Market Trends of GCC Smart Furniture Industry
This section covers the major market trends shaping the GCC Smart Furniture Market according to our research experts:
Rise in Consumer Expenditure on Home Improvement Fuels the Market
The coronavirus pandemic is creating dramatic changes for the furniture industry. Consumers, more so now than ever before, are basing their purchasing decisions on society value. Post-COVID consumer has a strong desire to improve their living space. COVID-19 forced nearly half of the world's population to stay at home, causing a sudden explosion in working-from-home, home schooling, and a litany of at-home activities dining-at-home, etc that benefit from an upgrade in comfort and style. With social distancing being the new normal, a spike in consumer spending on furniture and home furnishings are expected.
The months of global quarantine is boosting consumer comfort for purchasing products online. Furniture manufacturers seeking to reach this digitally connected consumer will have to increase their online presence and cater to the rising expectations for price transparency, speed of delivery and product quality. The prolonged period at home is also influencing how consumers want to buy products.
To keep pace with these changes and adapt to the new demands of today's hyper-connected consumer, furniture manufacturers are rapidly investing in digital technology and automation solutions. The goal is to strengthen their position in the marketplace by optimizing the production process to deliver innovative products faster without increasing costs or compromising on quality.
Expanding Construction Sector is Driving the Market
The real estate sector has a significant effect on the furniture industry. The GCC region hosts one of the fastest-growing real estate markets across the world. Demographic changes, hosting of mega-events, tourism, and the influx of expatriates over the last few years are some of the major growth drivers for the real estate sector. Although the GCC region may have witnessed an economic slowdown, due to fluctuations in the oil market, the region is still witnessing increased investments. FIFA 2022 in Doha had primarily buoyed the demand for amenities and world-class infrastructure.
Due to the increase in real estate activities in the region, the construction sector is expanding rapidly, mainly being driven by government-backed investments. The construction industry is witnessing a growth rate of nearly 5%, year-on-year, in the region, with increasing residential and commercial property developments. This rapid expansion in the construction sector will boost the demand for smart furniture products.
