Like many other sectors, the consumer electronics market has also been affected by the COVID-19 crisis. The surge in global demand for PCs abated the pandemic’s negative effect on consumer electronics spending, which still slipped to $1.02trn in 2020.
According to data presented by Stock Apps, global consumer electronics revenues are expected to grow by 3.6% year-over-year and hit $1.06trn in 2021.
Phone Sales to Generate 50% of Consumer Electronics Revenues
The global consumer electronics sector has witnessed a steady growth in recent years, with revenues rising from $844.7bn in 2012 to $1.03trn in 2019, revealed Statista data.
However, with supermarkets and showrooms of leading brands shut down during the COVID-19 lockdown and consumers across the globe prioritizing their spending, the sales of consumer electronics products slipped by $7bn in 2020.
The Statista data show global consumer electronics spending is expected to rise by $36bn and reach $1.06trn in 2021. By 2025, the unified market is forecast to hit a $1.16trn value.
Global phone sales, including landline phones, mobile phones and smartphones, are expected to jump by 5.7% YoY and generate $512.1bn or almost 50% of total revenues in 2021.
Despite a surge in demand for PCs due to remote working and distance learning, the computing segment’s revenue is expected to rise by only 1.8% and reach $280bn this year.
The revenues of the TV, radio, and multimedia segment are set to rise by 1.1% year-over-year to $255.4bn in 2021. TV peripheral devices market follows with $9.4bn in sales, 8.8% more than a year ago. However, statistics show that the drone market is expected to witness the biggest growth in 2021, with revenues rising by 18% in a year to $3.5bn.
With millions of consumers shifting from brick-and-mortar stores to online shops, e-commerce became the key driving factor of the consumer electronics market. The Statista survey revealed that online sales is expected to generate 38% of global consumer electronics revenues in 2021, up from 32% before the COVID-19 pandemic.
Chinese Market to hit $258B Value in 2021, more than US, India and Brazil Combined
Analyzed by geography, China represents the world’s largest consumer electronics market, forecast to generate $258.8bn in revenue in 2021, more than the other three leading markets combined. The country also shows the highest online shopping adoption, with 63% of consumers expected to make consumer electronics purchases in web shops this year.
After falling to $130.2bn in 2020, the revenues of the US market, as the second-largest consumer electronics market globally, are forecast to rise to $133.5bn this year.
However, statistics show India is set to witness the biggest growth among the top five markets, with revenues rising by 5.1% YoY to $50.8bn in 2021. Brazil and Japan follow with, $49bn and $42.8bn in revenue, respectively.