Increasingly, the office furniture industry is about more than the office. Manufacturers, dealers and designers also work in other sectors such as healthcare, K-12 and higher education and government. So as we head deeper into 2025, where do those markets stand and what are some of the trends that you should be aware of?

We will take a macro look at the trends and also ask those working in the sectors to weigh in on the future.

Healthcare

According to government statistics, healthcare spending in the U.S. totaled $4.9 trillion in 2023, the latest year available. That is triple the amount spent in 2020 and a fraction of the $74.1 billion we spent on healthcare as a country in 1970. The country is getting older and prescription medicine is getting more expensive, which means spending on healthcare will continue to rise in the foreseeable future.

A 2025 CBRE report on the healthcare real estate market said that while hospitals remain the principal point of care for acute cases and complex surgical procedures, an ongoing shift in location where outpatient and behavioral care services are delivered has benefited commercial property markets. Thirty percent of healthcare professionals work in outpatient facilities, 24% in inpatient facilities and the remainder in other settings, including labs, social services offices and home or residential care.

This growth is driving trends in hospital and healthcare spaces as well. Here are some trends to keep an eye on in 2025, according to CME, a medical device distributor:

Patient-Centered Design: Modern hospitals prioritize patient comfort and well-being. This includes private rooms, noise reduction measures, and incorporating natural light and views of nature.

Flexible and Modular Spaces: Hospitals are increasingly adopting designs that allow spaces to be easily reconfigured. Modular construction enables quick adjustments to meet changing demands, such as converting standard rooms into isolation units during pandemics.

Sustainability: Green building practices are now a priority. Hospitals are incorporating energy-efficient systems, sustainable materials, and water-saving technologies to reduce their environmental footprint.

Integration of Smart Technology: Facilities are being designed with smart systems that support IoMT (Internet of Medical Things) devices, AI-driven analytics, and automation for improved efficiency and patient care.

Specialized Facilities for Outpatient Care: With the rise of telehealth and outpatient services, more medical centers are being built with dedicated spaces for minimally invasive procedures, same-day surgeries, and rehabilitation.

Biophilic Design: Inspired by nature, biophilic elements like green walls, indoor gardens, and organic materials are increasingly common in hospital design. These features aim to create calming, healing environments.

Pandemic-Ready Designs: The COVID-19 pandemic underscored the need for better infection control. Emerging trends include improved ventilation systems, touchless technologies, and dedicated quarantine zones.

JSI entered the healthcare market last year and according to Audrey Meyer, healthcare market manager, the company expects “very robust” growth in 2025. “More specifically, we are seeing a noticeable uptick in large and very large projects,” she said. “McKinsey has reported that one-third of U.S. nurses are considering leaving their jobs due to burnout. As a result, we are seeing the leading hospitals specifying products that maximize agility while prioritizing workplace well-being and caregiver comfort.”

Education

While some think of education as a single market, the K-12 and higher education markets are distinctively different, according to Bryan Ballegeer, vice president of education markets at KI.

“The K-12 market is continuing to show increase investments, with higher bond dollars approved in 2024 than previously in the U.S.,” he said. “This data point shows us the shift in teaching and learning practices continue to demand a change in the physical environments students are learning within and the necessity of innovation and leadership from the contract furniture and A&D industries.”

Since K-12 is more specialized and you are more likely to work in higher education, let’s turn the discussion to the higher education markets.

President Donald Trump has pledged significant changes to federal higher education policy as he begins his second term in the White House. With Republicans maintaining control of both the Senate and the House, they hold the potential to introduce sweeping legislation that could reshape areas such as federal student lending and accreditation. At the same time, many colleges are struggling with enrollment and budget challenges, which could intensify in 2025. Institutions face mounting costs and increased competition as they contend with a declining number of prospective students.

To help prepare for the year ahead, Higher Ed Dive outlined some trends expected to shape the sector in 2025.

Lawmakers could pass major higher education policies: Republican lawmakers may seek to offset the costs of their agenda through elements of the College Cost Reduction Act, a GOP-led higher education package proposed last year. The nonpartisan Congressional Research Service estimated in October that the CCRA would shave $185.5 billion from the federal budget over the next decade. Much of the savings would come from the loss of certain federal lending programs and lower student borrowing.

Budget strains will continue for some: While inflation is easing for institutions, costs remain high. Moreover, enrollment declines and tuition price competition in recent years have added to budget pressures for many institutions, especially smaller private nonprofits and some regional public colleges. Fitch Ratings has issued a negative outlook for the higher ed sector in the year ahead, while S&P Global Ratings released a split outlook: Positive for larger, well-resourced colleges and a negative forecast for what analysts described as “highly regional, less-selective institutions that lack financial flexibility.”

High school graduates are expected to peak: 2025 has long been a year marked in the calendars of college leaders and enrollment experts as the kickoff for the oft-discussed demo-graphic cliff — a drop-off in the population of traditional-age college students. This year, the number of high school grad-uates is expected to peak at around 3.8 million, according to Western Interstate Commission for Higher Education. The total is then projected to drop by about 10.3% to 3.4 million by 2041.

Colleges will feel the pressure to invest: While budgets may be tight and resources constrained, colleges are still under pressure to invest. After years of expense cuts and austerity, there is a backlog of needs — for employee raises, building maintenance, student success and programmatic initiatives. That could lead to higher educational furniture sales.

“The higher education market is a different story (than K-12),” said Ballegeer, “as it consistently is questioned and examined on national stages for value proposition and sustainability. With that said, the increased need of Higher Ed to serve students at traditional college age and those at other ages, both on campus and virtually, affords large space for innovation and coaching from our community of designers, architects, and solution providers.”

