PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1148342
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1148342
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The home decor market was valued at US$1094.359 billion in 2020. Home decor refers to the art in which the residents aesthetically design the internal and external spaces of residential buildings, along with making them fully functional for use. Various products are included in the category of home decor products, such as furniture, kitchen fittings, flooring, and others.
The primary factors supplementing the home decor market's growth during the next five years include the inclination of people toward the high-class interior design of their homes due to high purchasing power, especially across the developed economies of the region. Additionally, the rising consumer preference for the purchase of eco-friendly products coupled with the growing focus of key players on the manufacture of products made from various raw materials is also providing an impetus for the market to grow throughout the forecast period.
Furthermore, the rising disposable income across developing economies such as India, China, and Indonesia has led to an increase in the middle-class population, which in turn is leading to an increase in residential construction across these economies. This, in turn, is also projected to amplify the demand for numerous home decor products such as furniture, and flooring, thereby driving the market growth during the next five years. The changing lifestyles have also led to an increased demand for premium quality products, which is also positively impacting the market growth during the next five years.
Rapid urbanization and population growth are amplifying the market's growth
One of the major factors boosting the market growth during the next five years is the growing population, which is boosting construction activities across the residential sector, as more housing units are required to meet the housing needs of the growing population. In addition, according to the data from the World Bank Group, the total global population has grown from 6.922 billion in 2010 to 7.593 billion by 2018. In addition, increasing construction activity across various developed economies around the globe is further anticipated to boost the demand for home decor in the coming years.
For instance, the total value of construction including the public and private residential sectors has increased from USD$366,660 million in 2008 to USD$521,971 in 2019 (Source: US Department of Commerce). Similarly, in the United Kingdom, the value of new work that includes construction in residential and other sectors at current prices continued to rise since 2011, reaching its highest level on record at £109,387 billion in 2017, driven by the growth of the private sector.
Simultaneously, the number of firms operating in the construction industry has also continued to rise in 2017 (Source: Office for National Statistics UK). Also, the rising initiatives by the governments of various developing economies to expand the residential sector also projected to be a key driving factor for the market to grow in the near future. For example, the Smart Cities Mission initiative by the government of India of converting 99 cities into smart cities with the aim of expanding the housing (residential) sector. Similarly, in 2018, the Chinese government announced an investment of around US$255 billion for the Shantytown redevelopment project, whose construction began on more than 6 million housing units.
Furthermore, rapid urbanization is also projected to amplify the market growth opportunities for vendors and manufacturers during the coming years. The increase in the population across the urban areas will lead to rising demand for residential spaces, thus augmenting the demand for home decor. According to the United Nations, by 2050, two-thirds of the global population is projected to live in urban areas. Similarly, around US$57 trillion is required to be invested by the year 2030 to accommodate this rapid expansion in urban dwellings.
Furniture to hold a considerable market share
On the basis of product type, the home decor market has been classified on the basis of furniture, textiles, flooring, and others. The furniture segment is projected to hold a substantial share throughout the market due to the rising demand for wooden furniture due to high and premium quality, which is a key factor shaping the growth of this segment during the next five years. The flooring segment is anticipated to witness healthy growth during the next five years.
Outdoor to grow substantially
On the basis of application, the market has been classified into indoor and outdoor. The indoor segment will hold a major share in the market. This segment is also projected to maintain its dominance throughout the forecast period. The rising consumer preference for stylish interiors is one of the prime factors bolstering the growth of this segment during the next five years. The outdoor segment is projected to grow substantially during the next five years. The major factors supporting the growth of this segment include the shifting consumer preferences towards the adoption of stylish flooring and furniture on account of the increasing influence of western culture on lifestyle.
An offline segment to gold a decent share
By distribution channel, the segmentation of the market has been done on the basis of online and offline. The offline segment is projected to hold a substantial share during the next five years on account of the presence of a vast number of retailers in many countries coupled with the presence of domestic manufacturers in countries like India and China, among others. The online segment is anticipated to grow at a decent rate in the next five years on account of the expansion of distribution channels in both developed and developing economies of the globe.
Prominent key market players in the home decor market include Inter IKEA Systems B.V., Herman Miller, Inc., Godrej & Boyce Manufacturing Company Limited, and Mohawk Industries, Inc., among others. These companies hold a noteworthy share of the market on account of their good brand image and product offerings. Major players in the home decor market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments of different market players over the last two years.
Impact of the COVID-19 pandemic
The COVID-19 pandemic led to a massive decline in world trade, production, revenue, and the overall economy. Countries were faced with strict lockdown and social distancing rules, owing to the increase in viral infection rates. This led to a significant slowdown in industrial manufacturing and supply, owing to the disruptions in supply and production lines. The home decor market also suffered losses in revenue due to the closure of manufacturing processes and scarcity of raw materials such as wood and metal. Moreover, the strict lockdown measures led to a decrease in spending among people. Hence, the market suffered significant losses due to these factors. However, the market has been recovering slowly, owing to the growing e-commerce trend and resumption of industrial processes. Furthermore, as countries have started to lift their COVID-19 regulations, the market is anticipated to rise.
Middle East and Africa