By distribution channel: The market is segmented into supermarkets/ hypermarkets, specialty stores, online stores and others. Customers often prefer to shop for office furnishings in these stores that showcase a wide range of products under one roof. These stores typically offer a large floor space to display various products for customers to see and verify before purchasing. As office furniture is a significant investment, customers want to ensure they are making the right decision, and these stores allow them to see and touch the products before buying. However, the increasing popularity of online stores offers customers greater convenience, a broader selection of products, and the ability to compare prices and read reviews.
However, online stores are becoming increasingly popular in the office furnishings market. These stores offer customers the convenience of shopping from anywhere at any time, and they often have a broader selection of products compared to physical stores. Online stores also allow customers to read reviews and compare prices before making a purchase, making it easier to find the best product for their needs.
By Region: the North America market for office furnishings is driven by a range of factors, including commercial real estate growth, the rising number of start-ups, and the growing awareness of ergonomics. Furthermore, information and communications technology (ICT) is an important driver of the office furnishings market in North America. As companies invest more in technology to improve their operations, they also need to furnish their offices with the latest equipment and furniture to support these advancements.
Competitive analysis and profiles of the major players in the office furnishing market, such as Steelcase Inc., Miller knoll Inc. Kimbal International Inc., HNI Corporation, Krueger International, Inc., Global Furniture Group., Nilkamal Ltd., Vitra International AG, Masco Corporation, Okamura Corporation, Inter IKEA System, and Haworth Inc.
Office Furnishings Market Report Highlights
By Product Type
By Distribution Channel
Key Market Players
L & J.G. STICKLEY, Inc., Haworth, Inc., Durham Furniture, Inc., Kimball International, Inc., Inter IKEA Systems BV, Masco Corporation, Steelcase, Inc., Basset Furniture Industries, HNI Corporation, Okamura Corporation