Global consumer electronics market is estimated to witness high growth, owing to increasing urbanization and rising disposable income
Global Consumer Electronics Market is estimated to be valued at USD 736.42 Bn in 2024, exhibiting a CAGR of 6.5% over the forecast period (2024-2031). The market growth is driven by increasing urbanization and rising disposable income worldwide. Furthermore, growing trend of cloud computing and advanced technologies such as augmented reality, virtual reality, artificial intelligence can also boost demand for consumer electronics.
Market Dynamics:
Global consumer electronics market growth is driven by two key factors - increasing urbanization and rising disposable income. As per United Nations Data, around 68% of the total global population is expected to live in urban areas by 2050 compared to 55% in 2018. Urban citizens tend to have higher disposable income levels and adopt consumer electronics at a faster pace as compared to their rural counterparts. This rising urban population base represents a huge potential consumer base for consumer electronic products.
Disposable income levels globally have increased significantly over the last decade, especially in developing nations such as China, India and others. Consumers in these regions are now able to spend more on consumer discretionary items including consumer electronics. Rising affluence has boosted sales of smartphones, laptops, home appliances and other electronics.
Market Drivers
Growing Demand for Smart Home Appliances
Global consumer electronics market growth is driven by growing demand for smart home appliances. Smart home appliances integrate sensors, connectivity and other technologies that enable them to be remotely monitored and controlled using a smartphone or other connected device. As consumers look for more convenience and control over their home environment, there has been huge demand for smart appliances like refrigerators, washing machines, air conditioners, and others that can be operated remotely This growing preference for smart and connected appliances can drive the consumer electronics market growth.
Rising Adoption of Smart Wearables
Rising adoption of smart wearable devices globally can drive the market growth. Wearables like smartwatches, fitness trackers and wireless headphones are becoming increasingly popular as these provide convenience and allow users to remain connected without having to pull out their phone. The advanced health and fitness tracking capabilities of smart wearables along with their ability to receive phone notifications and act as mini computers has made them appealing to consumers. As wearables get more affordable and their functionality improves, more people are purchasing these devices, thus, boosting the consumer electronics market growth.
Market Restraints
High Cost of New Technologies
Global consumer electronics market growth can be hampered due to high cost of adopting new and advanced technologies. Cutting edge innovations like virtual reality headsets, smart home security cameras, smart displays, and others are expensive, which limits their mass adoption. While early adopters are willing to pay more for new tech, most consumers are hesitant given the high upfront costs. This can hamper the consumer electronics market growth, particularly in price sensitive emerging markets.
Growing Concerns over Data Privacy
Rising concerns among consumers about data privacy and security issues related to connected devices can also hamper the market growth. As consumer electronics get increasingly intelligent and internet-enabled, these also become more vulnerable to cyber-attacks and data breaches. Recent incidents of personal data being compromised from smart home devices and wearables has caused privacy worries among people. This lack of trust in companies' ability to secure private user information deters some consumers from purchasing certain connected products.
Market Opportunities
Growing Demand in Emerging Markets
Developing economies can offer market growth opportunities. Emerging regions like Asia Pacific, Latin America, Middle East and Africa are witnessing significant economic growth and rising disposable incomes. This boosts higher spending power among consumers to purchase electronic products that were once considered luxuries. As emerging markets develop their infrastructure and standards of living improve, their huge populations can boost demand for consumer electronics.
Increasing Popularity of Refurbished Products
With sustainability becoming an important consideration, rising popularity of refurbished consumer electronics can offer market growth opportunities. Refurbished products are electronic items that have been cleaned, inspected and repaired to work like new again at much lower prices compared to brand new devices. As consumers become more cost and eco-conscious, there has been huge demand for second-hand electronics. This growing inclination towards refurbished goods presents a lucrative section within the broader consumer electronics industry.
Global consumer electronics market growth is driven by increasing adoption of smart home devices and wearable technologies. However, high costs of new innovations and privacy concerns pose challenges. Emerging markets and refurbished products present major growth opportunities.
Link - https://www.coherentmarketinsights.com/market-insight/consumer-electronics-market-4722
Key Developments:
- In May 2023, Ekka Electronics, a leading original design manufacturer of LED TVs, revealed plans to invest USD 121.1 million to set up a new manufacturing facility in Noida, India. The company intends to diversify its product portfolio by venturing into the production of consumer electronics such as washing machines, smartwatches, hearables, and true wireless stereo (TWS) devices. Furthermore, Ekka aims to gradually increase its production capacity at the Noida plant from an initial 500,000 LED TV units per month to a potential range of 800,000 to 900,000 units per month within the next three years.
- In April 2023, OnePlus, a well-known brand in smartphones and consumer electronics, unveiled its flagship tablet- the OnePlus Pad. This tablet embodies the brand's distinctive design philosophy, merging elegance with practicality. By employing their proprietary Star Orbit metal craft and precise aluminum alloy CNC cutting techniques, OnePlus aims to provide a unique, fast, and seamless user experience, setting new benchmarks in the industry and offering consumers exceptional choices, thus, revitalizing the market with fresh opportunities.
- In March 2023, CUI Devices, a prominent provider of electronic components and interconnect solutions, announced that it had signed a distribution agreement with J.P. Electronic Devices Pvt. Ltd., a supplier of electronic components and services across various industries in India. This partnership is aimed at leveraging J.P. Electronic Devices' extensive network and expertise to effectively reach and serve a diverse customer base in the Indian market, thus, enhancing CUI Devices' presence in the region.
- In October 2022, Electrolux, a prominent global appliance brand, inaugurated its maiden exclusive retail store in Bengaluru, India. This launch signifies the company's first brand-specific outlet in the city, with intentions to open 50 more such stores by the end of the year in collaboration with leading retailers. The 3,500 square-foot exclusive showroom boasts an open layout, enabling consumers to participate in live demonstrations and interact with a wide range of products, including air purifiers, air conditioners, washing machines, vacuum cleaners, refrigerators, dishwashers, dryers, and coffee machines, thus, facilitating informed purchasing decisions.
Key Player:
Amazon.com, Inc., Apple Inc., Dell Inc., Electrolux AB, Google LLC, Haier Group, Hewlett Packard Enterprise Company, Koninklijke Philips N.V., LG Electronics Inc., Microsoft Corporation, Panasonic Corporation, Robert Bosch GmbH, Samsung Electronics Co., Ltd., Sony Corporation, and Xiaomi Corporation
