INDUSTRY REPORT
Market size 2025-2029 Bespoke AI refrigerator from Samsung.
The consumer electronics industry is highly competitive and fragmented with prominent players such as Apple Inc; Bose Corporation; Samsung Electronics etc. Manufacturers are adopting strategic steps( such as mergers, acquisitions, partnerships and collaborations) to meet growing consumer demand and consolidate their positions in the market. The market is also dynamic and multifaceted: it is shaped by innovation, brand reputation and consumer preferences.
The consumer electronics market size is forecast to increase by US $ 134.4 billion, at a CAGR of 5.4 % between 2024 and 2029, according to analyst Technavio.
“ The market is characterised by frequent product launches, driven by technological advancements and evolving consumer preferences. The rapid growth of the e-commerce industry significantly influences market dynamics, providing a vast platform for companies to reach a broader customer base. However, the long product lifecycle of major appliances poses a challenge, as consumers increasingly prefer upgrading to the latest technology only when necessary. Companies must navigate this obstacle by offering value-added services, extended warranties or financing options to incentivise purchases. To capitalise on market opportunities, businesses should focus on innovation, competitive pricing and effective marketing strategies to attract and retain customers,” advised the analyst.
“ Collaboration with e-commerce platforms and strategic partnerships can help to expand market reach and enhance customer engagement. Overall, the market presents significant growth potential, with companies that effectively address challenges and leverage trends poised for success,” it added.
Challenges and opportunities
Smart home ecosystems, voice-assisted technologies and wearable health monitoring devices are witnessing surging demand
However, the increasing integration of AI, machine learning and 5G connectivity presents significant growth opportunities, according to the analyst.
“ Smart home ecosystems, voiceassisted technologies and wearable health monitoring devices are witnessing surging demand. The emergence of foldable smartphones, AR / VR headsets and autonomous consumer electronics is set to redefine market dynamics. Additionally, the expansion of e-commerce and directto-consumer sales is enabling brands to reach a wider audience. Companies that leverage digital retail strategies, personalised product offerings and subscription-based service models will gain a competitive advantage in the evolving consumer electronics landscape,” it said.
Image: Samsung.
One of the major challenges in the consumer electronics market is the volatility in raw material prices particularly for semiconductors, lithium batteries and rare earth metals.“ Supply chain disruptions, geopolitical uncertainties and stringent regulatory policies further impact production and product pricing. To mitigate these challenges, industry players are investing in local sourcing, enhancing manufacturing automation and optimising supply chain resilience through strategic partnerships,” outlined analyst Future Market Insights.
Image: Samsung.
Samsung Electronics recently announced the official rollout of One UI 8, introducing advanced multimodal AI capabilities.
Sony recently expanded its INZONE gaming gear range with a full suite of products aimed at PC gamers.
Image: SONY.
Pinpointing new trends
“ Energy-efficiency standards are increasingly important, with manufacturers integrating 5G networks and implementing biometric authentication to enhance security and user experience. Product lifecycle management is a critical aspect of the industry, as companies strive to optimise supply chain operations and improve Li-ion battery capacity. Consumer electronics repair and electronic waste recycling are also gaining importance, as companies focus on enhancing product durability and reducing environmental impact,” commented Technavio.
Energy-efficiency standards are also increasingly influencing product design. Power efficiency is a major consideration in mobile processor designs, ensuring longer battery life and reducing the environmental impact of electronic waste. Sustainable manufacturing practices and electronic waste management strategies are becoming non-negotiable for companies seeking to minimise their environmental footprint.
“ Sustainability is an emerging priority, with 62 % of respondents in the UK and EU favouring energy-efficient, eco-friendly electronics with recyclable materials. 58 % of buyers in Australia and the Middle East seek premium, long-lasting devices, while 50 % in Southeast Asia and China prioritise cost-effective, feature-packed gadgets,” outlined Future
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