Australia Office Furniture Market Reach USD 1.40 Bn by 2032

The Australia office furniture market, projected to reach a valuation of USD 1.17 billion in 2025, is poised for steady growth. Estimates suggest the market will expand to USD 1.40 billion by 2032, registering a CAGR of 2.6% during the forecast period. Current market dynamics highlight the rising adoption of hybrid work models, evolving workplace design standards, and increasing corporate investments in ergonomic and modular furniture as primary growth drivers.

Sustainability trends, including the demand for eco-friendly materials and certified green furniture, are significantly influencing purchasing decisions. Additionally, innovations in smart office solutions, multi-functional designs, and space-saving furniture are reshaping office environments across enterprises and co-working hubs. The market is further supported by ongoing commercial real estate development and the refurbishment of corporate and educational infrastructure across Australia.

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The Australia office furniture market is experiencing steady growth, fueled by the rising adoption of hybrid work models, evolving corporate workspace standards, and increasing investment in ergonomic, modular, and tech-integrated furniture solutions. Organizations are prioritizing employee comfort, wellness, and productivity, driving demand for seating solutions and smart furniture that support dynamic work environments.

The market is undergoing transformation as businesses shift toward sustainable procurement practices. Growing preference for environmentally certified furniture and the use of recycled or low-emission materials are reshaping product development and purchasing trends. Manufacturers are responding with eco-friendly collections that align with Australia’s rising environmental compliance standards.

In October 2023, Koskela, Australia’s first B Corp furniture company, set a bold Circularity Action Plan to achieve full circularity by 2027, targeting 90% recycled materials in products by 2026 and introducing modular sofas with removable covers for easier repair.

Furthermore, market growth is supported by commercial real estate expansion, refurbishment of educational and public sector institutions, and increasing demand from co-working operators and startups. As multifunctional furniture, flexible workspace solutions, and sustainable design continue to gain traction, the Australia office furniture market is well-positioned for long-term growth through 2032.

As businesses adapt to changing workforce dynamics and evolving employee expectations, there is a growing shift toward open, modular, and reconfigurable office layouts across Australia. These layouts promote collaboration, optimize space utilization, and allow organizations to quickly adjust their physical environment to support hybrid, in-person, or project-based work modes.

The rise in hybrid work since the pandemic has accelerated demand for hot-desking systems, mobile workstations, sit-stand desks, and collaborative pods, enabling teams to use office space more flexibly and efficiently. Furniture solutions that are lightweight, modular, and easy to reassemble are increasingly being favored in both corporate and institutional settings.

Online sales of office furniture have surged, driven by remote work trends and increased transparency in pricing and customization. Australian consumers and businesses are increasingly purchasing directly from manufacturers or via online platforms offering configurators, AR/VR-based visualization, and virtual showrooms.

For instance, in May 2023, Temple & Webster integrated ChatGPT-powered live chat for 25% of pre-sale queries and enhanced product descriptions across its 200 K+ items, boosting conversion rates and purchase confidence.

As more organizations adopt hybrid work policies and governments incentivize decentralization, there is rising demand for ergonomic and compact office furniture in regional and suburban Australia. This shift creates a major opportunity for office furniture manufacturers and D2C brands to expand delivery logistics, offer regional showrooms, and launch product lines suited for home-office or shared spaces in non-metropolitan areas.

In December 2024, a Swinburne University–commissioned report for RDA Melbourne revealed that regional organisations are leading the adoption of hybrid work arrangements, using remote-friendly setups to tap into a broader talent pool across Victoria. It found that location is no longer a barrier, with regional businesses embracing hybrid policies and flexible workspace design to boost productivity and growth.

The transition toward digital procurement and direct-to-consumer (D2C) business models presents a significant growth opportunity for office furniture manufacturers in Australia. As traditional players pivot online, brands are increasingly leveraging e-commerce platforms, digital configurators, and virtual showroom tools to directly engage consumers and businesses. This shift allows them to streamline sales, expand reach, and address the growing demand for tailored, space-efficient office solutions from both urban and regional buyers.

In March 2025, McPhails Furniture—a regional brand based in Wangaratta, Victoria—reported a surge in annual revenue from USD 0.6 million to USD 14.7 million after shifting its business strategy to focus on online sales. The company’s success was fueled by investments in digital marketing, an 8,000 m² warehouse expansion, and a national flat-rate delivery service, showcasing the potential for regional office furniture firms to scale nationally through D2C and logistics innovation.