From a design perspective, Ballegeer sees a need for evolving spaces, similar to other sectors we are exploring.

“Educational environments are continuing their evolution to be adaptable, personalized, and equipped with advanced technology to prepare students for future challenges. Partly due to the research summarized in the recent bestseller, ‘Anxious Generation,’ there is a heightened focus on creating multi-sensory and collaborative spaces that enhance student engagement and promote wellness, belonging, and joy in the classroom,” he said.

Government

Government furniture sales are still an important part of our industry but have been in flux since the pandemic forced millions of workers home. They have ever-so-slowly started to return, but like corporate workers, have not come back fully to the office.

Still, the government at all levels is a huge consumer for the furniture industry.

According to Fitch Ratings, the U.S. faces significant fiscal policy challenges in 2025 relating to the debt limit, appropriations, and tax cuts in the context of already large deficits and an increasing debt burden. Fitch believes it is unlikely that these will be resolved expeditiously because of long-standing weaknesses in the federal government’s budgetary process and a narrow Republican House majority.

The latest debt limit suspension expired at the start of this year, and the Treasury estimates that the new limit of $36.1 trillion will become binding between January 14-23, 2025. December’s continuing resolution (CR) keeps the federal government funded until March 14, 2025. And the tax cuts enacted in 2017 are set to expire at the end of the year.

State budgets are expected to shrink substantially in fiscal year 2025, according to Pew, as the post-pandemic era of surging rev-enue, record spending, and historic tax cuts comes to a close. According to data released by the National Association of State Budget Officers (NASBO), total general fund spending is expect-ed to decline to $1.22 trillion, a more than 6% drop from estimat-ed levels in fiscal 2024, which ended for most states on June 30.

Michelle Warren founded Catalyst Consulting to help small business manufacturers grow their sales through public sector programs.

During a call she held recently with customers and others interested in government furniture sales, Warren said federal government spending on furniture dipped a bit in 2024 and hovers around $1 billion a year.

“We have a new administration. So we definitely know there’s change (coming),” said Warren. “I got a couple of calls immediately about (the Department of Government Efficiency, spearheaded by Elon Musk) DOGE. What’s Elon going to do?”

Musk and DOGE are expected to dig into government spending, with expected cuts coming. Just how deep those cuts are remains to be seen. But Warren expects a 6% increase in federal government furniture spending. “We’ll have the largest spend in history again, unless Elon does something. Package office changes are continuing to get implemented,” she said.

Inclusivity and Neurodiversity

While not a sector in itself, inclusivity and neurodiversity could become one if recent trends continue.

Today, companies are increasingly moving toward neuroacceptance – the idea of accepting everyone’s differences, including those with neurodivergent conditions like autism and ADHD, and recognizing that differences are not things that need to be “corrected.” Some companies have changed their hiring practices and developed more inclusive programs that level the playing field for neurodivergent employees — and for good reason. Research suggests that the more cognitively diverse teams are, the faster they solve problems and the more likely they are to exceed their financial targets.

More offices are being designed with spaces and products that help neurodivergent employees and visitors. For example, Virgin Media O2’s new office in London have conference rooms that include enough space for wheelchair users to easily move around the space. Counter heights are not set to a “standard” height to accommodate both taller and shorter employees.

NOOK, a U.K.-based mobile sensory specialist that makes pods for offices, schools and public spaces, offers a Sensory NOOK to help neurodiverse individuals focus, positively stimulate, and self-regulate. It acts as a quiet sanctuary in an office, school or public place and was the first furniture product to be named a Certified Autism Resource and is particularly helpful for those with Special Educational Needs and Disabilities (SEND).

Interest in NOOK pods and Sensory NOOKs in particular is skyrocketing, said Principal Stewart Brown. The NOOK Sensory Shelter was the Best in Show winner at the recently held EDspaces conference and expo, where the jury said they “appreciated this dedicated, calming space within the school environment, offering students a place to retreat, self-regulate, and de-escalate. Pods are designed to address the unique challenges faced by schools in supporting neurodiverse students, including those with sensory processing issues, anxiety, or emotional regulation difficulties.”

“Every NOOK is in essence a sensory NOOK, but we are seeing a spike in demand for our Sensory NOOK in particular,” he said. “They are being installed in offices, schools and public spaces around the world to help create a calm space for neurodivergent individuals.”

Sensory NOOKs have also been installed in a number of stadiums, such as Citi Field, home of the New York Mets and Allegiant Stadium where the Las Vegas Raiders play as a place for neurodivergent fans to find respite.

Neurodiversity is becoming a mainstream topic.

Neurodiversity training: Companies are increasingly providing training to educate all employees on neurodiversity, including how to recognize different communication styles and support neurodivergent colleagues effectively.

Inclusive hiring practices: Organizations are actively seeking out and recruiting neurodiverse candidates to diversify their talent pool and access unique perspectives.

Flexible work arrangements: Offering flexible schedules, remote work options, and the ability to adjust work environments to suit individual needs are becoming more common to support neurodivergent employees.

Workplace accommodations: Implementing adjustments like quiet spaces, clear and concise communication, visual aids, and structured work schedules to support neurodivergent employees.

Leadership commitment: Top leadership actively promoting neurodiversity initiatives and ensuring that inclusivity is embedded within the company culture.

All of these potential sectors offer opportunities for office furniture makers and dealers to expand their markets. And as the office continues to face headwinds, these sectors could help the commercial interiors industry remain strong far into the future.