Following a surge in sales during the pandemic, the consumer electronics market has faced a difficult three years, as inflation and economic uncertainty have reshaped consumer spending habits.
Reduced demand has led to a significant drop in revenue, pushing the market far below pre-pandemic levels. While recovery is anticipated in 2025, the latest forecasts suggest that the rebound will be slower than previously expected.
According to new data from Stocklytics.com, global consumer electronics sales are projected to reach $977 billion in 2025, falling short of earlier predictions by $100 billion.
Lower growth expectations: annual rate falls to 2.9%
The global consumer electronics market has fluctuated in recent years as consumers adapted their spending to address rising costs and inflation. Despite a slight recovery in 2023, sales are expected to decline by $6 billion, or 0.6%, in 2024, following a more substantial 4.3% drop in 2022.
Although a recovery is expected in 2025, the Statista Market Insights survey presents a more cautious outlook. In March, Statista forecasted that global consumer electronics sales would reach $1.04 trillion in 2025. However, that estimate has since been revised down by 8%, with sales now expected to hit $949 billion by the end of this year. The 2025 forecast has similarly been reduced, from $1.07 trillion in March to $977 billion as of July.
Looking ahead, the revenue gap between the two forecasts grows even larger. By 2028, global consumer electronics sales are now expected to reach $1.06 trillion, down from the earlier forecast of $1.17 trillion – a difference of $112 billion. The annual growth rate has also been revised, with the previously projected figure of around 3% now adjusted to between 2.8% and 2.9%.
Key drivers: smartphones, gaming equipment, and TV peripheral devices
Despite the revised forecast, the revenue breakdown by device type remains consistent. Smartphones, gaming equipment, and TV peripheral devices are expected to drive revenue growth in 2025, helping the market recover from the downturn in 2024.
Global smartphone spending is forecast to grow by 3.6%, reaching $504 billion in 2025, up from $486 billion in 2024. The gaming equipment segment is expected to mirror this growth, with revenue increasing by 3.6% year-on-year to $35.3 billion in 2025.
However, the fastest growth is expected in the TV peripheral devices segment. Consumers are projected to spend nearly $13 billion on products like smart TV boxes, streaming sticks, and video players in 2025, representing a 7.8% increase over the previous year – the highest growth rate among all consumer electronics categories.
In contrast, other sectors will see more modest growth. Revenue from computing devices, drones, and TV, radio, and multimedia equipment is expected to rise by 2.1, 2.4, and 1.8%, respectively, year-on-year.
Conclusion: a cautious recovery ahead
While the consumer electronics market is set for a recovery in 2025, the latest data reflects a more measured rebound than initially expected. Rising inflation and changing consumer priorities have reshaped the landscape, with growth rates slowing and revenue forecasts being revised downward. Despite this, smartphones, gaming equipment, and TV peripherals are expected to lead the charge in restoring growth to the sector.
