Transforming Spaces: Insights into the Booming Home Furniture Industry

As global urbanization accelerates and living spaces become more compact, the demand for multifunctional, customizable, and eco-friendly furniture has surged. At the same time, digitalization and e-commerce have revolutionized how consumers discover, interact with, and purchase furniture, creating new opportunities for brands to connect with their audience. What are the key trends shaping this trajectory? How are brands responding to the challenges and opportunities of a rapidly changing market? In this article, we’ll explore the driving forces behind the industry’s growth, analyze regional market trends, and uncover the innovations that are redefining how we furnish our homes.

Home furniture market state and outlook

The global home furniture market is projected to be worth about USD 675.75 billion in 2025 and to hit around USD 874.42 billion by 2030, growing at a rate of 5.29% from 2025 to 2030.

Market analysis by product, material, type & distribution channel

The home furniture market is growing thanks to rising demand for luxury items, a focus on custom-made furniture, and more disposable income. However, the trend towards rental furniture and challenges with finding the right raw materials at good prices are holding back this growth. Now, let’s take a look at the global home furnishings market from three angles: product, material, and distribution channel.

When it comes to products, the home furniture market is divided into beds, tables & desks, chairs & stools, wardrobes, cabinets & shelves; recliners, sofas & couches; dining tables, and other furniture. In 2024, beds are expected to make up the biggest chunk, over 26.0% of the market. The largest segment overall is Living Room Furniture, which is projected to hit a market volume of around US$232.50 billion in 2025.

Looking at materials, the home furniture market breaks down into wood, metal, glass, plastic, and other materials. In 2024, wood is expected to claim the largest share, over 64.0% of the market. This segment itself is divided into hardwood, softwood, and engineered wood. The big share comes from factors like the rising demand for handcrafted pieces, the variety of wood types available for furniture making, and the convenience and stability of wood in processing.

As for distribution channels, the home furniture market is split into offline and online channels. In 2024, the offline channel is expected to hold over 71.0% of the market share. This dominance comes from more local players popping up, key brands expanding their retail presence in different cities, and customers wanting to see and feel the products in person. On the flip side, the online channel is set to grow the fastest ?in the next five years. This growth is mainly driven by increasing e-commerce furniture sales, a focus on omnichannel strategies by retailers, shifting customer preferences, and a rise in AR technology being used by furniture stores.

Home furniture market revenue

The global furniture market is expected to pull in around US$799.50 billion by 2025. On the world stage, the United States is at the forefront with a projected revenue of US$274 billion in 2025. If you break it down by population, that comes out to about US$102.30 per person. Meanwhile, in China, the furniture market is booming thanks to urbanization and the growing disposable income of its people. Among the different segments in the market, the biggest one is Living Room Furniture, which is expected to hit a market volume of US$232.50bn by 2025.

Regional analysis of the home furniture market

The North America Furniture Market was valued at about USD 215.71 Billion in 2023. By 2030, it’s projected to hit USD 379.39 Billion, growing at a CAGR of 8.4% from 2024 to 2030. Plus, the boost in sales of home office furniture is helping to grow the residential segment. Interestingly, the COVID-19 pandemic had a positive effect on the North American furniture market, mainly because more people started setting up office furniture at home. On top of that, there’s a rising demand for versatile and multi-functional products that are easy to move and fit into small spaces, which is driving the overall furniture market growth. The commercial segment is expected to grow a bit faster than others, with a CAGR of 5.1%. This segment's growth is fueled by large companies, corporations, and even up-and-coming small businesses that are putting a lot of money into furnishing and designing office spaces to create comfy and productive environments for their employees.

In 2024, the Asia-Pacific region is set to grab the biggest chunk of the home furniture market, taking over 42%. This big market share comes from having lots of raw materials like wood available in the area, the presence of local businesses, a sizeable number of households, a skilled and cost-effective workforce, and key players pouring money into expanding their operations here. On top of that, Asia-Pacific is also expected to see the highest growth rate of 6.5% during this period. This growth is mainly fueled by a booming urban population, more spending on e-commerce, fast-paced housing development, and increasing disposable income in the region.

The European furniture market hit around USD 222 billion in 2024. Looking ahead, IMARC Group believes the market will climb to about USD 296.5 billion by 2033, showing a growth rate (CAGR) of 3.3% from 2025 to 2033. The furniture market is fueled by rising urbanization, more people owning homes, and the big boost in e-commerce that's changing consumer preferences and sparking innovation across Europe. In 2021, Eurostat reported that 70% of EU citizens were living in households that owned their homes, with Romania leading the pack at a whopping 95% homeownership rate.

