Consumer Trends in the Global Electronics Market

Published Date : Sep 08, 2014

The global electronics market finds its application in relatively every industry. This market is a rapidly evolving market and is fuelled by innovative technical developments. The global electronics industry is entering into the era of convergence where completely different streams of digital technology are merging, which has resulted in removal of entry hurdles across several market sectors.

These innovative technologies have generated a robust demand for consumer electronics such as entertainment products, home appliances, telecom equipments, computer peripherals, etc. It has been forecasted by market analysts that by the end of 2015, the global market of consumer electronics will account for USD 1.4 trillion.

Market Dynamics of Electronics Industry

The dynamics of electronics market alternates depending on the inhibitors, drivers, and opportunities.

The factors which suppress the growth of this industry are lack of IT infrastructure in some parts of the world and computer illiteracy. Also, insufficient data and message security tends to inhibit certain companies and consumer from dwelling into e-commerce, due to unacceptable risk factor. Hierarchical transaction governance also prevents the growth of the market.

Nevertheless, there are many contributors to the growth of the electronics market. Digitalized products are high in demand, and they are available at affordable costs. E-commerce markets decrease the search costs which enable consumers to find sellers that offer products for lower prices.

Also, the shifting consumer trends contribute towards the growth of electronics industry. Consumers can be classified as patient, impulsive, or analytical. Impulsive consumers purchase products quickly with little analysis, while patient consumers purchase products after comparing products. Analytical consumers after substantial research make the decision to buy a product. A high percentage of sales are generated in the market from impulsive consumers.

Segmentation of the Electronics Market

The consumer electronics industry is segmented according to product type into video equipment, high definition consumer electronics, television market, audio products, telecom equipment, computer products, and home appliances.

The prices of flat-panel televisions such as plasma, LCD, and DLP are declining over thirty percent per year. Large screen HDTVs are becoming common in homes, and HD content is available over cable, broadband, satellite. Consumers experience the comfort and convenience of high definition video at home.

Telecom products segment provides consumer electronics which can be used by consumer while travelling or at home to stay connected. Previously, laptops were used to access email and surf the Internet. Currently, mobile broadcast services for handheld devices have become common. Consumers also have access to wireless connectivity technology that can be accessed from smartphones, tablets, and laptops.

Earlier, there were media-centric devices such as portable media players and televisions, and there were data-centric devices such as PDAs and PCs. Currently, the line between these two types of electronics is blurring and consumers are demanding for electronics which provide the functions of both. New generation gadgets can handle both data and media. This has resulted into companies that primarily focus on data or media to compete with each other fiercely to provide consumer with innovative, multi-purpose products.

Global Scenario of the Electronics Market

The electronics industry according to geography is segmented into U.S., Europe, Asia Pacific, and Rest of the World. The demand for electronics continues to grow in the developed nations of U.S. and Europe. However, the highest growth will be witnessed in the emerging economies of Asia Pacific, which is driven by the higher disposable incomes of consumer and the burgeoning Internet connectivity. Consumer electronics which provide luxury and comfort are high in demand in the emerging economies.

Some of the leading companies in the electronics industry are Apple Inc., LG Electronics Inc., Samsung Electronics Co. Ltd., Sony Corporation, Koninklijke Philips Electronics N.V., Panasonic Corporation, Sharp Corporation, and Toshiba Corporation.