Vertical: CFnBBase Year: 2017
Market Size (2017)
$109.24M
Projected (2025)
$146.86M
CAGR (2013–2025)
3.6%
Key Players
10+
The global RTA furniture market has largely been benefiting from the growing number of households in emerging economies as well as trending concepts in terms of furniture design and use. Moreover, growing real estate industry is directly influencing the number of houses and commercial properties due to which the requirement for RTA furniture is expected to spur during the forecast period. With several driving trends such as the concept of ‘furniture-on-rent’ and growing e-retail sector are further expected to boost the global market growth during the forecast period.
Wantstats analysts have predicted that RTA furniture industry is about to grow at a steady pace. The global RTA furniture market is poised to grow over USD 146.86 billion by 2025 at an estimated CAGR of 3.80% from 2018 to 2025.
Global RTA furniture market is segmented by material type, where the wood segment dominated the RTA furniture market in 2017 and is projected to reach USD 38.39 billion by 2025 and will register a healthy CAGR of 3.08% during the forecast period. The laminates segment is projected to reach USD 19.21 billion by the end of 2025, registering the highest CAGR of 4.08% during the forecast period.
Among the end-use, household segment is expected to dominate the RTA furniture market with a projected value of USD 109.85 billion by 2025 at a CAGR of 3.50%. The commercial segment is projected to grow at the substantial CAGR of 4.72% to reach USD 37.00 billion by 2025.
Among the distribution channel, store-based distribution channel segment is dominating the RTA furniture market in 2017 with the largest market share of 78.72% and is projected to reach USD 113.25 billion by 2025 in terms of value. The non-store based distribution channel segment is also projected to register the highest CAGR of 4.74% during the period of 2018–2025.
The RTA Furniture Market market is projected to grow at a CAGR of 3.6% from 2013 to 2025.
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View Subscription PlansRTA for Ready-to-Assemble furniture as the name suggest are furniture types that are packed knocked-down or flat packed into unassembled parts. They are usually cheaper than the ready-to-use furniture types as they are supposed to be assembled by the customer themselves. These furniture types come with various joints, nuts, and bolts and are generally assembled easily with the help of screw driver. Global RTA furniture market includes products such as chairs, beds, tables, cabinets, and many others that are usually kept in the house or at a commercial place. They are used for the purpose of seating, sleeping, home decorations, storing other items, working, and many more. General materials used for the manufacturing of RTA furniture includes mainly wood, steel, melamine, glass other composites and engineered wood. These furniture types are also called as knock-down furniture or kit furniture. This furniture type requires customer assembly usually with the help of only screwdriver to assemble the complete furniture set. They also enhance the functional and aesthetic aspects of the area they are kept in as with the ready-to-use furniture. Moreover, growing demand for versatile and innovative furniture that can be accommodated in small spaces is also on the rise.
Furthermore, purchasing RTA furniture helps in cost saving due to dismantled parts also can be transported easily. RTA furniture market is expected to see significant popularity in future due to squeezing spaces for living and increasing urban population and penetration of e-commerce retail.
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View Subscription PlansResearch Process
Wantstats analysis is based on interviews with industry experts who offer insight into the market structure, market segmentation, technology assessment, competitive landscape (CL), market penetration, as well as the emerging trends. Besides primary interviews (~80%) and secondary research (~20%), their analysis is based on years of professional expertise in their respective industries. Our analysts also predict where the market will be headed in the next five to 10 years, by analyzing historical trends and the current market position. Furthermore, the varying trends in segments and categories in each region are studied and estimated based on primary and secondary research.
Primary Research
Extensive primary research was conducted to gain a deeper insight into the market and industry performance. For this particular report, we have conducted primary surveys (interviews) with the key level executives (VPs, CEOs, marketing directors, and business development managers, among others) of the major players active in the market. In addition to analyzing the current and historical trends, our analysts predict where the market is headed in the next five to 10 years.
Secondary Research
Secondary research was mainly used to collect and identify information useful for an extensive, technical, market-oriented, and commercial study of the global RTA furniture market. It was also used to obtain key information about major players, market classification and segmentation according to industry trends, and developments related to the market and technology. For this study, analysts have gathered information from various credible sources such as annual reports, SEC filings, journals, white papers, corporate presentations, company websites, and paid databases.
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of the overall global RTA furniture market. The key players in the market were identified through secondary research, and their market contributions in different applications across the globe were determined through primary and secondary research. This entire process included the study of the annual and financial reports of the top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to arrive at the final quantitative and qualitative data. This data has been consolidated, and detailed inputs and analysis from Wantstats added before being presented in this report. The following figure shows an illustrative representation of the overall market size estimation process employed for the purpose of this study.
