Contract Furniture Market Report
Contract Furniture Market by Product Type (Chairs & Stools, Tables & Desks, Storage Furniture, Sofa & Couch, and Others), End User (Government, Corporate Offices, Institutional, Healthcare/Medical Facilities, Hospitality, and Others), Distribution (Offline and Online), and Region (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2023-2032
Contract Furniture Overview
The contract furniture primarily focusses on offering furniture options for offices, institutions, and public spaces. It consists designing, producing, and supplying furniture for a variety of non-residential environments, such as offices, hotels, restaurants, healthcare facilities, educational institutions, and others. Due to increased wear and tear, these areas require furniture that not only corresponds to strict functional, ergonomic, and durability standards but also fits aesthetic preferences.
Contract furniture includes a wide range of goods, such as chairs, tables, desks, sofas, storage options, and specialty fittings that are frequently designed to meet the particular requirements of certain sectors and settings. Modularity, space optimization, ease of maintenance, and adherence to industry rules are also commonly considered when designing products for this sector.
Global Contract Furniture Market Analysis
The global contract furniture market size was $142.3 million in 2022 and is predicted to grow at a CAGR of 5.3%, by generating a revenue of $238.2 million by 2032.
COVID-19 Impact on Global Contract Furniture Market
The COVID-19 pandemic had a substantial and varied influence on the contract furniture market, leading to a dramatic change in the dynamics of the sector. The demand for commercial office spaces decreased as lockdowns, travel restrictions, and remote work became the norm. There was a decrease in orders for contract furniture makers and suppliers as a result of many businesses delaying or cancelling office expansion and remodeling projects. On the contrary, the unexpected increase in remote work led to a rise in demand for home office equipment, giving companies a chance to change the direction of their product lines. Production delays and higher raw material costs were caused by supply chain problems, plant closings, and transportation issues, which had an impact on the availability and cost of contract furniture.
Rising Expansion of the Commercial Sector to Drive Market Growth
The demand for well-designed and functional furniture is being boosted by the steadily growing commercial sector, which includes hotels, corporate offices, healthcare, and educational sectors. In addition, the growing popularity of flexible office designs and collaborative workspaces is encouraging businesses to spend money on creative furniture solutions. The market is also expanding as organizations are increasingly looking for ergonomic and pleasant furniture solutions due to increased awareness regarding ergonomic issues and employee well-being. In addition, the sustainability movement is having an impact on consumer choices, as demand for long-lasting, eco-friendly furniture constructed of renewable materials is rising. Another driving factor is the ease of outsourcing furniture procurement to specialized manufacturers, which frees up enterprises to concentrate on their core competencies. A surge in construction and remodeling projects is anticipated to significantly boost the contract furniture market. The market for contract furniture is projected to develop as a result of the combination of changing workplace dynamics, design consciousness, sustainability issues, and post-pandemic recovery efforts.
High Cost of Contracts to Restrain the Market Growth
As the functionality, dependability, and uses of contract furniture improves, the cost of the final product rises to a point where it falls under the price bracket, which is far reachable for many small businesses. The high cost of contract furniture poses a significant challenge to the growth of the market. While contract furniture is essential for commercial spaces, its expense can be a deterrent for businesses and organizations looking to furnish their spaces efficiently. This cost factor often necessitates careful budget allocation, potentially limiting the scope for comprehensive and aesthetically pleasing interior designs. To address this issue and stimulate market growth, manufacturers and suppliers may need to explore cost-effective production methods and innovative pricing strategies that cater to a wider range of clients' budgets.
.Growing Demand for Interior Decoration and Designing to Create Excellent Opportunities in the Market
Contract furniture is commonly used in restaurants, hotels, workplaces, schools, and institutions, as well as waiting rooms and reception halls. Businesses tend to do interior designing and decoration for small or large workplaces as it enhances the ambience and improves staff efficiency while keeping comfort in mind. The rising demand for interior improvements in office spaces and residences is driving the need for contract furniture. In addition, a modular furniture is a pre-made unit that can be combined in different ways to furnish any given space. It enables the user to use different components as standalone furniture or combine them in one setting for greater utility. The continually changing working environment and functions of staff over time necessitates modular office furniture. For instance, in 2021, Herman Miller and Knoll merged to create the premier contemporary design leader, driving the transformation of the home and office. All these factors are projected to create several growth opportunities in the market.
