The research study covers the present scenario and growth prospects of the global office furniture market for 2016-2020. To calculate the market size, the report considers revenue generated from the sales of office furniture.
Technavio analysts highlight the following three factors that are contributing to the growth of the global office furniture market:
- Rise in number of offices worldwide
- Launch of innovative design concepts to enhance work environment
- Increased demand for eco-friendly office furniture
Rise in number of offices worldwide
The rise in the number of office buildings and technology parks worldwide has enhanced the sales of office furniture in the past few years. With multi-national companies expanding their businesses into new cities and countries, and with the rise in the number of employees, office spaces across the globe are also expanding. This is expected to lead to increased demand for office furniture over the next five years.
“The US has been the world's largest recipient of foreign direct investment since 2006. The favorable government policies, highly innovative environment, availability of appropriate legal protection for companies, and rising foreign direct investments have increased the number of multinational corporations in the US,” says Brijesh Kumar Choubey, a lead analyst at Technavio for research on furniture and home furnishing.
The report also highlights top places across the world for the best office infrastructure, which include London, Paris, Sydney, San Francisco, Singapore, Mexico City, Bangkok, and Amsterdam. Office spaces in these cities are being filled at a rapid rate. In 2014, top cities worldwide were left with very few office spaces available. Mumbai in India was left with just 23% of its office spaces open; Washington DC in the US with 15.6%; Mexico City in Mexico with 14.3%; Houston in Texas, US, with 14%; Singapore with 10.2%; Sydney in Australia with 8.8%; New York in the US with 8.3%; Paris in France with 8%; London in the UK with 6%; and Hong Kong with 5%. While the global commercial real estate market realized investments worth USD 202 billion in 2009, it grew to USD 606 billion in 2015.
Launch of innovative design concepts to enhance work environment
In order to create new customer bases and provide efficient and cost-effective products, vendors focus on the launch of innovative products. These product designs aim to reduce clutter, enhance comfort, enable employee collaboration, and utilize space efficiently. Modular components that can be moved around easily in keeping with changing work environment requirements have been in high demand in the last five years. Manufacturers have also been developing high-quality ergonomic furniture to allow for better comfort during long working hours. Traditional and more formal color and design schemes are giving way to more modern ones that integrate color and design with organized functionality. “More offices are incorporating color into their work areas to enhance productivity and creativity. Manufacturers in the market, like Herman Miller and Poppin, are developing furniture to suit these requirements,” adds Brijesh.
Increased demand for eco-friendly office furniture
The rising concern about the preservation of the environment is leading to an increase in demand for green office furniture. This is encouraging furniture manufacturers to use eco-friendly materials for their products. Vendors today are considering long-term ecological sustainability while manufacturing furniture products, and use wood that is sourced from sustainably grown forests and metals used include a requisite quantity of recycled content. Substances that have heavy metals or tri-organic content are not used. The Business and Institutional Furniture Manufacturers Association (BIFMA), a US-based non-profit trade association of business and institutional furniture manufacturers, has developed standards and guidelines to help office furniture manufacturers and suppliers to ensure that their business practices promote environmental equilibrium, health, and human wellbeing. The ANSI/BIFMA e3 Furniture Sustainability Standard and the ANSI/BIFMA M7.1-2011 FES Test Method are examples of guidelines that ensure the production of office furniture is eco-friendly and sustainable.
A few of the vendors that manufacture such products are Herman Miller, Knoll Group, and Steelcase.
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