Office Furniture Market Intelligence

Office Furniture Market Description

15% of global furniture sales comprises office furniture, wherein the majority of overall office furniture sales covers seating, panels, and storage. 2018 saw growth of $58.14 billion in the global office furniture market. US, UK, Germany, Italy, Switzerland and Japan have been identified as the as the high market maturity regions for the same. Asian countries like India, Malaysia, Vietnam and the Philippines, are expected to drive the demand for office furniture in the near future. The report elaborates the regional market outlook for office furniture, covering location-wise estimated market size, growth rate, current trends and end-user industries.

The report further identifies global opportunities and challenges that affect office furniture growth. An expansive supply trends analysis in the report discusses the top regional service providers such as Steelcase, Herman Miller, Haworth, Knoll etc. with their product portfolio, detailed company profile as well as their SWOT analysis. Cost and pricing analysis of major components for office furniture such as raw material and energy, labour cost, logistics etc. are also delineated in this report. It also comprehensively addresses the procurement best practices, discussing various sourcing models in detail.

Beroe gathers intelligence through primary sources that include industry experts, researchers and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Regional Market Outlook( North America, Europe, MEA ,APAC, LATAM)
Factors Affecting Office Furniture market
Supply Trends and Insights
Global Supplier List and Service Capabilities

Office Furniture Market Trend, Analysis & Forecast

Category Intelligence on Office Furniture covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Office Furniture Executive Summary

1.1 Global Office Furniture Industry: Industry Outlook
1.2 Supply Market Outlook

2. Office Furniture Market Analysis

2.1 Global Office Furniture Industry Market Maturity
2.2 Global Office Furniture Industry Trends
2.3 Global Office Furniture Drivers and Constraints
2.4 Global Office Furniture: Key Insights
2.5 Regional Market Outlook
2.6 Industry Outlook: Office Furniture Affecting Factors
2.7 Porter’s Five Forces Analysis: Developed Markets
2.8 Porter’s Five Forces Analysis: Emerging Markets

3. Office Furniture Supply Analysis

3.1 Supply Market Outlook: Supply Trends and Insights
3.2 Key Global Office Furniture Suppliers
3.3 Key Regional Suppliers: Service Portfolio
3.4 Key Global Supplier Profile
3.5 Supplier SWOT Analysis

4. Office Furniture Cost and Pricing Analysis

4.1 Cost Analysis and Expected Savings
4.2 Cost Break-up: Should Cost Model
4.3 Cost of Ownership: New vs. Old Furniture
4.4 Pricing Analysis

5. Office Furniture Procurement Best Practices

5.1 Sourcing Models for Office Furniture Services
5.2 Sourcing Models: Comparative Analysis
5.3 Sourcing Models: Pros and Cons
5.4 Cross-industry Sourcing Model Adoption
5.5 Key Success Factors for Effective Contract Implementation
5.6 Pricing Models: Comparative Analysis
5.7 Contract and Engagement Models
5.8 Regional Pricing Best Practices
5.9 Key Services-based KPI: Office Furniture Procurement
5.10 Engaging with Third-party Interior Designers/Architects

Global Furniture Industry Outlook

In 2017, the global office furniture market was valued at $54.99 billion
By 2018, the market is forecasted to grow at a CAGR of 5 – 6 percent to $58.14 billion
North America, Western Europe, and some parts of APAC, such as Australia, Japan, Hong Kong, Singapore, have a high market maturity
Western and Eastern Europe countries, like Germany, Switzerland, Poland, and emerging markets in Asia, like India, Malaysia, Vietnam, Philippines, etc., will drive the demand for office furniture in the near future. These countries are currently in the path of rapid urbanization as well as a rising office construction market are major drivers of office furniture

Global Office Furniture Market Maturity

The global office furniture industry is a modestly fragmented industry led by a selective group of global suppliers, who contribute roughly 7–8 percent of the total market size for office furniture globally
Asia and Europe contribute to around 50–60 percent of the total market size for global office furniture

