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Consumer Electronics Market: Opportunities in 2023 & Beyond

Consumer Electronics January 18, 2023

Consumer Electronics Market: Opportunities in 2023 & Beyond
Kishor Venkatesh R

Content Developer

Contributors

Purushothaman
Purushothaman

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  • Automation in major industries has helped smart white goods grow. Smart and internet-enabled devices and appliances are preferred for convenience and to avoid repetitive work.
  • Adopting AI and IoT by leading players boosts the home appliances market. The market is expected to grow at 10.16% until 2026 to USD 1 Tn.
  • Service providers offer smart manufacturing solutions, connected product innovation, process automation solutions, cloud services, and more.
  • Companies are integrating AR, VR, deep learning, and computer vision to offer hyper-personalized experiences.
  • Download the report to access detailed insights on emerging trends and challenges and identify opportunities to micro-target.

    The white goods consumer market is expected to grow at a CAGR of 10.6% during the forecast period of 2021 to 2026. It is expected to reach USD 1 Tn in 2026 from USD 635.4 Bn in 2021. 

    With the rapid growth consumer electronics industry, companies are using technology to develop AI-driven consumer electronic products. Companies are investing heavily in IoT, deep learning, and AI as internet use and urbanization rise. 

    There is higher internet penetration, and 5G is emerging 

    With five billion people globally, 63% of the global population will use the internet in 2023. Northern Europe has 98% internet penetration. It is 67.4% in Asia. By 2030, 7.5 billion users, or 90% of 8.5 billion potential world inhabitants, are expected to use the internet. 

    China, India, and the US are top Internet users. China reached 1 billion users in February 2022, and it will have 29 billion consumer IoT devices by 2030, up from 9.7 billion in 2020. 

    5G gives us lightning-fast download speeds, low latency, more capacity, and interconnection between billions of devices in VR, IoT, AI, and ML. 

    Consumer behavior is changing 

    All industries are adopting AI to save time and effort. Urbanization and internet use are changing consumer lifestyles and preferences. Their preference for smart devices has boosted the consumer electronics market. 

    There is an abundance of data 

    In consumer electronics, data is available online as audio, video, images, files, etc. Companies have implemented AI, Machine Learning, Deep Learning, and IoT to make the most of these data. These data are used to understand customers’ preferences and engage them. 

    AI chipsets are becoming affordable 

    A decade ago, AI chipsets were unavailable or expensive, so companies didn’t use them. Now, low-cost AI chipsets are flooding the consumer electronics sector. Companies are adopting these AI-optimized, low-cost, reliable, high-performance chipsets. 

    Specialized hardware is becoming abundant 

    Hardware advancements enable faster and more accurate AI processing. 

    Today, we have faster hardware with processes (GPUs), neural network processing units (NNPUs), field programmable gate arrays (FPGAs), application-specific integrated circuits (ASICs), and frameworks to distribute workloads and perform faster real-time computations. 

    NVIDIA’s Jetson TX-2 with Jetpack 3.0 enables server-class AI on edge devices. 

    The use of smart wireless sensors is rising 

    Wireless smart sensors and networks are mainstream, boosting the market. IPv6’s growing address space and improved security solutions boost IoT for consumer electronics. 

    Companies want to remain competitive 

    Companies must use AI to stay competitive. They’re prioritizing customer experience. Customers prefer devices that improve communication and convenience. 

    How New Tech is Influencing Consumer Devices 

    Let us look at five applications to gain a deeper understanding. 

    Smart mobile phones 

    Today’s smartphones combine cloud-based and hardware-based AI. Mobile phones can help with precise decision-making and quick actions by extending analytics services at the edge. 

    With machine learning, handsets can learn from user habits and develop personalized profiles. 

    AI-powered iPhone X can identify images, perform searches based on user photos, and convert movement and voice into emojis in real-time. Huawei’s latest devices can identify objects and auto-adjust camera settings to take the best photo. 

    Smart homes 

    AI makes remote monitoring and household control possible with voice commands. These smart home devices do everything from controlling our appliances to making our homes more secure to be companions. 

    Smart refrigerators do not just maintain the temperature. They can track the contents placed inside, develop inferences based on them, and helps maintain a smart inventory and shopping list with minimal user input. 

    Smart ovens use an onboard camera to detect food and populate all possible recipes using already-available items. It can also automate cooking for a specific user based on their profile, cooking preferences, and available ingredients. 

    Additionally, smart washing machines can identify the type of clothes, adjust the number of spins and predict the time required for the washing cycles. 

    Smart camera-based security systems 

    Smart cameras can now record videos, distinguish between activities and take necessary action. Users can train the camera to monitor specific locations, generate alerts, and take real-time actions to protect their assets. 

    Facial recognition can control access, detect motion and sound, and connect to Alexa, Amazon Echo, and Google Home. Cameras can send personalized alerts based on user preferences. 

    Digital personal assistants 

    AI-powered personal assistants use speech recognition. Imagine leaving your home without worrying about work, meetings, locking your door, or turning off electronics, then coming home and relaxing without thinking about food, groceries, or anything. 

    Google, Amazon, and Apple are investing to make these devices smarter and more personalized. 

    Enhanced entertainment systems 

    AI is changing the entertainment industry as it grows. Media companies promote content through machine learning, deep learning, and computer vision. 

    AI helps entertainment companies provide the right content to users, know customer preferences, and promote content. 

    Fitness/wearables products 

    Smart wearables are growing due to their user-friendliness. Smart wearables track, analyze, and improve fitness in real time. 

    It also provides wearables for elderly care, tracks remotely, diagnoses illness remotely, and informs users to care for their health based on the results. 

    Opportunities Overview

    Autonomous devices will help consumers with non-cognitive and repetitive tasks. Demand for abstract user interfaces (voice-based, gesture-based) will rise.

    1. Emphasis on customer experience and cost-savings

    IoT consumer electronics eliminate physical effort and distance. IoT devices increase convenience, free time, and security. IoT in consumer electronics can save budgets by informing owners when using devices and appliances is most cost-effective. 

    Philips integrates AI and IoT in electric toothbrushes, air cleaners, and other home appliances with enhanced cloud control to provide better customer experiences.

    2. Beneficial partnerships and acquisitions

    Providers increase budgets to blend IoT technologies into electronics and encourage IoT-capable products. They also develop IoT protocols for smart home appliances, wearables, HVAC systems, etc. This helps IoT providers and consumer electronics manufacturers. 

    For instance, LG is looking to acquire Alphonso with an investment of USD 80 Mn to strengthen its software and service capabilities in its smart TV lineup. BSH Home Appliances and Plum partner to explore potential smart kitchen appliances.

    3. Higher CAGR and good RoI

    According to research, IoT in consumer electronics will grow by 18% by 2030. This shows a healthy and exponential growth of investments and promises a good RoI in the next seven years. 

    The below infographic shows the opportunity propensity in the short- and long-term.

    Draup conducted a detailed analysis of the consumer electronics white goods industry. The report has information on focus areas, industry outlook, opportunity areas, and more. 

    Samsung, Philips, Haier, Xiaomi, and LG are the top five companies accounting for 80% of the global R&D spending. 

    In addition to the capabilities of Wipro, Accenture, Infosys, HCL, TCS, etc., the report details their strengths, associated micro verticals, and key workloads. Gather key insights into the industry and micro-target micro verticals and digital initiatives. 

    Draup for Sales delivers sales teams with account intelligence and real-time sales signals to find niche outsourcing opportunities and advance various initiatives.

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