Having already chronicled its name in the trillion-dollar business space in 2016, consumer electronics market, as on today, stands as one of the most remunerative verticals of the electronics space. Endowed with a diverse product spectrum, the expanse of which seems to be increasing by the day, this sphere has a lot to contribute to its parent domain. In the last half a decade, the emergence of smart technologies and their implementation in electronic component manufacturing has further strengthened the prospects of consumer electronics industry. A recent instance of how core consumer electronics market players are shifting their manufacturing strategies as per the changing technologies is that of LG Electronics USA making its Wi-Fi connected smart appliances compatible with Google Assistant and Amazon Alexa.
Audio & video equipment to drive consumer electronics industry trends
With the rapid proliferation of smart technology, the electronic devices that have undergone the maximum change of dynamics are audio & video equipment. As high-grade technologies have made their presence felt in this sector, manufacturers have been integrating the same in devices such as speakers and television sets. The rise of 4K, 8K, and higher resolution systems have also brought about a massive change in consumer electronics market outlook, especially since they have been ruling the roost lately. This is rather overt from the fact that video content and broadcasting companies like Amazon Prime and Netflix have been robustly developing 4K content to validate their contribution toward the trending ultra-high definition systems movement.
Another factor ensuring the increasing popularity of these systems is their declining cost since the last few years. From 2012 to 2015, 4K TV costs came down to USD 1,250 from USD 8,000. As the trend continues in the ensuing years, audio & video equipment consumer electronics market will experience quite a robust growth over 2017-2024.
Given that North America is the principal hub for the conception and maturation of high-grade technologies, the region is anticipated to be a prime growth avenue for consumer electronics industry. Driven by the efforts of manufacturers developing entertainment products embedded with remote monitoring and sensing as well as AI capabilities, North America audio & video equipment consumer electronics market size is expected to surpass USD 130 billion by 2024, while shipments are forecast to register a CAGR of 2% over 2017-2024.
How Asia Pacific is emerging as a profitable growth ground for consumer electronics industry
Asia Pacific has been touted to come up as the most developing region in the geographical landscape of consumer electronics market. The nearly accurate forecast can be credited to a plethora of factors, including improved economic conditions and high disposable incomes of the rising middle-income countries. Incidentally, both these factors combined, have led to an escalated demand for products such as digital imaging equipment, television sets, speakers, refrigerators, and the like. Indeed, digital photography components are known to have registered an appreciable demand in the region, plausibly on account of smartphone cameras replacing the conventional ones. As per estimates, APAC digital photo equipment-based consumer electronics market size from professional applications is projected to register a CAGR of more than 4% over 2017-2024. Driven by the cheaper costs of digital cameras and their excellent picture quality, APAC digital photo equipment-based consumer electronics industry size from professional applications will hit 15 million units by 2024. This is a fairly appreciable share of the overall digital photo equipment market, anticipated to surpass 50 million units by 2024.
Emerging economies such as China, South Korea, and India have emerged to be major revenue pockets for APAC consumer electronics market share. In fact, China consumer electronics industry size stood at a modest USD 200 billion in 2016 and is projected to record a CAGR of more than 5% over 2017-2024. These countries specifically excel in the sale of household appliances that are becoming more commonplace across the continent, owing to increasing disposable incomes and fast-paced lifestyles. Indeed, it would be fair to state that the regional household appliances market will account for a considerable share of the global major household appliances industry, the shipments of which are forecast to surpass 800 million units by 2024.
Being classified among the most customer-centric verticals of all times, consumer electronics market will be fueled by technological advancements in components such as earphones & headphones, household appliances, smartphones, and speakers. Also, with rising disposable incomes and a rapid change in end-user lifestyles and purchase parity, it is rather overt that these devices, even embedded with expensive technology, will become mainstream in a few years. As wireless technologies such as Bluetooth, Wi-Fi, and NFC become commonplace and customer convenience becomes more of a strong focal point, consumer electronics market share is likely to witness an incline. As per estimates, consumer electronics industry size is forecast to cross a mammoth USD 1500 billion by 2024.