Growth in the home electronics market in 2020
The COVID-19 pandemic and the resulting economic downturn did not have a negative impact on the global market for home electronics products last year. To the contrary: After a 2.4% decrease in 2019, global sales in-creased by 3.2% in 2020.
According to GfK figures, consumers spent a total of US$1.26 trillion (€1.26 trillion) worldwide on products from the consumer electronics and domestic appliance segments. This includes telecommunication products, consumer electronics, photography and IT products, as well as small and major domestic appliances.
However, the market figures varied substantially both regionally and in specific product categories. While the global market for telecommunications products shrank by about 6%, and consumer electronics (including photography) decreased by 3%, sales of major domestic appliances such as refrigerators and washing machines grew by 5%.
Small domestic appliance sales were strong: This segment, which includes kitchen appliances, health and hair care products as well as vacuum cleaners, saw an increase in sales of 15%. However, the IT and technical office product segment outperformed all others, growing by 22%. The figures clearly show that more work was done in home offices. Not to mention that in addition to home schooling, people all around the world spent significantly more time at home.
Europe in particular stands out in the regional analysis: Strong sales saw an impressive growth of 12% to reach US$343bn (€293bn) in 2020. In comparison, North America grew modestly by 3% to reach US$262bn (€224bn). The Middle East and Africa region grew by 2% to reach US$74bn (€63bn). The Asia-Pacific region recorded a slight decrease of 1%, falling to US$503bn (€430bn). Latin America fell by 3% to US$78bn (€67bn).
“The regional figures that we presented in spring showed how our industry is robust in the face of the COVID-19 and its related economic impacts, even showing growth during this crisis. The global figures for the year demonstrate once again the global interrelated nature of these developments. Instead of asking whether a market development in one region of the world is reflected by another, we need only ask to what extent,” said Dr Sara Warneke, Managing Director of gfu Consumer & Home Electronics GmbH.
Photo – top of page – by Christopher Gower / Unsplash