INDUSTRY REPORT
The rapidly changing technological landscape is encouraging consumers to adopt new gadgets integrated with the latest technologies
According to analyst Global Market Insights , the consumer electronics ’ market size was valued at over US $ one trillion in 2020 and is estimated to grow at a CAGR of more than 8 % from 2021 to 2027 . Rapidly increasing internet penetration across the globe will drive market growth , it said .
“ Continuous investments by market players in R & D for the development of new consumer electronic products with enhanced features will fuel industry growth of consumer electronics . For instance , Philips spent US $ 506.14 million in R & D activities in the first quarter of 2021 . The market is one of the fastest-growing industries attributed to the emergence of new technologies . Rapid advances in technology to cater to consumer demands will create market opportunities during the forecast period ,” said the analyst .
“ The market trend of integrating microLED technology into televisions for high-resolution density will augment market expansion . Prominent market leaders including LG ; Sony ; Samsung and others have launched microLED TVs for commercial and residential uses ,” it added .
However , it also highlighted that short product lifecycles and the availability of counterfeit products pose significant challenges to market progression .
“ The rapidly changing technological landscape is encouraging consumers to adopt new gadgets integrated with the latest technologies . This has led to a rapid reduction in the product lifecycle of consumer electronics ( such as smartphones , laptops , cameras and televisions ) restraining market demand . The emergence of new smartphones with multiple cameras and highresolution displays has posed a significant threat to digital photo equipment . Digital photo equipment is also expensive and complex to operate , reducing their demand among younger populations ,” added the analyst .
Smart home equipment
The audio & video equipment segment dominated more than 60 % of market share in 2020 , according to Global Market Insights , with over 2,000 million new units sold . The proliferation of smartphones and the growing preference for smart homes will augment the demand for audio & video equipment , said the analyst .
“ The integration of advanced features , such as enhanced connectivity , voice assistant-enabled control and speech recognition , will impel the acceptance of audio & video equipment . Voice assistants ( such as Google Home , Siri and Alexa ) enable consumers to control their home appliances with a simple voice command . The integration of consumer electronics , such as speakers and earphones , with voice assistant equipment will provide a positive market outlook . In addition , product upgrades and new product launches by several consumer electronics companies to increase consumer experience are also driving industry progression ,” it said .
The personal application segment is anticipated to witness a 9 % growth rate by 2027 on account of the growing spending capacity on discretionary products due to rising income . Falling prices of personal consumer electronics ( such as Bluetooth speakers , earphones , smartphones and smart wearables ) are , said the analyst , ‘ impelling ’ industry demand for these electronics .
“ The availability of devices stimulating automation of daily chores drastically changed consumers ’ preferences from general singlepurpose electronic products to multi-functional smart devices . As a result , the consumer electronics manufacturing companies flourished on the surge in demand for various wearable , smart home and other consumer electronic devices . The global consumer electronics market expanded at 3.8 % CAGR ( value ) from 2016 to 2020 ,” added analyst , Future Market Insights .
“ The rise in requirement for smart accessories , smart home devices and others , coupled with the increase in environmental awareness , is encouraging adoption of energy-efficient products that guarantee more performance efficiency in cost-effective ways . We project the global consumer electronics market to expand at a CAGR of 5.6 % through to 2031 ,” it added .
According to FMI , the smart home device category is expected to reach a 12 % market share by 2031 . In terms of subcategories , smart kitchen appliances are expected to dominate the industry in volume terms .
The global consumer electronics market expanded at 3.8 % CAGR ( value ) from 2016 to 2020
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