The year of 1970, where videocassette recorders (VCRs) were first produced, is the era where consumer electronics market began. Any device that contains an electronic circuit board falls under the category of Consumer electronics. This includes televisions, cameras, digital cameras, PDAs, calculators, VCRs, DVDs, clocks, audio devices, headphones, tablets, smartphones and many other home products.
According to Statista, the revenue in the “Consumer Electronics” segment amounts to US$245,160m in 2017. Revenue is expected to show an annual growth rate (CAGR 2017-2021) of 11.6 % resulting in a market volume of US$379,790m in 2021. User penetration is at 23.3 % in 2017 and is expected to hit 29.1 % in 2021 while the average revenue per user (ARPU) currently amounts to US$267.94. From a global comparison perspective it is shown that most revenue is generated in China (US$81,696m in 2017).
The consumer electronics market has been rapidly growing and its manufacturers are competing through the production of quality electronics to the design and innovation. Each year they create something better, everything is always new, and connected. Millennials prefer to be connected online, that is why manufacturers focus more on “Internet of Things”. The Internet of Things (IoT) is a computing concept that describes a future where every day physical objects will be connected to the internet and able to identify themselves to other devices, according to Techopedia. “It’s apparent that the most notable trends in consumer electronics are wearable and smart-home tech (IoT). Additionally, 3D-printing devices and technology have advanced in features and capabilities dramatically,” says John Francis, Los Angeles-based Hawthorne’s director of digital strategy.
The top 10 leading brands in the CEM of 2017 would include Toshiba at top 10, with revenue 11.62 Billion and profit (USD) of (6.1) Billion. Ranked at 9 would be Fujitsu, with their sales revenue of Revenue (USD) of 10.23 Billion and profit (USD) of 0.34 Billion. At number 8, is HP or Hewlett Packard. Their sales revenue is 11.89 Billion with a profit of 0.78 Billion. At number 7, is LG with their sales revenue of 11.66 Billion and profit (USD) of 2.92 Billion. At top 6 would be Dell, with revenue (USD) of 16.25 Billion and Profit (USD) of 3.9 Billion. For the top 5, it would be Panasonic with sales revenue of 17.52 Billion and Profit (USD) of 1.1 Billion. Top 4, is Sony with sales revenue of 23.66 Billion and Profit (USD) of 1.77 Billion. Top 3, is Microsoft with Sales Revenue of $20.53 billion and Profit of $12.5 billion. Top 2, is Samsung with sales revenue of $40 billion and profits of $4.6 billion. For the number 1 spot is Apple, with revenue (USD) of 42.36 Billion and a Profit (USD) of 16.11 Billion.
The continued expansion of the Consumer electronics market is what excites the consumers keeping them interested and engaged. For those in the CE product space, or marketers who use CE to reach consumers, following trends and adapting novel strategies will determine their spot in the industry.