Consumer Electronics Market

2021 Analysis and Review: Consumer Electronics Market by Sales Channel – Hypermarket, Online, Specialty Store, et. al for 2021-2031

Market Overview

The consumer electronics industry is highly driven by consumers’ desire for more innovative and advanced technology that helps in fulfilling daily life requirements in hassle-free ways. This sentiment has played a significant role in stepping up innovation in the consumer electronics industry over the past decade. The efforts on the part of industry players to promote their innovative products in order to find a foothold in the competitive environment is expected to reflect a steady growth between 2021 to 2031.

ESOMAR-certified consulting and market research firm Future Market Insights (FMI) offers detailed insights about key factors driving the demand for consumer electronic products. The study tracks down global sales of consumer electronics in 20+ high growth markets, along with the thorough analysis of the new trends and demand-supply patterns across the world.

Historical and Future Outlook on Consumer Electronics Market

The consumer electronics industry is quite dynamic in nature as trends come and go at a faster pace. And so, the market players have been consistently finding different ways to deliver innovation with new functionalities and features since the past years.

The availability of devices stimulating automation of daily chores drastically changed consumers’ preferences from general single-purpose electronic products to multi-functional smart devices. As a result, the consumer electronics manufacturing companies flourished on the surge in demand for various wearable, smart home, and other consumer electronic devices. According to FMI, the global consumer electronics market expanded at 3.8% CAGR (value) during the last 5 years from 2016 to 2020.

The rise in requirement for smart accessories, smart home devices, and others coupled with the increase in environmental awareness is encouraging adoption of energy efficient products that guarantee more performance efficiency in cost-effective ways. FMI projects the global consumer electronics market to expand at a CAGR of 5.6% through 2031.

Is Device Miniaturization Still a Prominent Supply Side Trend Driving Adoption?

Consumers today are more conscious of receiving more in less. With each new development of device generation, consumers expect more features either in same size or even in lesser than that. Due to the prevalence of minimalism concept, the adoption of miniature designs with rich features is rising steadily.

According to the report titled “Electronics- Shaping Europe’s Digital Future” published by the European Commission (EC) on 8th March, 2020, miniaturization is taking over the electronics industry in Europe while having significant impact on the digital world. No doubt this indicates the new trends of consumer electronics in the coming years.

What is the Commercial Potential of Electronics Incorporating IoT?

The connected devices are widely expanding day by day. Most of the smart devices such as kitchen appliances, wearable devices, and others are capable of communicating with users despite being wireless. Communication and connectivity are omnipresent.

This is why their significance is not only increasing in electronics sectors but also in other. Internet of Things (IoT) facilitate increased safety while improving product quality and performance. All these aspects in respect to IoT (Internet of things) are set to further facilitate growth in the demand for consumer electronics.

Prominent players like Samsung Electronics, Panasonic Corporation, Apple, Inc., Sony Corporation, and others are majorly focused on stepping up innovation in connected electronics like home appliances and wearable devices. For instance, Panasonic Corporation showcased its latest range of broadcast and ProAV products and solutions at the International Broadcasting Convention (IBC) 2019, held in Amsterdam, Netherlands, on September 13 to 17, 2019.

Why R&D is Key to Market Consolidation?

Some of the leading players in the consumer electronics market are investing heavily in research and development activities in order to facilitate improvements in current electronic technologies and processes with an aim to increase efficiency and reduce cost. For instance, Apple, Inc. is one such example that has gained a competitive position in the industry through extensive research and development.

Other prominent companies are focused on enhancing their research and development centers. For instance, Sony Corporation runs more than 9 research and development centers across different regions like North America, Europe, East Asia and South Asia. Recently in June 2020, the company also announced the launch of new research company Sony Research India Private Ltd. with an aim to step up research and innovation in India. 

What is the Regulatory Impact on Global Sales of Consumer Electronic Products?

Electronics industry operates in a stringent regulatory environment. It includes regulation related to manufacturing, safety, efficiency, and environmental norms. The product suppliers are required to adhere to specific regulatory framework, products standards and certifications required in specific countries or regions.

The electronic products intended to be sold in specific region or country are further required to comply with the prevailing specific national laws and regulations. For instance, suppliers selling products are required to know about Federal Communications Commission (FCC) regulation, Electrical Testing Laboratories (ETL) and Underwriter Laboratories (UL) standards and labelling requirements.

In Europe, European Unions (EU) has established certain regulations and safety standards for consumer electronic products. For instance, while selling electronic products or equipment in the European Union, compliance to RoHS directives, Ecodesign directives, and other testing and compatibility standards laid down by European Union is required.

