Home furniture industry in the US: interesting opportunities in a growing market

Recent interviews on Startup Lookup! have highlighted how the home automation industry is currently the most dynamic market segment in terms of R&D progress. Tech top players like Google have been continuosly investing in startups with disruptive solutions and innovative products. While TTIP negotiations are going on, unless some hard issues in specific agri-food products and other industries are really tough, US are confirmed as one of the most important international markets for the home and design products industry.

The overall market volume is now over 123 USD billions and is growing with an interesting 2% pace, fully recovering after the dramatic decrease during the 2007-2009 crisis. Great news especially for those suppliers (like many Made in Italy manufacturers exporting in USA) investing in quality and innovation for high end products. The chart below shows an interesting segmentation of the 2014-2018 sales forecast: the lighting products and outdoor furnishings are expected to have a double digit positive trend. Now, with the worst of the recession over, consumers appear willing to invest in lighting once more. LEDs currently have only a 6% share of the category, an extraordinary growth compared with its 1% share in 2008, but it lets forecast a dramatic increase in the very next quarters. An easy example is the Home Depot launch of LEDs products that cost one third of the average market pricing point, a true dumping policy against other competitors, with an immediate impact in the overall sales.

Home furnishings sales forecast - 2014-2018

Home furnishings sales forecast – 2014-2018

LEDs are expected to gain an overall market share of 25% in the next three years, and prices going lower are a good boost in this direction. It’s important to avoid to underestimate the importance of certain market nieches created by the development of home automation products.

HomeDepot LEDs products

HomeDepot LEDs products

Philips HUE and similar products are expected to have a way bigger market share in the next years, as well as other products integrating smart solution with home automation systems as we’ve seen in recent overviews on US Telcos providing smart home packages and some of the recent interviews.

A growing market offering great opportunities to companies that know how to think different, bringing high quality, reliable and innovative solutions to the consumer.

Hilton Colon by Perkins Eastman - one of the top architecture firms in the US

Hilton Colon by Perkins Eastman – one of the top architecture firms in the US

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