The shortage of Chinese ingredients, raw materials, and semi-finished goods is the latest example of the global economy’s dependence on products made in China, from iPhones to auto parts to pharma. Much of the fallout may still be hidden and is likely to play out over months. Even before the coronavirus outbreak, business investment was already in poor health in the United States. It fell in the last three quarters of 2019. Some analysts now expect more companies could soon announce reductions in their capital spending.
Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Global RTA Furniture market.
Trusted Business Insights presents an updated and Latest Study on Global RTA Furniture Market 2019-2030. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Global RTA Furniture market during the forecast period (2019-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
Industry Insights, Market Size, CAGR, High-Level Analysis: Global RTA Furniture Market
The global RTA furniture market size was valued at USD 12.3 billion in 2018. Shifting consumer preference towards flexible furniture owing to growing trend for small spaced apartments is a key factor driving demand for the RTA (Ready-to-assemble) furniture. In addition, increasing popularity of high rise buildings, which creates obstruction for big sized furniture, is expected to drive the market for these RTA products in the forecast period.
RTA furniture is also known as knock-down, flat-pack, or kit furniture owing to its convenience in packing and less occupancy in small living households. These items optimize small spaces in houses due to their dismantling properties. Moreover, growing consumer preference for customization feature in home furnishing drives the manufacturers to develop these products. For instance, Hem, the e-commerce giant, provides RTA furniture with sleek pieces, featuring Scandinavian designs and online customization options.
Demand for the RTA furniture is largely driven by the young consumer segment, particularly millennials, on account of shifting preference towards space saving furniture. In addition, growing trend of shifting to a new place for job or business purpose, particularly by younger generation, has influenced the market growth owing to rising need for household fixtures. According to statistics, 83% of millennials have purchased these different products in the RTA furniture segment.
Moreover, the market is witnessing an increasing preference for RTA storage cabinets and book shelves owing to high demand for customization needs of these products as per the availability of space in the home setting. For instance, in October 2018, Nitori Co., Ltd. in collaboration with VAlinge Innovation AB, has produced a new range of RTA products with a Threespine click furniture technology. This product, N-Click, cuts down the involvement of nuts and bolts when assembling the furniture, while it is easily connected with clicks. The product initially contains a storage unit, shelf, and a chest of drawers, which also caters to the increasing consumer demand for the product.
Low cost of these products in comparison to traditional fixtures has increased the scope for its application. These items incur less production cost on account of producing simpler parts, which eliminates the cost of assembling them. Moreover, ease of shipment and transportation of these products have developed greater access to consumers which have widened the scope for online channel in the market for RTA furniture.
For instance, Tylko is an online retailer of RTA furniture featuring different styled shelves for bookcases, sideboards, shoe rack, TV stands, chest of drawers, and wall storage. These fixtures are largely used as kitchen cabinets, which addresses huge storage space requirement for various appliances as compared to the conventional high priced cabinets. Moreover, vendors in the industry are extensively investing in advancing their technology and products as a result of incurring less production cost and easy shipments. For instance, new machine introduction tooled exclusively for 32mm method of construction enables standardization of spacing and helps in easier setup as well as assembly.
Material Insights of Global RTA Furniture Market
The wood category led the RTA (Ready-to-assemble) furniture market and accounted for a share of 54.9% in 2018. This material dominated the furniture industry owing to its longer durability, stronger reliability, and great appearance, which makes it an essential category in the home furnishing segment. RTA wooden fixtures is produced with different wooden materials such as engineered wood, sheesham wood, and solid wood to provide an aesthetic appeal to the products. For instance, Decor Furniture and Mattress Showplace produces different RTA furniture in the unfinished furniture segment and offers different products for bedroom, living room, and kitchen and dining space.
The steel category is expected to expand at the fastest CAGR of 6.6% from 2019 to 2025. Increasing preference for steel furniture frame has increased the application of this material in the industry for RTA products. Moreover, consumers rely heavily on steel furniture owing to its strong bearing capacity and longer life. In addition, increasing application of steel in producing RTA shelves and storage organizer as a result of rigid and strong hold of bolts has led to the growth of the segment. For instance, Techni Mobili manufactures laptop cart made of scratch resistant powder coated steel frame with locking mechanisms.