Apart from all this, as environmental awareness is increasing across different regions, the regulatory pressure to develop energy efficient products is further building up on manufacturers. Besides this, obtaining energy efficient certifications for electrical products is another challenge encountered by the players operating in the industry. Adherence to such stringent regulatory framework often pose numerous challenges on the part of suppliers.  

Country-wise Insights

How Vast is the Opportunity in the U.S. for Consumer Electronic Products Suppliers?

As per the FMI analysis, the U.S. is the world’s second-largest consumer electronics market and is set to remain in the position throughout the forecast period. Adoption of connected smart technologies like home appliances, wearable devices and other electronics have played a significant role in facilitating growth in the regional demand for consumer electronics products.

Realizing innovation as a key factor for growth, regional associations are actively organizing trade shows and expos. For instance, CTA (Consumer Technology Association), an association that represents the United States consumer technology industry, annually organizes CES (Consumer Electronics Show), a global annual trade show in order to promote and step up innovation in technology to transform consumers’ experience of electronic products.

The U.K.’s Consumer Electronic Sales Likely to Experience a Stable Growth

The current busy lifestyle adopted by the U.K. citizens has compelled them to get inclined towards a digital life. Proliferation of smart technologies has played a significant role in facilitating a specular shift from general to a digital lifestyle in the United Kingdom.

Apart from this, due to the busy lifestyle, automation for doing daily jobs is highly preferred by Britons. As stated by the Government of U.K, the electronics industry in the U.K. comprises more than 12,000 companies and is growing exponentially. This is an indicator that points out towards rise in revenue for consumer electronics manufacturers in the near future.

Will Heavy Investments in Germany Market Help Accelerate Growth?

Players are focused on enhancing their business operations by making significant investments in Germany. The companies operating in consumer electronics industry are investing or collaborating with the other players in their core business or parallel business categories to promote research and development.

For instance, in 2017, LG and Samsung, the two tech giants have invested in CYNORA to support the company in the development of organic emitting material for displays. Such investments have stimulated regional innovation and hence is positively impacting the further growth in the industry.

Tech-Savvy Indian Millennials to Positively Impact the Surge in Demand for Consumer Electronic Products

In India, millennials are one of the largest demographic groups and chief wage earners as well. Millennials have grown up with technology while representing the new era of talent which expect everything to be under control and at their fingertips.

This is one of the major factor that has helped redefine the consumer consumption and buying patterns in India. According to the report published by the India Cellular & Electronics Association (ICEA) on 9th July, 2020, India had approximately 500 million smartphone users in 2019, and this number is growing steadily to reach at over 800 million by 2022.

As stated by the ICEA, if India extends its ambition beyond making in India for India, to making mobile handsets and components in India for the world, it could manufacture around 1,250 million handsets across various segments by 2025, firing up an industry worth around US$ 230 billion.

What’s Keeping China in the Spotlight for Consumer Electronic Equipment Manufacturers?

It has been observed that the spending by aging consumers or baby boomers has increased in the past few years especially in East Asia region. The rise in spending by this generation coupled with the increase in trade activities related to consumer electronics is spurring the growth in China.

According to the United States International Trade Commission, from 2016 to 2017, the largest percentage increases in imports of electronic products involved imports from China, up by US$ 25.2 billion.

Apart from this, the affluent upper-middle class in China is likely to open up new sales opportunities for the well-established brands currently operating in the industry, which tends to work in favor of consumer electronic equipment manufacturers in China.

Category-wise Insights

Which Product is Likely to Grow at a Brisk Pace?

The adoption and penetration of consumer electronic devices such as smartphones, television, personal computer, camcorders and cameras, and others is high both in volume as well as value term. However, the wearable devices are expected to grow at a high CAGR as unlike smartphones, TVS, and personal computer, many consumers are yet to buy their first wearable.

Smart wearable devices have rapidly gained millennial attention. Additional features like tracking health and fitness, tracking location, sending notifications through wearables like smartwatches have successfully gained millennial attention. These factors point out towards a positive growth trend in the adoption of smart wearable devices in the coming years.

What are the Prominent Sales Channels for Consumer Electronics?

Sales through specialty stores and multi-brand stores still account for a notable share in the industry. The penetration of specialty stores and multi-brand electronic stores is high in the developing regions like Asia-Pacific and the Middle East and Africa. Online sales are also expected to register high CAGR during the forecast period.

What’s the Market Share of Smart Home Devices?

