According to a new report by Global Market Insights Inc, the global market valuation of consumer electronics will cross $1.5 trillion (eds. €1.28 trillion) by 2027. 

The new report is entitled “Consumer Electronics Market by Product (Audio & Video Equipment, Major Household Appliance, Small Household Appliance, Digital Photo Equipment), Application (Personal, Professional), Regional Outlook, Price Trends, Competitive Market Share & Forecast 2027”. 

Rapid technological advancements in consumer electronics including smartphones, laptops, earphones, headphones, and speakers will, says the report, fuel the market growth. The industry has embraced disruptive technologies, such as artificial intelligence, the Internet of Things, and machine learning, which are enhancing product functionality. 

The Covid-19 pandemic in 2020 had a negative impact on the consumer electronics market, leading to several challenges. Government-imposed lockdowns across the globe temporarily halted the production activities of consumer electronic appliances. Economic recession and a fall in purchasing power have led to reduced spending on non-essential items; however, work from home policies created a demand for laptops and smartphones. The industry gained momentum from Q4 of 2020 with a gradual easing of lockdown and resumption of production activities. 

The demand for small household appliances such as mixers and microwave ovens are expected to rise during the forecast period. Growing residential construction activities in Asia Pacific and the Middle East coupled with increasing disposable incomes will support the segment growth. In addition, kitchen appliances including microwave ovens, dishwashers, and smart coffee makers are poised to witness high demand due to changing lifestyles in urban areas.

Some major findings in the consumer electronics market report include:

• Rising urbanisation and increasing disposable income across APAC and Latin America are increasing the demand for consumer electronic products.
• The proliferation of wireless technologies, such as Near Field Communication (NFC), Wi-Fi, and Bluetooth, will provide ample growth opportunities to the market.
• The growing demand for energy-efficient appliances with versatile performance and features is encouraging market leaders to launch new products.
• The audio & video equipment segment is anticipated to grow at a significant rate led by the development of new technologies such as 4K, 8K, and high-resolution systems.
• An increasing number of video content and broadcasting companies, such as Hotstar, Netflix, and Amazon Prime, developing 4K content will propel the demand for ultra-high-definition systems.
• Rising consumer preferences for smart home devices, such as Alexa, Google Home, and Siri, due to increasing connectivity will augment the growth of smart home appliances.

For its part, the North America consumer electronics market is projected to observe steady growth through 2027 owing to the presence of a high number of internet users and the early adoption of smart household electric appliances. The regional growth can be attributed to the presence of prominent market leaders including Apple, Google, Amazon, and General Electric coupled with hefty investments in R&D activities by several market participants.

Photo: Erik McLean / Unsplash