Base Year
2017
Historical Period
2013 – 2016
Forecast Period
2018 – 2025
Primary Interviews
150+
Historical data (2013–2017) and forecast period (2017–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThe global RTA furniture market is highly competitive with key industry players adopting various strategies such as expansions, acquisitions, and product launches to strengthen their market positions. Most companies in the market are focused on expanding operations across regions, augmenting their capabilities and distribution channel, and building strong partner relations.
The graph indicates the percentage of developments undertaken by key manufacturers in the global RTA furniture market. Sauder Woodworking Company accounted for the highest development share of 49% from 2014 to 2018. Sauder Woodworking Company is majorly focussed on product launches to expand the company’s geographical reach and set a strong foothold in the global RTA furniture market. For instance, in 2018, the company Sauder launched a new Manhattan Gate prototype collection. This collection resembles farmhouse furniture style and was designed to create a sophisticated home environment.
Ikea is also focused on product launches into the RTA furniture market to gain the competitive edge across the world. For instance, in 2017 Ikea developed a new type of Wedge Dowel joint. The purpose of which is to assemble furniture’s quickly and easily. Also, this type of joint does not require nuts, bolts, and screws for its assembly. Ikea accounted for 19% of the development share in global RTA furniture market.
HNI Corporation (Sauder) aims at acquiring new companies to grow in the market for that HNI Corporation acquired OFM, US-based furniture manufacturer. The acquisition expanded the business and helped the company to expand its product portfolio. The company holds 10% development share during the period of 2014–2018.
Kimbell Corporation accounted for a 12% of the total developments in the global RTA furniture market from 2014 to 2018. Kimball, a subsidiary of Kimball International, Inc., acquired David Edward, a furniture company, headquartered in Maryland, US. The acquisition extended the company’s product portfolio.
Analysis of the Key Developments by Major Players
The developments undertaken by the key players in the global RTA furniture market include strategic acquisitions, geographic and business expansions, and product launches.
According to Wantstats analysis, product launches accounted for a 43%% share of the total key developments by market players. Companies in the global RTA furniture market are strategizing theirs moves towards launching new RTA furniture types in the global RTA furniture market to extend their business reach. For instance, in 2016, Sauder expanded its product offerings by launching new soft modern collection, which involves elements of mid-century modern styles of furniture.
Acquisition accounted for 29% of the total developments in the market. Key players are taking major steps towards business acquiring small to medium sized RTA regional furniture market players businesses thus reaching untapped markets, thereby increasing consumer base and strengthening global footprints. For example, Dorel Industries, Inc. acquired Alphason Designs Limited, a manufacturer of office furniture in the UK, to expand its business in Europe.
Partnership and expansion by major brands has led to the diversification and penetration of product portfolios. Therefore, both product launch accounted for a significant 14% of developmental share. For example, Sauder Manufacturing Co. invested USD 32 million to move from Grabill to New Heaven. The new avenue was selected in order to double Sauder’s production. It would also ease work flow, logistics, and is expected to create 60 new jobs in the region.
Threat of New Entrants
The RTA furniture market is fragmented with established market players and in order to enter the market, new players need to invest enormously in creating their brand identity through strategies, such as innovative designs and by producing quality products with the help of advanced technology. Moreover, the initial set up cost is quite high, including the cost of space and the advanced machinery required to survive in the competitive market.
However, the production cost of RTA furniture is low with the easy availability of raw materials such as wood, plastic, metal, and steel. Moreover, the rising demand for foldable and easy to dismantle furniture attracts new players to enter the market. There are more chances for new entrants at the regional level, owing to the easy availability of raw materials and labor, which controls the production cost. However, dominant un-organized market of furniture in regions such as Africa and Asia make it little cost intensive for players to enter the organized RTA market due to multiple local options.
The threat of new entrants to the market is moderate.
Bargaining Power of Suppliers
Numerous suppliers supply the raw materials required for furniture, where the manufacturers have a plethora of options. Thus, they have the liberty to shift between suppliers as they are not dependent on a single supplier, which reduces their operational risks. The suppliers are not only concentrated in one region but also have a cross-regional presence, which reduces the switching cost among the manufacturers. Moreover, unorganized supplier base further limits the bargaining power of the suppliers. These factors result in the overall low bargaining power of the suppliers.
Therefore, the bargaining power of suppliers is low.
Threat of Substitutes
Furniture has no substitutes available. However, the market is highly fragmented and faces intense internal competition at the quality, price, and convenience levels. For instance, consumers are still buying assembled furniture over ready-to-assemble (RTA) furniture due to their incapability convenience to dismantle the furniture as required, along with the comparative finish and look. Also, luxury furniture market is majorly non-RTA type and has a considerable market in the developed regions. Thus, it is identified that there are chances of product substitutes at an internal level based on raw material, convenience, prices, disposable income and quality but there are no substitutes to furniture in general in the market.
The threat of substitutes in the RTA furniture market is low.
