Furniture Rental Service Market Size, Share & COVID-19 Impact Analysis, By Material (Wood, Plastic, Metal, Glass, and Others), Application (Residential and Commercial), and Regional Forecasts, 2022-2029

The global furniture rental service market size was valued at USD 67.83 billion in 2021. The market is projected to grow from USD 73.19 billion in 2022 to USD 139.05 billion by 2029, exhibiting a CAGR of 9.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with furniture rental services experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global furniture renting services market share had exhibited a rise of 48.2% in 2020 as compared to 2019.

Households mainly use rented furnishing items to fulfill the interior requirements of their indoor spaces. Additionally, students prefer cost-effective, rented chairs and tables to meet their co-living spaces’ study requirements. The advent of recent online furniture rental platforms such as CORT, INHABITER, and others will significantly enhance the service demand among the worldwide population. For example, Furlenco, a Bengaluru, India-based online furniture rental platform, offers subscription-based rented chairs, tables, and other furnishing items to Indian households as per their interior decoration requirements.

COVID-19 IMPACT 

Work-From-Home Trend Amid COVID-19 Pandemic to Surge Growth of Industry

To avoid coronavirus infection while traveling to office locations, working professionals prefer a remote working style over an in-office one. This factor significantly boosts consumer demand for rented furniture items to fulfill their home-office furniture needs. As per the data published by Glassdoor, an American online job portal, from June 2019 to June 2021, Glassdoor’s online job searches for work-from-home (WFH) positions have jumped by a 460%. Furthermore, the growing trend of renting furniture and other essential products amid pandemics will further fuel the furniture rental service market growth.

However, the closure of the upholstery shops and furniture manufacturing sites due to the COVID-19 related lockdown restrictions has hampered the growth of the furniture rental businesses. Furthermore, amid the COVID-19 pandemic, key players witnessed a slowdown in their furniture processing activities due to the limited availability of raw material supplies and equipment. This factor significantly challenges the key players in building their overall supply chain, thereby limiting the services’ revenues worldwide.  According to the data presented by the Confederation of All India Traders (CAIT), in the first 15 days of 2022, 50% of the Indian retail businesses suffered losses due to the sudden COVID-19 related lockdown restrictions in India.

LATEST TRENDS

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Interior Decoration Trends to Accelerate Growth of Furniture Rental Businesses

The growing trend of renting furniture among newly married couples and families to have a sophisticated interior space and comfortable living will offer newer opportunities for the key players to grow their business.

Additionally, shifting consumer preference towards buying decorative furnishing items will further create newer avenues for industry growth.

Nowadays, businesses associated with rental services focus on offering diversified household products such as kitchen appliances, furnishing items, stationary bikes, and others on rent to increase their revenues from such services. This factor will support the industry in its future development. Furthermore, rental service providers offer dedicated customer service to attract home buyers to availing their subscriptions. For instance, in November 2021, CityFurnish, India’s leading furniture rental company, introduced 'CityMax,' a subscription-based furniture relocation service in India.

DRIVING FACTORS

Growing Residential and Commercial Infrastructural Settings to Drive the Furniture Rental Industry

Growing residential and commercial infrastructural settings will support the services demand among such settings, thereby driving the furniture rentals growth. According to the statistical data published by the National Association of Realtors (NAR), from January 2019 to January 2020, U.S. hosing sales rose by 5.7%.

Nowadays, households prefer buying subscription-based furniture renting services to regularly use different furnishing items. This factor significantly helps them fulfill their home decoration needs driving the furniture rental facility's growth. 

Regular Companies’ introduction of Furniture Rental-Related Campaigns to Support Sector’s Growth

Nowadays, prominent companies offer rental furnishing services-related promotional events to trigger the customers’ interest in subscribing to their services. Such a factor will enhance the services’ demand worldwide. For instance, in January 2019, RentoMojo, India's leading rental solutions company, launched a video campaign to target an Indian generation who prefer relocation for career prospects. This video campaign showcased life scenarios related to the relocation hassles of households. It aimed to provide an extremely effortless and practical way of subscribing RentoMojo’s furniture swapping & renting service.

RESTRAINING FACTORS

Lack of Awareness Regarding Furniture Rental Services to Restrain Growth

Lack of awareness regarding the furnishing rental services among the worldwide aged population mainly limits the demand for rental furnishings and other household products. Additionally, the emergence of new entrants with similar product offerings targeting rural customers poses challenges to the prominent players' business growth, thereby restraining the industry’s growth.

SEGMENTATION

By Material Analysis

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Wood Segment to Hold a Dominant Share

The worldwide furniture rental service market analysis can be conducted based on raw materials such as wood, plastic, metal, glass, etc. The wood material holds a dominant share due to its low maintenance & durability over other material types. Additionally, the rising consumer trends towards using eco-friendly furnishings items will stimulate the consumer demand for wooden furnishing items, thereby driving the growth of the wood segment.

In the case of plastic-based furnishing items, the complexity of designs through the hybrid composition of polymers raises the aesthetic appeal of such things. Such a factor is mainly driving the plastic segmental growth. Additionally, such items' easy portability and lightweight nature primarily support the plastic segmental revenues.

Hard-worked metallic fixtures offer a shining look to interior surfaces. Additionally, metal furnishing items' higher strength and durability mainly drive the metal segment growth.

