Global Consumer Electronics Market Valued at $683B
FutureSource Consulting estimates the total value of the consumer electronics market in 2019 is $683 billion, up $3 from the year before.
The total value of the custom electronics market is dwarfed by the full CE market size.
HERTFORDSHIRE, United Kingdom — The global market for consumer electronics (CE) amounted to $683 billion in trade value in 2019, a $3 billion increase from the year before, according to Futuresource Consulting, based here.
Shipments across CE product categories totaled almost 4.4 billion units worldwide, representing a growth of 2.7% year-on-year.
The total market value of CE shows how large the DIY portion of the market is, since the estimated value for the custom electronics portion of the CE market is just $12 billion.
“Companies are refining their strategies, aiming to position themselves favorably to maximize opportunities in developing business around connected CE products,” says Simon Forrest, principal technology analyst at Futuresource Consulting.
Forrest continues, “Difficulties include mitigating limited growth across traditional products, adapting to the steady commoditization of hardware and, more importantly, offsetting the competitive threat from software-only platforms and online services that are attracting consumers away from traditional CE business. There is a clear move towards companies presenting a portfolio of connected products, each of which are designed to work together and attract consumers to invest in vendor-specific ecosystems.”
Notably, product support is now an expanding problem that vendors must grapple with. “Connected CE products are no longer ‘sell and forget’,” Forrest says. “There are challenges in maintaining software upgrades and ensuring lifetime value for products already in the market. Finding the optimum moment to discontinue support without alienating customers or weakening brand value is a delicate proposition.”
Across the product categories, headphones, wearables and smart home posted the strongest growth in value throughout 2019. All other categories contracted in value, with imaging/cameras and video games showing double-digit percentage declines. Meanwhile, the brand landscape changed very little in 2019, with the majority of the top three brands in each product category maintaining strong market share.
While 2019 was a strong year for the consumer electronics industry, the COVID-19 pandemic has altered the outlook significantly. “Some categories such as TVs and laptops performed well in H1 2020 as a result of consumers’ response to lockdown,” says Forrest. “However, in many cases, this is expected to have drawn sales forward from H2, which is likely to be impacted by the economic repercussions.”
COVID-19 has contributed to $88 billion being wiped from the overall forecast CE trade value in 2020, in comparison to the consulting firm’s pre-COVID-19 forecasts issued last December. The pandemic has dented consumer confidence and disrupted global supply chains. Turbulence across the CE market will persist for several months, with analysis showing a further $66 billion deficit globally in 2021 trade value compared to previous forecasts.
“Nevertheless, the market shows resilience and we expect it to rebound reasonably quickly, returning to growth next year and with value largely restored to pre-COVID levels by Q4 2022,” says Forrest.
Despite the uncertainty and imminent recession across regional economies, the long-term outlook for the CE market remains positive. The market is expected to increase 20% in volume to total 5.2 billion-unit shipments annually worldwide in 2024, with these products contributing an additional $121 billion of trade value globally.
This article first appeared on SSI sister publication CEPro.com.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
Related Content
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Commercial Integrator + Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add to your bottom line.
A FREE subscription to the top resource for security and integration industry will prove to be invaluable.
