Report Overview

The global furniture rental market is likely to grow due to the increasing number of companies, which have included furniture rental in their corporate policies, assisting in the market's growth.

The global furniture rental market was worth USD 14.2 billion in 2020 and is further projected to reach USD 32.0 billion by 2027, at a CAGR of 14.1% during the forecast period (2021-2027).Massive population growth around the world is one of the major factors that have accelerated the growth of the global furniture rental market.Moreover, the growing number of companies offering rental furniture as part of their corporate policies also aids in the growth of the furniture rental market worldwide.

Global Furniture Rental Market Overview

In the furniture rental market, furniture is rented based on a system called segmentation. Renting furniture is categorized according to segments like the duration of the rental, the region where the furniture has to be located, and the type of furniture to be rented.The practice of renting furniture instead of purchasing has proved to be financially beneficial for consumers.As design and style evolve, consumers are increasingly becoming focused on the dynamic nature of trends.Renting furniture is appealing because people can upgrade after a short period.As a result, the industry's growth rate is also increasing.Moreover, the growth of various e-commerce sites has made the process of renting furnitureeasier and more affordable, thus further driving the growth of the furniture rental industry.

Global Furniture Rental Market Trend

Growth Drivers

Adoption of Rental Furniture by Corporate Companies

The demand for rental commercial furniture has increased significantly due to the massive growth in the number of service sectors globally.There has been an increase in the demand for such rented furniture in various developing countries like India, Brazil, China, Indonesia, Malaysia, and Singapore, due to the emergence of a start-up ecosystem within these countries.Moreover, rapid urbanization and therise of the booming hospitality industry in such countries have led to the rapid growth of the furniture rental market.

A Surge in Housing Population and Globalization.

Globalization has resulted in a large number of populationsrelocating temporarilyto different cities for jobs, thus resulting in the rise of preference for rented furniture over permanently owned furniture.A lot of job these days expect people to move from city to city. Globally, the rental furniture market has been positively affected by this trend. Renting furniture also saves customers money who only need to stay at a place for a short period of time, thereby assisting the growth of the furniture rental market.

Restraints

Lack of Awareness and Poor Logistics

The lack of knowledge regarding furniture rental market and poor advertisement is impeding market growth. Furthermore, maintenance of furniture and delivering customer service has proved to be challenging for the furniture rental market. There are instances where poor delivery services in some developing countries lead to damaged furniture, leading to customer dissatisfaction as well as financial loss to the rental company.Also, the storage of the furniture poses major challenges because of factors like lack of space. Also, hazards like moisture and termites can severely damage wooden furniture. Moreover, though renting furniture might seem as though a cheaper option at first, renters end up spending more after adding up the deposit, security deposit, and the monthly rent.

Impact of COVID-19

COVID-19 has impacted every industry and the furniture rental industry is no exception. Furniture rental has seen significant growth as a result of the increasing number of people working virtually or from home.The major furniture manufacturers are beginning to change their business strategy and setting up rental divisions.Furthermore, buyers would prefer cutting their expenses, making it likely that rental furniture would rise in demand following the lockdown.Thus, it can be stated that the furniture rental market has grown at a steady pace during the pandemic and is also expected to keep growing post lockdown.

Global Furniture Rental Market by Material

The furniture rental market is divided into wood, metal, glass, plastic, and other materials based on the materials used to manufacture the furniture.Wooden furniture has the largest market share owing to its durability. Consumers who are willing to rent furniture for a longer duration also prefer wood for its aesthetic appeal and durability.Based on the type of furniture, beds are the primary requirement of most consumers and thereby, are rented more frequently. The majority of beds are made of wood because of their strength and durability, and this makes the wooden furniture segment the largest.

However, plastic is the fastest-growing segment owing to its cheaper rent and also due to the fact that they are resistant to damage by termites and moisture. Moreover, consumers living in cities for a shorter duration also prefer renting plastic furniture due to easier transportation and low maintenance.

Global Furniture Rental Market by End-User

Based on end-use, the furniture rental market can be categorized into commercial and residential. The commercial sector is the largest due to the rapid urbanization of countries which has led to the birth of various start-up companies. These start-up companies prefer rented furniture since it’s a more financially sound option in comparison to buying furniture. Also it is a more convenient option since the rental companies provide services like free delivery and installation. Thus, the commercial sector is the largest market. The residential category, on the other hand, is the fastest-growing segment, owing to increased urbanisation, which forces customers to live in different locations for job purposes.

Also, since the outbreak of the pandemic, working from home became more prevalent. As a result, in 2020, a huge number of people who worked remotely from home had to set up a well-furnished workstation at home. As a result, many people rented furniture rather than buying it, thereby driving the growth of the residential segment.

Global Furniture Rental Market by Distribution channel

Based on distribution channels, the furniture rental market can be grouped into e-commerce and brick-and-mortar type. The e-commerce sector is the largest and the fastest-growing domain.Because of the rise in the number of internet and smartphone users, the entire process of renting furniture has become more convenient and cost-effective for customers.Many online stores offer countlesschoices and door-step hassle-free delivery. Furthermore, many companies provide free furniture installation, such as wardrobes. As a result of these factors, the furniture rental sector is booming.

Global Furniture Rental Market by Region

Based on the regions, the furniture rental market can be divided into North America, Europe, the Asia-Pacific, the Middle East & Africa, and Latin America. Because of the growing tendency of living in rental apartments in the United States and Canada, North America is the largest market in this area.This trend of renting apartments has also been noted among the population who choose economical and versatile living. As a result, renting smaller, more convenient furniture suits their changing lifestyles better than owning furniture.

The fastest-growing market however is The Asia-Pacific. The growth in these regions can be attributed to the growing demand from developing economies, such as China and India. The rapid growth of this industry can be attributed to an increase in the number of working people moving into metropolitan areas in these countries, which has resulted in a large surge in demand for rented furniture.

Competitive Landscape

The furniture rental business is quickly expanding, particularly in developing nations such as India, China, and Malaysia, drawing a slew of new industry players.The Major Players in the global furniture rental market are Rentomojo, Furlenco, Cort, Brook Furniture Rental, Cityfurnish, Rentickle, GrabOnRent, Fernish, Feather, The Aaron’s Company, Inc., and other prominent players.

Recent Developments

• In October 2020,Cort Destination Services was awarded a 2020 Commitment to Excellence Silver Award from The Cartus Global Network for its exceptional service results in the domestic rental services category.

• In January 23 2020,Cityfurnish announced the launch of its operation in Hyderabad.

• By Material

  • Wood

  • Metal

  • Glass

  • Plastic

  • Others

• By End-user

  • Commercial

  • Residential

• By Distribution Channel

  • Ecommerce

  • Brick-and-Mortar

• By Region

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

    • Italy

    • France

    • Spain

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Singapore

    • South Korea

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Argentina

    • Columbia

    • Mexico

    • Rest of Latin America

  • Middle East & Africa

• Saudi Arabia

• Iran

• U.A.E

• Turkey

• South Africa

• Rest of the Middle East & Africa