Consumer electronics refer to electronic devices that are typically used in everyday applications. Consumer electronics are used for various purposes including entertainment, communications, and home-office activities. Electronic TVs, smartphones, refrigerators, tablets, laptops, DVD players, digital cameras, desktop computers, paper-shredders, printers, etc. are some of the commonly used consumer electronics. Technological advancements have led smart devices to turn an ordinary home into a connected home. These smart home devices include security systems, HVAC system and smart kitchen appliances that can be controlled via iOS or Android devices. Moreover, wearable devices are a new breed of consumer electronics that are user-friendly and autonomous in nature. These devices can be connected via internet.
The global consumer electronics market is estimated to be valued at US$ 3,428.5 billion in 2021 and is expected to exhibit a CAGR of 15.6% over the forecast period (2021-2028).
Asia Pacific held dominant position in the global consumer electronics market in 2020, accounting for 37.5% share in terms of volume, followed by Europe and North America, respectively.
Figure 1. Global Consumer Electronics Market Value (US$ Bn), by Region, 2020
Global Consumer Electronics Market- Drivers
Rising disposable income and growing global population is expected to drive growth of the global consumer electronics market during the forecast period. Consumer electronics have witnessed strong consumer preference, especially in emerging economies from Latin America and Asia Pacific in the recent past. This is typically due to rising disposable income and growing population in the respective regions. According to Coherent Market Insights’ analysis, in 2015, global disposable income increased by 3.1% as compared to that in 2014. Furthermore, rising global population, majorly in emerging regions is expected to boost the demand for consumer electronics in the near future. According to the United Nations (UN) estimates, global population is expected to increase from 7.2 billion in 2013 to 9.6 billion by 2050. This, coupled with growing GDP of developing countries is expected to drive growth of the market across the globe.
Robust distribution network across the globe is expected to propel the global consumer electronics market growth over the forecast period. Key vendors in the market are focused on strengthening their distribution channels, in order to attain a competitive advantage in the market. Easy availability of distributors and retailers of consumer electronic devices enable manufacturers to better cater to customers. Retail specialist is becoming a most popular distribution channel in emerging markets such as China, India, Brazil, and Russia as consumers in these countries prefer brick and mortar stores to purchase consumer electronics and home appliances. However, with increasing penetration of the Internet in the aforementioned countries, online retail has been witnessing significant growth.
Global Consumer Electronics Market Opportunities
Rural market is highly untapped markets with potential opportunities. According to UN, in 2014, the global rural population was around 3.4 billion, with Africa and Asia accounting for around 90% of the population. Manufacturers in the market can lower prices of smartphone, feature phones, and TVs and expand market presence and gain competitive edge in the market.
The consumer durables market in emerging regions such as Latin America, APEJ, Eastern Europe, and parts of Africa is characterized low penetration and moderate competition in various consumer electronic product segments. These include smart home appliances and wearable electronic devices. Moreover, growing disposable income in the aforementioned regions is expected to increase scope of penetration of consumer electronics market in the near future.
|Base Year:||2020||Market Size in 2021:||US$ 3,428.5 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||15.6%||2028 Value Projection:||US$ 9,473.9 Bn|
|Companies covered:||Panasonic Corporation, Samsung Electronics Co. Ltd., Toshiba Corporation, LG Electronics Co. Ltd., Hewlett-Packard Inc. (HP), Apple Inc., Sony Corporation, Hitachi Ltd., and Koninklijke Philips N.V.|
|Restraints & Challenges:||
Key manufacturers in the market are focused on research and development activities, in order to innovate advanced products and offer cost-effective devices, in order to enhance their market presence. For instance, in 2014, LG Electronics introduced smart washing machine, refrigerator, and oven that can be controlled remotely over a Wi-Fi connection or be controlled by a smartphone or tablet via NFC. Furthermore, in 2014, Apple Inc. launched iWatch – a smartwatch that can be paired with an iPhone. The iWatch is expected to be available in stores by Q2 2015.
Since the global consumer electronics market is highly competitive, many manufacturers are focused on operational expansion, product expansion, and capacity expansion. For instance, in 2015, Samsung Electronics Co. Ltd. invested US$ 81.8 Mn to establish a mobile manufacturing plant in India, in order to expand their production capacities in the region. Moreover, in 2013, Sony Corporation announced plans to establish new zonal offices in Ghana, Morocco, Angola, and Nigeria to enhance its presence and market share in the consumer electronics market in Africa.
Figure 2. Global Consumer Electronics Market Share, By Device Type, 2020
Key Takeaways of the Graph:
Global Consumer Electronics Market - Restraints
High selling prices are expected to hamper the global consumer electronics market growth over the forecast period. High purchase cost related to connected consumer electronics, wearable devices, and smart home devices is a major factor hampering growth of the market. Currently, costs of smart consumer appliances such as refrigerators and air conditioners are around US $ 2,500 to US $ 4,500. Moreover, costs of connected consumer electronic devices such as tablets, connected TVs, and digital camcorders are expected to remain high during the forecast period.
Lack of standardization is expected to hinder the global consumer electronics market growth during the forecast period. There is a lack of adequate standardization in the technology and components used in the manufacturing of consumer electronic devices. Undefined standards in the market lead to high product and price differentiation.
Major companies operating in the global consumer electronics market are Panasonic Corporation, Samsung Electronics Co. Ltd., Toshiba Corporation, LG Electronics Co. Ltd., Hewlett-Packard Inc. (HP), Apple Inc., Sony Corporation, Hitachi Ltd., and Koninklijke Philips N.V.
Consumer electronics or otherwise known as home electronics are electronics meant for personal use, normally at home. Consumer electronics consist of electronic appliances used for communication, entertainment, and also recreational purposes. Mostly referred to as white goods because of the fact that most products being manufactured in black or neutral colors are housed in dark or black casing. More advanced white electronics appliances usually come with flashy advertisements, which is another reason for the popularity of these appliances. The new trends in consumer electronics products are discovered every day and their effects on the industry are remarkable.
Increasing number of smartphone users is expected to boost the global consumer electronics market growth over the forecast period. As per the Pew Research Center, in 2019, around 81% of people in the U.S. had smartphones, increasing from 68% in 2015. According to the same source, tablet users in the U.S. increased from 34% in 2013 to 52% in 2019. This, in turn, has increased the demand for advanced smartphones and tablets.
Furthermore, growing popularity of modern consumer electronics in Asia Pacific is expected to accelerate growth of the global consumer electronics market in the near future.
Key features of the study:
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