The consumer electronics industry has greatly changed in the past few years, including smartphones, TVs, and laptops. People want devices that are smarter and can do more things. Because technology keeps improving, the industry is always improving, too, and companies need to keep up with the new technologies to stay competitive.
Based on new insights from the latest market research reports, here’s a look at the top trends shaping the consumer electronics industry in 2024 and beyond.
Increasing Demand for Consumer Electronics
The consumer electronics industry, including smartphones, TVs, and laptops, has been getting more popular lately, and experts think this trend will continue. The global retail value sales will attain a 4% CAGR over the next five years. Analysts believe that this growth will occur because more individuals, particularly in developing regions, are earning higher incomes and are eager to purchase more electronic gadgets. So, as more people worldwide have more money to spend, they’ll be buying more electronic stuff.
The Rise of the Internet of Things
The Internet of Things (IoT) connects everyday objects, like appliances and gadgets, to the Internet so they can communicate and do more. The IoT market was an estimated $1.3 trillion in 2022 and might reach $3.3 trillion by 2030, rising at a CAGR of 12.4%. For example, think about how you can use your voice to tell Alexa a speaker or Hey Google to turn on the lights or adjust the temperature in your home. Companies like Google and Amazon have created electronic devices, such as lighting, temperature, and security systems, that use voice commands to control various devices in the home.
Opportunities Related to Artificial Intelligence
This AI technology is used a lot in making electronic appliances like phones, smartwatches, home appliances, and even virtual assistants like Siri or Alexa much smarter. Therefore, we can observe that the Internet of Things (IoT) represents a significant advancement in artificial intelligence. Many large companies, such as LG, Samsung, and Whirlpool, are incorporating AI into their products to enhance the user experience. Companies are gaining an advantage from AI technology as it helps them create a hyper-personalized experience for the customer. Big companies do not just use AI, but it’s also used in phones, smartwatches, and even things in your home, like your fridge or lights, which can be upgraded with AI.
Promising Augmented Reality and Virtual Reality
There is a new trend that highlights the advancements in virtual reality (VR) and augmented reality (AR). Big companies such as Meta, Google, and Apple are developing new gadgets to enhance the technological experience for their users. During the 2023 CES, many innovations were using VR and AR technology, including VR headsets that let users play visual video games, make virtual friends, visit new VR worlds and social spaces, watch videos, or participate in virtual meetings.
Apple plans to release its AR headset soon, which people call interactive goggles. However, Apple has its issues among itself and is facing difficulties as other big companies have tried but have struggled to sell products similar to Apple’s interactive goggles. This AR headset is expected to cost around $3,000 and can be used for video calling, talking with other virtual characters, or for artists and engineers to use in their work.
While these technologies are still a work in progress, analysts at Technavio are still determining its market growth. It is said to increase at a CAGR of 52.37% from 2023 to 2027.
Importance of Sustainability
The consumer electronics industry is mainly focused on two main matters, which are as follows:
- Technological advancements: Technologies like the IoT, AI, AR, and VR are making new gadgets more appealing and easier to customers while also being very helpful for companies as these advancements help reshape and transform the electronic world.
- Lastly, there is a growing focus on sustainability, with companies increasingly striving to reduce their ecological impact by adhering to the guidelines established by governments, particularly in the EU. These rules are set to make product repair easier, boost energy efficiency, and ensure the recyclability of products.
Wrapping up
More and more companies are realizing that it is not just about sticking to the rules; it also gets them noticed by investors and partners who care about environmental and social well-being and governance issues. Being sustainable will help them perform better against their competitors and gain public attention, which is a great marketing technique. Sustainability gives companies a chance to do better and shine in their field.
