The Singapore Interior Fit-Out Furniture Market is projected to grow with an opportunity of US$ 2,044.9 Mn during 2022-2030 and is estimated to reach US$ 4,909.1 Mn by 2030. Further, the market is registering a CAGR of 7.0% during the forecast period. The growing number of aging buildings in Singapore is propelling the interior fit-out furniture market forward. There were more than 1,000 buildings in Singapore that were 30 years old or older in 2018, according to estimates, and these ancient structures may be redeveloped in the future, necessitating interior fitting-out work. 

Fit-out is a term used to describe the process of making an interior space ready for occupancy. As a common practice, when constructing commercial buildings, the spaces inside are left bare for the occupants to determine the level of refurbishment or fitting needed. In building preparation, fit-out refers to activities such as the installation of the floors, ceilings, partitions, and furnishings. Interior fit-out furniture involves taking an empty space and transforming it into a useful setup. This includes putting up structural features like window placements, door fittings, heating, plumbing, and ventilation. Modern themes and techniques are preferred by residential customers.

It has been found that Singaporean consumers are let down by contractors in the areas of workmanship, fitting, fixtures, and materials when it comes to interior work. As more than 75% of respondents who completed their remodel said that workmanship is an area where they would like to see improvements in the poll. Moreover, due to the growing number of businesses and commercial spaces in Singapore, the fit-out furniture is highly significant as it ensures that systems are working efficiently, employees are productive, and customers enjoy the business ambiance.

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MARKET DYNAMICS

Prominent factors influencing market growth during the forecast period include:

Drivers

The increasing number of construction projects in Singapore

The commercial interior fitting-out market in Singapore is expected to benefit from rising demand in the future, due to the increasing number of new commercial development projects. According to the Singapore Department of Statistics, accessible commercial spaces have increased in recent years, with a CAGR of 4.2% between 2013 and 2017, mostly due to an increase in the demand for office space. Moreover, Singaporeans are shifting from synthetic materials to more natural and advanced products due to their highly urbanized lifestyles and rising health consciousness.

Rising Demand for Ready-to-Assemble (RTA) furniture and advanced products

Ready-to-assemble (RTA) furniture is becoming increasingly popular among homeowners and renters across Singapore because of its low costs and compact designs. RTA furniture, often known as flat-pack furniture, is sold in parts with instructions for users to assemble the furniture. RTA furniture also benefits manufacturers by minimizing assembly time and lowering manufacturing and delivery costs, allowing them to concentrate only on part design and production. IKEA, Dorel, and Sauder Woodworking are some of the major manufacturers of RTA furniture. Moreover, furniture merchant’s courts and IKEA saw 92% and 128% growth, respectively, during the COVID-19 pandemic as more consumers set up their home offices and prepared for a longer period of working and learning from home. Consumer activity for home furnishing alone climbed more than 100% in Singapore from 1st February 2020 to 31st March 2020. 3D imaging tools are being used by furniture manufacturers to create, modify, and analyze designs as it cuts down on the time and money needed to create physical models. However, lack of infrastructure and high investment cost restricts the market growth.

Restraints 

Lack of Investment, High Initial Cost, and Lack of Infrastructure

Most of the companies in Singapore are finding it tough to hire talent due to the labor shortage. The number of work permits for foreign construction workers in Singapore has decreased from 318,900 in 2013 to 284,900 in 2017. The imbalance between demand and supply of labor & cyclical industry nature affects the construction works, thus inhibiting the market growth. Moreover, the use of wooden fit-out furniture restricts its usage as age, temperature, and humidity are all factors that can cause wood to warp.

Use of wooden fit-out furniture

A number of bugs that are attracted to wood can destroy it such as carpenter bees, carpenter ants, termites, powder post beetles, and wood-devouring fungus are some of the most prevalent wood-destroying pests. These pests are difficult to identify, and eradicating them is costly as fixing wood moisture concerns is expensive, therefore, the best preventive approach in this circumstance is to simply use a material that does not have this sensitivity. Moreover, wood can warp by shrinking, expanding, or even twisting.

