Key Market Overview:
Consumer Electronics Market size was estimated to have a net worth of USD 1083.2 Billion in 2022, registering a CAGR of 2.32% during the forecast period (2023-2030), and the market is predicted to be worth USD 1301.10 Billion by 2030.
Consumer electronics refers to electronic devices designed for personal or professional use. The devices offer convenience to the users and range from simple devices such as calculators and digital watches to sophisticated devices including smartphones, laptops, and smart home appliances. The growing inclination towards health and fitness is promoting the demand for health monitoring devices which in turn is driving the growth of the consumer electronics market. The use of fitness trackers and smartwatches that monitor physical activity, heart rate, sleep patterns, and other health metrics is contributing significantly in driving the growth of the market.
The increasing demand for entertainment is a significant driver for the growth of the consumer electronics market. Consumers access a wide range of entertainment options through electronic devices, including streaming video and music, gaming, and social media. In addition, streaming video and music services, such as Netflix and Spotify, have also become increasingly popular in recent years, driving the growth of the market. Gaming has also become a major entertainment category that raises the demand for gaming consoles such as the PlayStation and Xbox. The rise in gaming consoles allows for more immersive and interactive gaming experiences hence, contributing significantly in driving the growth of the market. For instance, in January 2023, HP launched OMEN 17 Laptop for gaming purposes with13th the Gen Intel Core i9-13900HX processor and the latest NVIDIA GeForce graphics. The 13th Gen Intel Core processor allows for smooth multitasking and efficient processing while NVIDIA’s latest technologies, such as real-time ray tracing and AI-powered DLSS improves the visual quality of games.
Advancements in technology such as Wi-Fi, Bluetooth, and 5G are playing a significant role in driving the growth of the consumer electronics market. Technological advancements enable wireless connectivity between devices and improve the speed and reliability of data transfer, creating a more seamless user experience. Additionally, advances in technology have led to faster data transfer speeds, enabling consumers to access and stream content more quickly and efficiently. The technological advancements including Wi-Fi, Bluetooth, and 5G connectivity is leading to the development of new products such as streaming media players, smart TVs, and gaming consoles, which in turn is driving the growth of the consumer electronics market.
For instance, in March 2021, Samsung Electronics launched Neo QLED 8K TV models (QN900A, QN800A) with Wi-Fi 6E certification from the Wi-Fi Alliance (WFA). Wi-Fi 6E is the latest standard for wireless networking, offering faster speeds, increased capacity, and reduced latency compared to previous versions of Wi-Fi. Additionally, Wi-Fi 6E offers users a more seamless streaming and gaming experience thereby driving the growth of the consumer electronics market.
Unavailability of electricity and limited internet penetration in underdeveloped countries act as a significant restraint to the growth of the consumer electronics market. In underdeveloped countries, access to the internet is limited, slow, or unreliable that makes difficult for consumers to use online services, such as streaming video or music, or to access educational resources, or other internet-based services. The unavailability of the internet limits the access to product and services experience to users that rely on internet connectivity, including smartphones, laptops, and smart home devices. Further, the unavailability of electricity in underdeveloped countries prevents the user from charging the devices or powering the home appliances, which limits the adoption of consumer electronics products. For instance, according to the International Energy Agency (IEA) data, about 770 million people in Africa and Asia survive without access to electricity which impedes the growth of the market.
The integration of artificial intelligence (AI) with consumer electronics devices such as washing machines is projected to create an opportunity for the growth of the consumer electronics market. Washing machines with AI use sensors to detect the type of fabric and dirt level of clothes and adjust the wash cycle accordingly. The integration is expected to create opportunities for market growth by improving the cleaning performance and energy efficiency. Moreover, AI-powered washing machines monitor the performance and detect potential issues reducing the need for repairs and maintenance, saving money, and reducing environmental impact by extending the lifespan of the machine. In conclusion, the integration of AI with consumer electronics is anticipated to create lucrative future opportunities for market growth. For instance, in May 2022, Samsung launched AI-enabled & connected AI EcoBubble washing machine. The washing machine is equipped with intelligent features such as AI Wash, Air Wash Technology, and Super Speed Cycle to enhance the laundry experience of the user.
Consumer Electronics Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||1301.10 Billion|
|By Type||Conventional and Smart|
|By Product Type||Televisions, Smartphones, Laptops & Notebooks, Tablets, Cameras, Air Conditioners, Refrigerators, Washing machines, and Others|
|By Technology||Industrial Near Field Communication (NFC), Magnetic Secure Transmission (MST), Artificial Intelligence, VR (Virtual Reality) Technology, and Others|
|By Application||Personal and Professional|
|By Sales Channel||Offline and Online|
|By Geography||North America, Europe, Asia Pacific, Latin America, Middle East and Africa|
|Key Players||HP Development Company, L.P., ECOVACS ROBOTICS, LG Electronics, Samsung Group, Toshiba Corporation, Apple Inc., Whirlpool Corporation, Huawei Technologies, Xiaomi Corporation, Panasonic Corporation|
The type segment is bifurcated into conventional and smart. Conventional consumer electronics dominate the market as the products designed to be compatible with other conventional devices, such as operating systems, streaming services, and accessories. Compatibility creates a seamless user experience and makes it easier for consumers to integrate new devices into the existing technology ecosystem, driving the growth of the market. In addition, conventional products are less expensive in comparison to smart products which further promotes the growth of the conventional consumer electronics market.
Smart consumer electronics are expected to register the fastest CAGR in the consumer electronics market in the upcoming years. The emergence of the Internet of Things (IoT) is projected to increase the demand for 5G interoperable devices that are controlled remotely through smartphones or voice assistants. Smart consumer electronics, such as smart speakers, smart home appliances, and wearables, are designed to work seamlessly with other devices, becoming a popular choice among consumers and bolstering market growth. Moreover, smart consumer electronics are increasingly integrated with AI and machine learning capabilities to learn from user behavior and make personalized recommendations. For instance, in March 2020, ECOVACS ROBOTICS introduced DEEBOT OZMO T8 AIVI, a new robot vacuum cleaner designed to use artificial intelligence and advanced sensors to navigate homes and clean floors. The smart vacuum cleaner uses artificial intelligence to recognize and avoid obstacles in its path, such as furniture and household items and also identify specific areas with more dirt and debris. The ability of smart consumer electronics to offer advanced features such as voice assistants and artificial intelligence is expected to drive market growth during the forecast period.
By Product Type
The product type segment is classified into televisions, smartphones, laptops & notebooks, tablets, cameras, air conditioners, refrigerators, washing machines, and others. Smartphones dominate the market as smartphones are versatile devices that perform a wide range of functions, from making phone calls and sending messages to browsing the internet, taking photos, and running various apps. Additionally, smartphones are portable thereby, offering greater convenience to users and promoting market growth. The capability of smartphones to offer versatility and mobility to users is the major factor responsible for driving the growth of the consumer electronics market. For instance, in September 2022, Apple introduced iPhone 14 and iPhone 14 Plus featuring a new dual-camera system and Crash Detection System. Smartphones are available in multiple colors and extended battery life thereby, fueling the growth of the consumer electronics market.
The refrigerator segment is anticipated to witness the fastest CAGR during the forecast period due to the integration of advanced technologies such as Wi-Fi and artificial intelligence. Additionally, the changing consumer lifestyle is also accelerating the market growth as consumers are increasingly seeking convenience and efficiency. As a result, refrigerators offering features such as quick cooling and temperature control are becoming more popular. Moreover, product innovation and investment by key companies are also accelerating the growth of the market. Consequently, the increasing demand for smart appliances, advancements in technology, changing lifestyle patterns, and investment by key companies are some of the factors driving the growth of refrigerators in the consumer electronics market. For instance, in January 2023, LG Electronics India announced to start of local manufacturing of premium SIDE BY SIDE refrigerators in India. Additionally, the company also invested approximately INR 200 crore to tap into the growing demand for high-end refrigerators in India.
The technology segment is categorized into industrial near field communication (NFC), magnetic secure transmission (MST), artificial intelligence (AI), VR (Virtual Reality) technology, and others. Artificial intelligence dominates the market and is predicted to witness the fastest CAGR during the forecast period. Artificial Intelligence (AI) automates routine tasks, such as setting reminders, scheduling appointments, and controlling smart home devices that save time and improve efficiency.
Additionally, AI optimizes device performance by analyzing data and adjusting settings to achieve optimal performance leading to improved battery life, faster processing speeds, and better overall performance. Consequently, the advent of technology such as artificial intelligence, machine learning, and robotics to offer improved performance is projected to drive the growth of the consumer electronics market during the forecast period. For instance, in February 2022, LG Electronics launched a range of AI Dual Inverter air conditioners. The air conditioners are equipped with advanced artificial intelligence technology that adjusts the cooling power according to the room temperature and the number of people in the room. The advent of such technology helps to reduce energy consumption and promotes market growth.
The application segment is bifurcated into personal and professional. Personal application segment dominates the market in 2022 and is also anticipated to register the fastest CAGR during the forecast period. Smartphones, laptops, and tablets allow individuals to communicate with each other through voice, video, and messaging apps, to stay connected with friends and family. In addition, TVs, gaming consoles, and audio systems provide a wide range of entertainment options, from streaming movies and TV shows to playing video games and listening to music.
Moreover, the advent of wearable devices, such as smartwatches and fitness trackers, help individuals to track physical activity and monitor health is also fueling the market growth. The ability of consumer electronics to be used in personal settings by offering improved communication, entertainment, and fitness tracking serves as the key factor in driving the growth of the market. For instance, in October 2022, Garmin India launched the Garmin Venu Sq 2 Series of GPS smartwatches. The Venu Sq 2 Series features built-in GPS, heart rate monitoring, sleep tracking, and a variety of fitness tracking modes and also includes a range of smartwatch features such as notifications, music controls, and Garmin Pay.
By Sales Channel
Based on sales channel, the market is bifurcated into offline and online. The offline channel dominates the market in terms of revenue as the product is available in a wide range of retail stores including electronics stores, department stores, and home appliance stores. Additionally, the offline channel holds a significant advantage as customers exhibit a preference for physical product testing before purchase, particularly for expensive items such as washing machines and refrigerators.
Moreover, offline stores provide the opportunity for customers to interact with the product, understand product features and functionality, and make informed decisions. The aforementioned factors are collectively responsible for driving the growth of the consumer electronics market. For instance, in January 2021, Toshiba inaugurated Toshiba Lifestyle Centre in Bengaluru. The Lifestyle Centre will showcase the latest range of superior home appliances from the house Toshiba including refrigerators, washing machines, washer dryer, dishwashers, air purifiers, and water purifiers.
The online sales channel is expected to register the fastest CAGR during the forecast period. The growth is attributed to the shift in customer behavior of shopping online through e-commerce websites and having the product delivered to the door. Additionally, online channels provide consumers with access to detailed product information and customer reviews, helping customers to make informed purchase decisions. Moreover, many online retailers use data analytics to personalize the shopping experience for consumers, offering product recommendations and promotions based on browsing and purchase history. The aforementioned factors including convenience, wider product range, price comparison, and personalization are the key factors in driving the growth of the market during the forecast period.
Asia Pacific accounted for the largest share in 2022 as the region is experiencing rapid digitization, with more people using the internet and mobile devices. The growing trend for online activities such as online shopping, digital payments, and social media raises the demand for smartphones, laptops, and other devices which in turn promotes the growth of the consumer electronics market. Additionally, presence of key manufacturers including Samsung Electronics, Sony Corporation, and Panasonic Corporation constantly apply product innovations and strategic decisions to strengthen the market position. The rapid digitalization and presence of key companies are the major factors responsible for accelerating the growth of the market in Asia Pacific countries during the forecast period.
North America is expected to register the fastest CAGR as the region has several leading academic institutions and well-funded research organizations that accelerate the pace of innovation and development of new technologies in the consumer electronics industry. Additionally, the increasing adoption of smartphones for a different purpose such as communication, entertainment, and productivity is also driving the growth of the consumer electronics market. Moreover, the rollout of 5G technology in North America increased the speed and reliability of internet connectivity, enabling faster data transfer rates and lower latency thereby, creating new opportunities for consumer electronics companies. Further, the emergence of wearable devices such as smartwatches, fitness trackers, and patches to monitor vital signs and other health parameters is also contributing in driving the growth of the consumer electronic market. In conclusion, the aforementioned factors including increased adoption of smartphones, 5G, and wearable devices are driving the growth of the consumer electronics market in North America. For instance, in August 2022, Medtronic and BioIntelliSense partnered together for exclusive U.S. distribution of a multi-parameter wearable for continuous remote patient monitoring. The partnership will enable more patients to access remote patient monitoring, which helps to improve patient outcomes by reducing healthcare costs and driving the growth of the consumer electronics market in the region.
Consumer Electronics Market Competitive Landscape:
The consumer electronics market is highly competitive, with a large number of players vying for market share. The companies compete with each other through innovation, product differentiation, pricing strategies, and marketing campaigns to gain market share and maintain a competitive edge. Some of the major players in the market include:
- HP Development Company, L.P.
- ECOVACS ROBOTICS
- LG Electronics
- Samsung Group
- Toshiba Corporation
- Apple Inc.
- Whirlpool Corporation
- Huawei Technologies
- Xiaomi Corporation
- Panasonic Corporation
- In October 2021, Whirlpool of India launched a new range of premium refrigerators called the “W Series,” featuring a Quattro (4-door) design with several advanced features. The W Series refrigerators are equipped with Whirlpool’s 3D Airflow technology, which ensures even cooling throughout the refrigerator compartment, and a “Convertible Freezer” that converts the freezer into a fridge.
- In July 2021, Samsung announced to launch of washing machines with hygiene steam technology of 8kg capacity. The washing machine is capable of removing ingrained dirt and 99.9% of bacteria and allergens.
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