Home Office Furniture Market makes room for More Growth
In 2020, COVID-19 rendered an unplanned experiment of the work-from-home model. For many, the pandemic successfully tested and broke the technological and cultural barriers that prevented remote work, facilitating a structural shift in work settings. According to Inkwood Research, the increasing adoption of remote work gave an impetus to the global home office furniture market growth, projected to record a CAGR of 6.80% during 2022-2030.
As per our analysis, the following trends are set to have long-lasting impacts on the global home office furniture market:
Remote Work is refurnishing Home Office Furniture
Almost two and a half years into the pandemic, the work-from-home model refuses to scrape off its imprints. As a result, flexible work has transitioned from a temporary pandemic response to a durable feature. For instance, as per a Human Resource Executive® survey, 64% among 3000 working professionals in leading companies like Microsoft, Amazon, and Google preferred work-from-home over a $30,000 pay.
Further, the costs induced by remote work are much smaller than that of working from an office. This includes saving up on transportation, parking, car maintenance, food expenses, etc. Whereas employers save costs on real estate, cleaning services, office furniture, utilities, etc. Instead, they are investing in remote work tools and services, including cybersecurity and home offices.
For instance, as per Lano, Google, Facebook, and Twitter granted a flat stipend of $1000 for home offices. Similarly, the University of Southern California’s Information Sciences Institute offered its staff a standardized and vast range of home office furniture and technology. Additionally, as per a National Association of Home Builders, 63% of buyers today want a home office, terming them ‘essential.’, They are also willing to pay premium prices.
Moreover, the pandemic-induced remote work has facilitated the democratization of office furniture purchases. Earlier purchasing decisions were helmed by a small committee of finance representatives, HR, interior designers, architects, and managers. Now, employees get to choose furniture that fits their home office space and décor over the corporate office look, alongside being fully or partially reimbursed by the employer.
Accordingly, market players have accelerated product innovations, developments, and launches to leverage the remote work trend. For instance, in October 2021, the US-based Hooker Furniture launched the Linville Falls modular collection. In addition, Haworth Collection added more than 50 product lines in July 2020, emphasizing lighting elements, furniture, and acoustic solutions.
According to our assessment, seating products are the fastest-growing and largest revenue-generating segment.
Technological Advancements facilitate Flexibility
Designers are increasingly focusing on home offices in accordance with the post-pandemic implications. For instance, Manerba’s Tilted Amis is a flexible system of versatile and customizable tables that enrich informal design solutions and respond to contemporary working needs. Also, there is a growing need for collaboration between employees working from home and the office. As a result, designers are utilizing advanced technologies to integrate home and office furniture with video conferencing capabilities for seamless teamwork.
Furthermore, smart home integrations are extending beyond portable devices to furniture. These include home sofas that offer an immersive 4D experience to glass tables that wirelessly charge smartphones. Similarly, with regard to home office furniture, there have been advancements like motorized desks, tracking water intake, and smart posture training tools.
In addition, home office furniture manufacturers are incorporating innovative technological manufacturing processes to enhance production efficiency. Besides, the ‘try before you buy’ and augmented reality are drastically impacting consumer buying behavior. Consumers can view the appearance of furniture in their home setting, enabled by AR-enabled mobile applications.
For instance, consumers can submit pictures of their home space and receive appropriate style boards and furniture ideas. Additionally, they can get instructions, a shopping list, and a customized floor plan after choosing a design. This adds a personal touch to product offerings. For instance, Urban Ladder provides home office furniture online through its crowd-sourcing platform.
What’s Next for Home Office Furniture?
The digitization of work has impacted structural, temporal, and spatial dimensions. Consumers working remotely are looking for furniture designed to offer extra support during discomfort and increase productivity. Consequently, furniture manufacturers are leveraging thermoplastic materials that facilitate superior design flexibility.
Also, businesses are offering portable home office furniture to enable mobility. This is facilitated by the production of mobile office home equipment. For instance, a mobile laptop cart. Moreover, the home office furniture market prospects are attributed to increasing businesses offering their products, themes, and design services online.
Inkwood Research’s evaluations state that online is the prominent distribution channel estimated to project a CAGR of 7.78% by 2030.
Furthermore, the expanding remote work has led to an increasing inclination toward smart, multifunctional, agile, transformative, and flexible furniture. Besides, the preference for furniture that would also be efficient workstations and compatible with other homely purposes is expected to propel product developments. For instance, in April 2021, Herman Miller launched its post-pandemic office collection that integrates modularity and agility into office design. Such trends offer lucrative growth opportunities for the global home office furniture market.
By Akhil Nair
Which is the largest revenue-generating material in the global home office furniture market?
Wood is the largest revenue-generating material in the global home office furniture market.
Which country has lucrative growth opportunities for the home office furniture market?
The United States projects lucrative growth opportunities for the home office furniture market.