The glass segment will grow considerably due to the growing households’ trend of renting glass furnishing items. Other segments include various furniture material types such as bamboo and seagrass. Increasing consumer demand for sustainable and recyclable material-based furnishing items is mainly driving the others’ segmental growth.

By Application Analysis

Commercial Segment to Hold a Leading Position

The worldwide furniture rental service industry is segregated into residential and commercial. Nowadays, commercial settings such as small offices and pantries prefer buying rented furniture items to reduce infrastructural costs. Such a factor will accelerate the services demand from the commercial segment. Additionally, subscription-based furniture and electronic appliance rental services' growing popularity will further enhance the commercial segmental revenues.

Bachelors and families increasingly use home furniture rental platforms to keep their furnishing items on rent. Furthermore, households maintain interior spaces decorated to provide a welcoming appeal for guests and friends. These factors are mainly supporting the households’ demand for such services.

REGIONAL INSIGHTS

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The worldwide furniture rental service industry is segregated into the Asia Pacific, European, North American, Middle East & African, and South American regions.

The Asia Pacific region dominates due to the growing popularity of renting furniture items among China and India's population in developing towns and cities. Furthermore, increasing urban migrants in China and India will increase service demand among such migrant populations, thereby driving the region’s growth.

Additionally, the growing expansion of the prominent companies in the region creates newer avenues for industry growth. For instance, in Jan 2020, CityFurnish, a Gurgaon-based rental startup, announced its operations in Hyderabad. The rental start-up offers an online rental service to six Indian cities, including Bangalore, Pune, Mumbai, Noida, Delhi, and Gurgaon.

The European region has also witnessed stellar growth with the European population's changing preference toward buying sustainably-made furnishing items. People are more conscious of the deteriorating health impacts of furnishings prepared from low-grade plastics, encouraging users to purchase eco-friendly furniture items. Also, furniture items crafted out of natural re-usable materials like bamboo and wooden pallets are expected to witness huge demand in Europe.

Evolving home decoration trends and increasing furniture replacement trends support the services demand among Europeans. Furthermore, the increase in the number of residential and commercial infrastructural settings in Europe and significant government investments in developing the housing facilities in Germany and the U.K further supports Europe’s rental services growth. According to the data presented by the Committee on Climate Change Organization, there were 29 million homes in the U.K. as of 2019. The U.K. government is expected to develop 1.5 million new household living spaces by 2022.

North America holds a considerable share because the growing number of working population with startups and new business models prefer buying rented furnishing items to fulfill their furniture needs. According to the data published by U.S Census Bureau, in 2020, there are 4.3 million Americans that have filed paperwork to open new business settings. Additionally, total job applications for American startups and businesses are increased by 24% during the year.

Moreover, the robust presence of prominent furniture rental providers such as CORT, Feather, AFT, and others in their supply chain and warehouses in the U.S. further supports the North American region’s growth.

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Increasing awareness regarding the furniture rental platforms among Saudi Arabian and UAE households mainly supports the Middle East & African region’s growth. South America is estimated to have a considerable presence as many people are relocating to urban areas, thereby gradually opening new furniture rental platforms. The people shifting to urban areas are getting exposure to the changing trends in the industry and have access to various digital platforms for fulfilling the necessities, which is likely expected to drive the product demand across the region.

KEY INDUSTRY PLAYERS

Partnerships, Acquisitions and Business Expansion are the Key Strategies Fueling Industry’s Growth

Nowadays, key players focus on establishing partnerships with financial institutions to raise their working capital. Additionally, they concentrate on diversifying furniture rental offerings to expand their geographical presence worldwide. For instance, in August 2020, Feather, a U.S.-based rental furniture company, acquired USD 30 million Series B investments from Credit Suisse Group AG, an investment banking company, to expand its product and service offerings globally.

LIST OF KEY COMPANIES PROFILED:

• Feather (New York, U.S.)


• Aaron’s LLC (Atlanta, Georgia, U.S.)


• Rent-A-Center(Texas, U.S.)


• Brook Furniture Rental Inc. (Illinois, Chicago)


• The Everset (New York, U.S.)


• Fernished Inc.(California, U.S)


• Furlenco (Bangalore, India)


• RentoMojo (Edunetwork Pvt. Ltd.)(Bengaluru, India)


• Luxe Modern Rentals (Toronto, Canada)


• Fashion Furniture Rental (California, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2021:1RentPlace.com launched online retail that enables U.S. consumers to rent and buy household products such as luxury furniture, home decor, and wall art.


• July 2021 – Furlenco, India’s leading furniture rental company, launched an annual subscription service, "UNLMTD by Furlenco," that offers a hassle-free relocation and free furniture and appliances swapping solution to Indian consumers.

REPORT COVERAGE

An Infographic Representation of Furniture Rental Service Market

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The global market research report analyzes the market in-depth and highlights crucial aspects such as prominent companies, material analysis, application, and the overall furniture rental service market outlook. Besides this, the market research report includes insights into the latest trends and highlights significant industry developments. The report includes the current market size and forecast values. In addition to the aspects mentioned earlier, the report encompasses several factors contributing to the industry's growth over recent years.

Report Scope & Segmentation