Consumer Electronics Market is expected to exceed USD 1500 billion by 2024. Rising popularity of OLED and 4K televisions followed by the declining prices of these devices across various regions is expected to drive the consumer electronics market over the forecast timeline. In addition, with the growing replacement rate of traditional televisions with newer ones, adoption is expected to increase over the years. The launch of televisions with new and advanced features such as built-in Wi-Fi & internet connectivity, ultra-high resolution & color contrast, Dolby vision and Dolby Atmos to deliver outstanding picture and sound quality, further contributes to the industry demand.
The demand for air conditioners in the major household appliances segment is anticipated to rise over the forecast timeline. Increasing income levels and rising temperatures of the middle-class population in countries such as China and India further contribute to the segment growth. Rising penetration of air conditioners can also be credited to the declining price of such appliances. In the U.S., energy consumption by air conditioners almost doubled owing to the changing climatic conditions as well as increasing size of homes. The kitchen appliances, such as ovens, and cookers, are expected to witness a high demand owing to the rising adoption of technologically-advanced products coupled with changing lifestyles in urban areas contributing towards the overall consumer electronics market size.
Increasing use of tablets with enhanced capabilities for performing less-intensive tasks is resulting in the slow growth of laptops. For most of the users, laptop is not considered to be a high priority device, which resulted in lower upgrades and replacement rates. Declining demand across the major economies is posing significant threat to the audio & video equipment industry, further limiting the consumer electronics market growth.
Rapid industrialization, technological advancements and reducing prices of the air conditioner technology is anticipated to spur the demand for room air conditioners. Split air conditioners will witness a significant demand due to the ease of installation, higher energy efficiency and varying building infrastructures. Growing demand for energy efficient appliances followed by the increasing requirement for replacement of older electric household appliances is expected to have a positive impact on the consumer electronics market growth.
The audio and video equipment in the consumer electronics market are attributed to the development of new technologies such as 4K, 8K, and higher resolution systems. With an increasing number of video content and broadcasting companies such as Netflix and Amazon Prime developing 4K content, the movement towards ultra-high definition systems is anticipated to be very high. Additionally, the prices of these systems are declining at a very rapid rate. 4K TV prices experienced a decline from approximately USD 8,000 to USD 1,250 from 2012 to 2015 and will continue to do so in the following years positively impacting the market demand across the globe.
Asia Pacific region is anticipated to witness high growth in the consumer electronics market due to large number of household appliances and smartphone users. The growth is mainly driven by the presence of high population and growing disposable income in economies such as China, India Japan and South Korea. Owing to the expansion of mobile device industries in densely populated countries, the region is expected to dominate the overall market. In addition, the growing demand for headsets from offshoring centers in India and Philippines is forecast to augment the demand. Favorable government initiatives pertaining to the promotion of smart city and smart home technologies is placing a high demand for such products.
Key players in the consumer electronics market consist of Apple, Samsung Electronics, General Electric, Bose, Sony Corporation, AB Electrolux, Haier, LG Electronics, Huawei, Philips, Canon, GoPro, Nikon and Sennheiser. The industry is characterized by intense competition owing to the presence of large number of international and regional players in the marketplace. The strong hold of major players in the industry poses strong barriers for the new entrants.―Market Size Forecasters