Consumer Electronics Market size worth over $1,500 Bn by 2026
Published Date: August 12, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
Consumer Electronics Market size is set to surpass USD 1,500 billion by 2026, according to a new research report by Global Market Insights, Inc.
The consumer electronics market growth is driven by increasing consumer disposable income and spending capacity across the globe. High inclination of millennials and youth toward purchasing technologically advanced consumer electronics is contributing to the market revenue.
Growing trends of smart homes are expected to fuel the demand for advanced consumer electronics over the coming years. Shifting consumer preferences toward smart gadgets integrated with disruptive technologies, such as IoT and AI, are positively influencing the market value.
One of the key factors challenging the consumer electronics market growth is the rapidly changing technological landscape. Emergence of new technologies is making old consumer electronics obsolete. Proliferation of smartphones with multiple cameras is contributing to the declining market demand for digital cameras. Increasing adoption of tablets is causing a decline in the share of laptops. The capital-intensive nature of the market is also posing as a major challenge, restricting the entry of new players.
Escalating economic disruption and huge loss of lives due to COVID-19 pandemic are impacting the growing market size of consumer electronics in 2020. Governments of several countries have imposed partial lockdowns and strict restrictions related to international trade and business operations. Increasing financial insecurities and loss of jobs have encouraged consumers to spend on essential items, such as groceries and medicines, instead of purchasing high cost consumer electronics. The report predicts that the market will witness a steady growth with a reduction in the impact of the virus.
Increasing demand for smart household appliances with rapid urbanization
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The major household appliance segment valuation was more than USD 200 billion in 2019 owing to growing employment opportunities and population shift from rural to urban areas. Rapidly rising urbanization is creating a huge demand for major household appliances such as refrigerators, washing machines, and dishwashers.
Integration of smart technologies, such as IoT-based sensors and voice-assistant enabled controls, into major household consumer electronics is boosting the market growth. Increasing demand for smart appliances is encouraging industry leaders to introduce new consumer electronic products and increase their revenue shares. For instance, in July 2020, Samsung Electronics launched its new model of connected refrigerator, SpaceMax Family Hub. This new model is incorporated with several IoT-based features such as automated meal planning and remote control of temperature setting through a mobile application.
Browse key industry insights spread across 325 pages with 395 market data tables & 52 figures & charts from the report, “Consumer Electronics Market Size, By Product (Audio & Video Equipment [Personal, Professional], Major Household Appliance, Small Household Appliance, Digital Photo Equipment [Personal, Professional]), By Application (Personal, Professional), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020-2026” in detail along with the table of contents:
Proliferation of professional electronic devices impelled by several industry applications
The professional application segment in Asia Pacific market is estimated to witness around 4.5% growth rate from 2020 to 2026 led by their applications in several commercial and industrial sectors. The hospitality industry will register a high demand for professional appliances such as air conditioners, purifiers, microwave ovens, and refrigerators. The rapidly increasing entertainment & media sector is creating robust opportunities for professional cameras and video recording equipment.
Rising inclination toward adoption of technologically advanced products in Europe
Europe consumer electronics market valued at over USD 250 billion in 2019 and is projected to expand at a CAGR of 6.5% through 2026 on account of technology-driven population with high inclination toward adopting innovative devices. The presence of several established players, such as Koninklijke Philips N.V., Siemens AG, and Robert Bosch GmbH, is positively influencing the regional market. These industry players are investing huge amounts in R&D and innovation for the development of technologically advanced products.
Leading market players are adopting strategic partnerships and collaboration strategies to enhance their competencies and maintain an edge in the industry. For instance, in October 2018, AB Electrolux announced its partnership with ‘Drop’, a smart kitchen company, to integrate its appliances with the company’s online platform and mobile app. The platform provides customized recipes and guidelines suited to Electrolux appliances for enhanced user experience. Other prominent strategies adopted by manufacturers include strategic product launches and acquisitions.
Major companies operating in the consumer electronics market include Samsung Electronics Co. Ltd, LG Electronics, Whirlpool Corporation, Dell,Inc. Apple, Inc. Microsoft Corporation, General Electric, Bose Corporation, Sony Corporation, AB Electrolux, Canon, Haier, Huawei, Xiaomi, and GoPro.