Electronic Products Market Definition
The electronic products market consists of sales of electronic products by entities (organizations, sole traders and partnerships) that produce electronic products. These include semiconductors, audio and video equipment and other electronic components.
Electronic products are electronic devices that stores, generates or transmits information in electronic form. These are components used for controlling the flow of electrical currents for information processing and system control. Electronic products include televisions, speaker systems, household-type video cameras, jukeboxes, and amplifiers for musical instruments are used for various applications such as entertainment and communication.
Electronic Products Market Size
The global electronic products market reached a value of nearly $1,097.7 billion in 2019, having increased at a compound annual growth rate (CAGR) of 4.6% since 2015. The market is expected to decline from $1,097.7 billion in 2019 to $1,042.7 billion in 2020 at a rate of – 5%. The decline is mainly due to lockdown and social distancing norms imposed by various countries and economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is expected to grow from $1,078.3 billion in 2021 to $1,201.1 in 2023 at a CAGR of 5.5%. The market is expected to stabilize and reach $1,333.2 billion in 2025 and $1,713.6 billion in 2030.
Growth in the historic period resulted from rising disposable income, increased popularity of audio and video broadcasting, growth in e-commerce for consumer electronics, increased internet penetration, low interest rate environment, technology development, high investments, and increasing usage of TVs. Factors that negatively affected growth in the historic period were volatile metal prices and changes in consumer preferences.
Going forward, innovations in electronic products, development of smart cities, growing demand for wireless audio devices and smart TVs, increase use of electronic devices, rising demand of smartphones and tablets, rising demand for electronic components in display devices, and increasing adoption of internet of things (IoT) are expected to drive the market. Rising interest rates, shrinking product life cycles, changing regulations, corruption of the memory chip, rising costs, shortage in electronic components supply, complexity in the automotive IC`s design, and coronavirus pandemic are major factors that could hinder the growth of the electronic products market in the future.
Electronic Products Market Drivers
The key drivers of the electronic products market include:
Innovations in Electronic Products
The rapid pace of innovations in electronics technology is stimulating consistent demand for newer and faster electronic products and applications. Technological development is key for attracting both consumers and business users for either replacing or upgrading the older products with advanced versions. Digital technologies such as the internet of things (IoT) and latest communication technologies such as 5G are expected to aid in the development of innovative electronic products. This is expected to increase the demand for electronic products which will ultimately drive the market for electronic products during the forecast period.
Electronic products Market Restraints
The key restraints on the electronic products market include:
The rise in costs associated with chips and microprocessors is expected to act as a major restraint on the electronic products industry. Although the prices of chips and communications hardware components are declining, software costs meanwhile are increasing. Increased demand for sophisticated and diversified software is a major reason for this. Further, the wages of the labor involved in the software development and production are increasing considerably. These factors are expected to act as a restraint on the electronic products market during the forecast period.
Electronic Products Market Trends
Major trends influencing the electronic products market include:
Growing Demand For Smart TVs
The demand for smart TVs is being driven by the rising consumer preference for built-in smart functions in personal devices, and increasing internet penetrationi. A smart TV combines the features of televisions and computers, and comprises a television set with integrated functions for internet use. Smart TV users are also offered direct access to streaming services such as Netflix and Amazon Prime Video. To capitalize on this trend, television manufacturers across the world are entering the smart TV market. According to an analysis firm Counterpoint Research, in 2019, India’s TV market had its highest-ever shipment of 15 million units in 2019.
High Demand For Ultra HD Televisions
The demand for Ultra HD televisions is increasing rapidly, as they are energy efficient and offer high quality images. Ultra HD televisions include 4K and 8K UHDs that have an aspect ratio of 16:9 or wider and also present a minimum resolution of 3840x2160 pixels. The transition from traditional CRT and LCD TVs to ultra HD TVs has been fast owing to the brisk pace in technological advances. For instance, according to IHS Markit report, ultra HD (4K resolution) TV has hit 60% market penetration in some parts of the world, including the United States in 2019.
Opportunities And Recommendations In The Electronic Products Market
Opportunities - The top opportunities in the electronic products market segmented by type will arise in the semiconductor and other electronic component segment, which will gain $113.7 billion of global annual sales by 2023. The top opportunities in the electronic products market segmented by end use will arise in the B2B segment, which will gain $103.9 billion of global annual sales by 2023. The top opportunities in the electronic products market segmented by sales channel will arise in the OEM segment, which will gain $95.2 billion of global annual sales by 2023. The top opportunities in the electronic products market segmented by mode of sale will arise in the offline segment, which will gain $68.2 billion of global annual sales by 2023. The electronic products market size will gain the most in China at $39.45 billion.
