As much as $88 billion has been wiped from the forecast CE trade value for 2020, it’s been reported.
While 2019 was a strong year for the Consumer Electronics industry, the COVID-19 pandemic in 2020 has altered the outlook significantly. “Some categories such as TVs and laptops performed well in H1 2020 as a result of consumers’ response to lockdown,” says Simon Forrest, Principal Technology Analyst for Futuresource Consulting. “However, in many cases, this is expected to have drawn sales forward from H2, which is likely to be impacted by the economic repercussions.”
The pandemic has dented consumer confidence and disrupted global supply chains, reports Futuresource – and we’re in for a bumpy few months yet, with analysis showing a further $66 billion deficit globally in 2021 trade value compared to previous forecasts. “Nevertheless, the market shows resilience and we expect it to rebound reasonably quickly, returning to growth next year and with value largely restored to pre-COVID levels by Q4 2022,” comments Forrest.
It’s a stark contrast to 2019. Last year, the global Consumer Electronics business represented a worldwide total of $683 billion in trade value. Shipments across CE product categories totalled almost 4.4 billion units worldwide, representing a growth of 2.7 per cent year-on-year.
According to Futuresource’s latest Worldwide Consumer Electronics Report, the boom was driven primarily by connected products. Futuresource notes there is a clear move towards companies presenting a portfolio of connected products, designed to work together and attract consumers to invest in vendor-specific ecosystems. The biggest growth in 2019 was across headphones, wearables and smart home. .
Despite 2020’s decline, the market analyst says the long-term outlook for CE remains positive The market is expected to increase 20 per cent in volume to total 5.2 billion-unit shipments annually worldwide in 2024.