Outdoor Furniture Market Scale Worth $25.0 Billion By 2025

The global outdoor furniture market size is expected to reach USD 25.0 billion by 2025, according to a new report by Grand view research, Inc., expanding at a CAGR of 5.9% over the forecast period. Surge in the number of hotels and resorts, increasing consumer spending power, and growing trend of traveling are some of the key factors responsible for the growth of the industry.

The commercial sector is anticipated to register a CAGR of 6.2% in the forecast period. Developing countries like Malaysia, Thailand, and Singapore have been the favourite destinations for traveling. Increase in the number of hotels and resorts in these countries has led to a surge in the product demand. In 2016, Thailand witnessed over 32.6 million international visitors.

On the basis of material type, wood dominated the market in 2018 with more than 60% share and is anticipated to witness significant growth in the forecast period. Easy availability, natural and rich look, durability, and comfort are some of the key factors driving the demand for wooden furniture among consumers.

Plastic accounted for more than 15.0% share of the overall revenue in 2018. The consumer groups with an economic budget prefer plastic furniture due to low maintenance, light weight, and low cost. However, manufacturers are shifting towards eco-friendly materials and thus, impacting the growth of the plastic segment as a material type.

Asia Pacific is a prominent regional market due to growing commercial sector and increasing adoption of western culture. The region is expected to expand at a CAGR of 6.3% in the forecast period. Europe is the fastest growing regional market, progressing at a CAGR of 8.4% in the forecast period.

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Further key findings from the study suggest:

• In terms of revenue, wood as a material type is projected to expand at a CAGR of 6.0% over the forecast period
• Based on the end use, the residential segment dominates the market owing to growing population, increasing per capita income, and changing lifestyle
• The commercial segment is the fastest growing segment, expanding at a CAGR of 6.2% in the forecast period. Growing tourism has led to an increase in the number of hotels and resorts, thus positively influencing the segment growth.

Outdoor Furniture Market Share Insights

Key players operating in the market include Inter Ikea Group, Ashely Industries, Brown Jordan, Keter Group, Agio International Company Limited, and Lloyd Flanders. The market presents moderate to low entry barriers for the new entrants and the competition is driven by factors such as mergers and acquisitions, competitive advantages, and product innovation. For instance, it has been reported that Ikea may adapt online platforms such as Amazon and Flipkart in the near future. The industry share is fragmented globally due to presence of a large number of players in the market.

Leading manufacturers are expanding their geographical presence in order to gain maximum market share. Establishment of strategic partnerships with buyers in order to develop new products is projected to remain a critical success factor over the next few years. Taking into account all the above-mentioned factors, manufacturers are likely to focus on product innovation, catering particularly to the hotels, resorts, and residential sectors.

For more information: www.grandviewresearch.com