INDUSTRY REPORT
systems and more,” said the report by Research and Markets.
“ Other market drivers include rising disposable income; e-commerce expansion; the rising popularity of wearables; the adoption of artificial intelligence; growth in the residential sector; favourable government initiatives; the increasing use of smart speakers etc. These are significantly influencing the consumer electronics market,” continued the report.
Growth drivers also include the rise of the Internet of Things( IoT), the increasing popularity of social commerce, advances in AR / VR( augmented / virtual reality), sustainability, the growing popularity of gaming and e-mobility.
Image: Panasonic.
Headwinds and challenges
“ Consumer electronics producers have endured moderate volatility in recent years. Producers have somewhat benefited from shifts in consumer behaviour, with the growing popularity of entertainment in audio form, like podcasts, driving demand for new audio equipment. Similarly, smart TVs have become more popular amid the fast adoption of streaming services, as many of these have streaming apps integrated into their software,” commented market analyst, IBIS World.
“ However, during this time, heightened macroeconomic instability( including elevated inflation, interest rates and consumer uncertainty) contributed to drastic revenue losses as the discretionary nature of new electronics pushed consumers to postpone or cancel non-essential purchases. Other factors like supply chain disruptions, climbing input prices and protectionist policies have pushed electronic prices higher, making them less appealing to increasingly price-conscious buyers,” it continued.
“ Macroeconomic conditions are challenging consumer electronics manufacturers. High inflation, elevated consumer uncertainty and slower technology advancements discourage purchases, harming revenue. Mobile device sales are dropping because of supply chain hiccups. Geopolitical tensions, higher semiconductor costs and inflationary pressures are pushing electronics prices higher and discouraging consumers from upgrading their electronics,” it added.
Counterfeit products pose a serious threat to the consumer electronics industry. Counterfeit products are cheap alternatives available in the market which replicate original products.. Any electronic device or a product
The ThinkBook“ codename Flip” AI PC Concept from Lenovo.
Other factors like supply chain disruptions, climbing input prices and protectionist policies have pushed electronic prices higher
Above: The new Lenovo Yoga Solar PC Concept( POC)— A PC powered by the sun.
purchased from an unauthorised seller can be dangerous.
“ Counterfeit products use cheap materials and components – they often sell at lower prices. Generally, there is difficulty in identifying the differences between the original and counterfeit products,” explained analyst, Global Market Insights.
Market trends
According to analyst, Global Market Insights, the incorporation of AI( artificial intelligence) alongside IoT into consumer electronics is regarded as a market change. Devices such as smart TVs and telephony are now equipped with AI voice assistants like Alexa and Google Assistant.
At MWC 2025 recently, for example, Lenovo unveiled groundbreaking advances in hybrid AI with integrated devices and solutions. The democratisation and personalisation of AI remains a key focus for Lenovo as the company embeds greater intelligence into devices and launches agentic AI solutions capable of performing real tasks.
“ The use of wearable devices, such as fitness trackers and smartwatches, continues to grow steadily. With these devices vital for health-conscious individuals, the addition of health monitoring technologies makes them even more appealing. Ecoefficient devices and eco-friendly manufacturing methods are gaining popularity. Sustainability remains a key driver for consumers as more brands are focused on producing recyclable and eco-friendly products,” outlined the analyst.
“ New gaming, entertainment and even workplace environments are being created with the help of AR( augmented reality) and VR( virtual reality) technologies. These technologies create new markets for devices supporting these immersive experiences,” it added.
The incorporation of accessibility features is also becoming more prevalent in consumer electronics. Products designed with features such as voice command, larger text options and screen readers enhance usability for individuals with disabilities, fostering inclusivity and expanding consumer demographics. n
24 | ismr. net | ISMR April 2025