Consumer Electronics Market Size, Share & COVID-19 Impact Analysis, By Product Type (Electronic Devices (Television, Computer, Digital Camera & Camcorder, and Others) and Home Appliances (Refrigerator, Washing Machine, Air Conditioner, and Others)), Distribution Channel (Offline and Online), and Regional Forecast, 2020-2027

The global consumer electronics market size was USD 729.11 billion in 2019 and is projected to grow from USD 689.45 billion in 2020 to USD 989.37 billion in 2027 at a CAGR of 5.3% in the 2020-2027 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with consumer electronics witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the market will exhibit a decline of -5.4% in 2020.

Electronic devices are highly penetrated products among a wide range of technical consumer goods in households. On one side, television sets with wider screen sizes 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 consumer demand. For instance, in September 2020, Samsung released its new smart tablet Galaxy Tab Active3. It is equipped with an enhanced Touch Sensitivity feature that enables the user to operate the tab easily with fingers, even while wearing hand gloves.

The advent of technology and digitalization is further likely to push the demand for electronic items and domestic appliances.

Work-From-Home Trend Results in High Adoption of Computing Products amid COVID-19

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. 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 sales of electronic items across the globe. For instance, sales in terms of market revenue of Sony’s Electronic Products and Solution (EP&S) segment declined from 977.4 billion yen in the first half of fiscal year (FY) 2019 to 836.5 billion yen in the first half of Fiscal Year (FY) 2020 due to closures of retail stores.

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.

Factors such as the relaxing of lockdown norms, the reopening of retail stores, and the continued trend of online selling will accelerate the consumer electronics industry growth in the near future.

LATEST TRENDS

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User-Friendly Smart Devices to Gain Momentum

The rising trend of having connected homes is supporting the penetration of smart appliances globally. For instance, as per Grabyo’s Value of Video Report 2020, about 58% of surveyed streaming customers and about 53% of surveyed pay-TV customers watch videos regularly on a Smart TV.

Appliances equipped with voice assistance, Bluetooth, and Wi-Fi connectivity are being adopted due to higher usage convenience. Players are making efforts to include multiple features in their devices to attract consumers. For instance, in July 2020, Samsung released its Premium Soundbar Line-up with two wireless rear up-firing speakers. Additionally, they are equipped with SmartThings App and Alexa voice service. Therefore, technological advancements and inclination towards smart devices are likely to fuel the consumer electronics market growth.

DRIVING FACTORS

Rising 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. For instance, as per the data released by Eurostat in 2018, about 70.0% of the EU-27 lived in an owner-occupied dwelling, wherein about 46.0% of the EU-27 population lived in flats. Additionally, the growing trend of the inclusion of smart devices in the household is anticipated to contribute to market growth.

The introduction of innovative household products in the market is likely to boost product consumption. For instance, in January 2019, LG introduced its Rollable OLED TV with three different viewing modes such as Full View, Line View, and Zero View. Its flexible screen technology enables it to be rolled up after its use or when not in need.

Therefore, the strong growth of this market is projected in the forthcoming years due to many modernized households globally.

Supportive Government Initiatives to Promote Market Growth

Global government authorities are making efforts to support the growth of electronic products in their respective countries. For instance, the Government of India released the National Electronics Policy 2018, intending to achieve a turnover of about USD 400 billion in domestic electronics manufacturing by 2025. This is likely to boost the adoption of modern 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.            

The green building initiatives are likely to support the demand for energy-efficient consumer electronics. For instance, in 2019, Carrier launched Infinity 26 air conditioner equipped with the Greenspeed Intelligence feature. It is likely to offer a substantially higher Seasonal Energy Efficiency Ratio (SEER) up to 26.0, leading to an overall saving of about USD 129 per year on cooling equipment. Similarly, users are demanding TV sets with eco-friendly LED backlights as it enhances the display properties such as brightness and contrast and being energy efficient.

Several initiatives regarding uplifting the manufacturing capacity and the development of energy-efficient products are expected to result in a high demand for consumer electronics.

RESTRAINING FACTORS

Lower Penetration in Less-Developed Countries to Hamper Growth

Lower market penetration in certain less developed countries due to lack of access to electricity and sluggish economic conditions is expected to affect the market growth. For instance, according to the International Energy Agency data, about 80 million people in DRC Congo, more than 70 million people in Nigeria, and 60 million people in Ethiopia did not have sufficient access to electricity in 2019. Besides, the adoption of smart high-end products is limited to a high-income group of the population. This is likely to restrict the market expansion of premium consumer electronics.

SEGMENTATION

By Product Type Analysis

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Electronic Products 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, computers, cameras, and other products such as audio and video 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. For instance, as per the Communications Market Report August 2018 of The Office of Communications (Ofcom) of the UK government, about 95% of UK households were reported to have digital TVs in 2018.

Companies are launching new products intended for specific applications due to changing consumer preferences. For instance, in October 2020, Canon launched a new small-sized PowerShot ZOOM camera for trekking and wildlife trailing enthusiasts for outdoor use. The palm-sized camera is lightweight and portable and can be used to super-zoom and record full HD videos.

