CONSUMER ELECTRONICS MARKET ANALYSIS

Global consumer electronics market growth can be hampered due to volatile prices of raw materials used in the manufacturing of various consumer electronic products. The prices of key raw materials such as metals, chemicals, and semiconductors have witnessed huge fluctuations over the past few years mainly due to changing global economic conditions, trade wars, and demand-supply dynamics. This makes accurate demand forecasting and pricing of final products very difficult for electronics manufacturers. Significant swings in raw material costs can squeeze profit margins of companies. It also raises concerns over the sustainability of supply chains. The price volatility poses operational and budgeting challenges for original equipment manufacturers. It also increases the risks for electronics brands and retailers with respect to pricing and promotion strategies of consumer products. Unless properly addressed, the unstable raw material prices can undermine investments and growth in the consumer electronics sector.

Opportunity: Growing Demand for Wearable Devices

Growing demand for wearable devices has emerged as a major opportunity for the global consumer electronics industry. Wearable technology has moved beyond traditional fitness trackers and smartwatches to various day-to-day applications spanning healthcare, entertainment, productivity, and more. The COVID-19 pandemic has further accelerated the demand as more people adopt remote working and require smart accessories. The desire for devices offering features such as continuous health monitoring, real-time updates, augmented reality experiences, and contactless payments can boost demand for innovative wearable form factors. Consumer interest in wearables coupled with the advancements in areas such as flexible displays, miniaturization, sensor technology, and artificial intelligence can drive the market growth. Established electronics brands and startups are actively developing novel wearables to gain first-mover advantage. Rising requirements of new-age consumers associated with on-the-move connectivity and sustainability also present opportunities for businesses engaged in this area.