The COVID-19 has triggered a massive shift in consumer spending, directly impacting the consumer electronics sector and cutting down global revenues by $10.7bn in 2020. Although consumer electronics sales are expected to grow by 3.5% to $1.01trn in 2021, not all regions will experience an increasing trend.
According to data presented by Stock Apps, European and US consumer electronics sectors are set to witness recovery this year, with revenues rising by 3% and 5% YoY, respectively. However, despite being the world’s largest consumer electronics market, Chinese revenues are set to continue falling.
Chinese Consumer Electronics Revenues to Plunge $19B Below Pre-COVID-19 Levels
Before the pandemic, the Chinese consumer electronics sector had been growing at a steady pace. In just three years, revenues jumped by 23% to $266.8bn in 2019. However, the COVID-19 changed that. With supermarkets and showrooms of leading brands shut down during the lockdowns and consumers prioritizing their spending, the sales of consumer electronics products in the country slipped by $11bn in 2020.
The negative trend is set to continue in 2021 with revenues falling to $254.5bn. In 2022, revenues are projected to drop to $247.5bn, $19bn below pre-COVID-19 levels. Although the Chinese market is expected to recover to $252.3bn by 2025, that is still significantly lower than in 2019.
The Statista data also revealed that phone sales, including landline phones, mobile phones, and smartphones, have taken the hardest hit amid the crisis. In 2020, phone sales revenues in China dipped by $16.5bn. The negative trend is set to continue in 2021, with revenues falling by another $4.8bn to $129.5bn. By 2025, this figure is set to plunge to $115.8bn, 23% less than in 2019.
On the other hand, the surge in demand for PCs due to remote working and distance learning led to impressive revenue growth in the computing segment. In 2021, computing revenues in China are set to hit $56.9bn, a $3.8bn increase in two years. By 2025, the entire segment is set to reach a $59.2bn value.
The US Market to Witness the Most Significant Growth
After the pandemic struck, European consumers also prioritized their spending, buying only groceries and household goods and avoiding non-essential, big-ticket purchases like LCD TVs and new smartphones.
Last year, the revenues of the European consumer electronics sector dipped to $191bn, compared to $195.2bn in 2019. This figure is forecast to grow by 3.1% and hit $197bn in 2021. By 2025, the European market is set to reach a $208bn value.
However, statistics show that the US consumer electronics market, as the second-largest globally, is set to witness even more impressive growth in the following years. After falling by $3.3bn in 2020, consumer electronics sales in the country are expected to grow by 5% YoY to $138.7bn this year. In the next four years, the US market will grow by another 6% and reach a $147.3bn value.