Furniture Rental Market Assessment, By Product Type [Beds, Chairs and Desks, Sofas, Wardrobes and Cabinets, Others], By Material Type [Wood, Plastic, Glass, Metal, Others], By Tenure Type [Up to 1 year, 1 – 2 years, Over 2 years], By End-user [Individuals

Furniture Rental Market Assessment, By Product Type [Beds, Chairs and Desks, Sofas, Wardrobes and Cabinets, Others], By Material Type [Wood, Plastic, Glass, Metal, Others], By Tenure Type [Up to 1 year, 1 – 2 years, Over 2 years], By End-user [Individuals, Corporates, Event Planners, Others], By Distribution Channel [Online, Offline], By Region, Opportunities, and Forecast, 2017-2031F

Global furniture rental market is projected to witness a CAGR of 9.0% during the forecast period 2024-2031, growing from USD 47.04 billion in 2023 to USD 94.02 billion in 2031. The market is driven by changing consumer preferences, financial factors, and advancing routines. Increasing urbanization and rising rental and temporary housing arrangements have surged the demand for workable and easy-going furniture solutions. Traditional furniture ownership is expensive, giving rise to furniture rental market. Growing minimalism trend and desire to get cost-effective and sustainable furniture solutions has fueled the demand for furniture rental market. Additionally, the rise of the gig economic system and remote work has resulted in a greater temporary team of workers, driving demand for short-term solutions for rental furniture.

Furniture rental companies are capitalizing in this fashion by presenting a huge range of furnishings options, such as living room units, furniture for bedroom, eating units, and workplace furniture, available for both residential and commercial use. These corporations differentiate themselves by way of providing rental terms that are flexible, convenient delivery and assembly offerings, and alternatives for personalization. Moreover, the growing emphasis on sustainability and eco-friendliness is shaping the furniture rental market. Customers are in search of environmentally accountable options, including furnishings crafted from recycled materials or utilizing sustainable manufacturing practices.

However, demanding situations exist inside the furniture rental marketplace, which include the need to preserve outstanding, well-maintained stock, logistics and transportation expenses, and competition from conventional furniture retailers and peer-to-peer rental options.

Overall, the rental furniture market provides good opportunities for growth and innovation. Companies that may adapt to changing client options, offer handy and sustainable solutions, and provide outstanding customer service are poised to thrive in this dynamic marketplace landscape.

Rising Demand for Furnished Apartments Fuels the Market Growth

The growing demand for furnished apartments is driving the growth of furniture rental market worldwide. Students, young professionals, and many others who move from one place to another for job or educational purposes seek convenient and flexible living arrangements, increasing the popularity of furnished apartments. As per a survey by CORT Business Services Corporation done in 2023, 77% of the total respondents showed interest in considering a furnished apartment if they are planning to move within a year. This number was 37% more than the figure achieved in the year 2022 and 25% more than 2021. This shows a rise in demand for flexible solutions, propelling the growth of furniture rental market. Companies providing furniture on rent play a vital role in offering superior quality and well-maintained furniture to meet the needs of individuals. This trend highlights the significance of the furniture rental market in supplying convenient solutions for people looking for modern arrangements.

Flexibility and Convenience Drive the Market

Convenience and flexibility play a major role in shaping consumer behavior and market dynamics, leading to a growth in global furniture rental market. When it comes to furnishing their spaces, people often prioritize flexibility and comfort. Owning furniture is much more tedious than renting one. Moreover, companies offer this service online too with just a click of the mouse. Convenient solutions in the form of hassle-free rental process are what is driving this market. Individuals can easily select and order whichever furniture item they like while browsing online and get it delivered to their place without facing any difficulty. The flexibility offered by these companies, be it for short-term or long-term rental options, makes moving from one place to another easier. Companies are working on adding more options to their portals to offer even more convenience to people. For instance, in April 2023, Furlenco rebranded its company with Furlenco 2.0 wherein the customers were not only allowed to rent or purchase new and refurbished furniture, but also to sell it back to the company when they do not need it anymore. This initiative was aimed at making the platform a truly customer-friendly one by delivering convenience and flexibility at their doorstep.

Residential Furniture Rental Companies Hold the Larger Market Share

Many key factors are responsible for the domination of residential furniture rental companies in the furniture rental market. Firstly, as buying or owning furniture for temporary living arrangements costs much more than renting the same, people are inclined towards renting residential furniture options for relocation for work or study. Furthermore, there is a notable surge in demand for furnished apartments, which further drives the demand for rented furniture. Short-term rentals have also gained popularity lately, boosting the overall furniture rental market growth. Additionally, the companies offering residential furniture rental assistance provide a wide array of options to individuals customized as per their needs and requirements, which attracts a vast number of consumers.

Capitalizing on this trend, in August 2023, American Furniture Rentals, Inc. strategically acquired Brook Furniture Rental’s client base as well as the commercial leases of three warehouses. This acquisition made the company the largest residential furniture rental business in the United States. All the existing clients of Brook were supposed to receive invoices and support from AFR after the acquisition.

Future Market Scenario (2024 – 2031F)

Surge in demand for subscription-based models can be observed in the future, as this will provide the consumers the access to furniture by paying a monthly or annual subscription fees. This approach will even keep the consumers aware of the latest styles and designs available with the company.

Integration of augmented and virtual Reality technologies with furniture rental market is expected to be a significant driver in the future. Giving the ease to customers to visualize the piece of furniture in their space prior to making the decision will enhance the shopping experience of the consumers.

Companies may come up with greater emphasis on customization and personalization options in rented furniture market. The idea of getting rented furniture items personalized and customized as per the needs and preferences of the consumers is likely to appeal to the consumers, enhancing their overall rental experience.

Key Players Landscape and Outlook

Established companies as well as startups make a diverse landscape of the furniture rental market globally. The leading market players include CORT Business Services Corporation, American Furniture Rentals, Inc., Fernish (Vesta), and Rent-A-Center (Upbound Group, Inc.), among others. These players offer a great convenience to their customers in terms of product varieties, easy delivery options, and flexible rental plans for residential as well as commercial requirements. They create their identity by offering better consumer service and better quality of the product. Moreover, global furniture rental market outlook looks promising as there is a great demand for furnished apartments and convenient furniture solutions while shifting from one place to another. Companies are working on expanding their offerings and enhancing the customer experience. The market is expected to see strategic mergers and acquisitions in future, shaping the market’s landscape. This may lead to the emergence of dominant players in the market with greater resources and capabilities to meet the evolving demands of consumers.

In January 2024, River City Furniture Rental collaborated with RC Designs to improve the corporate housing experiences. RC Designs, which is an expert in home staging, will help River City Furniture Rental in expanding the offerings by integrating RC Designs’ innovative designs into their portfolio. The collaboration focuses on addressing the growing demand for well-designed and convenient corporate housing selections.