INDUSTRY REPORT
( CAGR ) of approximately 7.6 % over the forecast period ,” commented analyst , Zion Research , in its latest market report published in March this year .
The report analyses market drivers as well as restraints / challenges and the effect that they have on demand during the projection period . It also explores emerging opportunities in the consumer electronics ’ market .
“ Consumer electronics have become essential as part of the modern lifestyle and are expected to maintain this significant outlook over the forecast period . The consumer electronics ’ market is anticipated to be greatly influenced by increasing technological proliferation on a global scale ,” continued the analyst .
It expects the market to be governed by factors such as increasing urbanisation , rising disposable income and growing digitisation which promote the sales of consumer electronics . The market is expected to see lucrative opportunities from the emerging smart technologies trend . However , market growth is predicted to be restrained by low technological proliferation in economies with low GDP and less spending potential .
The COVID-19 pandemic led to a steep decline in consumer electronics ’ market revenues owing to a drop in sales in lockdown conditions . Lockdowns resulted in the closure of multiple sales and distribution channels and this negatively impacted market growth . However , the work-from-home trend that emerged during the pandemic helped the market to recover some losses as sales of residential consumer electronics saw a surge in demand in 2020 .
“ The consumer electronics market is anticipated to make a good comeback in the post-pandemic era as restrictions are lifted and the world returns to normality . Consumer electronics ’ companies are anticipated to run manufacturing facilities at full capacity to compensate for losses that were incurred in 2020 due to downtime ,” added Zion Research .
“ There are still unexplored territories that market players can tap into and unleash full market growth . They have yet to fully penetrate markets with low-income population and this is a major restraint as affordable products are hard to make due to the high costs of components and electronics ,” it continued .
A stamped semi-conductor lead frame for electronic chip .
Connected home technology will drive demand for smart devices and the increasing penetration of Internet of things ( IoT ) devices is also expected to enhance consumer electronics ’ market growth through to 2028
Gaming has boosted market revenues .
Analyst , Verified Market Research , believes that the smartphone will be a primary driver of the global consumer electronics market .
“ Various smartphone manufacturers are coming up with innovative features , increasing sales of this device . Demand is likely to be driven by technological developments , the emergence of 3G and
4G technologies , and innovation ,” it said .
Smart technology trends
Smart technologies have seen a prominent rise in popularity over the past few years and this trend has greatly fuelled consumer electronics ’ market growth . The adoption of smart technology is expected to pick up pace through to 2028 . Connected home technology will drive demand for smart devices and the increasing penetration of Internet of things ( IoT ) devices is also expected to enhance consumer electronics ’ market growth through to 2028 .
Any collection of gadgets , systems or appliances that are connected to a single network and may operate independently and from a distance are referred to as smart home automation . A connected home is a more general term for a home ' s technology when it functions as one system . As an illustration , the home ' s thermostat ; lighting ; audio speakers ; security cameras ; TVs ; locks ; appliances and more are all interconnected into a single system that can be managed from a smartphone or via a mobile touchscreen device .
One of the major benefits of employing a smart home automation system is that it allows the user to remotely monitor their entire house . The rising focus on energy conservation and reduced carbon emissions are anticipated to drive market growth . Improved regulatory initiatives by governments for deploying smart home devices to save energy are encouraging people to adopt these products , thereby significantly impacting market growth .
Several government authorities are making efforts to promote the growth of electronic products . Initiatives are underway to integrate modern technologies such as 5G , IoT , AI and machine learning into electrical equipment . Increasing investments are also afoot to boost domestic electronic manufacturing hubs . Multi-pricing strategies and specific product launches are also being introduced to attract various consumer segments .
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