Bargaining Power of Buyers
The presence of many industrial players in the RTA furniture market has attracted a huge consumer base. Due to a large number of existing manufacturers in the market, the switching cost of consumer falls. However, the number of options available in the RTA market are comparatively less when compared with the non-RTA type. Consumers in many developing regions are still unaware of the benefits and types of RTA furniture and still purchase the conventional furniture types. Nevertheless, the RTA furniture market is gaining popularity due to its low cost, easy transport, and majority of the market is still price sensitive and tends to switch to offerings with a comparatively lower price.
The bargaining power of buyers is moderate in the RTA furniture market.
Rivalry
The furniture market is marked by high rivalry. Established players are targeting their competitors in terms of quality and price, making the industry competitive, reducing profit margins for all the existing firms. Additionally, players operating in the market are competing based on customized offering and technological advancements. Owing to the huge scope of the RTA furniture market, numerous players are entering the market at the regional level, which increases the market competition for the global players with the local vendors.
The competitive rivalry in the RTA furniture market is high.
Market estimates by geography (2025)
InsightAsia Pacific leads with $51.80M by 2025, while North America is projected to grow fastest at a 3.9% CAGR.
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View Subscription Plans| REGION | 2013 | 2017 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Asia Pacific | $34.84M | $41.85M | $51.80M | 3.4% | 35% |
| Rest of the World | $8.93M | $10.76M | $13.36M | 3.4% | 9% |
| Europe | $24.21M | $29.58M | $37.12M | 3.6% | 25% |
| North America | $28.25M | $35.03M | $44.58M | 3.9% | 30% |
| Total | $96.23M | $117.22M | $146.86M | 3.6% | 100% |
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View Subscription PlansTotal Market Size
$146.86M
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Wood | $38.38M | 2.9% | 26% |
| Steel | $26.22M | 3.8% | 18% |
| Glass | $22.84M | 3.9% | 16% |
| Laminates | $19.21M | 3.9% | 13% |
| Melamine | $16.56M | 4.0% | 11% |
| Wrapped Panels | $9.09M | 3.8% | 6% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on RTA Furniture Market covering market dynamics, competitive landscape, and strategic outlook.
The RTA Furniture Market market is projected to reach $146.86M by 2025, growing at 3.6% CAGR. The Wood segment holds the largest share.
The global RTA furniture market is expected to witness substantial growth owing to several factors, such as growing urbanization; rise in per capita disposable income; and rapid expansion of tourism, hospitability, and real estate across the globe. It has been observed that the demand for multi-functional furniture is rising among consumers, which is primarily driving the market. Moreover, innovative designs and customization provided by the key players are playing a vital role in the growth of the furniture market. However, the prevalence of unorganized sector acts as a restraint for the growth of key players in the market.
The rising population and increasing urbanization are majorly driving the growth of real estate across the globe. The growth of the real estate sector is leading to a continuous increase in the number of houses and commercial properties, which is directly influencing the growth of the furniture market. According to the UN Department of Economic and Social Affairs (UN DESA), “the urban population of the world has grown rapidly from 751 million in 1950 to 4.2 billion in 2018. Asia, despite its relatively lower level of urbanization, is home to 54% of the world’s urban population. The most urbanized regions include Northern America (with 82% of its population living in urban areas in 2018), Latin America and the Caribbean (81%), Europe (74%) and Oceania (68%). The level of urbanization in Asia is now approximating 50%.” However, the stable economic growth in the emerging economies in Asia-Pacific, such as India and China, is expected to boost urbanization, along with the growth of real estate in the coming years. Moreover, with the increase in per capita disposable income, consumers are highly investing in home decoration in which furniture is a significant element. Construction of households and commercial properties with advanced technology and a luxurious lifestyle is uplifting the growth of luxury furniture market and driving the growth of the overall furniture market during the forecast period.
With the continuous increase in demand for ready-to-assemble furniture, there is a growing concern for a healthy environment. In recent times, sustainable development is no longer an option, but a necessity. Thus, with growing awareness of environmental concerns, homeowners and designers are incorporating eco-friendly elements in remodeling projects new constructions. There is increasing attention to certified ecolabel, not only for the furniture structure but for the finishing material as well. Thus, owing to this trend, manufacturers are inclining towards manufacturing eco-friendly furniture in which they use environment-friendly materials such as certified sustainable wood, recycled wood, bamboo, and recycled metals. Certain key players have taken the initiative to go green by manufacturing and offering eco-friendly furniture with innovative designs. For instance; Godrej Interio took the initiative of eco-friendly to pursue environmentally friendly practices and follows policies of energy efficiency, use of recycled products, use of renewable energy, water efficiency, and improvement of indoor air quality. In its initiative to go green, the company is using bamboo as a material in manufacturing the furniture. Thus, there is a huge scope for the furniture manufacturers to indulge in manufacturing eco-friendly RTA furniture as the consumers are highly aware of the concept of sustainable development and are demanding eco-friendly furniture for a better future.