Global Office Furniture Industry Trends

Office furniture contributes up to 15 percent of the global furniture sales, wherein seating, panels, and storage contribute the majority of the overall office furniture sales.
Office furniture is a labor intensive industry and this industry is adopting increased automation and mechanization to increase efficiency and product standardization
The top players of office furniture make around 9-11 percent of the APAC market size and this market is highly unorganized in pockets across APAC
There is a high level of mergers occurring between global players of office furniture and the local level manufacturers and dealers, who act as the distribution channels for these global firms
There is a significant increase in demand for reuse/recycling of furniture and more focus on innovation to reduce environmental impact

Global Office Furniture: Drivers and Constraints

Manufacturing of office furniture is being outsourced to emerging markets like China and Indonesia owing to the rising costs of manufacturing
There is increased competition from regional/local players for office furniture and this has driven larger suppliers to provide value-added services like space planning, consulting and furniture solutions by providing architect and interior design services

Drivers

Rapid Urbanization:

Increase in construction activities and rise of office spaces in major consumer markets like the US, Brazil, and India. The rapid expansion of Fortune 500 firms in APAC has also given rise to the creation of new office space

Recycled Products:

In the developed markets, such as the US, there is an increased demand for customized and made-to-order furniture from recycled materials

Demand for Office Aesthetics:

Large buyers require innovative or elegant design aesthetics for their office facilities. This leads to procurement of new office furniture that suits the aesthetic dynamics of the facility
Refurbishment of office space or purchase of new office space drives large buyers to adapt fresh design themes, which may be aimed at increasing the productivity of the employee workforce

Constraints

Demand vs. Buyer Aspiration:

Although there might be an increase in demand for office furniture for large buyers, this demand may not be realized by the buyers, who may choose to cut costs owing to the pressure of cost optimization

Rise in Manufacturing Cost:

The office furniture industry is labor intensive and is currently facing a labor shortage as well as fluctuations in costs of raw material like wood and energy

Dynamic User Preference:

Buyers request variety and innovation in office furniture depending on the requirement and this makes it difficult for service providers to forecast and manufacture the product lines

Global Office Furniture: Key Insights

Plant Closures and Workforce Reductions Due to Difficult Market Conditions

Difficult market conditions compelled top global and regional manufacturers like Steelcase, Ahrend, Haworth, König & Neurath to shut their production plants and reduce workforce as per their restructuring and modernizing plans.

Example: Steelcase shifted their manufacturing plant from Germany to Czech Republic, which is expected to generate cost savings of around $10 million a year from 2016.

Consulting and Advisory Services Getting Offered as Value-Added Services

Rising competition from local as well as new emerging players, downturn in economic scenarios, decrease in demand by the buyers for the furniture items have compelled manufacturers to offer value added services such as consulting, designing and furniture planning by hiring interior designers and architects

Mergers and Acquisitions to Expand and Gain Synergies

The office furniture companies are getting aligned with other players to gain from synergies and strengthen their supply chain by getting add-on capability in terms of geographical presence, technology and innovation. With the availability of bank credit, strategic acquisitions have become easier and a notable trend in the industry

Example:

Global OEM player Herman Miller acquired Maharam Fabric Corp., a family owned company, as part of its strategic planning

Production Capability Expansion by Suppliers

Office furniture, being a labor intensive industry, is increasingly moving towards mechanization and automation to bring efficiency, standardization, production of the required design and quantity of the product

Sustainability Requirements Followed and Advertised by Suppliers

There is new standard, BS ISO 24496:2017 office furniture, assessing office seating in Europe. Unlike Europe Standards (EN), this standard is, however, not implemented in all European countries
Most of the global brands and regional players follow minimum LEED and ANSIBIFMA standards
With buyers having environmental concerns and sustainability targets, manufacturers are using environment friendly materials modified bio-composite sheet made from renewable natural resources is used in the production of office furniture instead of using petrochemicals and advertising the environmental benefits through a number of certification programs

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