RALEIGH, North Carolina, November 29, 2018 /PRNewswire/ --
Rapid urbanization as well as a buoyant office construction market in countries such India, the Philippines, and Poland will drive the demand for office furniture in the near future, according to a report by Procurement Intelligence firm, Beroe Inc.
By the end of the year, the office furniture market is forecasted to grow at a CAGR of 5-6 percent to $58.14 billion. The companies in the segment are now getting aligned with other players to strengthen their supply chain by getting add-on capability in terms of geographic presence and technological innovation.
"Evolving workplace culture has changed the way consumers view office furniture. As a result, future demand would be driven by few European countries such as Switzerland, Germany, Poland, and by emerging markets in Asia such as India, Malaysia, Vietnam, and the Philippines," Harish S, Principal Manager of Beroe Inc said.
A modestly fragmented industry led by a selective group of global suppliers, the global office furniture market is dominated by M&A between global players and local manufacturers. After the deals go through, the local manufacturers and dealers act as a distribution channels for these global firms, the report showed.
In addition to this, the availability of bank credit has made strategic acquisitions easier, thus making it a notable trend in the office furniture industry.
High competition can be seen among key suppliers (Haworth, Herman Miller, Steelcase), as a result, buyers of office furniture will have a good bargaining power.
Rising competition from local and emerging players has also compelled manufacturers to offer value-added services such as consulting, designing, and furniture planning.
According to the report, high market maturity would be seen in the regions of North America, Western Europe, and some parts of APAC, such as Australia, Japan, Hong Kong, and Singapore.
- APAC is the leading market in office furniture, with a net worth of $17.97 billion and a growth rate of 6 -7 percent, followed by North America ($14.7 billion), Europe ($13 billion), MEA ($5.9 billion), and LATAM ($3.42 billion).
- Difficult market conditions have caused top global and regional manufacturers like Steelcase, Ahrend, Haworth, Kong & Neurath to shut their production plants and reduce the workforce.
- The average contract period is one year, with the price of office furniture ranging between $10,000 to $1 million.
- Manufacturing of office furniture has been outsourced to emerging markets of Indonesia and China due to rising manufacturing costs.
- A labor-intensive industry, office furniture is now adopting mechanization and automation to increase product standardization and efficiency.
- The availability of bank credit has made strategic acquisition an easier and more notable trend in the industry.
- A new standard, BS ISO 24496:2017, has been introduced in office furniture for assessing office seating in Europe. However, unlike European Standards (EN), this standard is not implemented in all European countries.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
The global office furniture industry is led by a selective group of global suppliers such as HNI Corporation, Haworth, Herman Miller, Knoll, Steelcase, Now Styl, and Giroflex, which contribute to 7-8 percent of the total market share.
The global suppliers present in the high maturity regions have an extensive and award-winning product portfolio. Most of these suppliers have a volume-based, preferential and non-preferential engagement strategy, and have a global geographic presence. In addition to this, distributors are equally innovating and using online portals and value-engineering to connect well with the buyers.
The report includes:
- Global Office Furniture Industry Market Maturity
- Global Office Furniture Industry Trends
- Global Office Furniture Drivers and Constraints
- Global Office Furniture: Key Insights
- Regional Market Outlook
- Industry Outlook: Office Furniture Affecting Factors
- Porter's Five Forces Analysis: Developed Markets
- Porter's Five Forces Analysis: Emerging Markets
- Supply Market Outlook: Supply Trends and Insights
- Key Global Office Furniture Suppliers
- Key Regional Suppliers: Service Portfolio
- Key Global Supplier Profile
Cost and Pricing Analysis:
- Cost Analysis and Expected Savings
- Cost Break-Up: Should Cost Model
- Cost of Ownership: New vs. Old Furniture
- Pricing Analysis
Procurement Best Practices:
- Sourcing Models for Office Furniture Services
- Sourcing Models: Comparative Analysis
- Sourcing Models: Pros and Cons
- Cross-industry Sourcing Model Adoption
- Key Success Factors for Effective Contract Implementation
- Pricing Models: Comparative Analysis
- Contract and Engagement Models
- Regional Pricing Best Practices
- Key Services-based KPI: Office Furniture Procurement
- Engaging with Third-Party Interior Designers/Architects
Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of businesses across the globe. Beroe leverages its deep domain expertise in 300+ categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.
To learn more about Beroe Inc, please visit beroeinc.com
SOURCE Beroe Inc.