With the middle-class, urban population increasing and a major shift in lifestyle, Future Market Insights anticipates exponential growth prospects for the global consumer electronics market. The market is expected to reach a market valuation of US$ 1,712.9 Bn by 2016 end registering a CAGR of 15.4% over 2016-2020. Smartphones are slated to dominate the consumer electronics product type segment, whereas Asia Pacific will continue to be the leading region in terms of consumer electronics consumption over the forecast period.
Within the consumer electronics market, the consumer electronic device segment will remain dominant with over 97% share of the global market by the end of the forecast period. The smart home device segment, on the other hand, is poised to expand at the fastest CAGR through the forecast period, with maximum revenue from smartphones.
Geographically, top producers are likely to focus on product capacity, production, value, consumption, market share and growth opportunity in key regions, covering North America, Eastern & Western Europe, Latin America, APEJ, Japan, and MEA. APEJ is anticipated to retain dominance registering the fastest CAGR and the largest market value share by 2020 end, followed by North America and Europe, slated to be next major markets.
Lifestyle Shift, Internet Penetration to Fuel Consumer Electronics Consumption
In the last few years, the world has witnessed a surge in the middle-class population, owing to better per capita income. This has led to a shift in lifestyle and in turn, preferences of urban consumers. Soaring Internet penetration and increasing disposable income are the primary factors fueling the consumer electronics market over the next few years. Additionally, wearable electronics have also witnessed wide adoption among consumers in the recent years.
For More Detailed Insights on Consumer Electronics Market
Moreover, growing awareness about the benefits of electronic devices, rising popularity of the connected homes, and increased adoption of smart mobile devices, kitchen appliances, and intelligent security systems will fuel the consumer electronics market. Government support to digitalization of a variety of services and technological advancements as a result of consistent R&D by key companies to develop new products will further boost the consumer electronics market growth during the forecast period.
High Product Costs, Technological Hazards Could Hamper Consumer Electronics Market
On the other hand, high purchase costs associated with connected consumer electronics, wearable devices, and smart home devices are expected to hamper adoption rates. To worsen the market dynamics, FMI anticipates that the costs of connected consumer electronic devices such as tablets, connected TVs, and digital camcorders are expected to remain high over the forecast period- impeding the growth of the consumer electronics market to some extent. Lower technological awareness in emerging economies and high cost of electronic devices, along with recent incidents of technological hazards and accidents, especially in smartphones may continue to restrict adoption of smart consumer devices on a global level.
Key players including Apple Inc., Sony Corporation, Samsung Electronics Co. Ltd., Hitachi Ltd., Toshiba Corporation, LG Electronics Inc., HP Inc., Panasonic Corporation, and Toshiba Corporation are largely targeting product portfolio expansion through innovative and cost-effective product launches and development. Mergers, acquisitions, joint ventures, and partnerships are going to the key market strategies adopted by key players.
To know more about the various other factors contributing to wide adoption of consumer electronics, reach out to the analysts of Future Market Insight at [email protected]
About Electronics, Semiconductors, and ICT division of FMI
The electronic, semiconductors, and ICT division at Future Market Insights focuses on tracking and analyzing ever-changing dynamics of the IT and telecommunication industry. The ICT team has also executed several complex projects pertaining to the convergence of healthcare and ICT, rapid adoption of ‘as-a-service’ business model, growth prospects of consumer electronics market, and evolution in design and fabrication of semiconductors. To help clients from all over the globe meet their unique needs, the team offers a variety of customized market research reports and consulting services: reach out to explore how we can help.
About Future Market Insights (FMI)
Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India. FMI's latest market research reports and industry analysis help businesses navigate challenges and take critical decisions with confidence and clarity amidst breakneck competition. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. A team of expert-led analysts at FMI continuously track emerging trends and events in a broad range of industries to ensure that our clients prepare for the evolving needs of their consumers.