According to the report, global consumer electronics market was valued at around USD 1,172 billion in 2017 and is expected to reach approximately USD 1,787 billion in 2024, growing at a CAGR of slightly above 6.0% between 2018 and 2024.
Zion Market Research has published a new report titled “Consumer Electronics Market by Product (Smartphone, Television, DVD players, Refrigerators, Washing machines, Digital cameras, and Hard disk drives) and by Region (North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa) – Global Industry Perspective, Comprehensive Analysis and Forecast, 2017 – 2024’’. According to the report, global consumer electronics market was valued at around USD 1,172 billion in 2017 and is expected to reach approximately USD 1,787 billion in 2024, growing at a CAGR of slightly above 6.0% between 2018 and 2024.
Global consumer electronics market suffered from a slag period during 2011 to 2013. However, the industry is gaining certain momentum owing to strong performance in countries such as India and China. Recovering economy in certain nations will provide a positive outlook to the consumer electronics market in near future. New products and concepts are the preliminary drivers coupled with recovery of mature economies.
Rising adoption rate of smartphones is fueling global consumer electronics market. Innovations and emergence of advanced technologies such as 3G and 4G will drive the demand of smartphones. Consumers are spending heavily for specialized appliances including milk coolers to maintain the flavor and quality of specific beverage for the longer time period. Rising beverage consumption is contributing significantly to the demand for beverage refrigeration equipment. Stringent government regulations such as new energy standards by “the U.S. Department of Energy” coupled with eco-friendly refrigerant substitutes by EPA strengthens refrigerators demand that comply with these norms.
Replacement of existing electronic appliances due to technologically advanced versions of the product will fuel consumer electronics market till 2024. In 2013, 23% sales of worldwide flat-panel LCDs were the replacement of traditional flat panel display. The share is anticipated to reach 67% by 2018. This would, in turn, register a CAGR of 3.8% in TV shipments between 2013 and 2018. There is a major trend of flat panel LCD replacement in developed markets of North America and Western Europe. The global number of TV households is anticipated to reach 1.6 billion by 2018 as compared to 1.49 billion in 2013. Positive outlook in demand for TV sets will contribute substantially in the global consumer electronics market during the forecast period.
Washing appliances such as washing machine have registered substantial growth rate worldwide along with innovations and new development from a technology standpoint. Various distributors and manufacturers are developing advanced products in the industry. Multiple types of models such as front load fully automatic, top load semi-automatic, and fully automatic washing machine and dryers are gaining traction in consumer electronics market. Numerous sales channel of the product such as e-commerce, retail chains, and direct selling will induce potential for product availability. Washing appliances are extensively used in commercial as well as residential applications.
The Asia Pacific is projected to have a significant share in revenue generation of global consumer electronics market during the forecast period. Numerous manufacturers have registered exponential growth in their sales as well as profit in the last decade. Efforts of LG Electronics towards premiumization have resulted in its sales and profit growth for the fiscal year 2015. As per the filings with “Registrar of Companies”, the company’s sales grew by 12% to USD 1.936 billion in March 2015. And profit after tax increased by 20% to USD 113 million. As per various division, the company’s sales expanded by 12% in home appliances sector, 12% in a smartphone, and 11% in home entertainment. LG is not only pursuing high priced products but is introducing mass premium products that include single door refrigerator along with new colors and added feature. These products are a slightly premium cost to yield better profitability.
In 2013, North America registered a size of USD 202.6 billion in consumer electronics market, witnessing nearly 2.5% growth as compared to previous year. Smartphones and tablets contributed nearly, one-third of the industry revenue in the same year. The U.S. smartphone market revenue has increased by 14% and tablet sales have grown by double-digit in 2014. The U.S. consumer electronics factory sales have increased by 4.5% in 2014 as that of 2013.
The European digital market is considered one of the largest markets worldwide and still has the potential to expand more in the forecast period. Bigger countries contribute significantly to e-commerce trade whereas small countries rely on cross-border e-commerce, were digital single market (DSM) is in infancy. DSM is concentrated in certain product categories that include footwear, clothing, consumer electronics, and media products, together accounting for 45% of sales.
Global consumer electronics market is highly fragmented in nature with the presence of many evolving and existing producers. Key players are heavily investing in research and development to introduce advanced versions of existing products along with mergers and acquisitions. Prominent producers in the global consumer electronics market are GoPro, Nikon, Canon, Haier, AB Electrolux, Sennheiser, Sonos, Bose, Sony Corporation, LG Electronics, Huawei, General Electic, Apple, and Samsung Electronics.