The Australia office furniture market comprises products such as office desks, storage cabinets, office chairs, file cabinets, whiteboards, and conference tables. Office furniture provides support, organization, safety, and ergonomics to employees at workplaces. Growing number of startups and expansion of corporate companies are driving the demand for office furniture in Australia.
The Australia Office Furniture Market is estimated to be valued at USD 1.14 Bn in 2024 and is expected to reach USD 1.44 Bn by 2031, growing at a compound annual growth rate (CAGR) of 2.4% from 2024 to 2031.
Key Takeaways
Key players operating in the Australia office furniture are Herman Miller, HNI Corporation, Okamura Corporation, Knoll, and Steelcase.
Rapid urbanization and expansion of corporate sector have boosted commercial construction activities in Australia. This has increased the demand for office spaces, in turn driving the sales of office furniture. Additionally, growth of BPO and IT sectors have further propelled the office furniture market.
The Australia Office Furniture Market manufacturers are focusing on developing ergonomic and innovative office furniture solutions that promote comfort, well-being, and productivity of employees. Introduction of smart, internet-enabled, and adjustable furniture has augmented their demand.
Market Trends
Adoption of activity-based working (ABW) – Many organizations are shifting from conventional open plan layouts to activity-based flexible workspaces to enhance employee productivity and collaboration. This has increased preference for movable and modular furniture.
Preference for eco-friendly furniture – With rising environmental concerns, the demand for furniture made from recycled, recyclable, and sustainable materials is increasing. Companies are offering products with reduced packaging and carbon footprint.
Market Opportunities
Growth in coworking industry – Proliferation of coworking and shared office spaces provides huge growth prospects as they require replenishing and customizing furniture frequently.
Expansion of remote working culture – The pandemic has accelerated remote working trend. This has opened opportunities for home office furniture category.
Impact of COVID-19 on Australia Office Furniture Market Growth
The COVID-19 pandemic negatively impacted the Australia office furniture market. During the lockdowns imposed to curb the spread of the virus, most businesses shifted to the work from home model. This reduced the demand for office furniture significantly. Various furniture retailers and manufacturers faced challenges due to disruptions in the supply chain and restrictions on movements.
In the pre-COVID era, the demand for ergonomic and technologically advanced office furniture was increasing steadily in Australia as companies looked to enhance productivity and employee well-being. However, 2020 saw a major decline in sales as workplaces remained shut for several months. Many furniture retailers had to freeze new investments and cut costs to manage the crisis.
As the restrictions have eased now with vaccine rollout, businesses are gradually resuming operations though many continue work from home for some employees. The furniture demand is recovering but the preferences of customers have changed in the post-COVID environment. There is an increased focus on hygiene, flexibility and multi-functional furniture pieces. Manufacturers will need to accelerate innovation to cater to the evolving needs. Companies are also exploring new sales channels and opportunity to tap the increased demand for home office setups. While challenges remain, the long-term outlook is upbeat as digitization of workplaces gathers pace in Australia.
Australia Office Furniture Market Concentration in Key Regions
In terms of value, the Australia office furniture market is highly concentrated in the states of New South Wales and Victoria which house the major cities- Sydney and Melbourne respectively. Together, these two states account for over 60% of the total office furniture spending in the country. This is because Sydney and Melbourne are the economic powerhouses and also host headquarters of many leading companies across various industries. The lucrative corporate sectors along with presence of shared office spaces and coworking firms drive the bulk of the furniture demand in New South Wales and Victoria. Other states like Queensland and Western Australia also contribute significantly being important business hubs.
Fastest Growing Region in Australia Office Furniture Market
Queensland has emerged as the fastest growing region in the Australia office furniture market in recent years. The state capital Brisbane is witnessing strong economic growth supported by industries like tourism, education and resources. Many leading firms have expanded their footprint in Brisbane resulting in higher office space absorption. Additionally, the affordable real estate and emergence of startup culture has attracted smaller businesses and flex office operators. This has translated into rising investments into commercial interiors and furniture setups. The healthy business outlook for Queensland is expected to make it one of the key drivers of future growth for office furniture sales across Australia.
Get More Insights On- Australia Office Furniture Market
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc.