Growing Consumer Electronics Market a Big Opportunity for Manufacturers

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A Gfk report says that manufacturing more smart devices can be the new success factor for manufacturers as such devices have the potential to become the central management unit of a smart home

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Year 2018 registered six percent increase in sales of consumer electronics worldwide. A report published by Gfk has also predicted that consumer electronics sales will increase by four per cent in 2019.

Markus Kick, a GfK expert in consumer electronics domain, said, “Manufacturers need to stay abreast of the trend towards premium devices and, correspondingly, offer products equipped with upmarket features. Given increasing saturation rates, sales potential can still be increased here. The factor which will determine success is the intuitive operability of the devices. Ever more consumers quickly lose interest in electronic devices if they are not easy to operate. The ease of use of different technological components is, then, a decisive purchase criterion.”

The report has also highlighted that the market for smart devices, equipped with upmarket features, still has a lot of potential to offer.

Can going ‘smart’ be the new success factor for manufacturers

Global rise in sales of consumer electronics is witnessing a surging demand for smart soundbars or smart screens. The use of voice assistants based on Artificial Intelligence (AI) are on the rise too.

Such devices have the potential to become the central management unit of a smart home. This also proves that voice control, alone, may not yet offer the convenience of intuitive operability that consumers expect from their technological products today.

The Gfk report said, “The first signs of deterioration in the market for multi-room devices that allow different songs to be played in different rooms became visible: the revenue from loudspeakers and audio accessories which only offer this function decreased in 2018. Driven by the platform providers’ ever growing hardware range, ‘smart’ functions in audio devices are increasingly a basic condition for revenue growth.”

Headphones and portable Bluetooth loudspeakers leading growth

Revenue generated by headphones and mobile stereo headsets stood at around €14 billion (around Rs 9,80,91,00,00,000) in 2018. These revenue figures also showcase 40 per cent increase in revenue in 2018 as compared to previous years. As a matter of fact, more than half of this revenue, was generated by audio devices powered by Bluetooth technology.

Gfk report said, “Since smartphone manufacturers are increasingly eliminating headphone jacks from devices, Bluetooth capable headphones and headsets will continue on their growth trend. True wireless headphones with two separate earbuds are the technology of the hour in this regard.”

It is worth mentioning here that Bluetooth headphones generated more revenue than noise-cancelling headphones in 2018. This segment also registered a growth of 20 per cent increase in the average price.

Portable loudspeakers, with the capability of being connected to a smartphone using Bluetooth, registered around €5 billion in revenue. This segment also witnessed a growth of 15 per cent over previous years.

Gfk report said, “This segment is also clearly aiming towards the premium sector: the price classes above €150 accounted for just under one third of total revenue. With respect to technologies that protect loudspeakers from the elements, only splash-proof and waterproof devices have positioned themselves on the market. The majority of devices sold still come without such protection. This function does not appear to be a decisive selling point.”

Global TV market profiting from high-end devices

The revenue generated from TVs sold globally stood at around €100 billion in 2018. Gfk said that the growth was primarily driven by high-end devices with a screen size of at least 50 inches. As a matter of fact, more than half of global TV revenues came from this segment in 2018.

Gfk report read, “In this regard, display panels with organic light diodes (OLED) are becoming increasingly popular. OLED is the leading display technology in the premium segment, with growth rates above 100 percent. OLED devices’ share in total TV revenues currently amounts to between five and ten percent, and an increasing number of manufacturers are edging into this market, causing prices to fall.”

The report also highlighted that use of 4K technology in TVs is still on the rise and the first 8K models are already on the market.

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