Consumers are hanging on to their devices longer and holding back on big-ticket buys, so sales fall in 2026. But they will still fork out when the upgrade is worth paying for, and growth to 2031 comes from affordable portables and emerging markets where value drives the purchase.
Delivery
This report comes in PPT.
Key findings
Populous Asia Pacific drives growth
Emerging markets to propel forecast sales as developed markets faced slowdown due to high penetration of electronics products. Rising incomes and a vast pool of digitally savvy consumers in emerging markets especially in Asia Pacific will drive demand for electronic products.
2026 is the year of correction
Sales fall in 2026 as consumers hang on to their devices longer and hold back on big-ticket purchases such as smartphones, laptops and tablets. Sales of smartphones and laptops are set to fall 6.8% and 7.4%, respectively, year on year.
Between a rock and a hard place
Apple and Samsung pulled further ahead on ecosystem and product quality while Xiaomi, Anker, Boult and Noise picked up value-conscious buyers. Oppo and Vivo lost share, lacking both a premium differentiator and a distinct value proposition.
Recovery in 2027 but in a more measured way
Retail volumes are projected to grow at a 2.7% CAGR to 2031 as confidence improves and AI gives consumers a reason to upgrade again. Emerging markets do most of the work while developed markets rely on premiumisation and replacement demand.
E-commerce propels portable electronics sales
Consumers buy smartphones, earbuds and wearables online because they can compare specs, reviews and prices easily. Specialist retailers still matter for televisions and premium home entertainment where a demo, advice and installation close the sale.
Consumer Electronics snapshot
Key findings
Modest forecast growth but consumers still spend where it counts
Our expert’s view of Consumer Electronics in 2026
Top five trends in Consumer Electronics
Top five trends uncovered
Drivers of consumer markets and impact on Consumer Electronics
Gaming, online channels and shifting lifestyles reshape demand
A quick but measured recovery despite sales entering 2026 in correction mode
Affluent markets dominate household spend but category growth varies by market
Emerging markets power growth amid slower expansion in developed economies
Value for money, longer upgrade cycles and mainstream AI define consumer behaviour
Premium and value players strengthen position at expense of mid-market players
Smaller brands thrive by delivering premium features at accessible prices
Market fragments at value end while premium leaders consolidate share
Affordability and selective premiumisation shape 2026 as big-ticket purchases fall
Polarised market where premium leaders and value challengers capture growth
E-commerce driven by portables while specialist retailers remain key for big-ticket items
E-commerce is lowering barriers to entry and intensifying competition
Specialist retailers remain relevant despite the rise of e-commerce
Future growth opportunities vary by category and market
Growth opportunities extend beyond traditional key markets
Portable consumer electronics dominate regional growth opportunities
Longer replacement cycles continue to weigh on consumer electronics demand
Portables drive growth despite longer replacement cycles
Resilient sales balancing longer replacement cycles against emerging markets growth
Opportunities for growth
Our expert’s view of Consumer Electronics to 2031
Consumer Electronics
Consumer Electronics refers to the sales of Computers and Peripherals, In-Home Consumer Electronics, In-Car Entertainment and Portable Consumer Electronics to the end consumer.
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