The RTA furniture market is highly fragmented with huge number of players across the globe. There is stiff competition among the players in terms of designs, raw materials, supply chain, and after-sales services. However, the major factor affecting their growth is the prevalence of the unorganized sector. It has been observed that the sales of the key players are majorly hampered by the local vendors, owing to their easy availability, lower price, and ease of customization. Moreover, individuals are still dependent on traditional methods for arranging household furniture which persists the presence of unorganized sector in the market. A major share of the population is price sensitive which makes it difficult for the organized brands to establish their dominance over the unorganized sector.
The increasing population and gradual shift of rural population to urban areas are posing a threat to the available land, and people have to compromise with the space of infrastructure. To cater to the needs of the increasing population in urban areas, there are usually compact infrastructure designs which have increased the demand for more modular, space-saving, and multifunctional furniture. Moreover, the demand for furniture with living room is at a rise.
With the growing economy and improved standard of living of the consumers, the demand for luxury furniture is increasing. This increase in demand is mainly witnessed in the US and some European countries. However, the demand for luxury furniture in China and India is witnessing rapid growth owing to the increasing per capita disposable income of consumers and their growing inclination towards luxury products.
The trend in furniture renting is increasing across the globe. It has been observed that young professionals tend to change cities looking for better career opportunities. Thus, they prefer shifting with minimal baggage for which they are inclining towards renting furniture rather than spending in the transportation of the purchased furniture.
Online retailing is trending in the furniture market. With instant access to the catalogs and price lists, customers have a clear idea of products which simplifies their purchase. It has been observed that online retailers are taking away a good portion of the brick and mortar retailers. Thus, this is influencing the key players to get involved in online distribution channel and are investing in having their own e-commerce site to expand their customer reach.
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Profiles of 106 companies operating in the RTA Furniture Market market, including revenue, employee count, and market positioning where available.
Showing 106 of 106 companies
Company Headquarters: Mumbai, India Founded: 1897 Workforce: ~12,000 Company Working: The Godrej and Boyce Mfg. Co. Ltd (Godrej & Boyce) is involved in consumer goods manufacturing, real estate, appliances, agri, and other businesses. Godrej & Boyce has operations in the US, Argentina, the UK, the Netherlands, Nigeria, South Africa, Saudi Arabia, Bahrain, Oman, Bangladesh, Sri Lanka, Vietnam, Malaysia, Singapore, and Indonesia. The Godrej and Boyce Mfg. Co. Ltd operates as a subsidiary of the Godrej Group.
Company Headquarters: Iowa, US Founded: 1944 Workforce: 9,100 Company Working: HNI Corporation (HNI) produces and sells furniture and hearth products in the US, Canada, China, Hong Kong, Mexico, Dubai, India, and Taiwan. The company’s office furniture segment offers a range of metal and wood furniture for commercial and home office. The products include desks, credenzas, storage products, bookcases, chairs, tables, freestanding office partitions, and panel systems, among others. The brands HON, HBF, Maxon, Allsteel, basyx by HON, Gunlocke, OFM, HNI India, and Lamex operate under HNI Corporation.
Company Headquarters: New York, US Founded: 1912 Workforce: ~4,500 Company Working: Dunn’s Furniture is a family run furniture company and is involved in the manufacturing of furniture for the household as well as commercial space. The company originally started as a furniture store which gradually grew as one of the leading retailers of furniture.
Company Headquarters: California, US Founded: 1985 Workforce: ~25 Company Working: Venture Horizon Corporation (Venture Horizon) specializes in ready-to-assemble furniture. It offers it products through major retailers and e-commerce stores. The company offers its products in a variety of materials, including solid hardwoods, MDF, particle board, steel, plastic, and glass.
Company Headquarters: Burnaby, Canada Founded: 2004 Workforce: ~480 Company Working: Cymax Group Inc. (Cymax Stores) is an online furniture retailer operating throughout North America. The company offers bedroom, office, living room, outdoor, kitchen and dining, bathroom, baby, kids, and home décor products. The company was ranked within the top 200 e-retailers in the world, in both 2011 and 2012, by the Internet Retailer Magazine. It also operates in other segments such as fireplaces, consumer electronics, housewares, and home décor accessories
Headquarters: Leiden, Netherlands Founded: 1943 Workforce: ~2,08,000 Company Working: Inter IKEA Systems B.V. (Ikea) is a Swedish-founded multinational group that manufactures and sells household furniture. The company serves worldwide through its 424 stores in 52 different countries. The company has a wide product portfolio with 12,000 products. It is operating under Stichting INGKA Foundation.
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Historical performance and future projections (2020–2030, USD Billion)
Market Size (USD Mn)
