Consumer electronics (CE) such as smartphones, computers, televisions, gaming consoles, automotive technology, and various other home appliances are designed for daily residential as well as commercial applications including entertainment, communication, and home/office activities. It also includes emerging technology products based on wearables and 3D printers. Increasing middle-class population, changing lifestyle and preferences, and growing inclination toward utilizing keenly intellective electronic devices are some of the factors driving the growth of the global consumer electronics market.
Moreover, growing governments support to digitalization of various services and technological advancements and increasing investment in research and development by prominent players is fueling the market growth further. For instance, Government of India is planning to set up more local manufacturing and assembling units through a combination of tax sops, ease in foreign direct investment (FDI) rules, industry-wide incentives, and raising import duties. Currently, over 75% of the Indian consumer electronics demand is served through imports.
Global consumer electronics market was valued at USD 1190 billion in 2017 and is expected to grow at CAGR of 6.4% over the forecast period 2019–2026
Global consumer electronics market is segmented by product types and end users.
By product type, the market is segmented into handheld devices, televisions, personal computers, cameras, audio/video devices, gaming consoles, personal care products, and others. On the basis of the end users, the consumer electronics market is segmented into residential and commercial.
Geographically, the global consumer electronics market share is segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
Asia Pacific is dominating the global consumer electronics market due to huge population base that uses a large number of household appliances and smartphones, presence of prominent players, and growth in disposable income in economically developing countries such as China, India, and Indonesia. For instance, IBEF estimated that India consumer electronics market is estimated to reached USD 31.48 billion in 2017 and is expected to reach USD 48.37 billion at a CAGR of 9% CAGR by 2022. This is mainly attributed to favorable government initiatives pertaining to the promotion of smart city and smart home technologies.
North America is the second largest market, which is followed by Europe. On account of changing climatic conditions and increasing sizes of houses, demand for air conditioners has almost doubled in this region. In addition, the user penetration is 31.9% in 2019 and is expected to hit 37.1% by 2023. Apart from this, the use of kitchen appliances such as ovens, inductions, grinders, mixers, and fridge are expected to witness high demand in the coming years owing to rising adoption of tech-advanced products.
Europe is a mature region in the global consumer electronics market, which significantly gets benefited from the European Football Championship. According to the GFK survey, CE sector profited by 9.5% and reached USD 7.3 billion in the second quarter of the year 2016 from UEFA EURO 2016 football championship.
LAMEA holds the least share of the market owing to the poor infrastructure and reach of technological advancement, and limited availability of funds, especially in African countries. The Middle East is the major contributor to the regional market growth. In the near future, the region is expected to witness a sound growth due to many untapped opportunities in this region.
These players are trying to recognize the needs of the market in developing countries and expanding their strategies to improve business needs.
In January 2018, Panasonic Corporation started its first refrigerator plant in India with an annual production capacity of 500,000 units with an investment of USD 17.76 million
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Consumer electronics market is constantly evolving and has seen exciting developments in the recent years.
In December 2018, Amazon launched the second generation of Alexa-controlled Echo speaker, with the advanced expansion of its music, smart-home, and digital-assistant abilities.
In November 2018, Samsung worked on this civic initiative, called Project Pontis, in partnership with the Center of Neuroprosthetics of the Ecole Polytechnique Federale de Lausanne (EPFL) to develop a prototype that makes it possible to operate a Samsung Smart TV only with the brain. Samsung is planning to work on the second prototype in the second quarter of 2019.
In the consumer electronics market, sustainability has become an increasingly important for manufacturers. Therefore, an initiative related to the product innovation and market strategies is set to gain momentum in the coming years as they represent a substantial competitive advantage in the market.
In our report, we have covered the latest market related technological trends, factors impacting the development, and the competencies and capacities of the key companies in terms of production as well as sustainability and prospects. Moreover, the following sections are specifically covered in the report.