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Consumer Electronics Market: Breakthroughs That Will Shape the Future

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Global Consumer Electronics Industry

The world consumer electronics market is expected to see yearly growth of 7% between 2012 and 2015, according to RNCOS. The 3D TV will be the fastest-growing segment, with TV makers adding a 3D feature to their high-definition flat screen products more systematically.

World consumer electronics sales are predicted to record 10% growth in 2011, reaching almost $965 billion, compared with 13% in 2010 when sales reached close to $875 billion, reports the Consumer Electronics Association.

Consumer Electronics Key Market Categories

The global consumer electronics industry involves the manufacture, distribution and sale of communications and entertainment devices such as digital and video cameras, telephones, stereos MP3 players, DVDs, VCRs, calculators and televisions. A great deal of manufacturing takes place in regions were labor costs are relatively low such as Asia. Company profiles are varied, ranging from large multinational firms employing more than 100,000 workers to small firms producing one product, with less than 50 employees. A major challenge faced by consumer electronics manufacturers of all sizes is securing copyright to products.

The global home audio equipment market is expected to generate revenue of over $20 billion by 2015, reports Global Industry Analysts. The market is fuelled by technological advances, innovative products and demand for top-quality new generation audio technologies. Market expansion is particularly rapid in Asia-Pacific, the Middle East and Latin America due to rising disposable income and a huge degree of urbanization.

The world TV and video market industry expanded by more than 6% in 2010 to reach almost $192 billion, according to MarketLine. The market is expected to exceed $270 billion in 2015, showing over 40% growth in five years. TV represents the largest market share at almost 86% of the overall market. Asia-Pacific holds over 35% of the market in terms of value.

Flat panel display (FPD) demand is predicted to rebound from its recession lows to reach almost $103 billion by 2015, reports Global Industry Analysts. Greater purchasing power, recovering employment rates, rising disposable incomes and increasing (FPD) functions will continue to drive demand.

The world games software market is expected to reach almost $54 billion in 2014, according to MarketLine. Console games represent almost 90% of the overall market and in regional market terms, the Americas represent 43% of the overall market. Consolidation is a major factor in the industry, allowing games software sellers to snap up greater market share. Leading products include Xbox One, Playstation 4 and the Nintendo Wii U.

The global home entertainment software market generated sales of almost $30 billion in 2010, reports MarketLine. Console software leads the market, reaching close to $23 billion in 2010, or over 77% of the overall market. Market growth is expected to slow to less than 4.5% yearly through 2015, remaining under $34 billion. Digital entertainment content demand is fuelled by a shift to online and mobile platforms, with homeowners watching TV and videos on-demand, play games and store music and movie collections with access from within the home and outside.

Consumer Electronics Regional Market Share

US consumer electronics sales are expected to grow by 15% in 2011, according to the Consumer Electronics Association. It is predicted Western Europe will see almost 25% growth, China 15%, Asia 12%, South America 10%, Africa 7%, Eastern Europe 5% and the Middle East 4%.

The US is the leading market region in the world consumer electronics industry, followed by China, reports RNCOS. More than 65% of US homes had a HDTV in 2010. Digital TV penetration in China and India is set to break the 50% threshold by 2015.

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