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The global consumer electronics market size was valued at USD 738.75 billion in 2022 and is projected to grow from USD 773.40 billion in 2023 to USD 1,239.40 billion by 2030, exhibiting a CAGR of 6.97% during the forecast period.
Electronic devices are one of the highly penetrated products among a wide range of technical consumer goods in households. On one side, television sets with wider screen size are receiving popularity, whereas, on the other side, the miniaturization of electrical components is on the rise. Companies are focusing on developing high performing and convenient-to-use devices owing to the increasing demand. Therefore, the advent of technology and digitalization is likely to push the demand for electronic items and domestic/ household appliances.
Work-From-Home Trend Results in High Adoption of Computing Products amid COVID-19 Pandemic
The pandemic first emerged in China that led to the imposition of strict lockdown rules in the country. China is one of the leading manufacturers of electronic components and raw materials, and therefore, the emergence of the pandemic in China had a significant effect on the supply chain of electronic products.
Social distancing and stay-at-home orders negatively impacted the sales of electronic items across the globe. For instance, sales in terms of revenue of Sony’s Electronic Products and Solutions (EP&S) segment declined from 977.4 billion yen in the first half of FY 2019 to 836.5 billion yen in the first half of FY 2020 due to the closures of retail stores.
However, the work-from-home trend led to an increased demand for computing devices and peripherals. For instance, as per the Q2 2020 results of LG Electronics, the percentage share of monitors in total revenue increased to 23% in Q2 2020 from 17% in Q1 2020, that of notebook and tablets increased to 29% in Q2 2020 from 20% in Q1 2020. Besides, relaxing of lockdown norms, reopening of retail stores, and the continued trend of online selling is consequently expected to accelerate the consumer electronics industry growth in the near future.
User-Friendly Smart Devices to Gain Momentum
The rising trend of having connected homes is supporting the penetration of smart appliances globally. Appliances equipped with voice assistance, Bluetooth, and Wi-Fi connectivity are being adopted due to the higher convenience in usage. Players are making efforts to include multiple features in their devices to attract consumers. For instance, in August, 2021, boat, an Indian based electronic company, collaborated with Actions Technology Co., Ltd to launch smart speakers ‘Stone 1200’ which supports Bluetooth connectivity with smart devices. Rising technological advancements and inclination toward smart devices are likely to fuel the consumer electronics market growth.
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Growing Residential Sector to Boost Product Demand
The income level of the world population is rising, which allows them to spend more on housing and equip their homes with upcoming technological goods. Additionally, the growing trend of the inclusion of smart devices in the household would further expand the market size. The introduction of innovative household products in the market is likely to boost product consumption. For instance, in December 2021, LG Electronics launched a range of expanded TV panels, including Mini LED, OLED, and NanoCell TV sets, equipped with several advanced features. Therefore, the consumer electronic products market is projected to exhibit strong growth in the forthcoming years owing to a rising number of modernized households globally.
Favorable Government Initiatives to Promote Market Growth
The global government authorities are taking efforts to support the growth of the electronic products in their respective countries. For instance, according to India Brand Equity Foundation, 2021-22, it has been estimated that the electronics manufacturing and export market of India is expected to reach USD 300 billion by 2025-26. This would further support the development of new technologies such as 5G, IoT, AI, and machine learning. Therefore, resulted in the greater adoption of electronic products embedded with the latest features in the country. Moreover, green building initiatives are likely to support the demand for energy-efficient consumer electronics across the globe. Therefore, initiatives regarding uplifting manufacturing capacity as well as the development of energy-efficient products would result in a flourishing market of consumer electronics.
Lower Penetration in Less-Developed Countries to Hamper Growth
Lower market penetration in certain less developed nations on account of sluggish economic conditions and the lack of access to electricity is expected to affect the market growth. For instance, according to a research paper published by Science Direct, in 2019, the penetration level of smart electronics in the U.S. was 40% and that of the U.K. was 25%. In India, the level reached only 5% and in Indonesia, 3%. Besides, the adoption of smart high-end products is limited to a high-income group of the population. This is likely to restrict the expansion of the premium consumer electronics industry.
Electronic Devices Segment to Dominate Owing to Greater Household Penetration
Based on product type, the market is segmented as electronic devices and home appliances. Electronic devices are further classified into TVs, cameras, computers, and other products such as video and audio devices. The electronic devices segment is expected to witness a major consumer electronics market share owing to higher household penetration of TVs, computers, tablets, and laptops. Moreover, companies are launching new products intended for specific applications due to changing consumer preferences. For instance, in April, 2021, Canon announced the launch of the new EOS R3 full-frame mirrorless camera, featuring 35mm full frame, CMOS sensor, DIGI X picture processor and black illuminated. Home appliances are classified into refrigerators, washing machines, Air Conditioners (AC), and others. The younger generation prefers various appliances such as refrigerators, microwave ovens, and washing machines that save time in household work, which, in turn, enhances the overall standard of living.