Global Contract Furniture Market Share, by Product Type, 2022
The chairs & stools sub-segment accounted for the highest market share in 2022. As a crucial element of furnishing options for commercial and institutional settings, the chairs & stools segment is crucial to the contract furniture market. This section includes a wide variety of seating choices created to satisfy the unique requirements of numerous environments, including offices, hotels, restaurants, educational institutions, healthcare facilities, and others. In contract furniture, chairs and stools prioritize functionality, durability, and ergonomic comfort in order to accommodate the heavy traffic of these venues. Manufacturers and designers in this market are always coming up with new ideas to produce goods that not only match the aesthetic and design preferences of customers but also follow industry norms and rules. The chairs & stools category is anticipated to continue to be a key driver of the contract furniture market growth due to the increasing focus on collaborative and flexible workspaces as well as the increasing awareness regarding the impact of design on employee well-being and productivity.
Global Contract Furniture Market Share, by End User, 2022
The corporate offices sub-segment accounted for the highest market share in 2022. This sector covers a wide range of furniture requirements for office settings, such as workstations, desks, chairs, conference tables, collaboration areas, storage options, and ergonomic accessories. Corporate offices are continuously looking for practical yet attractive furniture solutions that can adapt to a variety of work styles, technological integrations, and space configurations due to the dynamic nature of modern workspaces and the emphasis on employee well-being and productivity. As businesses place a higher priority on ethical purchasing practices, the market for sustainable and ecologically friendly furniture solutions is also expanding. In addition, the corporate office setting frequently sets the standard for design and functionality trends, motivating producers and designers to provide furniture that is adaptable, modular, and versatile enough to meet the changing needs of organizations. Therefore, the corporate offices sub-segment has a significant impact on the growth of the contract furniture market.
Global Contract Furniture Market Share, by Distribution, 2022
The offline sub-segment accounted for the highest market share in 2022. The offline sector is crucial for business transactions and establishing connections within the industry, playing a significant role in the contract furniture market. Manufacturers, distributors, and retailers operating through physical showrooms, trade shows, and exhibitions are included in this section. It encourages in-depth product demonstrations, tactile encounters, and in-person consultations that are crucial for communicating the quality, aesthetics, and usefulness of contract furniture solutions. It also promotes direct connection with clients, architects, designers, and project managers. The offline market also gives producers the chance to present their broad product ranges in carefully selected settings, giving potential customers a chance to picture how these items would fit in diverse commercial settings. Although e-commerce and digital platforms have increased their influence, the offline sector is still a vital component of the contract furniture market as it boosts collaboration, relationships between people, and offers the buying process a tactile quality that digital channels cannot match.
Global Contract Furniture Market Share, by Region, 2022
The Asia-Pacific contract furniture market generated the highest revenue in 2022. Asia-Pacific has become a significant center for the creation, distribution, and consumption of contract furniture and is renowned for its innovative manufacturing capabilities and cost-effectiveness. China, India, Vietnam, and Malaysia have emerged as major players in the contract furniture market, providing a variety of solutions for the office, hospitality, healthcare, education, and other commercial sectors. These countries benefit from a strong network of skilled labor and cutting-edge manufacturing facilities. The need for contract furniture has been boosted by the region's quick urbanization, economic expansion, and rising need for contemporary workspaces and residence, which has resulted in rising investments and technological improvements in the industry. The diverse cultural heritage and design influences of Asia-Pacific have also helped to create a distinctive fusion of aesthetics and practicality in the contract furniture options available in both domestic and foreign markets. The region has also been in the forefront of incorporating eco-friendly materials and production practices into contract furniture manufacturing as sustainability and environmental considerations gain popularity. Asia-Pacific holds a significant position in the global contract furniture market owing to its combination of manufacturing expertise, design innovation, and response to industry trends.
Competitive Scenario in the Global Contract Furniture Market
Investment and agreement are common strategies followed by major market players. For instance, in July 2022, HNI Corp. announced that Kokuyo Co., Ltd. purchased its Lamex office furniture company with locations in China and Hong Kong for $75 million. The merger of Herman Miller and Knoll in 2021 created the dominant leader in contemporary design, which sparked a change of the home and workplace.
Some of the leading contract furniture market players are Haworth Inc., Herman Miller Inc., Kinnarps Ab, Steelcase Inc., HNI Corp., Knoll Inc., KI, Global Furniture Group, Kimball International Inc., and Teknion Corp.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Product Type
Segmentation by End User
Segmentation by Distribution
Key Companies Profiled
Q1. What is the size of the global contract furniture market?
A. The size of the global contract furniture market was over $142.3 million in 2022 and is projected to reach $238.2 million by 2032.
Q2. Which are the major companies in the contract furniture market?
A. Haworth Inc. and Herman Miller Inc. are some of the key players in the global contract furniture market.
Q3. What are the strategies opted by the leading players in this market?
A. Agreement and investment are the two key strategies opted by the operating companies in this market.
Q4. Which companies are investing more in R&D practices?
A. Kinnarps Ab, Steelcase Inc., HNI Corp., and Knoll Inc. are the companies investing more in R&D activities for developing new products and technologies.