According to a research report by Futuresource Consulting, the market size of the global consumer electronics (CE) market has increased in 2019, but the increase was small, only an increase of 3 billion US dollars, achieving a global trade value of 683 billion US dollars. The total shipments of the global consumer electronics category are close to 4.4 billion, a year-on-year increase of 2.7%.

Simon Forrest, Chief Technology Analyst at Futuresource Consulting, said: “Companies are improving their strategies to position themselves in a favorable position to maximize opportunities for doing business around connected CE products. The current challenges include mitigating the limited growth of traditional products. , To adapt to the stable commoditization of hardware, and more importantly, to offset the threat of competition from pure software platforms and online services. These competitions have attracted consumers to get rid of traditional CE business. Currently, companies are moving towards providing a series of interconnected products , These products are each designed to work together and attract consumers to invest in a supplier-specific ecosystem.”

It is worth noting that product support is now an increasingly serious problem that suppliers must address. Forrest said: “Connected consumer electronics is no longer a “sell.” There are challenges in maintaining software upgrades and ensuring the life cycle value of products already on the market. Find the best without alienating customers or diminishing brand value Time to suspend support is a delicate proposition.”

Among all product categories, headsets, wearables and smart homes have the strongest market growth throughout 2019. The value of all other categories contracted, with the percentage of sales of cameras and video games falling by double digits. At the same time, the brand landscape in 2019 has changed little, and most of the top three brands in each product category have maintained a strong market share.

Although 2019 was a strong year for the consumer electronics industry, the Covid-19 pandemic in 2020 has greatly changed the outlook for the industry. “Due to consumer response to the blockade, products such as TVs and laptops performed well in the first half of 2020,” Forrest said. “However, in many cases, this is expected to attract sales from H2, which is likely to be affected by the economy. Compared with our previous forecast of Covid-19 released in December last year, the contribution of Covid-19 is to make CE 2020 The overall trade volume is forecast to decrease by US$88 billion. The pandemic has weakened consumer confidence and disrupted the global supply chain. The turmoil in the CE market will continue for several months. Analysis shows that compared with previous forecasts, global trade in 2021 There will also be a deficit of 66 billion U.S. dollars.”

“Nevertheless, the market still shows a certain degree of resilience. We expect the market to rebound rapidly and resume growth next year. By the fourth quarter of 2022, its value will basically return to its pre-Covid level,” Forrest explained.

Despite the economic uncertainty and upcoming recession in the entire region, the long-term prospects of the consumer electronics market are still optimistic. It is estimated that by 2024, the global market will grow at an annual rate of 20%, reaching 5.2 billion units of shipments. These products will contribute US$121 billion to global trade.