Global Consumer Electronics Market - 2024-2031

Overview

Global Consumer Electronics Market reached US$ 6.9 billion in 2023 and is expected to reach US$ 9.8 billion by 2031, growing with a CAGR of 4.1% during the forecast period 2024-2031.

Governments globally imposed lockdowns during COVID-19 pandemic, leading individuals to remain indoors. People become more interested in indoor entertainment options as a result of the lockdowns. Film studios released their productions concurrently with the closure of theatres on over-the-top platforms. New films can be rented or bought on streaming services and viewers could watch them on smart TVs and smartphones, increasing demand for consumer gadgets.

It led to a significant increase in online video streaming, which in turn increased demand for smart TVs. To meet the needs of a variety of consumers, market leaders are launching new goods with competitive prices and unique features. For example, Samsung Electronics Co. Ltd. introduced its Neo QLED 8K smart TV line in April 2022. Televisions with screens measuring 65 and 85 inches were included in the launch.

In 2023, North America is expected to be the second-dominant region holding over 1/4th of the global consumer electronics market. The consumer electronics sector in North America is expected to develop into the most important regional industry due to its high penetration. Driven in large part to the popularity of the Android operating system and many reference design platforms, the entry barriers for smartphones have significantly decreased.

Dynamics

Growing Technological Advancements

The consumer electronics markets are driven by a tech-savvy population, high disposable incomes and a strong desire for the newest devices. The market share of computers, smartphones and smart home appliances is significant. Smart speakers, streaming services and 5G technology are all gaining popularity. Giants of the computer industry like Microsoft, IBM and Google are making significant investments in cutting edge AI. During the forecast period, innovative sensory technology is probably going to change consumer electronics as well.

Regional associations host expos and trade exhibitions because they recognise innovation as a critical component of success. For example, the annual consumer electronics event is a global trade event organised by the Consumer Technology Association, an association that represents U.S. consumer technology industry. The goal of the show is to promote and accelerate technological innovation in order to revolutionise the way customers experience electronic devices.

An Increase in Demand from Households and Changing Lifestyles

The rise in the global consumer electronics market is attributed to various factors such as growing disposable incomes, better access to financing, shifting lifestyles of individuals and increased demand from households. The consumer electronics industry in India has drawn significant foreign direct investment and merger and acquisition policies from major players in the global market.

The Electronic Development Fund Policy has been adopted in accordance with the Make in India drive, with the goal of rationalising a transposed duty system. To further offer a CAPEX subsidy of roughly 15-20%, the Modified Special Incentive Package Scheme (M-SIPS) has been introduced. In the upcoming years, consumer electronics manufacturers plan to increase their spending in R&D, production and distribution, which will propel the market's growth.

Presence of Counterfeit Products

Counterfeit products undermine consumer trust in legitimate brands. Consumers become sceptical of the legitimacy and quality of products with a brand name, causing a drop in confidence. Counterfeit products not only damage brand credibility, but also reduce revenue. Additionally, it will hamper user safety and security.

To preserve a competitive advantage and defend customer interests, businesses must prioritise innovation, quality control and anti-counterfeiting measures. Genuine producers face unfair competition from counterfeiters who provide similar-looking products at a lower cost. It has a negative influence on the market share and profitability of genuine enterprises.

Segment Analysis

The global consumer electronics market is segmented based on type, distribution channel, end-user and region.

Rising Focus on Video and Music Streaming drives the Electronic Devices Growth

Electronic devices are expected to be the dominant segment with about 1/3rd of the market during the forecast period 2024-2031. The growing consumption of digital information, like video and music streaming, has driven up demand for large-screen televisions. Companies are launching their own operating systems for smart TVs to compete with mainstream operating systems. The product's increasing popularity has prompted market players to create new offerings employing QLED technology.

In October 2022, Samsung Electronics Co. Ltd announced new variants of The Frame TV in India. In Brazil, various firms, including TCL Electronics, sell televisions ranging in size from 32 to 85 inches. Over 20% of them are large-screen smart TVs using cutting-edge technologies like 4K and Quantum Dot. In 2021, smart TVs made up 86.6% of the company's globally sales volume, with an array of product options spanning from the X, C and P Series.

Geographical Penetration

Growing Spending on Residential Construction in Asia-Pacific

Asia-Pacific is the dominant region in the global consumer electronics market covering more than 30% of the market. Government initiatives and supporting regulations have helped to boost Asia-Pacific's consumer electronics industry. Governments in nations like China, India and South Korea have implemented initiatives to boost digital technology use, provide manufacturing subsidies and stimulate domestic production.