Home appliances are classified into refrigerators, washing machines, Air Conditioners (AC), and others. The younger generation prefers appliances such as washing machines, microwave ovens, and refrigerators that save time in household work, which, in turn, enhances the overall standard of living. For instance, as per International Energy Agency’s report, The Future of Cooling - May 2018, around 2/3 of the households worldwide are expected to have installed ACs by 2050.

By Distribution Channel Analysis

Purchase Convenience of Online Facility to Exhibit Fastest Growth

Based on the distribution channel, the market is segmented into offline and online.

The offline segment is expected to hold a major market share as specialty electronic shops allow the buyer to understand the features of the device in person. This factor enables the customer to compare and choose between a wide range 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. COVID-19 lockdown has further promoted the use of e-commerce websites due to the closures of retail stores. Players in this market have taken this opportunity to strengthen their presence through online channels amidst the pandemic period. For instance, in June 2020, Samsung launched a new line of TVs in India on e-commerce sites such as Flipkart, Amazon, and its online platform with several lucrative offers to attract consumers. The launch includes the Frame 2020 TV, along with ten new models of Smart TV.

REGIONAL INSIGHTS

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Asia Pacific stood at USD 274.00 billion in 2019. The region is expected to dominate the global market due to the presence of leading players such as Samsung, LG, Sony, and Panasonic in countries such as Japan, China, and Korea.

Higher demand for Asian consumer electronics from Western countries has further boosted the market growth. For instance, as per the data by The Japan Electronics and Information Technology Industries Association, in Japan, the production of computers and information terminals was valued at 1,041,122 million yen in 2017 and increased by 1,251,283 million yen in 2019. Moreover, the increasing disposable income of the population in the region has resulted in the high consumption of home appliances in countries such as India, China, and other South-East Asian nations. This is anticipated to drive the regional market during the forecast period.

Although consumer electronics manufacturers are highly concentrated in the Asian region, players in Europe are making efforts to increase domestic manufacturing to meet the growing consumer demand. For instance, in May 2019, Deutsche Telekom, a German company, launched Hallo Magenta smart speaker in Europe. This is the first smart speaker in Europe and is available with dual voice assistant systems Magenta and Amazon’s Alexa. Moreover, escalating demand for smart home appliances is likely to add impetus to the market in the region.

North America holds a significant market share owing to the rising demand for monitors, speakers, and wearables. The growing trend of gaming is further likely to increase the demand for video games, gaming monitors, and consoles in the region. For instance, as per the data published in October 2020 by the Consumer Technology Association, the population in the U.S. is likely to spend about USD 528 on average on technology-based items that include video game consoles, laptops, wearables, and TVs in the holiday season of 2020.

The market in South America is currently emerging. However, increasing urbanization is likely to boost product penetration and further fuel market growth.  Moreover, improvement in the internet, video streaming, and broadcasting facilities is anticipated to boost product consumption. For instance, in February 2018, Liberty Latin America Ltd., a telecommunication company, acquired 80% shares of Costa Rican cable operator, Cabletica, from Televisora de Costa Rica S.A. Cabletica is one of the leading cable operators in Costa Rica that is engaged in offering analog and digital television, along with broadband internet services to residential customers. This acquisition is likely to strengthen Liberty’s business and provide quality services to South American customers.

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The market in the Middle East and Africa is likely to hold a lower share in terms of revenue. However, proactive effort from players to expand business in untapped areas is likely to support market growth. For instance, in April 2019, Hitachi expanded its operation with the opening of the new sales office of Johnson Controls-Hitachi Air Conditioning in Dubai.

KEY INDUSTRY PLAYERS

Players Focus on Investment in Research and Development Activities to Gain a Competitive Advantage 

The global market is led by a few key players such as Samsung, Sony, LG, and Panasonic. These players thrive on offering cost-effective products and spending on new product development to remain competitive. For instance, Sony invested about 162.8 billion Yen in R&D activities in its Electronic Products and Solution (EP&S) segment in 2019.

The companies are focusing on increasing their foothold by adopting geographic expansion strategies, production capacity expansion, and partnerships to increase their market share. For instance, in January 2020, Voltbek Home Appliances Private Limited announced its first manufacturing facility in India for appliances such as refrigerators and washing machines.

LIST OF COMPANIES PROFILED:

• Samsung Group (Suwon, South Korea)


• LG Electronics Inc. (Seoul, South Korea)


• Sony Corp. (Tokyo, Japan)


• Panasonic (Osaka, Japan)


• Koninklijke Philips N.V. (Amsterdam, Netherlands)


• Whirlpool Corp. (Benton Harbor, U.S.)


• AB Electrolux (Stockholm, Sweden)


• Apple Inc. (Cupertino, U.S.)


• HP Inc. (Palo Alto, U.S.)


• Huawei Technologies Co., Ltd. (Shenzhen, China)

KEY INDUSTRY DEVELOPMENTS:

• August 2020: Samsung launched its new AI-Powered Washing Machine that will enable the user to customize clothes washing cycles. This is expected to increase the company’s portfolio of advanced home appliances.


• July 2020 – LG Electronics launched 27-inch LG UltraGear Gaming Monitor. It is the world’s first 4K IPS 1 millisecond gray-to-gray (GTG) gaming monitor.

REPORT COVERAGE

An Infographic Representation of Consumer Electronics Market

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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 consumer electronics market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the key market in recent years.

Report Scope & Segmentation