Opportunities and Threats in the Global Consumer Electronics Market

2014-04-09
Published : Apr-2014

Favorable demographics, evolving interconnected lifestyles and rising consumer incomes are anticipated to boost the global consumer electronics industry. The consumer electronics market is estimated to reach a value of $1,210 billion in 2017, with a CAGR of 5.4% from 2012 to 2017. Emergence of new players owing to increasing growth opportunities in the consumer electronics sector is also contributing to this market growth.

Companies are investing in research and development to develop economical consumer electronic goods with innovative designs to survive the competition. Technologies like LED TV and 3D are driving growth as consumers are seeking latest gadgets and upgrading their electronics. There is a growing demand for consumer electronics in developed economies like America and Europe. However, Asia-Pacific is expected to contribute considerably to the growth of this industry in the near future.

In 2013, even electronics giants such as Samsung and Apple found it difficult to sustain the momentum they built in 2011-2012. Pressure of declining global demand for consumer electronics along with ever-shortening product and technology lifecycles are the main reasons behind the companies’ struggle.

From June 2012 to June 2013, Apple’s revenue growth fell to an annualized rate of 14%. This growth rate was one-third of the rate over 2011-2012. The operating earnings for the brand dropped at an annualized rate of 3%. On the other hand, Samsung revenue during the same period grew by 18%. However, Samsung’s growth rate was 30% from 2011 to 2012. Although Samsung’s operating earnings continued strongly with a growth rate of 68%.

Growing household incomes, new innovative products and falling selling prices, particularly in markets like Eastern Europe, South America and Asia, have supported the demand for consumer electronic products. However, market saturation can be a challenge to the global consumer electronics market. Industry players are focusing on innovation and introduction of new and attractive products to sustain growth in the industry. In order to meet the global market demand, consumer electronics manufacturers will continue to focus on the next generation technology.

Explore latest market research report on global consumer electronics @
http://www.sandlerresearch.org/global-consumer-electronics-market-2014-2018.html

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