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Purchase Convenience of Offline Stores to Propel Segment Growth
Based on distribution channel, the market is segmented into offline and online.
The offline segment is anticipated to hold a major market share as specialty electronic shops allow the buyer to understand the device features in-person. This factor enables the customer to compare and choose between a wide array of available brands, which, in turn, has increased the footfall in these shops. A greater convenience offered by online platforms is likely to add impetus to the segment growth. The COVID-19 lockdown has further promoted the use of e-commerce websites due to closures of retail stores. Players in this market have taken this opportunity to consolidate their presence through online channel amid the pandemic period. For instance, in July 2021, Samsung partnered with Shopee, a prominent e-commerce platform, in Southeast Asia and Taiwan to increase their revenue through online sales channel in those regions.
Asia Pacific Consumer Electronics Market Size, 2022 (USD Billion)
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Asia Pacific stood at USD 279.84 billion in 2022. The region is expected to dominate the global market owing to the robust presence of prominent players such as Sony, Samsung, Panasonic, and LG, in countries such as Korea, China, and Japan. In addition, western countries depict a soaring demand for Asian consumer electronics products, which has further boosted the market growth. For instance, as per Outlook India, January 2023, Apple iPhone’s contractors in India comprise Foxconn, Wistron, and Pegatron, while the contract suppliers consist of Salcomp, Avary, Sunwoda, and Foxlink. Together, they have created ~100,000 employees in India in 2023. Moreover, the surging disposable income of the population in the region has led to an upsurge in the consumption of home appliances in economies such as China, India, and other South-East Asian nations that would drive the regional market.
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Although consumer electronics manufacturers are highly concentrated in the Asian region, players in Europe are taking efforts to increase domestic manufacturing to meet the growing consumer demand. For instance, in September 2022, Deutsche Telekom, a German company, announced the launch of 5G smartphones across the entire European region and it will be the first available in the Germany market. Moreover, the escalating demand for smart home appliances is likely to propel market growth in the region.
North America holds a significant market share owing to the rising demand for wearables, speakers, and monitors. For instance, in September, 2022, Nice North America, announced the launch of new electronics products, including smart home solutions, power management, and entertainment features. Moreover, the growing trend of gaming is further expected to increase the demand for video games, gaming monitors, and consoles in the region.
The market in South America is currently emerging. However, the increasing urbanization is likely to increase product penetration and thereby would fuel market growth. Moreover, improvements in the provision of broadcasting, video streaming, and internet facilities would further boost product consumption. For instance, as per the GSMA report, ‘The Mobile Economy Latin America 2020’, it has been estimated that 5G connections would reach 62 million by 2025, featuring ~10% adoption rate of 5G connections and ~67% adoption rate of 4G connections in South America.
The Middle East and African market holds a lower share of the global market. However, growing efforts from players to expand business in untapped areas are likely to support the market expansion in these regions. For instance, in May 2023, Hisense, a Chinese manufacturer of electronics goods, announced the launch of Hero U8 TV products and ULED X products in Dubai. Therefore, rising inclination toward better living and changes in consumer preferences is likely to increase the rate of product consumption globally.
Players Focus on Investment in Research and Development Activities to Gain a Competitive Advantage
The global market is led by a few key market players such as Samsung, Sony Corporation, LG, and Panasonic. These players thrive on offering cost-effective products and spending on new product development to remain competitive in the market. The companies are focusing on increasing their foothold by adopting strategies such as geographic expansion, partnerships, and the expansion of production capacity to increase their market share. For instance, in August 2022, Henkel implemented its first application engineering center in South China to support the growing demand from Chinese consumer electronics customers.
The market research report provides a detailed analysis of the market and focuses on key aspects such as competitive landscape, distribution channel, and leading product types. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.
An Infographic Representation of Consumer Electronics Market
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CAGR of 6.97% from 2023 to 2030
Value (USD Billion)
By Product Type
By Distribution Channel
Fortune Business Insights says that the global market size was USD 738.75 billion in 2022 and is projected to reach USD 1,239.40 billion by 2030.
In 2022, Asia Pacific stood at USD 279.84 billion.
Growing at a CAGR of 6.97%, the market will exhibit a steady growth rate during the forecast period (2023-2030).
Based on product type, the electronic devices segment is expected to be the leading segment.
The rising number of households and positive government initiatives are major factors driving the growth of the market.
Sony, LG, Samsung, and Panasonic are the major players in the global market.
Asia Pacific held the highest market share in 2022.
Favorable government initiatives across various regions are expected to drive product adoption over the forecast period.
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