What Is Consumer Electronics Industry and Its Trend in 2022
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All about consumer electronics industry
Consumer electronics refers to any electrical or digital device intended for everyday usage in the house. Phones, PCs and laptops, televisions, cameras, DVD players, and other consumer electronics items are produced by manufacturers in the consumer electronics sector.
In order to be competitive in an increasingly technology landscape, industry participants must continue to innovate. The consumer electronics market is experiencing turbulence as the industry has stagnated, particularly in mature product categories such as laptops and televisions. It is now more crucial than ever for consumer electronics companies to look for new methods to innovate in order to reach out to their customers.
Retailers must keep a close eye on the market in order to find the best approach to sell consumer electronics, whether in-store or online. Range and price benchmarking is one of Assosia’s services, which allows you to decide on the optimal approach for selling your items and, as a result, keep you ahead of your competition.
With consumer technology progressing and manufacturers constantly competing for market share, it’s critical to have continuous insights and analysis from unbiased specialists so that you can stay on top of any changes in this industry.
Reports, analysis and trends in consumer electronics industry
The consumer electronics sector is made up of businesses that make, create, produce, supply, and distribute electronic items, accessories, equipment, and appliances. Manufacturing, distribution, and sale of communications and entertainment equipment such as digital and video cameras, cellphones, stereos, MP3 players, DVDs, VCRs, calculators, and televisions are all part of the worldwide consumer electronics business. A lot of manufacturing happens in places like Asia, where labour prices are relatively low. Company profiles range from major global corporations with more than 100,000 employees to tiny businesses producing a single product with fewer than 50 employees. Securing copyright to products is a big concern for consumer electronics makers of all sizes. To meet consumer demand, consumer electronics manufacturers continue to focus on next-generation technology innovation.
The industry is projected to benefit from the improved economic situation, as customers are less hesitant to spend their growing disposable income. Smartphones are projected to continue to drive this sector’s growth, and consumers will increasingly want to connect their home and mobile applications and devices. Consumer electronics consumption has been bolstered by factors such as new inventive goods, dropping selling prices, and rising household incomes, particularly in emerging regions such as Asia, Eastern Europe, and South America. However, market saturation is becoming a concern, forcing industry participants to innovate and create new appealing items. In 2013, the worldwide consumer electronics manufacturing industry generated $223.6 billion in revenue and employed 2.1 million people, and the rising reliance on the internet in both commercial and personal spheres needs close relationships with communications providers.
What are consumer electronics and what is consumer electronics industry
Consumer electronics are electronic devices that are not intended for commercial usage. Computers, laptops, mobile devices, smart wearables, television sets, refrigerators, cellphones, and home appliances are examples of consumer electronics equipment that serve one or more functions.
Consumer electronics industry growth will be fueled by market players’ continued investments in R&D for the creation of new consumer electronic devices with better functionality. Philips, for example, spent USD 506.14 million on R&D in the first quarter of 2021. Through its innovation 2025 transformation programme, Philips spends heavily in R&D and innovation. Customer electronics will expand as a result of aggressive R&D spending and geographic development to fulfil growing consumer needs.
Because of the advent of new technology, the industry is one of the fastest-growing industries. During the projection period, rapid technological improvements to meet customer needs will generate market possibilities. The market expansion will be aided by the market trend of integrating microLED technology into televisions for high-resolution density. MicroLED TVs for commercial and domestic use have been launched by major market leaders such as LG, Sony, Samsung, and others.
Product life cycles are short, and counterfeit products are readily available, posing substantial barriers to market growth. Consumers are being enticed to adopt new gadgets that incorporate cutting-edge technology due to the continuously changing technological landscape. This has resulted in a dramatic reduction in the product life cycle of consumer devices like smartphones, laptops, cameras, and televisions, which has stifled market demand. New cellphones with multiple cameras and high-resolution displays have posed a serious threat to digital photography equipment. Furthermore, digital photography equipment is costly and difficult to use, which reduces demand among the youth population.
The COVID-19 pandemic had a negative influence on the consumer electronics sector in the first quarter of 2020. To comply with regulatory restrictions and stop the spread of the virus, Sony, LG, Samsung, and Apple all paused production in a number of nations. The electronics industry regained pace in the first quarter of 2021. Work-from-home policies and e-learning trends are two further factors boosting COVID-19 industry growth. These devices have seen increased production as a result of increased demand for laptops, cellphones, and tablets as a result of e-learning and remote working habits.
Future of consumer electronics industry
With over 2,000 million new units sold in 2020, the audio and video equipment segment commanded more than 60% of the market. The growing popularity of smart homes and the proliferation of smartphones will drive up demand for audio and video equipment. Advanced features such as increased connection, voice assistant-enabled control, and speech recognition will drive audio and video equipment acceptability.
Consumers may operate their home appliances with a simple voice command using voice assistants like Google Home, Siri, and Alexa. Consumer goods, such as speakers and headphones, will be integrated with voice assistant equipment, resulting in a positive market forecast. In addition, various consumer electronics companies are upgrading and launching new products to improve the user experience, which is propelling the industry forward.
The personal application segment is expected to grow at a 9% annual pace by 2027, owing to increased spending capacity on discretionary products as a result of rising income. Falling prices are boosting demand for personal consumer devices such as Bluetooth speakers, earbuds, smartphones, and smart wearables.
Consumer gadgets are becoming more popular in high and middle-income households as the region’s urbanisation and disposable income increase. Regional growth will be fueled by the introduction of new regional manufacturers and the adoption of low-cost pricing techniques by various businesses. In addition, increased technological awareness among the youth population about new gadgets is fuelling the market’s demand.
The growing demand for consumer electronics, as well as local government backing, are driving major market players to introduce new goods in this region. Samsung, for example, announced plans to build a TV manufacturing unit in India by December 2020 as part of the Make in India initiative in October 2020. It has made a USD 670 million investment in its smartphone display manufacturing facilities to increase production and expand the business.
To expand their global footprint and secure a large revenue share, market players are focusing on new product launches and mergers and acquisitions. Panasonic, for example, paid USD 7.1 billion for Blue Yonder, an American software business, in April 2021 to strengthen its autonomous supply chain management by integrating Blue Yonder’s machine learning and artificial intelligence. Panasonic’s portfolio will be strengthened, and the company’s autonomous supply chain will be accelerated.
Apple Inc., Canon Inc., Dell Inc., Samsung Electronics Co., Ltd., Panasonic Corporation, Sony Corporation, Koninklijke Philips N.V., Lenovo Inc., Hewlett-Packard Company, Oneplus, AB Electrolux, LG Corporation, Google Inc., Microsoft Corporation, Hitachi Ltd., Robert Bosch GmbH, Sennheiser Electronics, Siemens AG Logitech International S.A., OPPO, and ZTE Corporation are among the leading companies in the market To improve the consumer experience, certain participants are focused on new product introductions.
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