India's digital economy is predicted to reach US$ 1 trillion by 2026. Currently, the electronics market in India is about US$ 155 billion, with domestic manufacture accounting for 65%. Technology revolutions such as the introduction of 5G networks and IoT are hastening the uptake of electronics items. Initiatives like 'Digital India' and 'Smart City' projects have increased demand for IoT in the electronics device market and will bring in a new age for electronic items.

Competitive Landscape

The major global players in the market include Samsung Electronics Co. Ltd., LG Electronics Co. Ltd., Apple, Inc., Hitachi Ltd., Koninklijke Philips N.V., Sony Corporation, ThermaGreen Blocks, Hewlett Packard Inc., Toshiba Corporation and Panasonic Corporation.

COVID-19 Impact Analysis

Increased consumer demand for electronic devices led to the industry's expansion. According to 40% of globally electronics brands, COVID-19 was the most beneficial to the business. Computers and consumer electronics account for 22% of all e-commerce sales. American individuals spend 90 minutes per day online in 2018, 2.5 hours per day in 2019 and, due to COVID-19, 8 hours per day. The extraordinary increase also quickly raised the demand for technological equipment.

With consumers becoming accustomed to purchasing goods and services online, the electronics e-commerce industry has profited. As a result, the electronics e-commerce business is expected to generate over US$ 79 million in e-commerce sales in 2022, a 7% increase over 2021. Even though consumer trust in the electronics business has been fairly difficult, online stores that have won it have improved their revenues due to the huge demand for electronics.

AI Impact

AI in consumer electronics provides new opportunities for creativity and pleasure. AI-powered speakers may create music and podcasts based on the user's preferences and emotions. AI-enabled mobile devices can generate realistic and engaging virtual and augmented reality experiences. AI-powered generative computing will generate unique and diverse material, including art, tales and games.

The effect of AI in consumer electronics is reflected in societal and global AI trends and issues. One of the major trends is the growth of specialist AI applications in a variety of industries and areas, including insurance, media, education and healthcare. The applications use AI to deliver specialized and customized solutions for specific problems and demands, including fraud detection, content production, learning assessment and diagnostics.

Russia-Ukraine War Impact

Russia launched a massive invasion of Ukraine and the current conflict is affecting various technology areas. The electronics industry is one of them. The dispute is expected to have an influence on global semiconductor supply because raw materials shipped from both countries, such as neon gas, chemical C4F6 and palladium, are crucial for semiconductor manufacturing.

As Russian forces push further into neighboring Ukraine, prices of critical raw commodities such as copper, aluminum, steel and plastic, in addition to overall inflation, are threatening to drive up the cost of white goods. Companies including Godrej Appliances, Usha International and TV producer Superplastronics have urged consumers to plan their purchases ahead of time in order to save money.

By Type

• Electronic Devices
  • Digital Camcorder/DVR and Camera
  • Smart Phones/Feature Phones & Tablets
  • Smart TV
  • Printers/ Set Top Box
  • Personal Computers & Gaming Consoles
• Wearable Devices
  • Smart Watches
  • Smart Accessories
  • Others
• Home Appliances
  • Refrigerators
  • Air Conditioners
  • Securities & HVAC Systems
  • Smart Kitchen Appliances
  • Others
• Others

By Distribution Channel

• Hypermarkets/Supermarkets
• Specialty Stores
• Multi-brand Stores
• Online Retailers
• Wholesalers & Distributors
• Others

By End-User

• Residential
• Commercial

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In May 2023, Ekka Electronics has announced a huge investment of US$ 121.1 million to build a manufacturing facility in Noida, India. The company plans to manufacture a variety of consumer gadgets, such as washing machines, smartwatches, wearables and true wireless stereo devices.
• In April 2023, OnePlus unveiled their flagship tablet, the OnePlus Pad. The OnePlus Pad exemplifies the brand's trademark design aesthetics, which combine elegance and functionality.
• In March 2023, CUI Devices announced that it has struck a distribution deal with J.P. Electronic Devices Pvt. Ltd., a supplier of electronic components, services and solutions to a variety of industries.

Why Purchase the Report?

• To visualize the global consumer electronics market segmentation based on type, distribution channel, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of consumer electronics market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global consumer electronics market report would provide approximately 62 tables, 56 figures and 203 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies