According to a report by Altus Market Research titled, “Home Office Furniture Global Market 2022 Demand, Growth To 2031 By Product: (Seating; Storage Units; Desks; Tables; Other Products); By Material: (Wood; Metal; Plastic; Other Materials); By Price: (Premium; Mid-Range; Economic) By Distribution Channel“, the home office furniture market reached a value of nearly $23,723.1 million in 2021, having grown at a compound annual growth rate (CAGR) of 9.4% since 2016. The market is expected to grow from $23,723.1 million in 2021 to $ 37,662.4 million in 2026 at a rate of 7.4%. The market is then expected to grow at a CAGR of 6.5% from 2026 and reach $51,507.3 million in 2031.
Growth in the historic period resulted from low interest rates, strong economic growth in emerging markets, growth in world population, government initiatives for furniture manufacturing and growth in freelancing activities. Going forward, the faster economic growth, urbanization, increasing demand for wooden furniture and the COVID-19 pandemic will drive the growth. Factors that could hinder the growth of the home office furniture market in the future include stringent laws and regulations, political instability and increased costs.
The global home office furniture market is fragmented, and the market has a large number of players. The top ten competitors in the market made up to 11.90% of the total market in 2020. The market fragmentation can be attributed to the presence of large number of players in different geographies. Prominent players are acquiring the products and entering into partnerships with the other companies to consolidate their market positions across the globe, while others are distributing products. HNI Corporation was the largest competitor with 2.88% share of the market, followed by Ashley Furniture Industries Inc with 2.78%, Steelcase Inc with 2.08%, Herman Miller with 1.30%, KOKUYO Furniture with 1.11%, Haworth Inc with 0.92%, OKAMURA Corporation, with 0.50%, Godrej & Boyce Mfg. Co. Ltd. with 0.17%, Ethan Allen Interiors Inc. with 0.12% and Kimball International Inc with 0.04%.
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The home office furniture market is segmented by product into seating, storage units, desks and tables and other products. The seating market was the largest segment of the home office furniture market segmented by product, accounting for 45.3% of the total in 2021. Going forward, the seating market is expected to be the fastest growing segment in the home office furniture market segmented by product, at a CAGR of 10.1% during 2021-2026.
The home office furniture market is segmented by material into wood, metal, plastic and other materials. The wood market was the largest segment of the home office furniture market segmented by material, accounting for 43.9% of the total in 2021. Going forward, the plastic market is expected to be the fastest growing segment in the home office furniture market segmented by material, at a CAGR of 9.8% during 2021-2026.
The home office furniture market is segmented by price into premium, mid-range and economic. The mid-range market was the largest segment of the home office furniture market segmented by price, accounting for 51.6% of the total in 2021. Going forward, the premium market is expected to be the fastest growing segment in the home office furniture market segmented by price, at a CAGR of 9.5% during 2021-2026.
The home office furniture market is segmented by distribution channel into flagship stores, specialty stores, online and other distribution channels. The specialty stores market was the largest segment of the home office furniture market segmented by distribution channel, accounting for 65.7% of the total in 2021. Going forward, the online market is expected to be the fastest growing segment in the home office furniture market segmented by distribution channel, at a CAGR of 10.2% during 2021-2026.
North America was the largest region in the home office furniture market, accounting for 38.8% of the total in 2021. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the home office furniture market will be Africa, and, Asia Pacific where growth will be at CAGRs of 11.2% and 10.5% respectively. These will be followed by South America, and North America, where the markets are expected to grow at CAGRs of 8.0% and 7.0% respectively.
The onset of COVID-19 has brought about a paradigm shift in the way people live and behave at home and in society. With extensive dependence on technology, residential and office space interiors are likely to undergo significant changes, especially taking into consideration the need to have a separate room for office purposes or more space in an office. A lot has already changed with respect to working interiors, and a lot is yet to come. However, it is an assumption that these changes would be temporary
The top opportunities in the home office furniture market segmented by product will arise in the seating segment, which will gain $7,414.2 million of global annual sales by 2026. The top opportunities in segment by material will arise in the wood segment, which will gain $4,874.6 million of global annual sales by 2026. The top opportunities in segment by price will arise in the mid-range segment, which will gain $5,084.0 million of global annual sales by 2026. The top opportunities in segment by distribution channel will arise in the specialty stores segment, which will gain $7,270.6 million of global annual sales by 2026. The home office furniture market size will gain the most in the USA at $3,764.9 million.
Market-trend-based strategies for the home office furniture market include launching 3D modelling to improve product offering, exploring online crowdsourcing opportunities, using a universal fixture system with the use of 3D printed parts to simplify adjustment and increase product offerings, focusing on transforming, manufacturing and designing more eco-friendly products, offering mobile home office furniture to enhance productivity, consider merger and acquisition strategies to strengthen product offerings and focus on new product launches.
Player-adopted strategies in the home office furniture market include increasing the production capacity of home office furniture products through building new facilities, launching of new home office furniture products, focus on providing healthy and inspiring work-from-home spaces through partnerships, focusing on improving retail presence by opening new concept stores and launching new home office products through ecommerce sites.
To take advantage of the opportunities, Altus Market Research recommends the home office furniture companies to focus on integrating 3D modelling, focus on new product launches, focus on online crowdsourcing platforms for home office furniture, expand in emerging markets, scale up through merger and acquisition activity, offer competitively priced products, offer bundled pricing, leverage social media use to maximize reach, leverage e-commerce and focus on end-users and middle-class population.
