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Global Spending on Consumer Electronics to Crash by $5.3bn, Smartphone Worst Hit  

Global Spending on Consumer Electronics to Crash by $5.3bn, Smartphone Worst Hit  

After record sales during the pandemic, the global consumer electronics market has had a challenging two years. High inflation and gloomy economic outlook cut down consumer budgets and significantly changed their spending habits, with many focusing their reduced disposable income on travel and leisure activities rather than tech. This low-demand landscape is expected to continue pushing the market into the red.

According to data presented by Stocklytics.com, global spending on consumer electronics is expected to drop by $5.3 billion in 2024.

Smartphones to See the Biggest Sales Drop

The not-so-optimistic 2024 market projections come as a new burden for the consumer electronics industry, pushing it even further from the pre-pandemic growth rates and those seen in the first year of lockdowns. According to a Statista survey, revenue is expected to decline by $5.3 billion or 0.5% this year, and most of that drop will come from smartphone sales, the market`s largest segment.

Last year, consumers worldwide spent $498 billion on smartphones and landline phones, 5.3% more than a year before. However, Statista expects 2024 to see a considerable downturn, with global spending on these devices plunging by $11.6bn to $486.7 billion.

The computing segment, which includes desktop PCs, laptops, tablets, keyboards, and monitors sales, is expected to witness the second-largest decline. Statista expects consumers to spend roughly $314 billion on these devices in 2024, or $500 million less than last year.

However, all other market segments will grow this year. After a weak 2023, triggered by falling demand for TVs, radios, and multimedia devices, like digital cameras, headphones, and speakers, global spending on these devices is expected to jump by $4.6 billion year-over-year and hit $195.1 billion in 2024.

The gaming equipment segment will also grow, with consumers worldwide spending $1.2 billion more on these devices than last year. TV peripheral devices, like video players, smart remotes, and streaming devices, follow with a $900 million year-over-year growth and $12 billion in total revenue in 2024.

Statistics also show that 78.3% of total consumer electronics sales in 2024 will come from brick-and-mortar stores, the same as last year. Online sales will make up the remaining 21.7% of sales.

Chinese Market Facing the Biggest Revenue Drop, Indian Consumer Electronics Sales to Grow by 5% in 2024

In global comparison, China is the world`s leader in consumer electronic sales, expected to generate roughly one-fifth of total revenue this year. However, Statista expects the Chinese market to see the biggest revenue drop, falling by 5% to $218.6 billion in 2024. As the second-largest consumer electronics market, the United States will also see a downturn, with revenue falling by 0.5% to $160 billion. Japan and Brazil follow with a 1.2% and 0.6% decline, and $44.1 billion and $35.5 billion in revenue, respectively.

Unlike these four markets, the Indian consumer electronics sector is the only one expected to grow in 2024. Last year, the Indian market generated $69.5 billion worth of consumer electronic sales. Statista expects this figure to jump by 5% and hit $73.1 billion this year.

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