Consumer electronics are electronic equipment for non-commercial use. Consumer electronics include devices that provide one or more functionalities such as computers, laptops, mobile devices, smart wearables, television sets, refrigerators, smartphones, and home appliances.
Continuous investments by market players in R&D for the development of new consumer electronic products with enhanced features will fuel the industry growth of consumer electronics. For instance, Philips spent USD 506.14 million in R&D activities in the first quarter of 2021. Philips invests significantly in R&D and innovation through its innovation 2025 transformation program. Aggressive investments in R&D and the expansion of geographic presence to meet growing consumer demands will spur the growth of consumer electronics.
The market is one of the fastest-growing industries attributed to the emergence of new technologies. Rapid advancements in technology to cater to consumer demands will create market opportunities during the forecast period. The market trend of integrating microLED technology into televisions for high-resolution density will augment the market expansion. Prominent market leaders including LG, Sony, Samsung, and others have launched microLED TVs for commercial and residential uses.
Short product lifecycles and the availability of counterfeit products pose significant challenges to the market progression. The rapidly changing technological landscape is encouraging consumers to adopt new gadgets integrated with the latest technologies. This has led to a rapid reduction in the product lifecycle of consumer electronics, such as smartphones, laptops, cameras, and televisions, restraining the market demand. The emergence of new smartphones with multiple cameras and high-resolution displays has posed a significant threat to digital photo equipment. Furthermore, digital photo equipment is expensive and complex to operate, reducing their demand among the youth population.
The COVID-19 pandemic adversely affected the consumer electronics market during the first quarter of 2020. Companies including Sony, LG, Samsung, and Apple suspended their production in several countries to comply with government regulations and contain the virus spread. The electronics industry regained momentum in the first quarter of 2021. The other factors contributing to the industry expansion during COVID-19 are work from home policies and e-learning trends. The high demand for laptops, smartphones, and tablets due to e-learning and remote working practices resulted in the higher production of these electronics.
