Consumer electronics market to see modest recovery

Global spending on consumer electronics is expected to plunge by $5 billion in 2024, marking the second drop in the past three years, According to data presented by Stocklytics.com. While the negative trend is forecasted to stop in 2025, market projections show a modest recovery, with growth rates remaining far from those seen in previous years. The data also shows revenue in the global consumer electronics market is expected to grow by 3% and hit $1.07 trillion in 2025.

TV peripherals, gaming equipment, smartphones

After record sales during the pandemic, the consumer electronics market has had a challenging three years, as inflation and a gloomy economic outlook cut down consumer budgets and changed their spending habits. This low-demand landscape pushed the market far from the pre-pandemic growth rates and those seen in the first year of lockdowns.

According to Statista Market Insights, the global consumer electronics market is expected to generate $1.04 trillion in revenue in 2024, or $5 billion less than last year. Most of that drop will come from smartphone and PC sales, the market`s two largest segments.

However, Statista expects that to change next year, with smartphone sales and gaming equipment driving the market recovery. Global spending on consumer electronics is expected to grow by 3% and hit $1.07 trillion in 2025. Smartphones will outperform the market, growing by 3.6% and reaching $504 billion in revenue, up from $486 billion this year.

The gaming equipment segment will see identical growth, with revenue rising by 3.6% year-over-year to $35.3 billion next year. However, that is only half the growth rate expected in the TV peripheral devices segment. Statista expects consumers worldwide to spend almost $13 billion on streaming devices, like smart TV boxes, streaming sticks, and video players, or 7.8% more than this year, the biggest increase of all market segments.

Computing, drones, and TV, radio, and multimedia will see much lower growth rates, with their revenues rising by 2.5%, 2.4%, and 1.8% year-over-year, respectively.

Total spending to increase $100B

Although the annual growth rate in the consumer electronics segment will remain around 3%, much less than those seen before the pandemic and in the first year of lockdowns, total spending on these devices will still significantly increase in the following years.

Statista expects consumers worldwide to spend $1.17 trillion on PCs, smartphones, gaming equipment, TV, and multimedia in 2028, or $100 billion more than this year. Smartphone sales will make up 47% of that figure, with a projected $560 billion in revenue in 2028. PCs, TV, radio, and multimedia will also account for 47% of total sales, generating $557 in combined revenue in the same year.