The concept of smart home is gaining prominence in different regions. People today increasingly desire smart homes with smart devices and technologies that ensure more efficiency, security, safety, and ease of daily lifestyle. This changing consumer preference is expected to drive the adoption of smart home devices security and HVAC systems and kitchen appliances in the coming years.

According to FMI, the smart home device category is expected to reach 12% market share by 2031. In terms of subcategories, smart kitchen appliances are expected to dominate the industry in volume terms.

Why Consumer Electronic Devices Hold Above 80% Share?

The consumer electronic devices segment accounts for a notable value share of above 80% in the global market. The consumer electronic devices include electronic products like phones, personal computers, television, set-top box, cameras and camcorders, and others. These are few of the electronic gadgets that are utilized equally in commercial sectors, residential sectors as well as industrial sectors.

The frequency of purchase of these electronic products is comparatively more than the other products. Besides this, some of the products like smartphones and television are also considered essential products. These factors justify the majority share held by the consumer electronic devices segment in the industry.

Competitive Landscape

The key players in the global consumer electronics market are looking to consolidate their position after a dull year in 2021. Innovation and understanding of evolving consumer sentiment remain a key focus area for market players. Considering the target users, the consumer electronics industry continues to spend heavily on social media advertising & marketing.

For instance,

  • Samsung Electronics has established numerous Samsung research Global AI centers across different regions like America, Russia, Canada, United Kingdom, and others in order to increase their sales footprint.
  • The South Korean electronics company LG Electronics Co. Ltd. announced the launch of 8K OLED models, NanoCell TVs and OLED GX Gallery TVs in September, 2020

Some of the leading companies operating in the market are:

  • Samsung Electronics Co. Ltd.
  • LG Electronics Co. Ltd.
  • Apple, Inc.
  • Hitachi Ltd.
  • Koninklijke Philips N.V.
  • Sony Corporation
  • Hewlett Packard Inc.
  • Toshiba Corporation
  • Panasonic corporation

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report. 

Scope of the Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for value and Units for Volume

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain,  China, Japan, South Korea, India, Thailand, Malaysia, , Indonesia, Australia, New Zealand, GCC Countries, , Northern Africa, South Africa

Key Segments Covered

Product Type, Sales Channel, and Region

Key Companies Profiled

  • Samsung Electronics Co. Ltd.
  • LG Electronics Co. Ltd.
  • Apple Inc.
  • Hitachi Ltd.
  • Koninklijke Philips N.V.
  • Sony Corporation
  • Hewlett Packard, Inc.
  • Toshiba Corporation
  • Panasonic Corporation

Report Coverage

Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

Which is the most lucrative market for consumer electronics?

The U.S. currently leads in the global market for consumer electronics. The increase in demand for smart and connected devices has played a significant role in facilitating regional growth.

Which is the top-selling consumer electronics?

Presently, the consumer electronic products segment is top-selling which includes digital camcorders/DVR/camera, smartphones & tablets, smart TV, and others. High purchase frequency and extensive use of these products in both residential and commercial sectors has facilitated increase in sales.

Which is the prominent sales channel in the consumer electronics industry?

Currently, multi-brand stores, followed by the speciality stores are the prominent sales channels in the consumer electronics market.

Which are some of the leading companies offering consumer electronics?

Some of the leading companies offering consumer electronics include Samsung Electronics Co. Ltd., LG Electronics Co. Ltd., Apple, Inc., Hitachi Ltd., Koninklijke Philips N.V., Sony Corporation, Hewlett Packsrd, Inc., Toshiba Corporation, and Panasonic Corporation.

Which is a prominent factor driving sales of consumer electronics?

Growing personal disposable income on one hand and stepping up innovation on the other side on the part of suppliers are playing a significant role in accelerating growth.

Enquiry before Buying

  • Is this research conducted by Future Market Insights?

    Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology.

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

  • Is a sample of this report available for evaluation?

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Key Segments

Product

  • Consumer Electronic Devices
    • Digital Camcorder/DVR and Camera
    • Smart Phones/Feature Phones & Tablets
    • Smart TV
    • Printers/ Set Top Box
    • Personal Computers & Gaming Consoles
  • Wearable Devices
    • Smart Accessories
    • Other Wearable Devices
  • Smart Home Devices
    • Securities & HVAC Systems
    • Smart Kitchen Appliances

Sales Channel

  • Hypermarkets/Supermarkets
  • Specialty Stores
  • Multi-brand Stores
  • Online Retailers
  • Wholesalers & Distributors
  • Other Sales Channel

Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Middle East and Africa (MEA)
  • Oceania

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