The furniture & floor coverings market consists of the following two segments: furniture and floor coverings.
The global furniture & floor coverings market had total revenues of $511,170.0m in 2015, representing a compound annual growth rate (CAGR) of 4.2% between 2011 and 2015.
The furniture segment was the market's most lucrative in 2015, with total revenues of $377,241.9m, equivalent to 73.8% of the market's overall value.
The US accounts for 22.5% of the global market value and remains a nation of homebuyers with a home ownership rate of approximately 65%. This boosts the market as people are more likely to invest in improving and furnishing a property they own.
Market Analysis
The global furniture & floor coverings market has seen moderate growth in recent years, propelled predominantly by fast-paced growth in Asia-Pacific. Growth is forecast to accelerate globally as Asia's strong performance continues and more developed countries like the US see faster growth themselves.
The global furniture & floor coverings market grew by 5% in 2015 to reach a value of $511,170 million.
The compound annual growth rate of the market in the period 2011-15 was 4.2%.
Furniture is the largest segment of the global furniture & floor coverings market, accounting for 73.8% of the market's total value.
The Floor coverings segment accounts for the remaining 26.2% of the market.
Asia-Pacific accounts for 39% of the global furniture & floor coverings market value.
Europe accounts for a further 29% of the global market.
Competitive Landscape
Rivalry in the furniture & floorcoverings market is assessed as moderate. Price pressure is intense and the size of incumbents such as IKEA and Kingfisher only serves to strengthen competition.
Buyer power is weakened by the large number of individual consumers who have little financial muscle. However, negligible switching costs and a high degree of price sensitivity strengthen their power.
A focus on material quality and design increases the power of manufacturers; however branding tends to be relatively unimportant to end-consumers. This lack of brand strength restricts the ability of manufacturers to dominate the market. Furthermore, the likes of IKEA have backwards integrated and supply at least some of their own stock. This weakens supplier power.