Consumer Electronics Market

Market Overview

The global consumer electronics market size was valued at USD 776.45 billion in 2023. It is projected to reach USD 1,254.23 billion by 2032, growing at a CAGR of 6.2% during the forecast period (2024–2032). Higher use of smart TVs, smart wearables, smartphones, and tablets is expected to drive consumer electronics industry growth.

Consumer electronics (CE) such as smartphones, computers, televisions, gaming consoles, automotive technology, and other home appliances are designed for daily residential and commercial applications, including entertainment, communication, and home/office activities. It also includes emerging technology products based on wearables and 3D printers. The increasing middle-class population, changing lifestyles and preferences, and growing inclination toward utilizing keenly intellective electronic devices are some factors driving the growth of the market. Electronics intended for regular use are referred to as consumer electronics.

These products are typically used in the communications, entertainment, and office products industries. Computers, cameras, video recorders, game consoles, GPS navigators, musical recording, playback equipment, smartphones, and video media are examples of consumer electronics. The consumer electronics market is made up of the revenue generated from the sales of these goods. There is an increasing demand for consumer electronics to function with computers and other digital or digitally compatible devices. Customers desire a more extensive selection of new products with more capabilities, services, and installations.

Market Dynamics

Market Drivers

Attitudes of consumers Towards Consumer Electronics

High adoption of smart TVs, smart wearables, smartphones, and tablets is one of the main factors forecasted to fuel the consumer electronics market growth rate. This adoption is linked to an increase in the deployment of bring-your-own-device (BYOD) programs (BYOD). Another key factor fueling the expansion of the market is the increasing adoption of consumer goods like smartphones and automated home appliances due to the smartphone trend. Additionally, it is predicted that elements like a sharp uptick in urbanization, improved internet access, and higher income levels will support the market's overall growth. The market’s growth is also fueled by rising disposable income and consumer purchasing power. The semiconductor industry’s growth during the anticipated period also restrains market expansion. Another factor driving the market is the availability of a wide range of flavors.

Consumer-Friendly Innovations, R&D in Electronics

Leading companies in the consumer electronics industry are investing in R&D activities to enable advancements in current electronic technologies and processes to boost productivity and cut costs. Apple, Inc. is one example of raising itself to a competitive position in the market through vigorous research and development. Other well-known businesses are concentrating on improving their research and development facilities. Regional associations actively plan trade shows and expos because they recognize innovation as a crucial component of growth. They are organizing a worldwide annual trade show to advance technological innovation and transform how consumers use electronic products.

Market Restraint

Specific Regulatory Framework and Awareness of The Environment

Strict regulations govern the electronics industry. It consists of rules for manufacturing, safety, effectiveness, and environmental standards. The manufacturers and distributors of the goods must follow the laws, regulations, and certification standards that apply in their respective nations or regions. The national laws and regulations in effect in the specific region or country where the electronic products are intended for sale must also be complied with. Manufacturers are under increasing regulatory pressure to create energy-efficient products as environmental awareness spreads across different geographic areas. In addition, obtaining energy-efficient electrical product certifications is another difficulty faced by the industry players. Compliance with such a strict regulatory framework frequently presents suppliers with several difficulties.

Market Opportunities

More Investments and More Frequent Developments

The proliferation of technology, the emergence of 3G and 4G technologies, and other innovations are predicted to create profitable market opportunities and increase the future consumer electronics market's growth rate. Numerous growth opportunities will also be presented by the increasing adoption of the IoT and the increased funding of market participants for research and development of new consumer electronics with improved features. You can easily set up your devices to carry out a specific action at a particular time by using one of the many intelligent home companion apps that support scheduling. For instance, Wendy Sheehan Donnell, editor of PCMag, set her bright garage door to automatically close each night at a specific time after having a bike stolen. You can create routines to program your devices to cooperate and carry out multiple tasks simultaneously with Amazon Alexa and Google Assistant, such as adjusting the lighting and temperature when you get home.

