The Australia office furniture market comprises office chairs, desks, storage cabinets, tables, and other accessories that are used to furnish offices. Chairs, desks, and storage units are the most commonly utilized office furniture products in Australia.
The increase in demand for ergonomic and adjustable office furniture that promotes well-being is driving the demand for Australia Office Furniture Market. Companies in Australia are increasingly investing in high-quality and aesthetic furniture to offer employees a comfortable working environment.
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 Steelcase Inc., Herman Miller Inc., Haworth Inc., HNI Corporation, OKAMURA Corporation. Steelcase Inc. holds the largest market share in Australia office furniture owing to its wide product portfolio and strong distribution network across the country.
The demand for office furniture is growing across major cities in Australia such as Sydney, Melbourne, Perth, and Brisbane due to rapid growth in the commercial real estate sector. According to Property Council of Australia, the total value of commercial property transactions increased by 25% in 2021 compared to the previous year.
Technological advancements such as incorporation of smart features and connectivity in office furniture have gained traction among companies. For example, Steelcase offers smart height-adjustable desks and Herman Miller provides Fern handcrafted mobile tables with smart device charging ports. These innovations are appealing to organizations focused on digital transformation and hybrid work models.
Market Trends
Sustainable office furniture is gaining popularity as corporate adopt eco-friendly practices. Companies are increasingly offering furniture made from recycled, FSC-certified, and environment-friendly materials to reduce carbon footprint. For example, Okamura provides Refflex line of tables made from recycled cardboard.
Customization and configurable office solutions have become imperative as flexibility and mobility take centerstage in office design. Vendors provide modular furniture that can be combined in multiple ways based on the changing workplace needs of clients.
Market Opportunities
The rapid growth of co-working spaces in major cities of Australia presents an opportunity for office furniture providers. As more corporations adopt hybrid or remote working models long-term, the demand for flexible workspaces is surging in the country.
Remote and hybrid work arrangements have increased the need for home office solutions, opening growth avenues for manufacturers focused on developing ergonomic furniture suitable for small home workstations.
COVID-19 Impact on Australia Office Furniture Market
The COVID-19 pandemic has adversely impacted the Australia office furniture market. During the initial lockdown phase, non-essential businesses were shut down which disrupted the supply chains and halted manufacturing activities. This led to a drop in demand for office furniture as offices functioned at minimal capacity with work from home becoming a necessity. As the pandemic continued in subsequent waves, offices adopted a hybrid work model with limited staff attending physically. This translated to lower purchases of desks, chairs, storage units, and other furniture required to outfit office spaces.
However, as restrictions eased and vaccination drives gathered pace, offices slowly resumed functions with safety protocols. This provided some impetus to the Australia office furniture market post lockdowns. While a hybrid work setup is likely to continue, furniture providers are seeing demand for flexible, ergonomic furniture that can be used both at home and workplace. There is also focus on furniture made using eco-friendly and sustainable materials. Going forward, suppliers will need to adapt to changing consumer needs and work closely with corporates to provide customized, innovative furniture solutions for contemporary office environments. Streamlining online channels and contactless delivery models will further aid market recovery in the coming years.
Geographical Concentration
The Australia office furniture market value is highly concentrated in the state of New South Wales followed by Victoria and Queensland. This is due to the presence of leading corporate hubs and business districts like Sydney, Melbourne, and Brisbane which house the headquarters of numerous national and multinational companies. The influx of startups and growth of small and medium enterprises have also propelled furniture demand in these regions. Other major urban centers including Perth, Adelaide, and Canberra contribute as well supported by government and public sector offices in these state capitals.
Fastest Growing Region
Queensland has emerged as the fastest growing region in the Australia office furniture market over the past few years. This is attributed to factors such as expanding office infrastructure to cater rising workforce, establishment of new commercial hub projects, incentives for businesses to relocate outside major cities, and a thriving tourism industry. Cities like Gold Coast, Sunshine Coast, and Townsville in Queensland have seen substantial furniture procurement supported by small business growth, shared workspaces, and coworking facilities. The state government's emphasis on attracting private investments is further augmenting furniture spending across different sectors here.
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