Market-trend-based strategies for the electronic products market include focus on high volume production of curved TVs and launching of ultra HD TVS, focus on launching wireless audio devices and focus on producing IoT enabled devices. Player-adopted strategies in the electronic products market include producing innovative audio and video technologies through research and development, improving product offerings by innovation, increasing production to meet the global demand and expanding businesses through sustainable investments, and strengthening through collaboration.
Recommendations - To take advantage of the opportunities, the business research company recommends the electronic products companies to focus on use of 3d printing in product manufacturing, use of robots, harnessing artificial intelligence and machine learning, focus on R&D investments and research collaborations, invest in emerging markets, leverage e-commerce to maximize reach and revenues, set up authorized distributors and sales representatives, offer competitive and value based pricing, use direct-to-consumer (DTC) advertising, increase adoption of internet and social media, participate in trade shows and events, focus on post purchase services and focus on fast-growing end-use industries.
Electronic Products Market Segmentation
The electronic products market is segmented by type, by end-use, by sales channel, by mode of sale and by geography.
By Type -
The electronic products market can be segmented by type into
The semiconductor and other electronic components was the largest segment of the electronic products market by type, accounting for 86.0% of the total market in 2019. Going forward, the semiconductor and other electronic components segment is expected to be the fastest growing segment in the electronic products market, at a CAGR of 2.9%.
- a) Audio and Video Equipment
- b) Semiconductor and Other Electronic Components
By End-Use -
The electronic products market can be segmented by end-use into
The B2B was the largest segment of the electronic products market by end-use, accounting for 87.3% of the total market in 2019. Going forward, the B2B segment is expected to be the fastest growing segment in the electronic products market, at a CAGR of 2.6%.
- a) Business to Business (B2B)
- b) Business to Customer (B2C)
By Sales Channel -
The electronic products market can be segmented by sales channel into
The OEM was the largest segment of the electronic products market by sales channel, accounting for 87.2% of the total market in 2019. Going forward, the OEM segment is expected to be the fastest growing segment in the electronic products market, at a CAGR of 2.4%.
By Mode Of Sale-
The electronic products market can be segmented by mode of sale into
The offline was the largest segment of the electronic products market by mode of sale, accounting for 91.4% of the total market in 2019. Going forward, the online segment is expected to be the fastest growing segment in the electronic products market, at a CAGR of 8.3%.
By Geography- The electronic products market is segmented into
o Western Europe
o Asia Pacific
o Eastern Europe
- Hong Kong
- New Zealand
- South Korea
o South America
- Czech Republic
o Middle East
- Saudi Arabia
Asia-Pacific was the largest region in the global electronic products market, accounting for 49.0% of the total in 2019. It was followed by the North America, Western Europe, and then the other regions. Going forward, the fastest-growing regions in the electronic products market will be Middle East and Eastern Europe, where growth will be at CAGRs of 5.4% and 4.6% respectively. These will be followed by Africa and South America, where the markets are expected to register CAGRs of 4.5% and 3.1% respectively.
- South Africa
Electronic Products Market Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Samsung Electronics Co ltd
- • Intel
- • Taiwan Semiconductor Mfg. Co ltd
- • Micron Technology Inc
- • SK Hynix Inc.
- • LG Electronics
- • Broadcom Inc.
- • Qualcomm Incorporated
- • Texas Instruments
- • Sony Corporation
- • Panasonic
- • Godrej
- • Philips
- • TCL
- • Skyworth
- • Haier
- • SVA
- • Changhong Electronics Group
- • Xiaomi
- • Panda Electronics
- • Toshiba
- • Denon
- • JVC
- • Fostex
- • Sansui
- • Sharp
- • Hisense
- • Duntech
- • Whatmough
- • Suning Commerce Group
- • Gome Electrical Appliances
- • Sanjiang
- • Bailian
- • Reliance Digital
- • Croma
- • eZone
- • NEXT Retail India Ltd
- • Yamada Denki
- • Bic Camera
- • K’s Denki
- • Dick Smith Electronics Pty Ltd
- • Amber technology
- • Harvey Norman
- • Amphion Loudspeakers
- • Audison
- • Behringer
- • Bosch
- • d&b Audiotechnik
- • Dynaudio
- • Medion
- • Focal-JMLab
- • SITRONICS JSC
- • Orion (Orion Electronics Ltd)
- • NPO “Digital Television Systems”
- • ZR Speaker Lab
- • Bose Corporation
- • Harman International Industries
- • Pioneer
- • Klipsch Audio Technologies
- • MartinLogan
- • Polk Audio
- • Best Buy
- • Walmart
- • Costco
- • Target
- • GameStop
- • BCE
- • H-Buster
- • Philco
- • AOC
- • Robert Bosch Middle East
- • Advanced Electronics Company
- • Arabian Power Electronics Company
- • Leap Technologies FZC
- • SMARTECH AV
- • CZ Electronics (Pty) Ltd
- • Avnet South Africa
- • 3M South Africa
- • Electrocomp (PTY) Ltd