Regional Analysis

The global consumer electronics market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific is the most significant shareholder in the global consumer electronics market and is expected to grow at a CAGR of 4.9% during the forecast period. China, India, Japan, Australia, and the rest of Asia-Pacific are all included in the analysis of the Asia-Pacific consumer electronics market. It is caused by a large population base that uses a lot of smartphones and home appliances, the existence of well-known players, and an increase in disposable income in economically developing nations like China, India, and Indonesia. This is primarily attributable to encouraging government initiatives to promote the smart city and innovative home technologies. Increased demand for Asian consumer electronics from Western nations has further fueled market expansion. Although most consumer electronics producers are located in Asia, European companies are working to increase domestic production to keep up with rising consumer demand. Additionally, the market in the region is likely to gain momentum due to the rising demand for smart home appliances.

North America is expected to grow at a CAGR of 6.4% during the forecast period. The U.S. and Canada are included in the analysis of the consumer electronics market in North America. This area’s demand for air conditioners has nearly doubled due to changing climatic conditions and growing house sizes. In addition, due to the growing use of technologically advanced products, demand for kitchen appliances like ovens, induction cooktops, grinders, mixers, and refrigerators is anticipated to increase in the coming years. Regional associations actively plan trade shows and expos because they recognize innovation as a crucial component of growth. To promote and advance technological innovation and transform consumers' experiences with electronic products, the CTA (Consumer Technology Association), an organization that represents the US consumer technology industry, annually organizes the CES (Consumer Electronics Show), a global annual trade show.

Segmental Analysis

The global consumer electronics market is segmented by product type, application, and distribution channel.

Based on product type, the global market is bifurcated into consumer electronic devices, wearable devices, and smart home devices.

The consumer electronic devices segment is the highest contributor to the market. The consumer electronic devices segment accounts for over 80% of the market's value. Electronic products like phones, laptops, televisions, set-top boxes, cameras, camcorders, and other consumer electronics are included in this category. These are just a few examples of electronic devices used in commercial, residential, and industrial sectors. These electronic products are bought more frequently than other products in comparison. In addition, some products, including televisions and smartphones, are regarded as essentials. These explanations support the consumer electronic devices segment's dominance of the market.

Based on application, the global market is bifurcated into personal and professional.

The personal segment is the highest contributor to the market. Higher incomes, better internet access, and urbanization are anticipated to boost growth. Prices are declining, boosting demand for personal consumer electronics like Bluetooth speakers, earbuds, smartphones, and smart wearables. During COVID-19, policies that allow for work-from-home and e-learning trends are two additional factors promoting industry growth. Production has increased due to the increased demand for laptops, smartphones, and tablets through e-learning and remote working practices. Both in-store and online options exist for buying consumer electronics. The in-store market suffered losses due to closures and instructions not to move outside to lessen the COVID-19 effect, but the online market is expanding.

Based on distribution channels, the global market is bifurcated into hypermarkets/supermarkets, specialty stores, multi-brand stores, online retailers, wholesalers and distributors, and others.

The specialty stores segment is the highest contributor to the market. A sizable portion of the industry's sales still come from multi-brand and specialty stores. Specialty shops and multi-brand electronic stores are widely prevalent in developing nations like Asia-Pacific, the Middle East, and Africa. Because specialty electronic stores let customers see the device's features firsthand, the offline market segment is anticipated to account for a sizable portion of the overall market. The ability to compare and select from a wide range of brands made possible by this factor has increased customer traffic in these stores.

Recent Developments

• October 2022, the new line of 2022 MICROWAVE OVENS from LG Electronics, the top consumer durable brand in India, features upscale designs, clever features, and the newest technology. The all-new LG Charcoal Microwave line provides a healthier cooking method while maintaining the genuine smoky flavor.
• October 2022, even if they don't own an Apple Watch, iPhone users will be able to subscribe to and benefit from Apple Fitness+, the acclaimed fitness and wellness service created to be accessible to all. In many countries where the service is offered, Fitness+ will be fully integrated into the Fitness app and available in the middle tab starting with iOS 16.1.