New York, NY – September 3, 2025 – The global furniture market, valued at USD 747.72 billion in 2024, is projected to grow from USD 787.35 billion in 2025 to USD 1,190.14 billion by 2033, registering a robust Compound Annual Growth Rate (CAGR) of 5.3% during the forecast period (2025–2033), according to a comprehensive report by Straits Research. The market’s expansion is driven by rising urbanization, booming construction activities, and a flourishing tourism and hospitality sector.

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Market Drivers: Urbanization and Tourism Fuel Growth

Rapid urbanization is a key catalyst for the furniture market, with an increasing global urban population driving demand for residential and commercial furniture. According to UNCTAD, the urban population rose from 52.5% in 2012 to 56.9% in 2022, with projections estimating it will reach 68% by 2050. This surge in urban dwellers has spurred growth in the construction industry, with Oxford Economics forecasting a USD 4.5 trillion increase in global construction value by 2030, led by key markets like China, India, the U.S., and Indonesia.

The tourism and hospitality sector also plays a pivotal role, with the World Travel & Tourism Council reporting a USD 10 trillion industry in 2023, expected to grow to USD 15 trillion over the next decade. This growth fuels demand for durable, stylish, and functional furniture in hotels, restaurants, and resorts worldwide.

Market Opportunities: The Rise of Smart Furniture

The integration of smart technology into furniture, such as adaptive sleep beds and multifunctional designs, is creating significant growth opportunities. Recent product launches, such as Ebarza’s smart furniture line in July 2023 and Living Spaces’ Adaptive Sleep smart bed in November 2023, highlight the industry’s shift toward innovative, tech-driven solutions that enhance user comfort and functionality.

Regional Insights

  • Asia-Pacific: Dominating the market with a 48.7% share in 2024, the region is expected to grow at a 7.6% CAGR through 2033, driven by rapid urbanization, population growth, and rising disposable incomes in countries like China, India, Japan, and Australia. The region’s construction sector is projected to reach USD 5,300 billion by 2025, accounting for nearly 60% of the global market.

  • North America: Emerging as the fastest-growing region, North America benefits from affluent consumer spending and a demand for ergonomic, high-quality furniture. Notable expansions include Coco Republic’s U.S. e-commerce launch in May 2023 and H&M Home’s affordable furniture collection debut in August 2023.

Market Segmentation Highlights

  • By Product Type: The beds segment led with a 39.9% share in 2024, driven by innovations like Sleep Number’s smart beds launched in April 2023, with a projected CAGR of 6.5% through 2033.

  • By Material: Wood dominated with a 55% revenue share in 2024, favored for its durability and aesthetic appeal, with new collections like Wooden Bazar’s June 2023 launch boosting growth.

  • By End-User: The residential segment held a 68% market share in 2024, fueled by population growth and housing demand, with a projected CAGR of 6.0% through 2033.

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Challenges: Environmental Regulations

Environmental concerns, including deforestation and emissions from furniture production, pose challenges. Regulations like the European Union Timber Regulation and California’s Formaldehyde Emission Standards aim to ensure sustainability but may increase production costs, impacting market growth.

Key Players in the Furniture Market

Leading companies driving innovation and market share include Steelcase Inc., Ashley Home Stores Ltd., Inter IKEA Systems B.V., Okamura Corporation, Kohler Co., Herman Miller Inc., Humanscale, La-Z-Boy Incorporated, McCarthy Group Ltd., and Cascata Capital. Recent developments include:

  • August 2025: Cascata Capital acquired Ladco, signaling consolidation in the home furnishings sector.

  • July 2025: Herman Miller launched new collections, including the Land Table and Pawson Drift Sofa Group.

  • May 2025: Humanscale introduced the eFloat Quattro standing desk, emphasizing workplace wellness.

About Straits Research

Straits Research is a leading market research firm providing actionable insights and comprehensive reports on global industries. Our furniture market report offers in-depth analysis, including market size, trends, opportunities, and competitive landscapes, empowering businesses to make informed strategic decisions.

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