Latest trends in home furniture

What are the trends that home brands should keep up with and expect to bring in revenue by 2025?

Sustainable Furniture

Over the years, BigCommerce has noticed that a lot of consumers prefer brands that highlight their sustainability efforts. In fact, BigCommerce’s 2022 Global Consumer Report revealed that 84% of over 4,000 participants consider a brand's sustainability actions a key factor in their buying choices. And this trend is expected to keep growing in 2025 — Statista reports that the demand for eco-friendly furniture is really taking off right now.

Omnichannel shopping furniture

Online home furniture revenue shares have increased rapidly by 10% from 2018 to 2021, and the rate went down slightly between 2022 and 2023. As a result of the pandemic ending, more consumers have returned to in-person shopping when it comes to purchasing household items. A 2022 study of more than 11,000 participants determined the majority of consumers prefer shopping in person for home decor, furniture, and garden products. Once the retaliatory offline spending stabilizes, both the offline and online channels in the whole home market are expected to make up 52.7% and 47.3% of total revenue, respectively, by 2029.

Multifunctional Furniture Design

As home prices go up and space gets tighter, more people are on the lookout for compact, multifunctional furniture. The global market for this kind of home furniture is expected to grow at a rate of over 5% from 2025 to 2030. Ongoing urbanization and improvements in living standards in Asian countries are ramping up the demand for space-efficient and budget-friendly furniture. With the building sector booming in Asia thanks to higher disposable incomes, a growing middle class, and more residential construction, we can expect this market to keep growing in the coming years.

Strategies for brands

Innovation in Retail Spaces

The home furniture industry is going through some pretty exciting changes with the use of tech for visualizing furniture placement. AR and VR are game-changers here, letting manufacturers, designers, and customers overlay virtual furniture in real-life spaces. Lots of companies are rolling out AR features in their apps and websites, which is likely to drive up demand for home furniture in the next few years.

By incorporating virtual showrooms and tools that let shoppers see how a product would look in their homes, companies can pretty much replace the need for in-person shopping. In fact, a study from 2022 found that 35% of shoppers aged 18 to 34 use AR and VR features when they’re looking for furniture.

Product personalization and customization

As of 2023, the global customized furniture market size was valued at $ 32,716.62 million. It is projected to expand at an annual growth rate (CAGR) of 12.21%. Online customization tools and shifting consumer preferences mean that online furniture sales are expected to grow to $520 billion by 2026. Such a rate highlights buyer desire for furniture that offers a blend of functionality, aesthetics, and personal expression. Deloitte reports that 42% of buyers exhibit a preference for furniture companies that offer opportunities to personalize their products. Furthermore, Statista reveals that 71% of customers want personalized furniture and bathroom decor. Within that number 43% want customized furniture for the bedroom and 38% for living rooms. These statistics demonstrate a clear consumer demand for furniture designed to satisfy their individual preferences and requirements. In the competitive retail furniture landscape, retailers can distinguish themselves from competitors by catering to their customer’s preferences and offering custom sofas. Giving buyers choices not only enhances the shopping experience but also builds brand loyalty.

Flexible delivery & payment methods

On top of this, McKinsey & Company found that in 2023, consumers chose to spend their money on experiences and services over home goods — causing household item spending to drop by 6%.

As obstacles like inflation, layoffs, and high home interest rates remain prevalent in 2024, we expect flexible payment options on the home furniture market, such as Buy Now, and Pay Later, to grow in popularity. Offering shoppers the opportunity to pay in installments helps them feel more comfortable making purchases — especially during times of economic uncertainty.

Reference

North America Furniture Market: Industry Analysis and Forecast (2024-2030) Trends, Statistics, Dynamics, Segmentation by Material, Category, End User, and Region. Stellar Market Research

Home Furniture Market by Product (Beds, Tables & Desks, Chairs & Stools, Recliners, Sofas & Couches, Others), Material (Wood, Metal, Glass, Others), Type (RTA, Prefabricated), Distribution Channel (Offline, Online) & Geography - Global Forecast to 2031. Meticulous Market Research

Furniture: market data & analysis. Statista

Report: North American furniture market to experience significant growth. Woodworking Network

Europe Furniture Market Report by Material (Metal, Wood, Plastic, Glass, and Others), Distribution Channel (Supermarkets and Hypermarkets, Specialty Stores, Online Stores, and Others), End Use (Residential, Commercial), and Country 2025-2033. IMARC Group

Detailed research report on the home furniture market, featuring industry trends, size, and forecast from 2025 to 2030. Mordor Intelligence.

Share of consumers who typically shop for home décor, furniture, and garden products online versus offline worldwide in 2022. Statista

Multifunctional Home Furniture Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030). Mordor Intelligence