North America Furniture Market Share was over USD 86.20 billion in 2019 and will grow at a CAGR of more than 5.3% up to 2026.
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The North America industry will observe a lucrative industry growth due to improved construction spending from consumers, boosting furniture demand. Infrastructure development in the U.S. is likely to push furniture demand. Hotels, colleges, schools, hospitals, and commercial office spaces will offer excellent growth opportunities for this market. Improved expenditure spending from the non-residential segment registered growth figures, thus fueling the market. This presents lucrative opportunities for industry participants from the non-residential segment.
Regional growth is mainly contributed by the U.S. and Canada markets due to strong consumer base in the regions. The increased construction of new buildings is projected to increase the furniture demand for kitchen furniture cabinets, storage, dining tables, upholstered, and non-upholstered components. New growth opportunities due to improved consumer purchasing behavior mainly from new generation providing excellent opportunity to industry players. New aesthetic designs of the product by adopting different variants of colors along with numerous texture shades are offering an attractive portfolio in the region. Moreover, the market is witnessing a strong pull from online retailers such as Amazon, Cymax Stores, Dunhelm, etc.
The North America industry is likely to witness a strong demand from the residential sector owing to the rising demand for upholstered furniture. Furthermore, the North America market is very competitive with a large number of manufacturers, traders, wholesalers, and retailers present in the market; thus, product costing and quality cannot be the only differentiating factors for industry participants. Many players are providing additional services to gain competitive edge over the others.
The U.S. is one of the largest markets for the furniture industry in terms of consumption. Openness to imports, high disposable income, and expansion in residential construction & renovation activities are key factors fueling the regional growth. The U.S. market has around 20,000 manufacturers and is mainly concentrated in Michigan, Ohio, Illinois, North Carolina, Mississippi, and Virginia. The industry projects a high level of integration, with major manufacturers involved in processes such as processing of raw materials. Canada and Mexico are the major export markets for U.S. manufacturers.
Merger & acquisition is a very good strategy as this strategy helps market players rapidly gain more market share on regional and international levels. For instance, in September 2018, The Home Depot announced express delivery service to 35 major markets in the U.S. The move aimed at strengthening its service portfolio. The major players operating in the industry include Ashley Furniture Industries, Steelcase, Okamura Corporation, Inter IKEA Group, American Furniture Installation, Kohler CO, among others.