The global e-commerce furniture and homeware market size was valued at USD 166.6 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.6% from 2021 to 2028. This can be attributed to the growing demand for furniture and homeware products on e-commerce platforms from developed as well as developing nations. Also, a growing number of households are swelling the demand for the product over the past few years and are projected to drive the market. Additionally, the rising trend of smart kitchens is impelling market growth as it leads to transformation in the purchase pattern of the consumer group.
Also, the e-commerce furniture market is driven by several factors like increasing disposable incomes, the evolution of real estate, and demand for premium and luxury furniture from certain customer sections. Furthermore, growing government investments in infrastructural development are subsidizing product demand in the coming years. Furthermore, the COVID-19 pandemic resulted in disruption of the overall market growth. Major players experienced revenue losses due to a decline in demand, interruption in supply and distribution, and suspension in completion of construction projects (that help create the demand for furniture and homeware products).
In addition, the partial ban and temporary lockdown on mobility led to a deteriorated contribution to the market from the commercial and industrial sectors, such as hospitality, retail, and manufacturing. But this has fortified traditional players to array e-commerce sales channels for furniture and homeware products. However, all these factors are expected to show some impact on this market growth during the forecast period. Moreover, demand for multi-functional and versatile furniture products that can easily be accommodated in small spaces and offer portability are also propelling the market for e-commerce furniture and homeware. An increasing number of nuclear families is ensuing in demand for space-saving and portable products. This factor is expected to drive the demand the market growth during the forecast period.
Additionally, growing investments by key players in the latest technologies and focus on easy-to-shop experience on their platforms are further expected to impel the industry sales. Similarly, promotional strategy and advertisement by the key players aids in the growth of the market for e-commerce furniture and homeware. However, a foremost disadvantage of e-commerce is that a shopper is unable to test and try the product for his or her own satisfaction. Shoppers miss the perceptible feeling and there is constantly the fear that the product will not meet the standard you are imagining. This makes the customer a bit hesitant before making a purchase. And this is an important factor challenging the growth of this market during the forecast period.
The furniture type segment dominated the e-commerce furniture and homeware market and accounted for the largest revenue share of around 60.0% in 2020. This growth is credited to the increasing demand for luxurious furniture products in developed nations such as the U.K., Germany, and the U.S. The intensifying disposable incomes and progress of real estate are chief factors driving this furniture segment’s growth in the market for e-commerce furniture and homeware. Rising infrastructural developments in emerging economies such as China, and India are playing a major role in the growth of this segment.
The lamps, lights, and bulbs type segment is further expected to witness the fastest growth in the market for e-commerce furniture and homeware over the forecast period. The segment is expected to witness a CAGR of 7.9% from 2021 to 2028. This growth is owing to increasing demand from developing regions such as Asia Pacific. The promptly growing construction sector in Asia Pacific is also subsidizing the product demand in the market. Thus all these factors are expected to drive the growth of this segment in the coming years.
Asia Pacific led the market and accounted for a revenue share of around 40.0% in 2020. This growth is due to the rising demand for homeware and furniture products from developing nations such as China, Vietnam, Indonesia, Malaysia, and India. The booming construction industry in these emerging economies is driving demand for these furniture and homeware products in this region. Also, this growth can be attributed to the growing disposable income of the middle and upper-class population. Thus, all these factors are expected to drive the growth of the market in this region.
In Europe, the market for e-commerce furniture and homeware is anticipated to register a significant growth rate of 7.6% from 2021 to 2028. This growth of the market is due to the increasing demand for homeware and furniture in developed countries such as the U.K. and Germany. The spending power of the consumer group in Europe and huge usage of different types of kitchenware is fueling market growth. The COVID-19 pandemic has accelerated digital transformation across Europe and consumer preference for online purchase has increased recently, owing to the ease and comfort of logistics and delivery of furniture products to their doorstep. All these factors are anticipated to boost the growth of this market in this region in the coming years.
Market players are focusing on R&D and introducing innovative methods with modern technology for the purchase of products such as Augmented Reality (AR). Furthermore, key players are investing in new warehouses to escalate the storage and flourish supply chain of products in untapped regions worldwide. Also structured organizations, regional, and small-scale manufacturers are tying up with e-commerce platforms to increase their consumer base. Some of the prominent players in the e-commerce furniture and homeware market include:
|
Report Attribute |
Details |
|
Market size value in 2021 |
USD 173.7 billion |
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Revenue forecast in 2028 |
USD 270.8 billion |
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Growth rate |
CAGR of 6.6% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Type, region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Germany; U.K.; France; China; Japan; South Africa; Brazil |
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Key companies profiled |
Walmart, Inc.; Amazon, Inc.; JD.com; Alibaba; eBay.com; Flipkart; Shopify |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional, and segment scope. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global e-commerce furniture and homeware market report on the basis of type and region:
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