Market Segmentation

Type Analysis

Based on type, shell and core fit-out segment holds 54% of the market share in 2021 as it is the first stage of a building's fit-out. It refers to the installation of the basic structure of the building, which creates the shell. It basically includes structure, cladding, base plant, communal areas, etc. A shell and core fit-outs allow a business to custom fit a space according to its specifications, thus it is expected to reach a market value of US$ 2,669.1 Mn in 2030. Whereas the category A fit-out segment is anticipated to grow at the highest CAGR of 7.3% over the forecast period. It is the most important step toward setting up basic needs in the interior of commercial space. It basically includes setting up basic functional units like electrical wiring and plumbing fixtures already in place. Moreover, after setting up basic functions there is a need for services providers for designing and planning of fit-out furniture for spaces.

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 Services Analysis

In terms of services, the manufacturing segment dominated the market in 2021 and is anticipated to grow at the highest CAGR of 7.2% during the forecast period. Manufacturing services involve designing furniture like chairs, tables, etc. for commercial or residential spaces. The initial cost of investment in these services is quite high as these are carried out by experienced specialists and furniture designers. The market value of manufacturing services is the highest in the market reaching a value of US$ 2,122.7 Mn by 2030. Whereas consulting services are the intermediatory services that are carried out within the fit-out projects, it occupies the least market value of 10.3% in 2030. Furthermore, the furniture manufacturers carry out most labor and cost extensive tasks in the entire market.

Distribution Channel Analysis

Based on the distribution channel, the furniture manufacturers segment occupies the largest share in the market, with its market value reaching US$ 1,868.9 Mn by 2030. As the manufacturing services sector occupies the highest share in the market, the services providers of furniture manufacturers hold the highest share in the market thereby, registering the highest growth in the CAGR, which is 7.4%. Moreover, furniture manufacturers carry out the production of all the furniture in the fit-out spaces which are used in a wide range of applications. 

Application Analysis:

Based on application, the retail sector is continuously growing, with time, and consists of many small and large players. There is always a need for new commercial space for accommodating new products in the market. Hence, this sector is expected to grow with the highest CAGR of 7.3%. The retail sector also occupies the highest market share in the market, with its value reaching US$ 975.4 Mn by 2030. The office end-user segment of the market is driven by the upcoming need for commercial space for new startups. Moreover, after offices, the education sector holds the highest share in the market comprising of re-designing several classrooms to ensure they were suitable for their dedicated subjects.

Competitive Landscape

The cumulative market share of the major players is close to 13.7%. The key players in the Singapore Interior fit-out furniture market are DSG, Corten, Wilsin Singapore, Legend Interier, Falcon Group, KS Furniture, FortyTwo Pte. Ltd, Apcon, and Sunray among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip on an emerging market. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Recent Developments by Key Players

• In July 2019, Wilsin's Singapore Pte Ltd. collaborated with Ti Ventures Pte Ltd for traditional enterprises to become part of the Smart Nation. Three successful traditional business owners were urged to use the company's technologies in order to develop new business prospects and overcome challenges.
• In March 2017, Legend Interiors has been obtained “Grade I Construction License” for mainland China. Legend's considerable experience in construction and administration for over 20 years, as well as a trained, professional, and thorough workforce dedicated to the craft, has been recognized with the prize.

Segmentation Overview 

Singapore interior fit-out furniture market is segmented based on type, services, distribution channel, and application. The industry trends in the market are sub-divided into different categories in order to get a holistic view of the Singapore marketplace. 

Following are the different segments of the Singapore interior fit-out furniture market:

By Type 

• Shell and Core Fit-Out
• Category A Fit-Out
• Category B Fit-Out

By Services

• Consulting
• Planning
• Manufacturing
• Implementation

By Distribution Channel

• Real-estate Developers
• Architects/Interior Designers
• Furniture Manufacturers
• Others

By Application

• Offices
• Retail
• Education
• Healthcare
• Hotels
• Resorts & Leisure
• Others