According to a new report released by Allied Market Research, the North American furniture market is expected to grow from $249.4 billion in 2020 to $400.7 billion by 2030, growing at a CAGR of about 4.9% from 2021-2030.
According to the report, the growth of the furniture market will be driven by various factors, such as increasing disposable income, growth in the real estate and hospitality sectors, and demand for luxury and high-end furniture from certain consumer segments. In addition, increased government investments in infrastructure development will also boost the demand for furniture in the residential and commercial sectors in the near future. Also, the integration of IoT with furniture products and the development of automated manufacturing systems will have a significant impact on the furniture industry.
On the basis of type segmentation, the North American furniture market is segmented into quick assembly furniture (RTA), residential furniture, and commercial furniture. On the basis of distribution channel, the North American furniture market includes supermarkets and hypermarkets, specialty stores, e-commerce platforms, and others. By country/region, the major markets include the U.S., Canada, and Mexico.
Based on type, residential furniture contributes the most to the overall market. According to statistics, residential furniture accounts for 47% of the North American furniture market share in 2020. Residential furniture is expected to continue to hold the highest market share during the forecast period. This is due to the growing economy that has boosted consumer spending power, which in turn has driven the sales of furniture. Rapid growth in infrastructure and real estate markets is also driving the demand for residential furniture products across the U.S. region. In addition, the surge in demand for home office furniture has also contributed to the growth in sales of residential furniture.
However, commercial furniture will grow faster than other types, at a CAGR of about 5.1%. Growth in this market is being driven by large corporations and even emerging small companies that are investing heavily in office space renovation and interior decoration to provide a comfortable and productive environment for their employees. As a result, suppliers are designing office furniture products with the highest level of comfort and minimal stress. At the same time, smart furniture is becoming increasingly popular.
In terms of distribution channels, specialty stores account for a major portion of the market share due to their high visibility and wide penetration in the customer base. However, the widespread adoption of the Internet, online shopping platforms and changes in consumer buying behavior due to the new crown epidemic are expected to drive the growth of the e-commerce segment. The e-commerce segment is expected to be the fastest growing distribution channel during the forecast period due to the popularity and infrastructure development of e-commerce channels in North America.
In terms of country/region, the North American furniture market is dominated by the U.S., mainly due to the huge domestic demand, which is also influenced by the increasing disposable income of people and changing consumer lifestyles across the region. In addition, the integration of IoT with furniture products and the development of automated manufacturing systems are expected to have a significant impact on the furniture industry during the forecast period.