Both marquetry and inlay were derived from the ancient craft of intarsia. Intarsia involved the formation of elaborate mosaics by inlaying decorative materials into or onto a base of wood. This process dates back all the way to the ancient Egyptians and Romans.

Intarsia and similar inlay techniques were introduced to Venice from Persia during the
14th century. From here the craft gradually spread to Florence, France, Germany and
Holland. The craft reached a peak of popularity during the 17th-19th centuries among the privileged classes.

It's generally agreed that the craft of marquetry proper evolved during the renaissance in 16th century Florence during the spate of church building and decoration. In Florence and other renaissance cities, marquetry was used to decorate such items as the doors, choir stalls, and sacristy cupboards of churches, along with things like trunks and chests.
 
 Over the following centuries, marquetry schools were set up in France, Germany and
 Holland. The major focus was the creation of elaborate furniture for royalty and the  aristocracy.

 The zenith of marquestry is considered to be in 17th century Holland. Later, it was  adopted by the French who evolved a distinctive style via the innovative use of materials  such as copper and tortoiseshell. The main proponent here was Andre Charle Boulle who developed the technique now known as Boulle Marquetry.