Application Insights of Global RTA Furniture Market
The home application segment accounted for 66.7% share of global revenue in 2018. Rising prices of conventional furniture owing to luxurious designs and high production cost have increased the scope for low cost furniture in the RTA furniture market. RTA furniture incurs less production as it is produced in parts only, therefore cost incurred for assembling of the product is minimized, which makes it less costlier and more attractive to consumers.
Additionally, ease of transport of such furniture to customers home acts as a key factor driving the household application segment owing to increasing construction of high rise buildings. These RTA furniture aim to save up space in households on account of being portable and flexible so as to provide spacious feel to the house. Furthermore, manufacturers are increasingly driving innovation in order to provide an enhanced experience for the affluent consumers. For instance, Moooi B.V. has introduced a luxury range of line in the RTA furniture segment for the upper class consumers who are more inclined towards antique and ready-to-use furniture products.
The office application segment is expected to expand at a CAGR of 5.7% from 2019 to 2025. Surge in the number of startups across developing countries such as China, India, and Vietnam has influenced business owners to invest in such furniture due to less capital investment and high preference for savings. Therefore, businesses and offices are using such furniture owing to low budget investment allotted to office decor and furnishing with easy storage and shelving experience. In addition, increased chances of relocation in cases of new businesses increases the importance of RTA furniture in the office application. For instance, Home Shopping Malls Inc. features laptop utility desk made of glass and aluminum, which is versatile enough to carry 99lbs of weight.
Regional Insights of Global RTA Furniture Market
Europe dominated the global market, accounting for a share of 34.8% in 2018. Increased importance of portable and flexible furniture in countries such as France, U.K., and Germany is driving the market in this region. The furniture sector catering to the kitchen segment proves a lucrative market for the European region pertaining to new materials, surfaces, and devices launched in the market. In addition, shifting preference of consumers towards the trend of corner kitchen, which helps in utilizing space more efficiently, acts as a key factor driving the market in the region. Germany is a leading country boosting the market growth in Europe on account of increasing importance of space saving furniture.
Asia Pacific is expected to expand at the fastest CAGR of 6.9% from 2019 to 2025. Growing trend of two person households in Asian countries such as China, Japan, and Indonesia has urged consumers to invest in such furniture owing to less usage as well as smaller living space. Additionally, growing real estate sector in developing countries such as China and India increases the consumers need to invest in remodeling activities and add an aesthetic look to the home environment. Moreover, increasing share of millennials in the furniture market is bound to invest in such products owing to customization and space saving features.
RTA Furniture Market Share Insights
The global market is highly competitive in nature. Top players operating in the market include IKEA Systems B.V.; Dorel Industries Inc.; Ashley Home Stores, Ltd.; Steinhoff International; Tvilum A/S; Simplicity Sofas; Home Reserve; Sauder Woodworking Company; Fabritec (EUROSTYLE); and Bush Industries, Inc. Companies are focusing on expanding their product portfolio in order to meet consumer demand for RTA furniture products.
For instance, in 2019, Ashley Home Stores, Ltd. is adopting expansion strategy for its RTA segment in order to attract small space dwellers in the market. The company has introduced more than 500 new case goods that can be shipped and assembled to consumers home. In addition, the company focuses on its RTA production in dining tables and chairs and offer home office as well as home entertainment manufactured with veneers.
p2 Segments covered in the report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the global RTA furniture market report on the basis of material, application, and region:
Material Outlook (Revenue, USD Billion, 2019 – 2030)
Application Outlook (Revenue, USD Billion, 2019 – 2030)
Quick Read Table of Contents of this Report @ Global RTA Furniture Market Research Report 2020 | Industry Report, Industry Analysis, Key Players, Trends, Revenue, Regional Segmented, Outlook Until 2030
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