Research company MarketLine has announced its latest findings on the global electrical and electronics retail market.
Having experienced healthy growth in recent years, registering a compound annual growth rate (CAGR) of 5% between 2011 and 2015 to reach a value of almost $1.01 trillion, MarketLine is forecasting continued growth to a global market value of $1.47 trillion by 2020.
MarketLine’s latest report shows that while market values have increased in all regions, global growth is primarily driven by Asia’s growth economies, as swelling middle classes begin to invest in technology products.
MarketLine analyst Jamie Coogan explained: “Those in lower income brackets have started to purchase what they may have once deemed unaffordable luxury items, while more affluent consumers are purchasing high-spec branded goods manufactured by the likes of Apple, LG and Samsung.
“Thanks to dynamic growth in countries like China, India, and Vietnam, the Asia-Pacific (APAC) region now accounts for over 38% of the total global market in value terms, a higher percentage than any other region.”
MarketLine believes APAC’s performance will generally drive growth, albeit mixed. For example, China, India and Vietnam look set for continued strong growth, but a minimal rise in market value is the best that Japan and South Korea can hope for.
Jamie continued: “Globally, the market has shown robust growth in recent years, and forecasts suggest that it will pick up pace as several regions perform well. Asia will continue to grow strongly, North America will maintain its trends, and Europe will see a significant upturn as previously dormant demand for high-end products starts to materialise.”
Despite this, competition is expected to intensify in the consumer electronics market, with televisions facing a particularly difficult future, MarketLine adds.
Jamie noted: “Televisions, one of the largest components of the consumer electronics segment, may struggle to shift more units as innovative complementary products and streaming services such as Google Chromecast or Netflix can be operated without the need for upgrading.”